[pemeliza]

Although I am strongly opposed to principle forgiveness, I am in favor of government backed financing for homeowners at today’s interest rates on “existing principles” as long as the borrower can afford the payment under reasonable income ratio assumptions (even if the borrower is underwater).

If the homeowner cannot afford the house at 4% then the solution IMHO is foreclosure.

[pemeliza]

Although I am strongly opposed to principle forgiveness, I am in favor of government backed financing for homeowners at today’s interest rates on “existing principles” as long as the borrower can afford the payment under reasonable income ratio assumptions (even if the borrower is underwater).

If the homeowner cannot afford the house at 4% then the solution IMHO is foreclosure.

[pemeliza]

Although I am strongly opposed to principle forgiveness, I am in favor of government backed financing for homeowners at today’s interest rates on “existing principles” as long as the borrower can afford the payment under reasonable income ratio assumptions (even if the borrower is underwater).

If the homeowner cannot afford the house at 4% then the solution IMHO is foreclosure.

[pemeliza]

Keep an eye on the economy and jobs. If we get back to an economy anywhere near what we had in the late 90’s or even the early 2000’s, then the inventory overhang will be worked through very quickly at these prices and interest rates.

[pemeliza]

Keep an eye on the economy and jobs. If we get back to an economy anywhere near what we had in the late 90’s or even the early 2000’s, then the inventory overhang will be worked through very quickly at these prices and interest rates.

[pemeliza]

Keep an eye on the economy and jobs. If we get back to an economy anywhere near what we had in the late 90’s or even the early 2000’s, then the inventory overhang will be worked through very quickly at these prices and interest rates.

[pemeliza]

Keep an eye on the economy and jobs. If we get back to an economy anywhere near what we had in the late 90’s or even the early 2000’s, then the inventory overhang will be worked through very quickly at these prices and interest rates.

[pemeliza]

Keep an eye on the economy and jobs. If we get back to an economy anywhere near what we had in the late 90’s or even the early 2000’s, then the inventory overhang will be worked through very quickly at these prices and interest rates.

[pemeliza]

“Didn’t cost anything? Where do you think that spike in public debt came from?”

The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.

[pemeliza]

“Didn’t cost anything? Where do you think that spike in public debt came from?”

The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.

[pemeliza]

“Didn’t cost anything? Where do you think that spike in public debt came from?”

The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.

[pemeliza]

“Didn’t cost anything? Where do you think that spike in public debt came from?”

The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.

[pemeliza]

“Didn’t cost anything? Where do you think that spike in public debt came from?”

The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.

[pemeliza]

“FWIW, don’t let that house price get you down — from your first link. In the comments, it says that there were foundation and window issues. My guess is that there were some pretty expensive repairs that needed to be done. Maybe figure at least $100K more, at least, if it was in good condition.”

The type of problems described here are routine for older houses. Of course if the windows were not replaced in 80-100 years, for example, you could say that there are problems with the windows. But again that is the case for the majority of houses around here especially in that price range. The listing also mentions an updated kitchen which may have happened after the 2001 sale.

I agree that the economy was far better in 2000-2001 than it is now even though the tech bubble was in the middle of an implosion.

On the other hand, interest rates were much higher as well so on a monthly payment basis today’s buyer is getting a much better deal than the 2000-2001 buyer as long as they plan on staying put.

“If there is any one “homeowner” group that I do feel sorry for, it’s the ones who bought prior to 2002/2003, using a 20% down payment, and who might not have known there was a bubble.”

Ultimately how this group of homeowner’s reacts to the lower prices may be the key to the direction of the market over the next several years. If they start to bail in mass that could trigger another leg down. If they were prudent they could probably refinance into a 15 year fixed rate, lower their monthly payment, and ride out the storm. It remains to be seen how many of them were prudent and didn’t take out their equity during the bubble years.

[pemeliza]

“FWIW, don’t let that house price get you down — from your first link. In the comments, it says that there were foundation and window issues. My guess is that there were some pretty expensive repairs that needed to be done. Maybe figure at least $100K more, at least, if it was in good condition.”

The type of problems described here are routine for older houses. Of course if the windows were not replaced in 80-100 years, for example, you could say that there are problems with the windows. But again that is the case for the majority of houses around here especially in that price range. The listing also mentions an updated kitchen which may have happened after the 2001 sale.

I agree that the economy was far better in 2000-2001 than it is now even though the tech bubble was in the middle of an implosion.

On the other hand, interest rates were much higher as well so on a monthly payment basis today’s buyer is getting a much better deal than the 2000-2001 buyer as long as they plan on staying put.

“If there is any one “homeowner” group that I do feel sorry for, it’s the ones who bought prior to 2002/2003, using a 20% down payment, and who might not have known there was a bubble.”

Ultimately how this group of homeowner’s reacts to the lower prices may be the key to the direction of the market over the next several years. If they start to bail in mass that could trigger another leg down. If they were prudent they could probably refinance into a 15 year fixed rate, lower their monthly payment, and ride out the storm. It remains to be seen how many of them were prudent and didn’t take out their equity during the bubble years.

[Author]

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