[PerryChase]

I don’t listen to these stations either. But love your style and your comments.

[PerryChase]

I wanted to revive this thread for a little historical perspective. It was only less than 1 year ago that powayseller started this thread and was savaged.

According to the MSM we are already at 573k foreclosures in 2007.
http://abcnews.go.com/Video/playerIndex?id=3437816

2 millions foreclosures is now being thrown around as something inevitable.
http://realtytimes.com/rtcpages/20070608_nationdoomed.htm

Realty trac says that there were 1.2 million foreclosures in 2006
http://originatortimes.com/content/templates/standard.aspx?articleid=2274&zoneid=5

History can teach us a lot.

Now the questions are how many total foreclosures have there been since the peak? And where are those foreclosures in the resale/liquidation process?

[PerryChase]

I wanted to revive this thread for a little historical perspective. It was only less than 1 year ago that powayseller started this thread and was savaged.

According to the MSM we are already at 573k foreclosures in 2007.
http://abcnews.go.com/Video/playerIndex?id=3437816

2 millions foreclosures is now being thrown around as something inevitable.
http://realtytimes.com/rtcpages/20070608_nationdoomed.htm

Realty trac says that there were 1.2 million foreclosures in 2006
http://originatortimes.com/content/templates/standard.aspx?articleid=2274&zoneid=5

History can teach us a lot.

Now the questions are how many total foreclosures have there been since the peak? And where are those foreclosures in the resale/liquidation process?

[PerryChase]

I wanted to revive this thread for a little historical perspective. It was only less than 1 year ago that powayseller started this thread and was savaged.

According to the MSM we are already at 573k foreclosures in 2007.
http://abcnews.go.com/Video/playerIndex?id=3437816

2 millions foreclosures is now being thrown around as something inevitable.
http://realtytimes.com/rtcpages/20070608_nationdoomed.htm

Realty trac says that there were 1.2 million foreclosures in 2006
http://originatortimes.com/content/templates/standard.aspx?articleid=2274&zoneid=5

History can teach us a lot.

Now the questions are how many total foreclosures have there been since the peak? And where are those foreclosures in the resale/liquidation process?

[PerryChase]

Good post bugs. Yeah, poof, 28% of the value of homes can disappear just because of financing alone — just like that. Add in the confluence of other factors and greater declines are possible.

Where’s powayseller? Everything she predicted is coming true.

I remember about 1 1/2 years ago posting that borrowers lied on their applications. I was accused of being dishonest. Where are all the pollyannas now?

[PerryChase]

Good post bugs. Yeah, poof, 28% of the value of homes can disappear just because of financing alone — just like that. Add in the confluence of other factors and greater declines are possible.

Where’s powayseller? Everything she predicted is coming true.

I remember about 1 1/2 years ago posting that borrowers lied on their applications. I was accused of being dishonest. Where are all the pollyannas now?

[PerryChase]

kaycee, was there a broker? If so, how was she compensated?

You mentioned that you had your house on the market for 16 months. Was it empty the whole time?

Thanks for sharing your story. It’s a prelude to what’s to happen in San Diego.

——

Personally, I think that if one plans to move within 5 years, one should not buy. In a stagnant market, that will result in a loss after closing costs. Plus it’s not enough time to insure the fixed housing costs vs. increasing rents benefits. That’s especially true with exotic loans.

It was possible in a booming market but I think that those events won’t occur again for another generation.

[PerryChase]

kaycee, was there a broker? If so, how was she compensated?

You mentioned that you had your house on the market for 16 months. Was it empty the whole time?

Thanks for sharing your story. It’s a prelude to what’s to happen in San Diego.

——

Personally, I think that if one plans to move within 5 years, one should not buy. In a stagnant market, that will result in a loss after closing costs. Plus it’s not enough time to insure the fixed housing costs vs. increasing rents benefits. That’s especially true with exotic loans.

It was possible in a booming market but I think that those events won’t occur again for another generation.

[PerryChase]

just to play devil’s advocate here, Rustico. If you have 50% equity of one house spread over several properties, that wouldn’t be 50% equity anymore.

Good for you that were able to use leverage to profit during the boom. Since you’re a general contractor as well as a real estate agent, you must have a beautifully built house.

[PerryChase]

just to play devil’s advocate here, Rustico. If you have 50% equity of one house spread over several properties, that wouldn’t be 50% equity anymore.

Good for you that were able to use leverage to profit during the boom. Since you’re a general contractor as well as a real estate agent, you must have a beautifully built house.

[PerryChase]

Porsche has full page ads for the Cayman at $589/mo lease. The high end is not doing that good if they are doing incentives.

Boat sales are also down.
http://www.signonsandiego.com/news/business/20070801-9999-1b1boat.html

Now, some have argued that the rich are immune so their housing communities are immune as well. I doubt very much that anything under $5 million is immune to the downturn.

[PerryChase]

Porsche has full page ads for the Cayman at $589/mo lease. The high end is not doing that good if they are doing incentives.

Boat sales are also down.
http://www.signonsandiego.com/news/business/20070801-9999-1b1boat.html

Now, some have argued that the rich are immune so their housing communities are immune as well. I doubt very much that anything under $5 million is immune to the downturn.

[PerryChase]

Ending the mortgage interest deduction during a real estate downturn when few buyers exist will not have much effect on prices because people already aren’t buying. It’ll prolong the downturn a few years but in the long run that’ll be good for economy.

1. Prices will be more affordable for the masses.
2. Our standard of living will increase because owner and renter will have access to the same quality homes, since we no longer favor on over the other.
3. People will save some of their money instead of investing in homes. That money will be available to be invested in factories, research and other productive uses.
4. People will spend some of their money on consumption thus boosting the economy.

It’ll take a few years of adjustment but we’ll be fine. We didn’t have the mortgage interest deduction before and we can do without it again.

[PerryChase]

Ending the mortgage interest deduction during a real estate downturn when few buyers exist will not have much effect on prices because people already aren’t buying. It’ll prolong the downturn a few years but in the long run that’ll be good for economy.

1. Prices will be more affordable for the masses.
2. Our standard of living will increase because owner and renter will have access to the same quality homes, since we no longer favor on over the other.
3. People will save some of their money instead of investing in homes. That money will be available to be invested in factories, research and other productive uses.
4. People will spend some of their money on consumption thus boosting the economy.

It’ll take a few years of adjustment but we’ll be fine. We didn’t have the mortgage interest deduction before and we can do without it again.

[PerryChase]

Interesting topic.

Personally I don’t believe in government intervention because when they intervene, people will figure out ways to obviate government action.

Mortgage interest deduction was supposed to make houses more affordable. But the market automatically priced in the subsidy into the price of homes.

When the Federal government took away the non-mortgage interest deduction, people simply took out home equity loans to make their car and appliance purchases. The end result was the same to borrowers in terms of taxes. But it inflated homes prices because mortage interest deduction became more valuable so more people bought houses for the tax breaks. Plus consumers lost out because loans that were previously unsecured, became secured by the homes they could barely afford (and as we are now finding out, cannot afford).

As data shows, home equity is the lowest in many decades as people borrowed on their homes.

We are entering interesting time with record debts and little equity and savings.

[Author]

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