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December 9, 2006 at 2:00 PM in reply to: thinking buying eventually; any risk in entering 1 year lease now? #41409
powayseller
ParticipantSo people who are willing to double up as renters, are still willing to move to San Diego? Was the Georgia guy then a young fella, i.e. one of the groups I suggested that will come here, have some fun in So CA, and then leave if he can’t afford a house when he’s ready to settle down? I got this theory from someone at the piggington meeting (was it zk?)
powayseller
ParticipantIn about 3-5 years, I think you’ll find plenty of properties 50% off peak prices. But as of now, it seems banks are very very reluctant to lower prices. There’s a bank REO near my son’s school, and it’s said Bank Owned on the sign out front since August, when they failed to sell it at auction. This house is owned by Wells Fargo. Why wouldn’t they lower the price enough to move it?
Auctions generate a lot of hype, and people end up overpaying. Plus, you cannot do inspections, and you could end up with a house requiring a new roof, new foundation, anything….. plus you need to bring a cashier’s check for the full amount. So unless you’re an investor with deep pockets, it’s a big risk I think.
I have not heard of any foreclosures which sell below market prices.
Just think about it, why would a bank or homeowner sell anything below market price? Because they like you so much?
Foreclosures will be very cheap only when there are so few buyers, that you could hardly give away a house. LIke in the 1990’s, when banks couldn’t sell their homes. Even nice homes on the beach in Laguna Niguel had to be rented out for several years, until the market turned around and the banks could sell them.
As my landlord, a housing investor says, “Foreclosures are nothing!”
Good question though!
I hope someone who has actually dealt with foreclosures can add to this discussion.
December 9, 2006 at 7:25 AM in reply to: Goofy Fed governors speak stupidly, dollar fall, realtors forced to sell #41404powayseller
ParticipantHe predicts, “Expect the USFed to surprise the markets sometime between January and March with a desperate rate cut. Watch the USDollar then descend rapidly, then approach the DX=80 mark. Gold will react positively in anticipation.”
powayseller
ParticipantHis advice right now is to short the market, since it is overbought.
December 8, 2006 at 10:59 PM in reply to: What Things Will Disappear During the (Potentially) Upcoming Crash? #41401powayseller
ParticipantI found the article. Down and Out in Bloomfield Hills
The town is an enclave of the wealthy. The country club has a waiting list of people trying to get out of their membership, and has reduced its membership fee from $15,000 to $45,000. So you see, this city is for the wealthy. But even the wealthy cut back on their expenses.
Excerpt
“Anna DiMaria, 65, ran beauty businesses in the area for nearly four decades. But last summer, she closed down her once-thriving Capelli Spa because she says at least 30% of her wealthy client base had cut back on visits or stopped coming. “Instead of getting facials every month, they’d get them every three months,” she says. “They’d say, ‘My husband and I have talked it over. We’re taking a cut in our luxuries.’ ”Some clients were getting their false nails taken off to save the $70 monthly maintenance fee, says Ms. DiMaria. “They’d tell me, ‘I want to let my nails breath.’ They didn’t want to reveal it was an economic decision.”
December 8, 2006 at 10:46 PM in reply to: What Things Will Disappear During the (Potentially) Upcoming Crash? #41400powayseller
ParticipantNail salons will definitely go! Just look at what happened in Bloomfield Hills as a result of the auto industry layoffs. Upper-level executives cut back on spending. The wife of the local nursery store said the rich people were planting fewer annuals in the spring, so she had to cut back on her shopping, including getting her nails done. Several nail salons and hair dressers went out of business, and restaurants saw big sales declines. I can’t find the link now – it’s bookmarked on my other computer I think. When you can’t pay your mortgage, and you lost your job, you don’t go out to eat, you don’t buy coffee at Starbucks, you don’t get your nails done. Just imagine you lost your job today. You’d stop sending your kids to activities, drop the private school, sell the extra car, etc. People can be frugal when forced.
December 8, 2006 at 10:28 PM in reply to: The End of Suburbia: Oil Depletion and Collapse of the American Dream #41397powayseller
ParticipantFormer Owner, thanks for the movie recommendations. I will check them out. There is another way Japan can get dollars to buy oil: currency exchange.
Another very important resource is water. Peter Schiff of Euro Pacific Capital has 2 water companies he’s recommending. The developing world needs lots of water. My friend’s husband is in sales for Siemens, selling water/sewer treatment equipment, and his business and sales are just booming in the Far East.
powayseller
Participantpowayseller
Participantduplicate
powayseller
ParticipantNancy, so you think they are closing shop to avoid having to repurchase the loans? In the case of Ownit, which was 15% owned by Merrill Lynch, is Merrill responsible for repurchasing the bad loans?
Why hasn’t CA adopted the new lending guidelines, and what do the federally regulated banks think about this uneven playing field? Wells Fargo and Washington Mutual and Citibank have new lending constraints, but their state regulated competitors do not. How long until they complain to the state about this?
powayseller
ParticipantNancy, so you think they are closing shop to avoid having to repurchase the loans? In the case of Ownit, which was 15% owned by Merrill Lynch, is Merrill responsible for repurchasing the bad loans?
Why hasn’t CA adopted the new lending guidelines, and what do the federally regulated banks think about this uneven playing field? Wells Fargo and Washington Mutual and Citibank have new lending constraints, but their state regulated competitors do not. How long until they complain to the state about this?
powayseller
ParticipantNancy, so you think they are closing shop to avoid having to repurchase the loans? In the case of Ownit, which was 15% owned by Merrill Lynch, is Merrill responsible for repurchasing the bad loans?
Why hasn’t CA adopted the new lending guidelines, and what do the federally regulated banks think about this uneven playing field? Wells Fargo and Washington Mutual and Citibank have new lending constraints, but their state regulated competitors do not. How long until they complain to the state about this?
powayseller
ParticipantNancy, so you think they are closing shop to avoid having to repurchase the loans? In the case of Ownit, which was 15% owned by Merrill Lynch, is Merrill responsible for repurchasing the bad loans?
Why hasn’t CA adopted the new lending guidelines, and what do the federally regulated banks think about this uneven playing field? Wells Fargo and Washington Mutual and Citibank have new lending constraints, but their state regulated competitors do not. How long until they complain to the state about this?
powayseller
ParticipantNancy, so you think they are closing shop to avoid having to repurchase the loans? In the case of Ownit, which was 15% owned by Merrill Lynch, is Merrill responsible for repurchasing the bad loans?
Why hasn’t CA adopted the new lending guidelines, and what do the federally regulated banks think about this uneven playing field? Wells Fargo and Washington Mutual and Citibank have new lending constraints, but their state regulated competitors do not. How long until they complain to the state about this?
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