Posted on 12/14/2007 6:29:13 PM PST by meadsjn
I’m curious how they get the information? Is it self reporting by the home owner, or is it verified? My point is simply that if self reporting, the person is going to try to come up with an excuse that seems to keep them from being at fault.
susie
I wonder how much its actually costing to give jobs to people overseas.
Horsesh*t
And just where and whom do you think will own or control all that foreclosed on property ?
I’ll bet in the long run the Government either owns or controls 85% of it for subsidised housing thousands of homes for new HUD properties given over by the banks who won’t be able to afford the upkeep and influx of so many properties to tend to!
Bush and the rats have both proposed tax-free status for loan forgiveness. I understand how loan forgiveness could be used to avoid taxes. In situations in which someone loses a home, it seems ridiculous to consider loan forgiveness as taxable income. Your son may avoid a tax bill if he can postpone the default until next year.
Wait till the negam recasts hit next year. Something like 40-50% of loans in CA at least were negams the past couple of years. When their principal balances hit 110%/125% of the original loam amount (depending on the program), the borrower gets hit up with a fully amortized payment that may be more than double what they payed before.
The real pain hits next year. This year has been painful merely because of the anticipation of what’s coming.
I am a Realtor so I have a personal stake in this. I often tell people that banks will push them right up to their financial limits. So back off to 75% or even 50% of what the bank says you can borrow.
How will you furnish the house if you are already borrowed to the hilt just with the mortgage? Road to ruin. And then what if something happens to your income? Like one spouse getting pregnant and stopping work?
Never borrow as much as the bank says you can. Common sense, but, a lot of people don’t listen to me and go ahead and buy too much house. You can always buy up later, and save a bit of money now to take the family out to eat once in a while.
I blog about real estate among other topics at www.getnbetter.blogspot.com
I live in Manassas, Virgina and the majority of homes being foreclosed or left for auction are primarily Spanish owned who have lost jobs due to the housing market downturn. Having been in the banking business for over 30 years, these loans should never had been made in the first place, but governmental intervention to force minority lending in the past five years has created the crisis at least in my area. Hope this provides some insight to the problem facing our nation
I didn’t write the article; I just posted it.
In CA, you might have to drop them by half. Yes half. Even that might not be enough, frankly. But you'd get transaction volume again. In the northeast, a third to half would do it, and in the rest of the southwest outside CA, even a third.
But pretending the bubble nosebleed prices are real and holding out for a buyer? Hell will freeze first. More to the point, the banks will get stuck with $100 billion in property, which they will dump, first. And prices won't stay up after that happens.
Lower prices won't hurt nearly as much as people fear. In fact, zero transactions for five years would be much worse.
The wave of full priced houses being lost by employed people who just took on way more than they could chew in the bubble, really just hasn't hit yet. Or more exactly, is just getting going on the low end. Which is not to say it won't be a problem. But the backround rate of foreclosures has other causes, which are always there - obsolete houses and generational turnover on the one hand, and ordinary job market turbulence on the other.
I've thought the same thing. Never hear the MSM mention it.
The next couple of years could be ugly in all sectors.
The article doesn't provide much detail, and it doesn't say what percentage of foreclosed homes were under construction or waiting to be purchased. There are many large developments with houses sitting unsold, and many unfinished, where the builders have defaulted on the construction loans. Many of those foreclosed properties will also have additional liens for labor and materials, further complicating their sale. Maybe Countrywide included these in the "loss of income" category for foreclosures.
Regardless, the sub-prime problems are yet to hit their peak.
I agree. IMO, the whole sub-prime mess is a result of the PTB trying to keep the prices artifically increasing, instead of allowing the market to correct.
My apologies if I'm repeating myself -- I've seen some numbers that indicate that the number of mortgages that might be "saved" by this new bill is in the 200K-250K range. But that's probably high due to some of them being second mortgages or refinancings, which eliminates the mortgage from consideration.
“Dad, this capitalism thing is fun!” I said, “Son, don’t take that ARM second mtge. It’ll bite ya.”
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Real estate prices in my county never reached the level of some areas but did rise above the national average. We are now hearing some reports of defaults in South Carolina. I was struck back in ‘01 by the amazing number of oversized McMansions going up just across the county line from me. We have two county seats here within ten miles of each other. I remember talking to people in the business who told me that most of those big houses were being built by two income couples who just barely qualified for the mortgage and would have no money left for maintenance or any kind of emergencies. It is amazing how many people want to live right on the edge of financial disaster. I have simply never been able to understand what satisfaction is derived from living in a huge house that you cannot actually afford and having no money left over for anything else.
And here our government is allowing illegals ( who in bulk are renters) to gobble up jobs as US citizens are struggling to keep their homes. Traitorous bastards.
It was the most obvious and unnecessary collapse in years, and the most illogical.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Absolutely, people confused cost with value! Most can understand that if a billionaire were to go to the most remote desert location he could find and build a huge mansion it could never be sold for anywhere near the cost of construction. Why is it that many of the same people cannot comprehend that simply running up the price because interest rates are very low and credit is as loose as a goose does not increase the actual value of the house? I have been to a lot of auctions and I have seen bidders pay eighty dollars for a fan which could be bought new for forty and which they had to remove from the ceiling to boot. Why did they do it? Auction fever, they forgot that they did not actually have to own it, they went nuts because someone else wanted it, it is an amazing thing to watch. Judging from comments I was reading on FR just a year or two back some people would have thought there was new wealth being created by those who bid up the price of the ceiling fan!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.