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Has the bubble burst?
News and Review ^ | Sep 21 06 | Sasha Abramsky

Posted on 09/22/2006 8:47:25 PM PDT by churchillbuff

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To: Petronski; Toddsterpatriot; Mase; jennyjenny; nopardons

I bought my dream Bell Jet Ranger II thinking my five jobs would pay for it. It was a real babe magnet, too. I could zip to work or the theater right over all the traffic. Damned if the cost of fuel and helipads and the loss of two jobs didn't dash my dreams. Damned Bush economy! Damned financiers!


141 posted on 09/22/2006 9:46:37 PM PDT by Larry Lucido
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To: Petronski

Well yes and no.

It's easy to say they're at fault, should have read the fine print and so on - yes, indeed they should have. The article states their Realtor gave assurances they trusted about rate changes and of course they wanted to believe that.

However, such ridiculously easy to obtain mortgage funding is only a step away from loan sharking IMHO, do the loan companies truly believe borrowers like this can repay over the long term ? No, but they don't care, they'll just sell the note anyway.

Despite the slogans, can Realtors be trusted or are they too just in it for their own gain ? Recognising of course that the Realtor most often acts for the seller.

Most first time buyers don't know much, I know I didn't, but back when I bought my first you had to have a down payment and meet seemingly firm tests about income etc to qualify, that is all out of the window these days.

Stories like this couple's will be very common quite soon, more's the pity.


142 posted on 09/22/2006 9:47:10 PM PDT by 1066AD
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To: Larry Lucido

North Highlands is a hell hole.


143 posted on 09/22/2006 9:47:17 PM PDT by Uncle Billy
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To: RockinRight

correct...

In my area, my upper 80's salary translates into a 225K california lifestyle...

Life is about choices. These folks need to do like thier Grandfathers did and make some......


144 posted on 09/22/2006 9:47:18 PM PDT by tcrlaf (VOTE DEM! You'll Look GREAT In A Burqa!)
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To: Petronski
They opted for an interest-only, adjustable-rate mortgage...

Anyone that get an interest-only adjustable-rate loan with today's low fixed rates is a blooming idiot.

145 posted on 09/22/2006 9:47:18 PM PDT by BJungNan
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To: sgtyork
It's a SHE, or so it claims, now that it is no longer pretending to be a Canadian; that is.
146 posted on 09/22/2006 9:47:34 PM PDT by nopardons
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To: RockinRight

They were so excited to get the house, they would have signed anything.


147 posted on 09/22/2006 9:48:09 PM PDT by Petronski (Living His life abundantly.)
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To: RockinRight

I live in an overpriced area in California. I was shocked by how little real estate went down in 2000-2003 when our economy was terrible.


148 posted on 09/22/2006 9:48:47 PM PDT by nickcarraway
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To: churchillbuff
Do you spend a lot of time searching for articles to trash America with?"""

The get posted on FR for comment. They don't reflect that attitude of the people that posted them. That's the way FR has always worked. Nothing wrong with putting up this article.

149 posted on 09/22/2006 9:49:12 PM PDT by BJungNan
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To: churchillbuff
With John’s two jobs and Karen’s at Safeway, the Philbrooks believed they could manage the mortgage..............snip........ And the Philbrooks, who had about $900 saved up for their daughter’s future, a few hundred more for emergencies and nothing in reserve beyond that, realized their entire dream now stood ready to fall.

Now kids, let's not place any of the responsibility for this situation on John and Karen. They are just victims of a greedy bank.

When I was a young single man in Orlando, 1 bedroom apts in complexes went for $350 and up. I had already learned my lesson about getting a place that I could only afford if I had a roommate (and something happened to that roomie). So I searched until I found a 1 bedroom garage apt for $150.
Now, if I were like these people, I would have taken two jobs and a roommate in order to live in a spacious 3 bedroom house. Then cried victim when I lost one job and my roommate split.

It's too bad for these people, but I'll spend my pity on real victims. There is no cure for stupid.

150 posted on 09/22/2006 9:50:22 PM PDT by ChildOfThe60s (If you can remember the 60s...you weren't really there.)
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To: nickcarraway
If you knew how many people were buying stocks (or gold) on margin, you'd be shocked.

Do you know the percentage of stock market capital that is margined?

151 posted on 09/22/2006 9:50:30 PM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: volunbeer

Generally that is true. But when prices get so high people can no longer buy them, regardless of their desire for them, then they're bound to drop because the demand drops.


152 posted on 09/22/2006 9:51:01 PM PDT by RockinRight (She rocks my world, and I rock her world.)
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To: 1066AD

"It's easy to say they're at fault, should have read the fine print and so on - yes, indeed they should have. The article states their Realtor gave assurances they trusted about rate changes and of course they wanted to believe that.

However, such ridiculously easy to obtain mortgage funding is only a step away from loan sharking IMHO, do the loan companies truly believe borrowers like this can repay over the long term ? No, but they don't care, they'll just sell the note anyway.

Despite the slogans, can Realtors be trusted or are they too just in it for their own gain ? Recognising of course that the Realtor most often acts for the seller.

Most first time buyers don't know much, I know I didn't, but back when I bought my first you had to have a down payment and meet seemingly firm tests about income etc to qualify, that is all out of the window these days.

Stories like this couple's will be very common quite soon, more's the pity."

You are either extremely intelligent, or you are in the profession, and are aware of the tremendous profits mortgage companies have been making........often at the expense of the unaware, unsavvy buyer.


153 posted on 09/22/2006 9:52:09 PM PDT by stephenjohnbanker (Our troops will send all of the worlds terrorists to hell in a handbasket with no virgins!)
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To: 1066AD
It's easy to say they're at fault, should have read the fine print and so on - yes, indeed they should have. The article states their Realtor gave assurances they trusted about rate changes and of course they wanted to believe that.

First mistake of many. Realtors don't understand finance (as a rule) and are possibly the worst person to ask. Besides, they have an inherent conflict of interest. I'm a former mortgage broker (6.5 years) quit beginning of August this year and I'm studying for my Series 7 license. Would anyone like to talk about this, or ask questions of someone who truly knows what they're talking about?

154 posted on 09/22/2006 9:52:21 PM PDT by gogeo (Irony is not one of Islam's core competencies (thx Pharmboy))
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To: MikefromOhio

Give me a link if you find it, but it's no biggy if you don't.


155 posted on 09/22/2006 9:52:56 PM PDT by nopardons
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To: nopardons

I sent it too ya already


156 posted on 09/22/2006 9:53:23 PM PDT by MikefromOhio ("...America has confronted evil before, and we have defeated it...")
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To: BJungNan

B U M P


157 posted on 09/22/2006 9:53:24 PM PDT by stephenjohnbanker (Our troops will send all of the worlds terrorists to hell in a handbasket with no virgins!)
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To: MikefromOhio

The paranoia always is. Thanks for the link! :-)


158 posted on 09/22/2006 9:53:55 PM PDT by nopardons
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To: Petronski

I realize that but I was simply trying to point out that if supply and demand was true for gold/silver why does it not apply to housing as well?

The reason I asked is:

My wife and I are planning to sell in the Spring for a larger home in the best school district. I am pretty confident that the market where I live is still undervalued in comparison to other markets around the country (and near my city) and I can probably pay 50% down on the nicer home and still keep a 15 year fixed note.

Maybe I am just an optimist but I don't think the real estate market is going to drop back 10 years anytime soon for the very reason that the other poster thought gold/silver was not going anywhere. Supply and demand and frankly nice homes within 30 minutes of downtown might be more rare than an ounce of precious metal in the future.

At the very least.... 10 years from now I will not have to put a pricetag on all the hours I spend in traffic sitting in my car vs spending that time with my family. Even if I don't make lots of money on my "house" that will still be better than cold metal sitting in my gun safe.


159 posted on 09/22/2006 9:54:51 PM PDT by volunbeer (Pelosi)
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To: tcrlaf

80-something grand a year is a nice living in the Midwest. It barely gets you by on the coasts.


160 posted on 09/22/2006 9:55:18 PM PDT by RockinRight (She rocks my world, and I rock her world.)
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