Posted on 09/22/2006 8:47:25 PM PDT by churchillbuff
A client of mine in the mortgage business. Referring to local activity in my area.
LOL!
NOT credible.
You don't have to agree with me. FR is for conservatives to agree, or agree to disagree.
best regards,
sjb
I imagine there are varying rates in different locales around the country. Our area is way out there in "LaLaLand". Completely overpriced, etc. Interesting that you are so certain about my client being wrong. If I told you where I lived, you might go "Oh, I get it".
So 9 years ago it was worse and we all lived through it and prospered. Just like "It was warmer this year than 80 years ago so..."
And where is that?
Right. The same place I noticed you park your personal page.
I responded before I realized you were not Petronski. Sorry. You have a nice personal page.
Howlin you are barking at someone posting a newspaper article (mis)representing a very real phenomenon in the US today.
2 partners to my family members own mortgage brokerages, they are both based in NJ, they received internal numbers from Mortgage Bankers Association that are pretty grim, upwards of 8% of all home purchases in the last 6 years were made with ARMs that are coming do for rate adjustments, the MBA expects over 20% of that 8% to default on their mortgages. That the people who sell this expect substantially higher default rates in the coming years is a significant event that has the MBA testifying in front of Congress to defend the unscrupulous mortgage lending industry as a whole in this country.
Read how hard the MBA is spinning it's media machine to try to keep the backlash focused on any one but the industry:
http://204.255.124.181/NewsandMedia/PressCenter/44702.htm
Sometime during Bush's lame duck session the interest rates will have to be raised. It will be a mess for a few percent of US homeowners.
Exactly...since the article doesn't reflect on some folks' pollyanna views, it should not be posted? No, it should/can be posted and discussed...
When something is posted that irritates someone, the poster is de facto a troll.
I thought the article was a good warning. Lots of people are in that situation. Right now in Phoenix the home builders are dumping new homes for cash starting in November, huge discounts. That will knock the stuffing from house prices, I believe.
When bad things happen, it is not always the individuals' fault. However, journalists like to make things melodramatic. I know people who have gone bankrupt. They look the same as everyone else. So far I have been lucky to keep the cash flow going. (Believers would say blessed.)
Gov. Connelly of Texas went bankrupt. He looked the same to me.
I congratulate the couple for being willing to work things out.
Of course it is, and giving you the greatest leverage on your investment. But your house has to appreciate in value. It is like buying a stock; it only appreciates if it goes up in value. Except that the leverage is 10x (or more).
Please elaborate. Sounds like a non sequitur to me. Gold?
Yes. Goldbuggery is almost always a complete non-sequitur.
When a house "goes down in value" from $400K to $300K, that is not a big deal? Most people finance 90% so they would have put down $40K, meaning that they have lost 250% of their investment. Even on margin, you can't lose more thant 200% of your investment in stocks.
Home buyers generally do not get attorneys in California, unless and until something goes wrong. The way the system is set up, there is a huge potential for conflicts of interest.
Greenspan recently wrote an article (UFB! with coauthors) about how overpriced 30-year fixed rate mortgages are relative to ARMS. Rates may spike for a couple of years, but, over 30 years, you are much better off with an ARM, IF you have the cash reserves to cover any spikes.
"It's almost impossible to own a house without "living beyond their means.""
My married children were having a terrible time saving the money they needed to get a home--one in Miami, and one in Baltimore. This was about 5 years ago: I offered them each a $10,000 gift financed by borrowing against my equity line of credit. With this help they were able to buy 3 bedroom fixer uppers for a little over $100,000. Boy are we glad we did this when we did.
Looking at what is happening to the middle class in this country is very worrysome. Thirty years ago CEOs of top corporations earned about 40 times the salary of their low level employees. Now they earn 400 to 1,000 times as much. Somehow I don't think their abilities are ten times what they were 30 years ago. Is this why jobs are being sent overseas, and health care costs rising so rapidly? I fear we are going the way of Mexico, with the very rich and the very poor and a tiny middle class.
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