Here’s another mortgage mess horror story. It’s really sad.
Hi Lorianne, I lived in California and the mortgage companies and banks were giving mortgages at no money down for goodness sake. If you don’t put anything down you just can’t afford the place to begin with.
Well, IF I dropped 10K in Vegas, would you please cry me a tear?
I sold my place there in 06. Watching it on zillow.com is sad for the current owner, but praise God that I got out when I did.
And it will just get worse as the ultra-liberal government of California keeps driving businesses and individuals out of California, with excessive taxation and socialistic regulation.
They are fools and idiots who ALWAYS shoot the goose that lays the golden eggs -— welcome to liberal socialism.
Big deal. You want to play then plan to win and lose.
Win big, lose big....... it is all part of the game. If you are a weak a$$ you’ll cry... and bbbbbuy gold.
All PsOS!! I had a low opinion of real estate agents for years. Now, all that was simply confirmed. What I’m really mad about is the Fed, the U.S. taxpayer, bailing out Bear Stearns and seeing a**holes like Kudlow defending the bail out!
I know someone who works in Irvine. She said during the weeks of the New Century meltdown, you would drive by the Irvine Porsche dealer and it was flooded with lease returns. They would come in the morning and literly dozens of porsches were parked on the street in front of it and on the lot with the keys shoved in the mail slot with notes basically saying, “take it, we can’t pay for it anymore.”
I’ve witnessed this meltdown first hand as well. I work for a major US bank that is a heavy mortgage house. One of the groups I supported was the mortgage backed security broker dealer. It’s been sureal watching the whole thing unfold and that whole division crash and burn.
But when times where good, it was staggering how much money they were making and how quickly the deals were coming in.
But all based on liars loans aka alt-a and subprime toxic waste.
The only real relief would be nothing short of a constitutional amendment that would ban property taxes on a primary residence, and force the tax burden to be shared equally among renters and owners.
the venue of Irvine in this mess is no accident
in terms of per-capita ratios (# of sub-prime mortagages per each 1,000 homes sold in last five years)
the tri-county region - Orange (where Irvine is located), and adjacent Riverside and San Bernardino counties in Mexifornia - represents one of the major centers of the sub-prime mess
Forward to the so-called mortgage crisis.
Buy it. So what if you can't afford it. It will be worth twice as much in a year, then you can flip it and get rich. It's a no-brainer.
The no-brainer part was right on.
I have little sympathy for a greedy fool who commits to a contract to buy something he can't afford in the hope that he will be able to sell it for a fat profit before the day of reckoning.
Since 95% of people with mortgages are servicing them satisfactorily,the 5% who aren't hardly rises to the level of a crisis.
No matter how much the MSM pumps it.
Boo Hoo
I was going up there regularly a year ago, and it was quite a boomtown. Every unbuilt space seemed to have construction going on. If I go there now will I see tumbleweeds blowing through the streets?
I used to work for New Century in their IT department.
This guy’s estimate of job losses in Irvine is way off, probably by a factor of 3.
In Orange County, there was probably 20,000+ jobs in total from the sub-prime mess.
Most people found jobs right away, however, right now, there are plenty of people with mortgage-only backgrounds who are struggling to find jobs in Orange County.
You can pick up a house in Detroit for $20,000.00.
Hell of a deal, if you don’t mind Detroit. (I mind.)
They probably had a lot of “gloom and doomers” poor-mouthing the real estate boom. That’s what I keep reading here on FR. /sarc
There has always been a solution to the real estate fiasco in California. The rule of 25. If debt service requirements are no greater than 25% of GFI, down payments rise, commitment is generated and inflation is naturally buffered.
We lived in SoCal for a short time (ahh... what a wonderful place to live, I just loved it). I got a job with Washington Mutual home loans division, was laid off seven months later with severance. We left our apartment, and moved to Fresno. Ah well. I wish the folks in OC well. It’s just lovely there and I miss it a lot.
ping