Posted on 12/15/2008 10:35:10 AM PST by Lorianne
Despite this, I will not be surprised to receive a little notice next month informing me that the govt has decided our house is worth more than ever and raised our taxes.
>>In my area, we are seeing multiple families living under the same roof.<<
Yep, that coupled with the other dynamics of this situation pointed out by Alberta’s child indicate a future of serious dwelling place price deflation and lowered standard of living.
It’s all there.
Meet the New Waltons.
I see you point, but once you are in an ARM you don’t “requalify” every time the rate adjusts. You simply get a letter stating that your payment has increased/decreased to X, based on this interest rate.
He's wrong about this one. Many of these foreign investors really have no other choice in the matter. Countries that maintain a huge trade surplus with the U.S. (China and Middle Eastern oil producers, for example) have to do SOMETHING with the dollars they receive in payment for the products they sell to the U.S., and buying U.S. Treasury bills at super-low interest rates is better than eating or burning them.
It may take a decade to evit the non-payers. Free rent.
I just sold a chunk of shares in one of my bond funds last week . . . because I know the value of those shares will decline considerably once interest rates start to rise in the next 6-18 months.
Depends. If something happened to the market where I live and suddenly my home was worth less than i owed, It would make sense for me to continue paying because I have no plans or designs to move for quite some time.
That’s a good point, but I would think (and maybe I’m wrong about this) that a homeowner has tremendous leverage these days in negotiating ARM rates (or converting an ARM to a fixed-rate loan) with banks. The implied threat of a homeowner abandoning a home and turning the keys over to the bank is more real than it has been in years.
I thought that ARM’s were based on prime and I know that prime is based on the govt rate and that rate is in the toilet, so that goes without saying - mortgage rates should be decreasing, shouldn’t they?
People who who "walk away" from a mortgage won't be qualifying for a new one anytime soon after that; there is going to be a massive increase in unsold inventory--which is already staggering--and builders like DR Horton & Beezer will continue to flounder
It needed to happen though
>>Nothing wrong with families coming back together
Yep.
It might even put the Heartland back into the Homeland.
Much to the chagrin of progressive Rainbow useful idiots...
;-}
I just ordered Peter Schiff's book, Crash Proof.
Amen fellow Freeper!
The wife and I owned two small houses (relocation) and saved funds/built equity for the “big one” which we built about 2 1/2 yrs ago (bought our first house in ‘98). Not worried about losing it yet but we spent alot of time figuring out how people we knew who made less $$ than we did and lacked any sort of fiscal responsibility purchased houses we were dreaming about at the time. Now we know how that happened. I would really like to give those folks a swift kick in the backside cuz I have lost $50k of equity since purchasing the house in ‘06 thru no fault of my own. I’m guessing you have sentiments that are similar to mine....
One thing that really chaps my hide is when you hear friends and family feeling sorry for folks who purchased a house they had no business buying and then end up losing it. My dad (God rest his soul) drilled into me that once you sign your name to a contract that you are committed and should know what you are signing. These folks who got these exotic mortgages were living in a fantasy world like the liberals do. And they, like the liberals, are leaving the responsible folks to deal with their mess and pick up the tab.
We’re renting right now while we watch what is happening to the market. Just yesterday we found a notice posted on the door that the owner has defaulted and the property will be sold at auction in March. That sucks.
“
I just want to say thank you to all of you idiots out there that bought more house than you could afford under what used to be normal circumstances, because you were either incapable or unwilling to understand the contracts you were signing. As long as you were getting the dream home for zero down, and a low low introductory rate, LET THE GOOD TIMES ROLL!
Thanks so much for contributing to the rape of our economy, and leaving those of us who did it right, took our time, saved and scrimped for our down payments, paid our bills on time to build our credit, and after 5-10 years bought our first modest homes within our means, in fear of losing everything along with you.
Thanks that your stupidity and greed now means that young people that are starting out and want to do things right to build up cash and credit to buy a house can now look forward to living in a rental instead, because YOU wanted a dream home when all you could afford was an apartment.”
Me too....may I add...I resent paying for their greed!
My husband and I met a couple (he was retired USAF) who had moved to Miami and bought a $750,000 with one of these types of mortages. The wife didn’t work and he made about $57,000. Needless to say they didn’t stay in that home long.
Every home I ever bought I bought with the knowledge that I can afford the monthly payment. I refinanced every home I ever bought to reduce my monthly payment and put money in my pocket. Every loan I ever took was fixed. Every home I ever bought I bought with no money down because having the cash was more important to me than reducing a 30 year fixed mortgage by 100 bucks a month.
As much as people got talked into buying homes with these 20-10-10 mortgages or variable rate mortgages, I believe more people tried to game the system, get the mortgage, get the hosue, flip the house at a profit and pay off the loan.
When the market went south, these people got screwed and now they are using the “women and minorities hardest hit” excuse to get compensation.
Government meddling is going to make it worse and/or prolong it.
“The only solution is for the gov’t to print more money and offer all these losers a fixed 30 or 40 yr mortgage at 4% or 4.5%, regardless of equity. Otherwise the downward momentum may be unstoppable.”
Go to hell!!!
Throw everyone that can’t/won’t pay out in the street.
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