Falling prices trap new homebuyers

The Orange County Register ^ | December 13, 2006 | JEFF COLLINS

[GodGunsGuts]

Wednesday, December 13, 2006

Falling prices trap new homebuyers

Neighbors in a new Garden Grove tract say a developer's plan to slash prices by about $140,000 has left them owing more for their homes than they're now worth.

By JEFF COLLINS

The Orange County Register

[Porterville]

How much real estate have you bought in the last 3 years? And living in your VW bug doesn't count. You are clueless.

I have since bought several properties and sold a property since those post which I was considering that very market.

So, you green little loser, how much? I venture you never bought a piece of property in your life.

[GodGunsGuts]

Become one with your flip-flopiness:

[Porterville]

Never bought a thing that your mommy hasn't paid for.... it is okay. You and your stupid understanding are worthless.

[GodGunsGuts]

John Kerry finally inducts Porterville into the flip-flop hall of fame:

[Porterville]

Momma's boy: a Republican because momma is a Republican. A renter because momma lets me have the garage.

[DCPatriot]

Just an observation of what I've seen in my 3 year hunt for a larger home.

If you've taken 3 years to find a "larger home", you aren't a serious homebuyer.

Either you're a control freak or your real estate agent is a moron.

[GodGunsGuts]

Oooops...Time to change baby Porterville's diapers:

[Porterville]

Non property owners, like yourself, shouldn't be allowed to vote. Look at how skewed you see the world.

Ignorant recklessness.

[DCPatriot]

There were NO loopholes and there was no way they could file bankruptcy on the IRS.

I beg to differ.

If you owe federal taxes for 3 years from the date you filed, you can get them wiped out by a Chapter 7.

At least, that's the way it was prior to the changes in bankruptcy laws.

[GodGunsGuts]

Just as the real estate market began to show serious signs of weakness, Slick-Porterwillie experienced a change of heart and decided to buy his first investment property at the very height of the housing bubble. When we asked why the king of flip-flop chose this neighborhood, he replied "just look at it...my neighborhood has nowhere to go but up, up, up!...I'm going to be a millionaire!!!!" Sadly, Slick Porterwillie decided to lean on his new "house" during the interview. The entire "house" collapsed, and Slick Porterwillie was buried beneath the rubble. And as if to add insult to injury, the entire housing market collapsed soon after.

[Porterville]

Fourth investment property. And sold my first. Started all under the age of 29 years of age.... and you... still living with your mommy?

[GodGunsGuts]

That leaves three to depreciate faster than your mommy can change your diapers. Prepare to lose your shirt.

[hinckley buzzard]

" owing more for their homes than they're now worth. "

Which means that refinancing their exotic mortgages into more conventional loans will be impossible. Still, I find it hard to feel sorry for a couple of twentysomethings who paid $870,000 for a house without being able to secure a fixed rate or at least cover all the eventualities. Play with fire, get burned.

[hinckley buzzard]

PS. What your home is worth today is irrelevant unless you sell it today.

Or, unless you have a funny money mortgage coming due, like the guy in the story, whose payments are going from 3000 to 6000 per month. He'd probably like to refi that into a normal loan but guess what. He can't because the house's market value is now so much less than the amount owed.

If these people just had to sit tight and not sell or move, and everything else was staying the same, your simple minded response might apply. Welcome to the real world where people actually sometimes have good reasons for getting upset.

[divine_moment_of_facts]

If you've taken 3 years to find a "larger home", you aren't a serious homebuyer. Either you're a control freak or your real estate agent is a moron.

How nice of you to speculate on my personality.. LOL!

Actually, I'm not in a rush to move. I'll be keeping the townhouse I own and rent it out when I've found a larger home. I've been keeping an eye on the market for the last 3 years.. but mainly I've been waiting for interest rates to go up (since I'll be paying cash) and for prices to come down.

I've always had a good gut instinct with real estate (born into it), but I think I missed a prime opportunity 2 years ago.. I'm thinking 2007 will be my year again. ;)

[GodGunsGuts]

...and your diapers.

[Porterville]

It's called equity son. Get a dictionary out of your mommy's library and look it up. Got plenty of it in the bank... and renters like you.

But I could always use a boy mow my lawn.... how does 5.25 an hour sound? Is that enough to cover the rent you pay your mom for the garage?

[Porterville]

"Welcome to the real world "

Why not refianance? Because that word doesn't fit in your world... or your reason.... or your understanding?

[DCPatriot]

Actually 2008 or 2009 will probably be a better year...since we haven't struck bottom and won't anytime soon.

IMO, all properties will see a 15% minimum price drop by end of next Summer...from where they are today.

And, that's if rates don't go up from the 6% fixed rate we're seeing today. If rates go up to 7% to 8%...it's going to get real ugly.

[oldbrowser]

All the realtors that said this couldn't happen in Orange County were quite simply wrong...

Relax, it's just a little correction. Ten years from now no one will remember this little bump on the road.