Opinions today on the California housing market vs. the opinions of 2006 (Chula Vista: mortgage, credit)

[shannon94]

Ok...so I was a little bored while nursing the flu for the 3rd day and decided to go back and read some posts from like summer 2006...I remember getting so bashed for my view on the housing market.......hmmm seems like the opinions of the bashers has changed a little bit. Is anyone surprised how bad things have become as far as foreclosures, price drops etc?

[Charles]

I used tamiflu and it worked (as long as you take it within 48 hours of flu onset). I was back up to 70% or so within three days. Supposedly this year's flu shots weren't too effective.

Now, specifically what views are you referring to?

[BRinSM]

I'm sure glad housing prices are coming down. My wife and I's goal is to have enough for a down payment next summer or late next year. I'm not sure if the market will be at a point for us to consider this then, but it's always good to be prepared. The issue that I'm having the hardest time digesting is the supposed government "bailout". If the government did nothing, as it should in a capitalist society, my guess is that we would see foreclosures, bankruptcies, and businesses shutting their doors galore. I don't think showing this kind of weakness to the rest of the world right now is such a good thing. However, I think it would set an awful precedent to protect borrowers and lenders from the consequences of their unsound financial decisions. There has to be a compromise in the middle somewhere, I'm just not knowledgable enough to know where that is.

[novaman]

Originally Posted by BRinSM

I'm sure glad housing prices are coming down. My wife and I's goal is to have enough for a down payment next summer or late next year. I'm not sure if the market will be at a point for us to consider this then, but it's always good to be prepared. The issue that I'm having the hardest time digesting is the supposed government "bailout". If the government did nothing, as it should in a capitalist society, my guess is that we would see foreclosures, bankruptcies, and businesses shutting their doors galore. I don't think showing this kind of weakness to the rest of the world right now is such a good thing. However, I think it would set an awful precedent to protect borrowers and lenders from the consequences of their unsound financial decisions. There has to be a compromise in the middle somewhere, I'm just not knowledgable enough to know where that is.

I'm with you on this one. It really is unfair for those of us who try to do things the right way and live intelligently to have to pay the price for others who chose a foolish path.

[SoCalFamilyof3]

I agree completely. When my husband and I were searching for our first house about eight years ago, the bank told us we could qualify for a loan that would have required approximately 40% of our income to go to a mortgage payment. They would have been more than happy to lend us the money, but we restrained ourselves and bought a small fixer upper for a lot less money, and we've always been able to make our mortgage payment without any trouble. While I certainly think that the disreputable lenders who made questionable loans to people who probably couldn't afford them are very much culpable for what has happened, it irks me that as a taxpayer I'm going to be supporting bailing out people who couldn't exercise self-restraint.

Perhaps this is an oversimplification, but I see it like this: a mortgage is a form of credit. They give you the money and expect you to pay it back. Kind of like a credit card, no? So if I go out and get a mortgage that's way beyond my means and then figure out later I can't afford it and start defaulting on the loan, the government will come bail out my ignorant backside. But what if I charged up a ton of stuff on my credit cards? It's the same thing, really. Those who don't pay their credit card bills aren't getting any help (nor should they). So why are mortgages different?

I feel sorry for people who may have been duped into accepting a mortgage that they didn't really understand, but honestly, do some homework before you sign off on the largest purchase of your life.

/rant

[IcantSELLmyHouse]

Here is some funny reading I Can't Sell My House

[whitechocolate86]

Originally Posted by BRinSM

I'm sure glad housing prices are coming down. My wife and I's goal is to have enough for a down payment next summer or late next year. I'm not sure if the market will be at a point for us to consider this then, but it's always good to be prepared. The issue that I'm having the hardest time digesting is the supposed government "bailout". If the government did nothing, as it should in a capitalist society, my guess is that we would see foreclosures, bankruptcies, and businesses shutting their doors galore. I don't think showing this kind of weakness to the rest of the world right now is such a good thing. However, I think it would set an awful precedent to protect borrowers and lenders from the consequences of their unsound financial decisions. There has to be a compromise in the middle somewhere, I'm just not knowledgable enough to know where that is.

Hey, BR...are you going to stay in Santa Monica...or move somewhere else...I was just curious...because Santa Monica seems to be well above the socal average

[Sassberto]

I still think it's way too expensive considering there is a major housing crash going on. It still seems like a nice house in SD will cost you 600-700k which makes it way out of reach for most people. If you want a tract home in Chula Vista or a condo conversion in Normal Heights, you can get a screaming deal, but that's not what I'm interested in. I want housing costs to get so low I can buy a bigger, nicer second house and rent out the first, and that just doesn't appear to be happening.

[BRinSM]

Originally Posted by whitechocolate86

Hey, BR...are you going to stay in Santa Monica...or move somewhere else...I was just curious...because Santa Monica seems to be well above the socal average

I'd love to stay in Santa Monica, but it is very expensive. My wife and and I are doing fairly well financially, but I'm not sure if it will be enough to buy here. It seems like condo prices are dropping faster than house prices, so we may just be in luck. However, I want to find a place where we can settle down for a bit and maybe even raise a child for its first years. It's weird, cuz the older I get the more I think about these things and the pickier I get (who would of thought? ). Right now, I'm not interested in a single family home with a yard (too much work), but I'm not really interested in a hotel like condo complex (more like compound) either. I notice row house style developments in the area, but those are usually newer, which also command a higher price. I'm not going to be in the market for a million dollar home anytime soon, so I don't really know how its all going to pan out.

[shannon94]

Originally Posted by Sassberto

I still think it's way too expensive considering there is a major housing crash going on. It still seems like a nice house in SD will cost you 600-700k which makes it way out of reach for most people. If you want a tract home in Chula Vista or a condo conversion in Normal Heights, you can get a screaming deal, but that's not what I'm interested in. I want housing costs to get so low I can buy a bigger, nicer second house and rent out the first, and that just doesn't appear to be happening.

Not sure if you like the area Sassberto but there are already deals (comparatively speaking anyway) in Fletcher Hills.....and I'm sure things are going to fall alot more before this is over. Check out the zip. Give it some time.............according to the news today prices in Cali are falling $2800 a week.