interesting video on housing in CA (San Diego: for sale, mortgage, credit)

[shannon94]

http://www.pbs.org/now/shows/317/index.html

I feel really bad for these people....but what were they thinking??????

[Winston Smith]

Originally Posted by shannon94

http://www.pbs.org/now/shows/317/index.html

I feel really bad for these people....but what were they thinking??????

Need a reality check? Watch the video.

[shannon94]

Originally Posted by cre8

Need a reality check? Watch the video.

What are you talking about???? I posted the video!! lol

[Winston Smith]

Originally Posted by shannon94

What are you talking about???? I posted the video!! lol

Not sure what you mean. Thanks for posting the link; I meant for you to get some cudos for doing it. The vid is definitely a worthwhile view. Solid dose of reality on today's housing market for anyone who dares have a dose.

[shannon94]

Originally Posted by cre8

Not sure what you mean. Thanks for posting the link; I meant for you to get some cudos for doing it. The vid is definitely a worthwhile view. Solid dose of reality on today's housing market for anyone who dares have a dose.

Oh...lol...ok!! Yes a good reality check!! I knew there were people out there like that...I'm afraid there's ALOT!!! Glad I didn't get sucked in!!

[Winston Smith]

Originally Posted by shannon94

Oh...lol...ok!! Yes a good reality check!! I knew there were people out there like that...I'm afraid there's ALOT!!! Glad I didn't get sucked in!!

Yes, glad indeed. It's going to hurt for more than a few. I wonder when and how bad the housing temblor will rock the broader economy.

[kansaslady]

The video is the real story of the housing zoo in CA.

Sadly, there are way too many home buyers (notice I did not call them home-owners) who are paying interest-only loans.

Even more pathetic is how the housing market in CA is beyond insane. Greed started the ludicrous increase in pricing, and now CA is stuck with the problem. Will it ever become an affordable place to live? No, not unless a person is earning 6 figures and up. Where does that leave the average resident who would love to buy a home? It leaves them working 2+ jobs, paying interest-only loans, having no life at all...and eventually ending up filing backruptcy.

The answer? There are many answers, one being to move to another state that offers affordable housing. However, many residents do not want to give up the mild climate (if living in So Cal), or don't want to move away from family, have difficulty securing employment in another state, or worse of all, don't have the funds to relocate.

The poster asked what the people were thinking....you'd have to ask them that question, but obviously they were desperate to start buying a home and had no other means than to get caught up in the interest-only loan. They truly were not thinking logically or responsibly.

I do miss the ocean and the mountains....but I do not miss the high cost of living, smog, crowded conditions, traffic, crime. For me, I prefer to live in an area that offers clean skies, beautiful rolling hills, no graffiti, affordable living (where one can still purchase homes from $70k and not live in a dump in an unsafe area). I love being able to buy a home and still be able to save money every month, have wonderful vacations every year, take weekend trips, be able to buy clothes...in other words, not being house-poor and living on the edge.

Jobs? Oh yes, we have plenty of jobs in the Kansas City Metro area. Pay rates? Even clerical workers can find employment here starting at $15/hr...not too shabby!

Where will it all end in CA? I don't have the answer.

Oh....weather in this area? Sure it gets cold in winter, and we get some ice/snow...but it is not that bad, roads are kept in good condition and we just dress appropriately.

[JustPassinThru]

Originally Posted by shannon94

http://www.pbs.org/now/shows/317/index.html

I feel really bad for these people....but what were they thinking??????

They wanted to realize the American Dream of home ownership, and the realtors and brokers and lenders were there to make it happen. Many buyers either didn't understand or didn't care about the risk involved in those creative financing packages.

I could not understand how the family facing perhaps a 1/3 increase in their mortgage payment could borrow against the equity, the very same equity necessary for the refi that would save their home.

I sold my home in California to a family that has now offered it for sale at 8% less than their purchase price. The expert in the video states that the reductions will bottom out at around 15%. What are these young families to do?

[shannon94]

Yeah...I'm from San Diego.....we left before it got crazy. My husband and I laughed when they told us what we qualified for...at the time we had bills....there was no way we could afford what they wanted us to sign for...it was hard to leave home.....but it would be harder on us now if we would have stayed. Just because it works out on paper...doesn't mean it works out in life!! After moving to Texas 8 years ago and buying a home we will be young retirees. Trust me...missing out on the weather is worth it...and I got to raise my daughter...not a daycare.

The people I feel sad for are the ones who are not really "edjucated" on finance issues and were taken advantage of. YES they were taken advantage of...I know the lender across the desk can see it in their eyes!! Can you say "CHA_CHING"!!!

[CantWait2Bthere]

We knew to be cautious of the couple lenders who told us a few years back that we qualified for so much more than our credit union would lend us. We asked ourselves why and how these other brokers could get us a loan almost 80k more than what our credit union said we could afford. I am glad we stuck to not biting off more than we could chew.

I see now how these Joe Schmo 's who we guessed were not making near the money we pulled in could "afford" the bigger houses years after they went up in price. The bad thing for us is now they are leaving these homes in forclosure and our neighboorhood is getting trashy looking. Oh well, I am thankful we at least have a home. Good luck to those families though.