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Old 09-19-2018, 02:04 PM
 
4,542 posts, read 11,542,319 times
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Quote:
Originally Posted by Pat Answers View Post
Today I talked with someone who has one of "those" mortgages, the ones where you only pay the interest payments for a certain number of years and now in about 5 months her payment is going to triple because now the principal is coming due also. I thought those loans were part of the recession problem and no longer given out. Don't know how they even qualified for this mortgage because their income is very limited. There is no money to fix or maintain. I fear a foreclosure is in their future.


How many of those loans are still out there?
Kind of doubt her payment is going to triple.
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Old 09-19-2018, 02:05 PM
 
4,313 posts, read 5,265,036 times
Reputation: 4213
Quote:
Originally Posted by Pat Answers View Post
Today I talked with someone who has one of "those" mortgages, the ones where you only pay the interest payments for a certain number of years and now in about 5 months her payment is going to triple because now the principal is coming due also. I thought those loans were part of the recession problem and no longer given out. Don't know how they even qualified for this mortgage because their income is very limited. There is no money to fix or maintain. I fear a foreclosure is in their future.


How many of those loans are still out there?
Nothing wrong with that, I did a 4% interest only loan because I didnít want to screw around with the banks so I borrowed from my dad. I have no desire to waste thousands on BS like an appraisal or a bunch of other hoops that accomplish nothing. I paid down the bulk of the loan last month and will finish it off later this year. It was just a short term bridge loan between investments paying out, so it made the most sense.

Maybe not right for everyone but when itís some tiny amount like $115K it makes sense.

The issue with in some markets the luxury market, like Vegas right now, isnít the inventory or time on market, itís the outdated styles. There are tons of $1M homes for sale so inventory is very high compared to your average and meh houses, but there are very few modern style homes whatsoever. The inventory is tiny and buyers in that realm donít want an old, 12-20 years dated home that isnít modern, they want something that reflects current trends. So those old houses sit. Ten years ago, there was one builder already building modern homes and those are of great appeal, but the ones building crappy looking Mediterranean or southwestern style homes... their buyers canít sell them quickly.
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Old 09-19-2018, 03:09 PM
 
1,935 posts, read 3,299,896 times
Reputation: 3330
Houses are selling fast at record prices here in S-E Michigan. Our son found the same dynamic when he rocated to Pittsburgh early this summer. I agree that Real Estate is cyclical but I have not yet seen evidence of any slowdown indicating the market is approaching its peak.
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Old 09-20-2018, 09:55 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
28,382 posts, read 50,562,503 times
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Quote:
Originally Posted by Ultrarunner View Post
Exactly.... homes in the 650 and under are selling fast... homes at million... not so much.
The one for $699 is pending now, 7 days on the market. The one at $779 has dropped the price by $30k.
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Old 09-20-2018, 10:49 AM
 
4,506 posts, read 4,360,020 times
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Quote:
Originally Posted by MI-Roger View Post
Houses are selling fast at record prices here in S-E Michigan. Our son found the same dynamic when he rocated to Pittsburgh early this summer. I agree that Real Estate is cyclical but I have not yet seen evidence of any slowdown indicating the market is approaching its peak.
Second verse, same as the first!

https://www.zerohedge.com/news/2018-...t-time-3-years

Trouble ahead?

https://www.zerohedge.com/news/2018-...h-future-ahead

Oh, dear. Never mind the *******s, here come the HELOCs. (unbelievable, CD is starring out the word "boll locks". That's a bad word? Why?

https://www.zerohedge.com/news/2018-...ome-equity-get
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Old 09-20-2018, 11:56 AM
 
Location: Tennessee
20,947 posts, read 15,267,317 times
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Quote:
Originally Posted by 49erfan916 View Post
While I agree that lending standards are more strict, our economy is very uncertain. And with more people than ever living paycheck-to paycheck, and with more people taking out more debt than ever before, there's going to be a surplus of people who cannot afford to pay for their mortgage if/when a recession hits. (depending on the recession) Even though lending companies are more strict with their standards, they cannot help people's stupidity with debt and with people living beyond their means.
And as soon as you think you are stable, something comes in and causes your situation to be shaky.
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Old 09-21-2018, 09:27 PM
 
2,621 posts, read 2,023,746 times
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Quote:
Originally Posted by Serious Conversation View Post
And as soon as you think you are stable, something comes in and causes your situation to be shaky.
Yup, that is a huge issue ever since the great recession. There is zero stability now.
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Old 09-21-2018, 10:01 PM
 
25,800 posts, read 49,685,561 times
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So many ways to look at stability...

Health is your wealth is a phrase I heard often... or if you only have money problems... you really are blessed.

In financial terms... being debt free with a reserve tend to make one very stabile...

Being over extended or a house of cards where one thing not going to plan causes collapse is the other side.

Again... Health is the wild card... seen too many in their prime go out early...

If you puchase a home to live in... no matter what the market does you home still fills the primary function of being a roof over your head.

Those purchasing on specultation will be the first to bail in rough spots.
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Old 09-21-2018, 10:21 PM
 
Location: midvalley Oregon and Eastside seattle area
2,900 posts, read 1,344,207 times
Reputation: 2410
Quote:
Originally Posted by Pat Answers View Post
Today I talked with someone who has one of "those" mortgages, the ones where you only pay the interest payments for a certain number of years and now in about 5 months her payment is going to triple because now the principal is coming due also. I thought those loans were part of the recession problem and no longer given out. Don't know how they even qualified for this mortgage because their income is very limited. There is no money to fix or maintain. I fear a foreclosure is in their future.


How many of those loans are still out there?
Who knows.
Sounds like a balloon loan thru a private sale. Does not sound like a conforming loan since 2008.
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Old 09-22-2018, 12:19 AM
 
Location: New Jersey
15,044 posts, read 13,095,907 times
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Higher end of the market seems to be struggling. Since it's September, the peak spring/summer selling season is winding down as well.

Locally, it was a busy selling season. Prices in NW NJ plummeted during the recession and still haven't recovered but it's picked up over the past couple years. Lack of public transportation and high property taxes also contribute to keeping prices down.
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