[Muggy]

Originally Posted by scamutz

MiraBay is the perfect example of what went wrong in the real estate market. There were no restrictions on selling to investors and they flooded the market. It became impossible for builders to compete with the resales of their own homes. It's a gorgeous community, but homebuilders learned a hard lesson about taking the easy money from investors...there are now restrictions that require you to maintain ownership for 1-2 years after closing..scaring away most of the "flippers." If sales were limited to people who intended to living there in the first place, there would have been 1/3 the sales...but they would be real sales and the market would be much more stable.

Excellent post. Thank you for providing insight to the current market.

[Nomoresubways]

It's ok I can handle it. If I was worried about ratings and "reputation", I wouldn't be here in the first place. I like these forums because it not only gives me a chance to see what other people think but also to debate opinions.

I only wish we had a more public forum for our national politics to throw out negative responses when our politicians say things we don't agree with.

[scamutz]

Originally Posted by Muggy

Could somebody explain this to me:

If in fact the market will pick up soon, why are homebuilders offering such huge discounts, homes going into foreclosure, and auctions picking up?

Homebuilders are offering such huge discounts because they have completed inventory that they are paying taxes, interest, and dues on...they have to get rid of them now. They're better off, dumping what they have at little or no profit, and starting new homes (albeit at a much slower pace than one year ago) and keeping everyone working.

[Shores9]

Originally Posted by Muggy

So help me understand: are foreclosures going up or not?

Muggy - that math is way too easy – I know you don’t need help with this! Have you looked at the federal reserve z1 data? I'll give you the link http://www.federalreserve.gov/releas...current/z1.pdf

Maybe we can debate the math here!

[Muggy]

Originally Posted by Shores9

I know you don’t need help with this!

I do need help with this. I'm serious. Please explain it in a manner that everyone here can understand. Are foreclosures going up or not?

I am making an honest effort to explore the housing issue here.

Scamutz, thank you for explaining the inventory issue and why builders are discounting. I appreciate that.

[firemed]

Originally Posted by Muggy

I do need help with this. I'm serious. Please explain it in a manner that everyone here can understand. Are foreclosures going up or not?

I am making an honest effort to explore the housing issue here.

Scamutz, thank you for explaining the inventory issue and why builders are discounting. I appreciate that.

I would like to know also. Could we start with the 2Q hm at 9331.9. I know its old and the 3rdQ is not in the numbers but I would like to hear about it anyway.

[firemed]

Subprime loans -- loans made to borrowers with less than perfect credit -- aren't just performing badly. New figures presented by UBS analysts this week show that the deterioration is accelerating.

[Nomoresubways]

I definitely think you're going to see people who traditionally should never have gotten a mortgage defaulting over the next few years. Therefore, I think you will see rising foreclosures. All those who used creative financing will definitely pay the price. I can't argue that.

I can make a dumb comment that economic Darwinism is in place here and anyone who couldn't/shouldn't have bought a house in those conditions is getting eaten alive. "Survival of the fittest" And I'm not saying that in any other way but to say people should know their boundaries when purchasing a home.

[firemed]

Originally Posted by Nomoresubways

I definitely think you're going to see people who traditionally should never have gotten a mortgage defaulting over the next few years. Therefore, I think you will see rising foreclosures. All those who used creative financing will definitely pay the price. I can't argue that.

I can make a dumb comment that economic Darwinism is in place here and anyone who couldn't/shouldn't have bought a house in those conditions is getting eaten alive. "Survival of the fittest" And I'm not saying that in any other way but to say people should know their boundaries when purchasing a home.

Very well said, Alot of people are over there heads. how did they get loans in the first place I don't know.

[Shores9]

Originally Posted by firemed

I would like to know also. Could we start with the 2Q hm at 9331.9. I know its old and the 3rdQ is not in the numbers but I would like to hear about it anyway.

What the question? Are you referring to Z1 q2 06 Home mortgages