[desertsun41]

Originally Posted by MomMom

DS...now you're scaring me.

What do you think caused the current crisis this country is in?


BAD LOANS


BAD LOANS

BAD LOANS

You been asleep? More nickel and dime investors bought homes here in Las Vegas than you could EVER shake a stick at...because they saw the home values inflating at ridiculous levels and they saw $$$$ in the land of milk of honey. That old supply and demand thingy...

These idyllic folk were able to buy homes they couldn't afford...no stated income, no money down, low, low monthly payments, the Jebediah plan, the Nehmiah plan, the Aunt Jemima plan..

BAD LOANS equals people who really weren't qualified for and now can't pay their mortage (foreclosures) which equals lowering home values...

That's why there are so many foreclosures here and everywhere else, everyone wanted to invest in "Vegas baby".

The prices of homes are more realistic now, but they could be lower. It's a shame too, there are still youn people out there who even now, with the home values at such a decrease from just a couple of years ago, still cannot afford to buy a home here.

And yeah, we all kinda KNOW Las Vegas is built upon tourists...they're still coming, not like the numbers of a couple of years ago, but they're still coming whether construction is going on or not.

Discounts on rooms/shows/restaurants is what will keep them coming, too...IF, our Las Vegas corporate fathers are wise to the current state of the union that is

Oh I agree with you fully. I think I just said it all wrong for you to misunderstand what I said. But many other places with higher foreclosure rates are not necessarily by the same reasons as LV. We have lost so much home value here which causes many people to just say: "why bother" and walk away. There are some areas of the country where people are walking away with some equity in their homes because that bad loan readjusted to something unaffordable.

I will never place any blame on buyers for this mess. And Daddy you can step in here. These banks seem to want all these homes in their inventory. Why oh why are they refusing to work with the borrowers? It costs a lender $50,000 to foreclose. Isn't it cheaper for the lender to leave the damn interest rate where it is rather then adjust it to a point where it is unafordable? Are lenders just so accustomed to making huge profits by raping us that they are lost when there is a crisis like now? They truely have no idea how to handle this crisis.

Geez just today I got a letter from Home Savings where I have a mortage on my RV. The letter basicly said they are going belly up but not to worry. I ain't worrying. I dont have any money in their bank, only a loan.

I have no sympathy for banks. Let them all rot in hell. They too were jumping on the LV growth that we all thought could never end.

[Daddys///M3]

Originally Posted by MomMom

DS...now you're scaring me.

What do you think caused the current crisis this country is in?


BAD LOANS


BAD LOANS

BAD LOANS

You been asleep? More nickel and dime investors bought homes here in Las Vegas than you could EVER shake a stick at...because they saw the home values inflating at ridiculous levels and they saw $$$$ in the land of milk of honey. That old supply and demand thingy...

These idyllic folk were able to buy homes they couldn't afford...no stated income, no money down, low, low monthly payments, the Jebediah plan, the Nehmiah plan, the Aunt Jemima plan..

BAD LOANS equals people who really weren't qualified for and now can't pay their mortage (foreclosures) which equals lowering home values...

That's why there are so many foreclosures here and everywhere else, everyone wanted to invest in "Vegas baby".

The prices of homes are more realistic now, but they could be lower. It's a shame too, there are still youn people out there who even now, with the home values at such a decrease from just a couple of years ago, still cannot afford to buy a home here.

And yeah, we all kinda KNOW Las Vegas is built upon tourists...they're still coming, not like the numbers of a couple of years ago, but they're still coming whether construction is going on or not.

Discounts on rooms/shows/restaurants is what will keep them coming, too...IF, our Las Vegas corporate fathers are wise to the current state of the union that is

Let's not lump FHA loans with down payment assistance in with non-owner occupied, stated income, 100% financing at 580 FICO's. There is a world of difference between an FHA 30 year fixed loan that one must actually qualify for with full documentation and strict DTI ratios and NOO SIVA subprime 2/28's. Regardless of what the media, HUD, and politicians would have you believe FHA loans even with DPA's are very stable loans and very few default, relatively speaking.

Originally Posted by desertsun41

Oh I agree with you fully. I think I just said it all wrong for you to misunderstand what I said. But many other places with higher foreclosure rates are not necessarily by the same reasons as LV. We have lost so much home value here which causes many people to just say: "why bother" and walk away. There are some areas of the country where people are walking away with some equity in their homes because that bad loan readjusted to something unaffordable.

I will never place any blame on buyers for this mess. And Daddy you can step in here. These banks seem to want all these homes in their inventory. Why oh why are they refusing to work with the borrowers? It costs a lender $50,000 to foreclose. Isn't it cheaper for the lender to leave the damn interest rate where it is rather then adjust it to a point where it is unafordable? Are lenders just so accustomed to making huge profits by raping us that they are lost when there is a crisis like now? They truely have no idea how to handle this crisis.

Geez just today I got a letter from Home Savings where I have a mortage on my RV. The letter basicly said they are going belly up but not to worry. I ain't worrying. I dont have any money in their bank, only a loan.

I have no sympathy for banks. Let them all rot in hell. They too were jumping on the LV growth that we all thought could never end.

The fact that you would not place the blame on buyers, even though many of them commited loan fraud by lying about their income and occupancy fraud by structuring investment properties as owner occupied speaks volumes.

As far as banks wanting to hold these homes on their balance sheets, it does not make economic sense. It ties up liquidity, which is a banks most powerful tool and what truly makes a bank it's money. Now keep in mind that I am only speculating as I have zero experience with loan mods, but it seems to me that to modify a loan may actually be more expensive than foreclosing and selling it. There are many hands in the pot when it comes to a mortgage, which are never dealt with individually except on the level of LO and borrower. Loans are sold in bundles called pools, usually containing many hundreds or thousands of loans. Everyone from insurance companies to mutual funds to pension funds invest in these pools. Not only that but FNMA has it's hand in the pot as well, and of course the investors that hold FNMA bonds. All of these hands are expecting a certain rate of return. The fact is that simply sorting through these pools can be very time consuming and complicated, and whether you like it or not the bank's primary responsibility is to it's shareholders. Taking the immense amount of time it may take to find these loans, modify the notes, and possibly negotiate with all of the entities involved it may not be in the bank's or the shareholder's best interest. Couple all of that with the fact that banks are absolutely overrun with paperwork due to shortsales, foreclosures, and loan mods. I'm sure you get the picture.

As far as lenders making huge profits and raping everyone, where have mortgage rates been at for the last few years? Let's say they have averaged 6.25% (random number) over the last 5 years or so. Of that 6.25%, how much do you think the bank receives after FNMA and Wall Street take their cut? I would wager less than 1%. Now throw in the overhead that it takes to service a loan as well as offer the other products that most banks offer. But let's just say for arguments sake that they do receive the whole 6.25% and have zero cost associated with that rate of return. Do you have a 401K or a IRA? Pension? What has the rate of return been on that for the last few years? In case you don't have one, I believe the average rate of return, post tax, has been between 7% and 10%. Are the pension funds and mutual funds raping folks to get that kind of rate of return, one that handily whoops the banks rate of return? If you do, how much of that return do you think has come from the so called "bank rape" that you rant about now?

The fact is that in a free market society there are winners and there are losers. You know how you can tell who the winners are? They're the ones that keep moving forward, even when they lose. They're the ones that do it without asking for handouts and whining about how life is not fair. And I will tell you what, the winners are the ones that look around and see opportunity, while others only see despair.

[bradly]

Originally Posted by MomMom

Geez, I keep looking for the horrible economy of Las Vegas

Had a houseguest (as usual) over the weekend and we did the Strip. It was CROWDED this weekend and the restaurants in the hotels were CROWDED, so both Friday and Saturday nights we decided to go to restaurants closer to home, rather than wait at the hotels. Friday night (45 minute wait to be seated at BJ's in Summerlin and Saturday night 50 minute wait to be seated at PF Changs in Summerlin

What "worst" economy you talking about?

Wow big deal our PF Changs you have to make reservations for the next day other wise you just wont able to eat there, dont feel bad..i love PF Changs tho same with tucanos, i effin love that place but once we had to wait 3 hours to eat there it sucked!..any city you go to there will be an area crowded as hell, nob hill here and occasonally downtown will be very crowded..uptown here is very crowded too... i was mostly talking about foreclosures tho, tourists go to the strip mostly not the locals...have you not been watching CNN lately your citys "economy" isnt doing so well so dont go off on me tell CNN that...and not to bad?, but then again look at all the projects being delayed or cancled there.

[airics]

what you probably don't realize as most of the foreclosures were investor related or people who used liar loans... why dont you try buying one of these foreclosures? multiple offers.. some well above list....sold in a couple days..

in other cities, the foreclosures are just sitting

[bradly]

Originally Posted by airics

what you probably don't realize as most of the foreclosures were investor related or people who used liar loans... why dont you try buying one of these foreclosures? multiple offers.. some well above list....sold in a couple days..

in other cities, the foreclosures are just sitting

Sold in a couple of days? i didnt know the Real-estate market was that good up there ..? i think i should buy me a house up there now haha

[AA702]

Originally Posted by bradly

Sold in a couple of days? i didnt know the Real-estate market was that good up there ..? i think i should buy me a house up there now haha

Its true, there are some bidding wars with some of these repos that are in good shape and in desireable areas. Las Vegas isn't dead like you might think it is, remember we live here and see it day by day. The roads are still packed and the airport is still very busy. Sometimes you cant belive everything CNN tells you.

[bradly]

Originally Posted by AA702

Its true, there are some bidding wars with some of these repos that are in good shape and in desireable areas. Las Vegas isn't dead like you might think it is, remember we live here and see it day by day. The roads are still packed and the airport is still very busy. Sometimes you cant belive everything CNN tells you.

Ya i know i'm just messin around with you lol, i have family up there and i might buy me a house up there, idk lets see i was looking at some house really nice large, larger than the one i have here in ABQ and whats nice over there some homes are going for very cheap

[AA702]

Originally Posted by bradly

Ya i know i'm just messin around with you lol, i have family up there and i might buy me a house up there, idk lets see i was looking at some house really nice large, larger than the one i have here in ABQ and whats nice over there some homes are going for very cheap

There are some very good deals right now, the only catch is getting a loan. Its not as easy as it use to be. If you have cash, then its all game. I think once all the repos and bad loans dwindle from the market, then things should balance out.

[bradly]

Originally Posted by AA702

There are some very good deals right now, the only catch is getting a loan. Its not as easy as it use to be. If you have cash, then its all game. I think once all the repos and bad loans dwindle from the market, then things should balance out.

Well my job is actually paying me really good now thank god, thats why i dont leave this town..but i think paying cash would be the best way then.. thats what i did for the house i have here and i think if i remember mine here was 250k.. 3 bedrooms 2 bath they slashed the price 5k i couldnt resist haha

[desertsun41]

Originally Posted by Daddys///M3

Let's not lump FHA loans with down payment assistance in with non-owner occupied, stated income, 100% financing at 580 FICO's. There is a world of difference between an FHA 30 year fixed loan that one must actually qualify for with full documentation and strict DTI ratios and NOO SIVA subprime 2/28's. Regardless of what the media, HUD, and politicians would have you believe FHA loans even with DPA's are very stable loans and very few default, relatively speaking.



The fact that you would not place the blame on buyers, even though many of them commited loan fraud by lying about their income and occupancy fraud by structuring investment properties as owner occupied speaks volumes.

As far as banks wanting to hold these homes on their balance sheets, it does not make economic sense. It ties up liquidity, which is a banks most powerful tool and what truly makes a bank it's money. Now keep in mind that I am only speculating as I have zero experience with loan mods, but it seems to me that to modify a loan may actually be more expensive than foreclosing and selling it. There are many hands in the pot when it comes to a mortgage, which are never dealt with individually except on the level of LO and borrower. Loans are sold in bundles called pools, usually containing many hundreds or thousands of loans. Everyone from insurance companies to mutual funds to pension funds invest in these pools. Not only that but FNMA has it's hand in the pot as well, and of course the investors that hold FNMA bonds. All of these hands are expecting a certain rate of return. The fact is that simply sorting through these pools can be very time consuming and complicated, and whether you like it or not the bank's primary responsibility is to it's shareholders. Taking the immense amount of time it may take to find these loans, modify the notes, and possibly negotiate with all of the entities involved it may not be in the bank's or the shareholder's best interest. Couple all of that with the fact that banks are absolutely overrun with paperwork due to shortsales, foreclosures, and loan mods. I'm sure you get the picture.

As far as lenders making huge profits and raping everyone, where have mortgage rates been at for the last few years? Let's say they have averaged 6.25% (random number) over the last 5 years or so. Of that 6.25%, how much do you think the bank receives after FNMA and Wall Street take their cut? I would wager less than 1%. Now throw in the overhead that it takes to service a loan as well as offer the other products that most banks offer. But let's just say for arguments sake that they do receive the whole 6.25% and have zero cost associated with that rate of return. Do you have a 401K or a IRA? Pension? What has the rate of return been on that for the last few years? In case you don't have one, I believe the average rate of return, post tax, has been between 7% and 10%. Are the pension funds and mutual funds raping folks to get that kind of rate of return, one that handily whoops the banks rate of return? If you do, how much of that return do you think has come from the so called "bank rape" that you rant about now?

The fact is that in a free market society there are winners and there are losers. You know how you can tell who the winners are? They're the ones that keep moving forward, even when they lose. They're the ones that do it without asking for handouts and whining about how life is not fair. And I will tell you what, the winners are the ones that look around and see opportunity, while others only see despair.

It may have been fraud on the buyers part but who talked them into it? Im not pointing at you. But you know what went on. It was a free for all out there. You make the whole thing seem so complicated, maybe it is. I see our end and what we feel is just as easy as pulling the file and rewriting it. Surely that has to be cheaper and easier then foreclosing. And what avenue they take surely benifits the investors too.

I wish I understood better how the whole thing worked. You probably explained it well but its hard getting a handle on the whole thing.

Dont defend lenders. I know its their business but I dont feel sorry for them on a 6% loan. The garbage fees alone they collect account for 70% of their profits. No one likes banks. Kinda like ya cant live with them or without them. In Vegas its easy to live without them with all the casinos begging for you to cash your checks with them.