Housing Bubble? Your thoughts, predictions (Portland, South Portland: home equity, first time buyer, college)

[WhoFanMe]

Originally Posted by Zymer

I haven't seen that statement. Should I have?

48 hours before closing and your agent will go over it with you. I was confused because you said you took possession of it today, but you close in 2 weeks. Are you saying that the seller is allowing you to be in 2 weeks early? Did you sign a Possession Prior to Closing Addendum?

[Zymer]

Originally Posted by WhoFanMe

48 hours before closing and your agent will go over it with you. I was confused because you said you took possession of it today, but you close in 2 weeks. Are you saying that the seller is allowing you to be in 2 weeks early? Did you sign a Possession Prior to Closing Addendum?

Yes, addendum signed. It's better this way, they have already moved out and can't afford to take care of it, and I don't want to see the property damaged by neglect.

[WhoFanMe]

Originally Posted by Zymer

Yes, addendum signed. It's better this way, they have already moved out and can't afford to take care of it, and I don't want to see the property damaged by neglect.

Wow, that's great, your agent is really looking out for you.

[Zymer]

Originally Posted by WhoFanMe

Wow, that's great, your agent is really looking out for you.

Yes, she certainly is.

[Zymer]

Countrywide staggering again, according to a story in the Washington Post. Foreclosure rate doubled to 1.44% in Dec, from .7% a year earlier, defaults rose to 7.2% from 4.6%.

...Egan Jones, a ratings company, wrote in a report Tuesday that Countrywide is "severely challenged and might falter if it does not receive an infusion of at least $4 billion within the next couple of weeks."

To this point, Countrywide has heavily relied on the Federal Home Loan Bank in Atlanta, which has loaned $51.1 billion to the troubled mortgage company. But Countrywide appears to lack the collateral to borrow more from that bank....

...Treasury Secretary Henry M. Paulson Jr. said yesterday that the housing market has not bottomed out. "There's no evidence that is improving or bottoming, and as a matter of fact, I think the evidence would indicate that it is going to have further to run," Paulson said on CNBC...

[Elcarim]

I wonder what happens to all their mortgage holders if they go under. That can't be good!

[Zymer]

Originally Posted by Elcarim

I wonder what happens to all their mortgage holders if they go under. That can't be good!

No, it won't be good at all. There could be much unhappiness in the bank and finance industries. If CW went bankrupt, the people who have mortgages would still owe the money.

[Elcarim]

Well duh, Z! I just wonder if the government takes over the debt or if it is picked up by another mortgage company or something. Seems like the debt would probably be sold to the highest bidder.

[Northern Maine Land Man]

I believe we are returning to a pattern where lenders will want to see 20% or 24% down before lending money on a house. We have seen it before and we are about to see it again. People will once again need to save up to buy a house. My parents did and they had a party when they got their 20% down.

[WhoFanMe]

Originally Posted by Northern Maine Land Man

I believe we are returning to a pattern where lenders will want to see 20% or 24% down before lending money on a house. We have seen it before and we are about to see it again. People will once again need to save up to buy a house. My parents did and they had a party when they got their 20% down.

Hopefully it was a party on a budget so they didn't drop to 19%!