Help with intial offers on home?

[Dreamy46]

"lthough the FHA has tightened credit standards, many of the 2007 and early 2008 mortgages are going bad. The agency expects defaults on 24% of all loans insured in 2007, and 20% of those backed in 2008."

FHA Digging Out After Loans Sour - WSJ.com

Now look locally at how many FHA loans were made during that period:

MRIS Statistics

Hint: the percentage is huge.

[beilart]

Originally Posted by Dreamy46

"Moody's Economy.com estimates the number of underwater borrowers will peak at 17.4 million in the third quarter of 2010."

"An even higher estimate comes from Deutsche Bank, which predicted in an August study that the number of homeowners underwater will grow from 14 million (or 27% of all homeowners with mortgages) in 2009 to 25 million homeowners, or 48% of all those with a mortgage, by the time home prices stabilize."

More walk away from homes, mortgages - USATODAY.com

Okay, let me see if I have this straight. These sub prime lending leeches AKA banks who lent money to people who should never have been home owners in the first place are now playing chicken little? The sky is falling, the sky is falling! And the people who had a credit score of 500 with a 9.00 an hour job who got a 300K house with no down payment and weren't smart enough to read the fine print before signing on the dotted on are now saying oh woe is me? My irony meter just blew off the charts and my sympathy meter bit the dust at the first wave of short sales.

[Dreamy46]

Originally Posted by beilart

Okay, let me see if I have this straight. These sub prime lending leeches AKA banks who lent money to people who should never have been home owners in the first place are now playing chicken little? The sky is falling, the sky is falling! And the people who had a credit score of 500 with a 9.00 an hour job who got a 300K house with no down payment and weren't smart enough to read the fine print before signing on the dotted on are now saying oh woe is me? My irony meter just blew off the charts and my sympathy meter bit the dust at the first wave of short sales.

This stuff is all new to you?

Other than a theme variation where the numbers keep getting worse, the media has been playing this same movie since late 2005. It just took awhile for some people to recognize it's not fiction - it's a documentary film.

[beilart]

Naw, it isn't new. What really burns my butt is that about half of these people are just walking away from these mortgages. They can afford to pay for them, they just don't want to now that their pretty little houses aren't valued as much. Never mind taking a second job or tightening up the budget, "let's just do a short sale" and "we don't care if our neighbors' properties go into the tank with ours." I think I will go and see if I can get a bail out for my credit card that I ran up to put in all new carpet, appliances and new HVAC unit so we would sell our home under market value to compete with all the short sales and foreclosures that the rest of the country dumped out there so they wouldn't have to pay for them....after they stripped and destroyed them, of course.

[Dreamy46]

Originally Posted by beilart

Naw, it isn't new. What really burns my butt is that about half of these people are just walking away from these mortgages. They can afford to pay for them, they just don't want to now that their pretty little houses aren't valued as much. Never mind taking a second job or tightening up the budget, "let's just do a short sale" and "we don't care if our neighbors' properties go into the tank with ours." I think I will go and see if I can get a bail out for my credit card that I ran up to put in all new carpet, appliances and new HVAC unit so we would sell our home under market value to compete with all the short sales and foreclosures that the rest of the country dumped out there so they wouldn't have to pay for them....after they stripped and destroyed them, of course.

Are you taking into consideration that people weren't sold these homes as homes and a place to live that came with responsibilities, instead, they were sold these houses as "investments." Remember the real estate agent commercials? "A home is the biggest investment you'll ever make - let us help you buy it?"

I think they're smart to walk away in some cases, IE. 2004-2008 buyers.

The banks that made the bad loans turned around and got bailed out by taxpayers with zero percent interest money, and they're turning around and loaning it back to people at 30% credit card rates while giving themselves billions in bonuses. And all the home loans the banks are making now? They're using government insurance programs such as FHA, so they're not on the hook this time.

Recognize this guy?

Cramer: No really, dump your house

This?

http://www.youtube.com/watch?v=oLKft2YiNtE

[beilart]

Cramer is an idiot of the nth degree and a guttersnipe to boot! Walking away from your home should be the absolute last resort and then only if you have been injured and can't work, your spouse died and you can't pay for it or some other dire circumstance. Just because it is valued at less than what you paid for it is not an excuse, it's a cop out and irresponsible. The lack of personal responsibility is partially why we are in the housing mess we are in. You can blame anyone you want to but the bottom line is, whether you bought it because you thought it was an investment or not, you signed for it, you owe for it and you should pay for it, period. Using Cramer's logic/philosophy, that Toyota Yaris I bought new in 2007 is now worth less than what I paid for it so I should just stop making the payments and let the credit union come and get it.

[Dreamy46]

Originally Posted by beilart

Cramer is an idiot of the nth degree and a guttersnipe to boot! Walking away from your home should be the absolute last resort and then only if you have been injured and can't work, your spouse died and you can't pay for it or some other dire circumstance. Just because it is valued at less than what you paid for it is not an excuse, it's a cop out and irresponsible. The lack of personal responsibility is partially why we are in the housing mess we are in. You can blame anyone you want to but the bottom line is, whether you bought it because you thought it was an investment or not, you signed for it, you owe for it and you should pay for it, period. Using Cramer's logic/philosophy, that Toyota Yaris I bought new in 2007 is now worth less than what I paid for it so I should just stop making the payments and let the credit union come and get it.

Of course you could do like some of the real estate agents did and go buy the same house at half price, then default on the overpriced one...

Unflattering Time magazine story puts agent in hot water - Wednesday, Aug. 26, 2009 | 2 a.m. - Las Vegas Sun

[beilart]

Originally Posted by Dreamy46

Of course you could do like some of the real estate agents did and go buy the same house at half price, then default on the overpriced one...

Unflattering Time magazine story puts agent in hot water - Wednesday, Aug. 26, 2009 | 2 a.m. - Las Vegas Sun

That just makes me sick as a dog.