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Old 08-25-2008, 10:35 AM
 
Location: Fort Myers, FL
1,286 posts, read 2,595,489 times
Reputation: 249

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i have no idea why its the banks and mortgage brokers faults. in some cases they may have stretched some people too thin, but to lump them in and say its all there fault? the housing market isn't slumped because everyone and there brother could get a mortgage, it slumped because the builders built TOO MUCH HOUSING. when the first time buyers have too many options sellers start dropping there prices to get noticed. when too many people do this, you force others to match and worse those who cant match to compete.

in my market right now for the last 2 months we have had the highest foreclosure in the US per month, but those same 2 months sales were up 74% in june compared to last june and 87% in july compare to last july. but most other areas have already had there peak foreclosures. this area while simultaneously finally being effected is also recouperating at the same time.

as far as southwest florida goes, its already turning around. where were top 5 most built area before the housing slump and our residential builders/employees were hit hard by this. but i am guessing by this time next year builders will start biulding a lot again.

another thing, i closed on my home in Jan of '07, after close i put in a $86k pool. knowingly when the housing slump started. I have not lost $1 in my home but not have gained one either. my local market is only effected below $450k dramatically. there was no secret to this either, we had such a high demand and low supply for years, prices did go up. why shouldnt they? it was driven by demand. i was house hunting for years and i wasnt about to buy some old piece of sh*t that wasnt even level for $350k and wasnt even comparable to a new home. that same house ended up reselling 2 more times and finishing at $530k. I felt it was worth 250k on a very good day.

But my are is a rare area. we had 1 year where prices went up 47%. not the traditional 3-4% of areas that were hurt. so naturally they were gonna come down. a lot of people refer to bubbles but when a bubbles burst, that it, there is no more anything. we are just in a slump.

try to get thru it. the housing bill may help people. i am curious to know how much it will. but it is designed for the banks not the people.
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Old 08-25-2008, 11:22 AM
 
Location: Pennsylvania, USA
5,217 posts, read 4,114,306 times
Reputation: 908
Quote:
Originally Posted by brokerdave View Post
i have no idea why its the banks and mortgage brokers faults. in some cases they may have stretched some people too thin, but to lump them in and say its all there fault? the housing market isn't slumped because everyone and there brother could get a mortgage, it slumped because the builders built TOO MUCH HOUSING. when the first time buyers have too many options sellers start dropping there prices to get noticed. when too many people do this, you force others to match and worse those who cant match to compete.

in my market right now for the last 2 months we have had the highest foreclosure in the US per month, but those same 2 months sales were up 74% in june compared to last june and 87% in july compare to last july. but most other areas have already had there peak foreclosures. this area while simultaneously finally being effected is also recouperating at the same time.

as far as southwest florida goes, its already turning around. where were top 5 most built area before the housing slump and our residential builders/employees were hit hard by this. but i am guessing by this time next year builders will start biulding a lot again.

another thing, i closed on my home in Jan of '07, after close i put in a $86k pool. knowingly when the housing slump started. I have not lost $1 in my home but not have gained one either. my local market is only effected below $450k dramatically. there was no secret to this either, we had such a high demand and low supply for years, prices did go up. why shouldnt they? it was driven by demand. i was house hunting for years and i wasnt about to buy some old piece of sh*t that wasnt even level for $350k and wasnt even comparable to a new home. that same house ended up reselling 2 more times and finishing at $530k. I felt it was worth 250k on a very good day.

But my are is a rare area. we had 1 year where prices went up 47%. not the traditional 3-4% of areas that were hurt. so naturally they were gonna come down. a lot of people refer to bubbles but when a bubbles burst, that it, there is no more anything. we are just in a slump.

try to get thru it. the housing bill may help people. i am curious to know how much it will. but it is designed for the banks not the people.

BrokerDave.. I'll have to disagree with you on some of your points..

First off.. lack of regulation of the banks allowed for them to do and lend to whomever by whatever standards they wanted. When the interest rates dropped banks started giving out mortgages like crazy. It was the ability for people that otherwise didn't have the ability to borrow for a mortgage before that created the large demand. The large demand spurred the builders to start building.. as the quote from that kids movie Robots goes "see a need, fill a need'.

Then it was like a snowball affect..

Now.. each person that borrows shuold gauge wether they could afford their mortgage or not, I'll give you that.. HOWEVER. the BAnks.. the ones with the money and the power and ability to say NO weren't saying no. As a result $400K mortgages were handed out to people that mke $2500/month!.. those subprimes.. with the low teaser rates (I've heard stories from neighbors of a fellow co=worker that makes just that and she had bought a home around the $400K mark with her @2500/month salary wth no money down.. two mortgaes!).

Once all those mortgages started resetting to "real" interest rates they simply couldn't make the payments.. their income and scores didn't qualify for a fixed interest rate and they started defaulting.. ONce they started defaulting banks started freaking out..tightening standards, etc. Now that the proverbial sh*&t has hit the fan, they continue to tighten . This has locked others out of refinancing (think Alt-A's and some primes).. because once things started to tighten.. banks started to stop lending to everyone and their mothers, demand started going down..

And yes..the builders DID overbuild, without a doubt.. they are also contributing factors..

But this ultimately started with the mortgage industry and their compromising their standards basically giving mortgages out lke candy.

I do take responsiblity for buying with a crappy product (Alt-A ARM started at 6.95)..BUT .. I do feel that had not hte subprime collapse start the snowball and downward spiral.. that I wouldn't ahve lost the equity in my home putting me at too high and LTV as a self employed individual with what was a great score (better than when I first got the ARM) into a FIXED interest rate.

This 'bail out' is simply bailing out banks and wall street, who, quite frankly, should have known better. The homeowners aren't really getting squat accept if they do get to modify.. which probably only a small percentage would. For me, the bill is too late!

But.. I've got my house short saled.. just waiting for banks to approve the offer..

I'm loosing my down payment, my improvements plus the payments ive made for the last 2 years on time at 6.95%.. basically I'm loosig 100K or more!! And my credit is destroyed.. and the banks are gettting away clean with gov't bail outs!
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Old 08-25-2008, 11:31 AM
 
Location: Columbia, SC
1,860 posts, read 4,339,515 times
Reputation: 775
Quote:
Originally Posted by UpsonDowns View Post
I feel punished by the government. I've been tracking real estate in my market and held back as friends jumped in with ARMs and stated-income loans. I agreed with the bears that while a slight premium on ownership could be expected, it shouldn't cost a thousand dollars more a month to own a home than it would to rent it. So I decided that we should wait out the bubble for when prices fell to reasonable levels (more in line with median incomes).

But now, the government is spending my money to prop up over-inflated property values. Like Chefkey said, if you put money in the stock market and the market goes down, you don't get a refund.

I want a house to raise a family in, not to flip, but until prices come down to 2-3x's our (above average) income for where we live - we will not be buying.
I agree w/you that the government should not "bail-out" people defaulting on mortgages. However, one small consolation you get from the stock market if the stock goes down, is you do get to write-off the loss on your tax return up to $3,000/year, carrying over any additional than that. You don't get to do that w/your house. I think this would have been a better solution (allowing losses on sales of homes) than bailing everyone out. Although, on the flip side of that, you can make $250k gain on the sale of your personal residence, and not pay a dime in taxes. I wish people would just learn personal responsibility and finance and not expect Washington to save them every time they screw up. I know we all make mistakes, but it seems that a lot of people don't learn from them.
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Old 08-25-2008, 11:38 AM
 
Location: Pennsylvania, USA
5,217 posts, read 4,114,306 times
Reputation: 908
Quote:
Originally Posted by Buckeye in SC View Post
I agree w/you that the government should not "bail-out" people defaulting on mortgages. However, one small consolation you get from the stock market if the stock goes down, is you do get to write-off the loss on your tax return up to $3,000/year, carrying over any additional than that. You don't get to do that w/your house. I think this would have been a better solution (allowing losses on sales of homes) than bailing everyone out. Although, on the flip side of that, you can make $250k gain on the sale of your personal residence, and not pay a dime in taxes. I wish people would just learn personal responsibility and finance and not expect Washington to save them every time they screw up. I know we all make mistakes, but it seems that a lot of people don't learn from them.

YOur money is being used to prop up teh banks.. NOT the homes. Prices have and will continue to come down..because as the banks get bailed out they are stricter than ever on lenders knocking lots of buyers out of the market..

And for every homeowner that gets helped by that bill there will be plenty more behind them that won't. ..

Again.. it's proping up the banks and wall street..
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Old 08-25-2008, 01:54 PM
 
Location: Cary, NC
1,036 posts, read 3,628,581 times
Reputation: 503
Quote:
Originally Posted by TristansMommy View Post
YOur money is being used to prop up teh banks.. NOT the homes. Prices have and will continue to come down..because as the banks get bailed out they are stricter than ever on lenders knocking lots of buyers out of the market..

And for every homeowner that gets helped by that bill there will be plenty more behind them that won't. ..

Again.. it's proping up the banks and wall street..


I have to disagree... its not propping up banks very much either. The only thing its propping up is the re-election campaigns of a few Senators and Representatives

It does help out a few banks and a few people... but it won't stabalize the housing market very much.
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