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Old 09-16-2008, 09:59 AM
 
Location: Stewartsville, NJ
7,577 posts, read 20,991,761 times
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Quote:
Originally Posted by JERSEY MAN View Post
No I just heard the fed is coming to the rescue.
"the fed" = you and me!
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Old 09-16-2008, 10:01 AM
 
Location: Weehawken, NJ
2,179 posts, read 6,252,913 times
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Quote:
Originally Posted by JERSEY MAN View Post
No I just heard the fed is coming to the rescue.
Just heard that too. Rumors are flying, but this seems to be the case.

Another bailout. Not good.
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Old 09-16-2008, 10:02 AM
 
Location: New Jersey/Florida
5,641 posts, read 11,203,953 times
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Quote:
Originally Posted by Alex07860 View Post
I don't feel sorry one bit for any of them, these are the same people who knowingly gave credit to those that couldn't afford it or didn't deserve it in order to buy homes they SHOULDN'T have bought, all in the name of making their books look good and while they were eating lobster & filet mignon over their real estate lending practices (no doc, no income verify) they were laughing all the way to the bank, not knowing their own bank was in trouble. Well, the time has come to pay the piper and he's not taking IOU's.
Agreed 100 percent. The US has lived over it's head for the last 15 years. People claimed they were millionaires because their homes at the time were worth a million. Hank Greenberg the ex CEO of AIG lost about 500 million. Maybe he should have loaned his own company the 500 million and not us the taxpayers.
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Old 09-16-2008, 10:05 AM
 
Location: Stewartsville, NJ
7,577 posts, read 20,991,761 times
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Quote:
Originally Posted by HobokenGuy View Post
I agree with you, but finding buyers is going to be a huge feat right now. Lots of people are upside down in their house right now, and over leveraged to the nines.
Countrywide may agree with me...or sense what I sense as they just approved 100% financing on "rural" properties! I truly think it will be the move in the future for people.
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Old 09-16-2008, 10:06 AM
 
526 posts, read 1,289,126 times
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Quote:
Originally Posted by tallguylehigh View Post
That is true- I was thinking more of the bedroom communities rather than the Hobokens. Places like Essex, Berge, Union and some parts of Morris may see interest of people wanting to move back East.
I have been saying this for a while now, and have said it on these forums since registering. This is why towns like Summit in Union County had an average home sale price more than 2% higher than in 2006. This is why Chatham & Madison in Morris County had close to a 2% average sale price in 2007 than in 2006. This is why these towns as of July were looking like they would yet again have an average sale price which was higher than 2007.

People are reverting to a more European model of housing, at least where they choose to live, more so than what they choose to live in. That means train line towns, and towns that are close in to the city see people moving to them. Towns out in say, Western Morris County, Sussex County ... are seeing people leave. They are over time going to see a net loss of population, which will bring home prices down more even when the state as a whole is showing price appreciation in a few years, these places will likely see continued losses.

What will come with the continued losses for these towns further out? Higher taxes, at a faster rate than towns which are not losing population. The costs to maintain these towns will stay the same, the costs to fund the schools will not really go down, but the tax base will slowly be eroded.
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Old 09-16-2008, 10:09 AM
 
5,340 posts, read 12,987,119 times
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Quote:
Originally Posted by onegreatnurse View Post
Yeah, ha ha, give up what wealth? I never had any to begin with. That's why they call us "MIDDLE CLASS"; because most of us AREN'T wealthy and we're not poor enough to qualify for freebies.

I'm in Bergen County and there seems to be a high concentration of people with a lot of money....then there's the rest of us. This economy won't change my life any. I've always just eked by anyway, and will continue to do the same. I WISH I had some wealth to give up. And I would not even be where I am if it weren't for my parents' help.

I will say this: I'm sorry, but I don't feel sorry for those people who took adjustable rate mortgages then cried the blues when they got laid off and at the same time the rates skyrocketed, that's what an ARM is; a mortgage whose rate is bound to go up after the introductory period is over.

Some people got greedy and felt they were entitled to homes they had no business buying. Couple that with an artifically inflated real estate market and it's a recipe for disaster for sure. We bought the CHEAPEST house we could and took a fixed rate mortgage. Sure, I would have loved to take advantage of the low teaser rates, but I was analyzing the worst case scenario at the time under which we would still be able to pay the mortgage when we were still married, and bought in the most conservative manner possible, even though we qualified for a much higher mortgage, and it's a good thing we did because my son got kicked out of daycare at 4 years old (they could not handle his attention deficit but he was so young no doctor would medicate him even though that's when he needed it most--he is off all meds today at 11) and I couldn't work even if I wanted to.

Now I wish I had taken an ARM because after I had refinanced a second time when the rates went down, my ex-husband left and I had to pay off the mortgage in order to get his name off the house AND come up with another $50 K to buy him out. We only had each mortgage for less than about...2 years each, so I could have taken advantage of the ARM rates, had I known what was going to happen (the divorce).

If it wasn't for my parents, I would have a mortgage as a single parent right now, but guess what? Because I was always frugal (not cheap), I could have afforded it on my own and in fact, by now, three short years later, could have paid half of it off.

My parents absorbed the mortgage via their home equity instead (my inheritance, so I don't have to wait until they drop dead for help, my mother says). But even without them I could have refinanced and still afforded the mortgage because I was the one who chose conservatively when I was still married.

And now those people who overspent want a bail out? Why should I or anyone else for that matter help bail out people in better houses than me with federal tax dollars that come from my taxes that I paid? I know this isn't the case for everyone, but still....I was in the market for this house when the market went crazy and I saw what people were paying for the dumps around here and I took my time and refused to overpay for any old thing because of panic that I wouldn't find one in such a tight market. I decided I would only pay what was reasonable, not get into bidding wars and pay $20 to $30K over asking (which a lot of people did around here) for a house that was artficially inflated in price to begin with. That's how you end up with negative equity when the market inevitably takes a downturn......duh....simple mathematics, my friends.
You make a lot of excellent points, and I don't disagree with you over all. But we just can't generalize. The mortgage meltdown is made up of many different stories and many different situations. I agree, the absolute greed of many - lenders and those in the real estate "market" alike - played a very big hand. People "flipping" houses and taking out ARMs, interest only options, etc... assuming the bubble would never burst were fools. And yeah, a lot of people felt entitled to the McMansion and are now crying the blues. BUT I personally know a lot of people who bought the cheapest house and didn't act foolishly and are still in desperate sitations with their homes. Many had to pay top $ for a crappy home because they needed to be in the area (work/family committments etc). Many lost their jobs, not once, not twice, but a few IT folks I know are on their THIRD layoff in 5 years and trying to find another job in their field (or another) just is not happening. Divorce, like your case, also came into some people I knows equations. And while I'm very glad you had your parents to rely on, there are many who don't. If the whole country wasn't in this problem, trust me, these "individuals" would not get help... but it's that there are so many in the same boat at one time.

But individual situations aside, the problem is that if we just let the entire industry collapse, the trickle down effect of that would hurt everyone as a whole. So sadly, some greedy folks may get bailed out - most of all the money hungry corporate kings/queens who bilk people for their benefit all the time - but it will benefit everyone overall.
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Old 09-16-2008, 10:11 AM
 
5,340 posts, read 12,987,119 times
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EXCELLENT posts HobokenGuy - I'd rep you if I could!

You are so right. I was thinking that last night, didn't anyone learn from the S&L crisis of the 80's? No. Clearly no. And I remember the projections of how much we'd be paying for that mess... and here we are again. Really infuriates me.
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Old 09-16-2008, 10:27 AM
 
5,340 posts, read 12,987,119 times
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Quote:
Originally Posted by wileynj View Post
"the fed" = you and me!
You got that right!
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Old 09-16-2008, 10:28 AM
 
526 posts, read 1,289,126 times
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Quote:
Originally Posted by EEEPNJ View Post
You make a lot of excellent points, and I don't disagree with you over all. But we just can't generalize. The mortgage meltdown is made up of many different stories and many different situations. I agree, the absolute greed of many - lenders and those in the real estate "market" alike - played a very big hand. People "flipping" houses and taking out ARMs, interest only options, etc... assuming the bubble would never burst were fools. And yeah, a lot of people felt entitled to the McMansion and are now crying the blues. BUT I personally know a lot of people who bought the cheapest house and didn't act foolishly and are still in desperate sitations with their homes. Many had to pay top $ for a crappy home because they needed to be in the area (work/family committments etc). Many lost their jobs, not once, not twice, but a few IT folks I know are on their THIRD layoff in 5 years and trying to find another job in their field (or another) just is not happening. Divorce, like your case, also came into some people I knows equations. And while I'm very glad you had your parents to rely on, there are many who don't. If the whole country wasn't in this problem, trust me, these "individuals" would not get help... but it's that there are so many in the same boat at one time.

But individual situations aside, the problem is that if we just let the entire industry collapse, the trickle down effect of that would hurt everyone as a whole. So sadly, some greedy folks may get bailed out - most of all the money hungry corporate kings/queens who bilk people for their benefit all the time - but it will benefit everyone overall.
Hay, Flipping houses had nothing to do with this mess. I flipped 5 different houses that I never lived in. What I did do, was purchase homes which had been run down, in several cases Foreclosed on and sitting vacant, all were basically hurting the neighborhoods they were in. I restored them to premium condition, and put them on the market for good people to buy. In every case they sold and I made a profit. That is the American way, and in my view what I did was good for everyone involved.

There are multiple causes to all these problems.
  • Greedy banks who would write any loan, just to get the processing fees.
  • Greedy companies like Lehmans, Merrill, ... who way over extended themselves on leverage, trying to make bigger profits to make wall street happy.
  • Stupid home buyers with poor credit, who were given the chance to buy a home, and straiten out their ways (pay their bills on time) who did not do so. I am sure some had legitimate problems, bit I know quite a number myself who are in trouble now, not because they lost a job, or had a medical emergency, but because they have a spending addiction, and when it came time to refinance the 2 year arm that was about the only loan people with bad credit back in 2004 and 2005 could get, well the banks looked harder at them, and said sub 600 credit score, not refinancing that looser!!
I am sorry, but I do not feel sorry for the fat cats who are loosing their jobs, and I do not feel sorry for the dead beats who have always been dead beats who are loosing their homes.

For those who had good credit and paid their bills, then had legitimate problems, I feel sorry for them, and strongly feel that they are the only ones deserving of a bail out.
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Old 09-16-2008, 10:37 AM
 
5,340 posts, read 12,987,119 times
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I'm old school. I think real estate is where you live. It shouldn't be the huge "market" it became. Too many people using their homes as ATM machines, too many people trying to profit and driving the prices sky high... none of that helped. It all worked together to put us where we are now.
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