Homes selling like crazy? (Phoenix: rent, equity loan, new house)

[PhinsFan1]

Originally Posted by ReadyFreddy

I also know someone locally who is trying to get approved for another mortgage for an investment property. The banks said they want 20% down because there is a foreclosure on her credit report, dated last month. That's an error, but how wild that all she'd have to do is put 20% down after a foreclosure and boom... new mortgage, new house. If you quit paying your mortgage 18 months ago and pocketed the money instead, like some people have done, that's a nice chunk of cash to put down on your next place.

I'm not hoping people do any of this. I just think we should all know it's happening. I find it wonderful on the human aspects but a little horrifying as far as public financial policy.

I find it repugnant. Seriously. You sign a contract, you honor it. With people like your friend who short sold, bought, and is short selling again, or people who are pocketing their mortgage for 18 months for a down payment on a new home, this real estate mess will never recover. How is that not infuriating to every participating, tax paying member of this society? This impacts us all. People need to stop taking the easy way out and honor their obligations. This isn't just about them and their desire for a new home, or to get out of a home simply b/c they don't like being upside down and they wanted a pool (yes, I know someone who did that). It's about us, their neighbors, who suffer every time they short sell or foreclose b/c OUR homes lose value. I understand that some people have real hardship reasons to short sell or foreclose. But there are many who are just taking the easy way out, and many who had no business buying the home in the first place. Sorry, but that's just not right. Banks and agents played a big role in this, but homebuyers need to accept responsibility for their roles as well. Until that happens, nothing will ever change.

[stevek64]

Originally Posted by PhinsFan1

I find it repugnant. Seriously. You sign a contract, you honor it. With people like your friend who short sold, bought, and is short selling again, or people who are pocketing their mortgage for 18 months for a down payment on a new home, this real estate mess will never recover. How is that not infuriating to every participating, tax paying member of this society? This impacts us all. People need to stop taking the easy way out and honor their obligations. This isn't just about them and their desire for a new home, or to get out of a home simply b/c they don't like being upside down and they wanted a pool (yes, I know someone who did that). It's about us, their neighbors, who suffer every time they short sell or foreclose b/c OUR homes lose value. I understand that some people have real hardship reasons to short sell or foreclose. But there are many who are just taking the easy way out, and many who had no business buying the home in the first place. Sorry, but that's just not right. Banks and agents played a big role in this, but homebuyers need to accept responsibility for their roles as well. Until that happens, nothing will ever change.

In my view.....very well said!

[Boompa]

Originally Posted by Jkgourmet

Don't know that I entirely believe or agree with this, but. . .

Is housing glut over? Experts predict housing shortage by spring - East Valley Tribune: Mesa

From the January 18, 2012 edition of the paper.

There is still a large inventory of forclosed houses tht are not on the market.

[royalpiper]

that is why I would like to see a return to debtor's prisons....that would stop this sort of thing and make examples out of those who do....

[Zippyman]

Originally Posted by royalpiper

that is why I would like to see a return to debtor's prisons....that would stop this sort of thing and make examples out of those who do....

Sure, but I wouldn't support that until even one banker gets sent to prison.

None have.

Not even the poster child for ignorant loans, Angelo Mozillo had any real repercussions for his actions.

A "record" fine, (paid by his employer) didn't offset at all the one-hundred-and-forty MILLION dollars in stock options he exercised while telling everyone the company was "fine". He told the government he was selling those options for "his grandkid's college", not because his company was a cesspool of garbage loans.

[MN-Born-n-Raised]

Originally Posted by Zippyman

Sure, but I wouldn't support that until even one banker gets sent to prison.

None have.

Not even the poster child for ignorant loans, Angelo Mozillo had any real repercussions for his actions.

A "record" fine, (paid by his employer) didn't offset at all the one-hundred-and-forty MILLION dollars in stock options he exercised while telling everyone the company was "fine". He told the government he was selling those options for "his grandkid's college", not because his company was a cesspool of garbage loans.

From In Fight Against Securities Fraud, S.E.C. Sends Wrong Signal - NYTimes.com
"After years of lengthy investigations into collateralized debt obligations, the mortgage securities at the heart of the financial crisis, the only individuals the S.E.C. has brought civil actions against for involvement in those transactions are half a dozen small-timers.No major investment banker has been brought up on criminal charges stemming from the financial crisis."

All the SEC did was fine a small portion of the scumbags profits. The biggest fine in the history of the SEC was Goldman Sach's at a record $550M (no one went to jail). But the bank made multi-billions in profits. That's billions with a B! They even made a couple billion after they were propped up after the collapse. Do you want to know all of the details??? Nope! The SEC sealed the documents as part of the deal.

[bgray9]

Originally Posted by PhinsFan1

I find it repugnant. Seriously. You sign a contract, you honor it. With people like your friend who short sold, bought, and is short selling again, or people who are pocketing their mortgage for 18 months for a down payment on a new home, this real estate mess will never recover. How is that not infuriating to every participating, tax paying member of this society? This impacts us all. People need to stop taking the easy way out and honor their obligations. This isn't just about them and their desire for a new home, or to get out of a home simply b/c they don't like being upside down and they wanted a pool (yes, I know someone who did that). It's about us, their neighbors, who suffer every time they short sell or foreclose b/c OUR homes lose value. I understand that some people have real hardship reasons to short sell or foreclose. But there are many who are just taking the easy way out, and many who had no business buying the home in the first place. Sorry, but that's just not right. Banks and agents played a big role in this, but homebuyers need to accept responsibility for their roles as well. Until that happens, nothing will ever change.

Well said. Just think if people could walk away from stocks they purchased that have gone down in value and not have to take the loss on them. People would be outraged. But that's in essence what people can relatively easily do and get out of their commitment on their home mortgage that has lost value. Agreed that there are real hardship cases.

[Kimballette]

This thread has meandered quite a ways from the first post. Let's keep the discussion focused on Phoenix, and less so on general comments about corporate greed and national trends. Thanks.

[Captain Bill]

Originally Posted by Boompa

There is still a large inventory of forclosed houses tht are not on the market.

Since you say foreclosed, I assume you're talking about the lender owned homes that aren't on the market.

I've been posting declining numbers and as of Jan 2 the chart shows them to be down to about 4,500 not listed, and only 1,500 listed.

What is the number you have?

[aerodmb]

I'm new to the area and looking to purchase a home in the next 3 months, specifically the Scottsdale/Tempe area but open to areas on the outskirts of those cities. Can anyone share their experience with an FHA loan? Any recommendations of who to begin shopping around with for a good FHA package? This will be my second home purchase.