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Finally more and more homes are being sold unless some realtors are taking what we call "trophy" listings which means listings that will not sell and just being listed so the realtor can brag about having another listing and basically helping a dead beat realtor who wants to live for free as long as possible!
We recently noticed a listing that was listed for over one million and not worth more than $ 900K but the owner doesn't want it to be listed lower since he is living the good live for free as long as possible and refusing any decent offer. One of our agents was asked to take over the listing as long as the owner would not have to sign any offer!!!!
In the area where I live finally many homes have been sold and moving faster, and now home owners who can afford their homes are putting them up for a short sale basically scamming the system by trying to lie their way out...sorry but I don't have any other word for it when a government worker with a high paid salary and a surgeon are short selling the home since it is only in one persons name...they buy another home and the other defaults and they move to the bigger home and take advantage of the low market which I believe is great but than at least take the courage to go to closing with money and pay off the balance of your mortgage and don't act like you can't afford it...
Sorry for the rant but with all the child support for multiple kids, brand new cars that recently were bought, a nice salary as a surgeon and a government job...why do people like this try to kill the value of other properties even more.
I really hope banks/lenders will give them a judgment for the remainder as we have seen in a case that we are closing on next week where a home owner DENIED the refi that was offered, lived 2 more years for free, than decided to short sell the home and when everything was ready he denied to sign the paper work since the bank wasn't let him walk free...finally we as well as his lawyer convinced the home owner that this was the better option and now the home owners is moving to a higher end rental since money wasn't an issue just using all the equity line for personal stuff and than stopped paying and living the large live...
I understand you're point of view; however, I feel very little pity for the banks as their subprime loans and lack of due diligence when issuing credit were the direct catalyst of the housing and banking crash(I'd argue realtors/appraisers were also at fault too but I'll save that argument so as not to offend). It's not the government worker or doctor's fault that the housing market crashed, they are simply making a sound financial decision given a set of circumstances beyond their control. I purchased a home in 2007 and have continued to make my payments. I've lost my shirt on the place but I decided to carry on so as not to impact my credit rating. There are many times when I regret having not done a strategic default. I know many people who now have a nicer place, a lower payment, and in the years that have passed have restored their credit. Who looks like a fool? Me or them?
I understand you're point of view; however, I feel very little pity for the banks as their subprime loans and lack of due diligence when issuing credit were the direct catalyst of the housing and banking crash(I'd argue realtors/appraisers were also at fault too but I'll save that argument so as not to offend). It's not the government worker or doctor's fault that the housing market crashed, they are simply making a sound financial decision given a set of circumstances beyond their control. I purchased a home in 2007 and have continued to make my payments. I've lost my shirt on the place but I decided to carry on so as not to impact my credit rating. There are many times when I regret having not done a strategic default. I know many people who now have a nicer place, a lower payment, and in the years that have passed have restored their credit. Who looks like a fool? Me or them?
I understand your point but if you see how much the County is losing too. We just dealt with a pay off for a second mortgage with Pasco County so people who don't have the money for a down payment are supported by the County (our tax money and not a lenders/investors money) and this couple paid off $ 8000.- to the premium in 12 years!!! Now the County agreed to a $ 6000.- loss so the people can walk away and both mortgages are losing a lot of money as well as we the tax payers!
Why is the County still giving money to people who can't afford to have some money down? I don't get it. I took the course and was very disturbed that the County doesn't even conduct a back ground check and even sex offenders can get money from this tax money that we all pay for....
When i asked the question they told me that the County is not the sheriff's office!!!!...but they give our money to people who basically can't afford to buy a home, have bad credit and only less money than to put down for a security deposit so they can buy!!!!
I understand you're point of view; however, I feel very little pity for the banks as their subprime loans and lack of due diligence when issuing credit were the direct catalyst of the housing and banking crash(I'd argue realtors/appraisers were also at fault too but I'll save that argument so as not to offend). It's not the government worker or doctor's fault that the housing market crashed, they are simply making a sound financial decision given a set of circumstances beyond their control. I purchased a home in 2007 and have continued to make my payments. I've lost my shirt on the place but I decided to carry on so as not to impact my credit rating. There are many times when I regret having not done a strategic default. I know many people who now have a nicer place, a lower payment, and in the years that have passed have restored their credit. Who looks like a fool? Me or them?
When you are a bank and the federal government tells you that you HAVE to make loans to people that can't afford homes what do you do?? If you want to stay in business you have to do as the government says. look up 'Community Reinvestment Act"..
To blame the CRA is like blaming obesity on forks and spoons. Sure it contributed to the problem but its not the reason economy came crashing in. Banks were thrilled with the CRA, it eased credit requirements and practically endorsed predatory lending (i.e. the rise of Countrywide). The banks immediately offset their risk by selling these subprime loans as mortgage backed securities to other banks and even other countries. When the housing bubble burst thats where the problems started. The banks wouldn't loan money amongst themselves because they didn't know if they were lending to a bank holding toxic assets who couldnt repay the loan. As it worked out, darn near everybody had these mortgage backed securities and the global economy tumbled. An event unparalleled in modern history.
Its up to debate where the problem started, but most academic economists agree it appears the root of our current economic crisis is the post 9/11 reduction in the Federal Funds Rate. The reduction in interest rates made these subprime mortgage backed securities a lucrative investment when the risk-free treasury bills dropped below 1% return. This potential for return and perceived minimal risk for the lender only fueled the rush to make more subprime loans by the banks. Greed and lack of oversight in the banking industry caused the crisis, the CRA merely afforded them the means to make it happen.
Last edited by wiltznucs; 04-06-2012 at 12:25 PM..
The CRA is like Welfare. Welfare was supposed to be for a certain category of people, (not necessarily section 8) yet it has been abused for YEARS by the illegals coming here to have babies...etc etc etc, and others perfectly capable of working.
The CRA was also meant for a certain WORKING category...and like Welfare it was abused too.
You see, there is a National Double Standard Epidemic going on here; on one hand, ppl don't want the Gov to "meddle" in their business, on the other, they have no problem abusing it, or have a problem every time LAWS are put in place to regulate certain democracy predators. That's all. You can't have your pie, and eat it too....something's got to give. You don't want people abusing the situation, then don't create ways for them to do that. You can blame everything on a tiny loop hole created in the 80's by Reagan. This bubble started in 2004. Not the 80's right after the CRA was put in place.
People need to take responsibility; and for as long as the economy will rely on "speculators" for everything, don't expect the citizens to thrive. Look at gas prices, has anyone got a salary increase now that the gas is at $4 bucks again???
why should anyone get a raise due to the price of gas?
Quote:
Originally Posted by algia
The CRA is like Welfare. Welfare was supposed to be for a certain category of people, (not necessarily section 8) yet it has been abused for YEARS by the illegals coming here to have babies...etc etc etc, and others perfectly capable of working.
The CRA was also meant for a certain WORKING category...and like Welfare it was abused too.
You see, there is a National Double Standard Epidemic going on here; on one hand, ppl don't want the Gov to "meddle" in their business, on the other, they have no problem abusing it, or have a problem every time LAWS are put in place to regulate certain democracy predators. That's all. You can't have your pie, and eat it too....something's got to give. You don't want people abusing the situation, then don't create ways for them to do that. You can blame everything on a tiny loop hole created in the 80's by Reagan. This bubble started in 2004. Not the 80's right after the CRA was put in place.
People need to take responsibility; and for as long as the economy will rely on "speculators" for everything, don't expect the citizens to thrive. Look at gas prices, has anyone got a salary increase now that the gas is at $4 bucks again???
We're just supposed to "swallow" it? because some questionable politicians are taking the country down with them on a "speculation"?? how it is OUR fault that the gas prices are going through the roof now? is the Gov going to start sending checks so we can afford to go to work? I am sorry, I don't believe in the "citizens have to pay for our stupidity" thing!
The same speculators created the real estate bubble too...."of course the value will increase"...blah, blah, blah....Lending Tree commercials non stop on every channel! as in buying a home was like buying matches! Give me a break! It was an unseen before frenzy! where were you?
Quote:
Originally Posted by Spring Hillian
why should anyone get a raise due to the price of gas?
Wait, were we talking about the raise thing, gas or real estate?
Well, let's do gas first.
In this country, the price of gas depends on the price of oil.
The price of oil depends on the world market price of oil.
lf "speculators", as you call them, feel that the supply of oil may be interrupted in the future, the asking price for the oil goes up based on trading in various markets around the world. So far so good?
The politicians do not directly control the price of oil, however, actions that they take, or don't take, can affect the price that buyers are willing to pay for oil in the future, which is a whole different subject (i.e. global futures trading markets).
It's not a matter of anyone's stupidity, it is simply the fact that
oil prices are higher. Surely you know the European prices of
gas is at all time record highs. It was $8.35 a gallon recently in Germany. However, you could move to Venezuela where it is running at $0.12 per gallon.
Now onto homes. Everybody wanted to jump on the bandwagon during the boom. They didn't want to miss out on the ever skyrocketing prices. In some areas 80k houses were selling like hot cakes for $225, $250k. The lenders were out there providing the money, albeit to a lot of people who could barely afford the payments to begin with. Also you had your speculators buying houses left and right creating large inventories in their portfolios. Then the bust came and they were left holding the bag. Most of them just walked away from hundreds and thousands of loans.
Quote:
Originally Posted by algia
We're just supposed to "swallow" it? because some questionable politicians are taking the country down with them on a "speculation"?? how it is OUR fault that the gas prices are going through the roof now? is the Gov going to start sending checks so we can afford to go to work? I am sorry, I don't believe in the "citizens have to pay for our stupidity" thing!
The same speculators created the real estate bubble too...."of course the value will increase"...blah, blah, blah....Lending Tree commercials non stop on every channel! as in buying a home was like buying matches! Give me a break! It was an unseen before frenzy! where were you?
Wait, were we talking about the raise thing, gas or real estate?
Well, let's do gas first.
In this country, the price of gas depends on the price of oil.
The price of oil depends on the world market price of oil.
lf "speculators", as you call them, feel that the supply of oil may be interrupted in the future, the asking price for the oil goes up based on trading in various markets around the world. So far so good?
The politicians do not directly control the price of oil, however, actions that they take, or don't take, can affect the price that buyers are willing to pay for oil in the future, which is a whole different subject (i.e. global futures trading markets).
It's not a matter of anyone's stupidity, it is simply the fact that
oil prices are higher. Surely you know the European prices of
gas is at all time record highs. It was $8.35 a gallon recently in Germany. However, you could move to Venezuela where it is running at $0.12 per gallon.
Now onto homes. Everybody wanted to jump on the bandwagon during the boom. They didn't want to miss out on the ever skyrocketing prices. In some areas 80k houses were selling like hot cakes for $225, $250k. The lenders were out there providing the money, albeit to a lot of people who could barely afford the payments to begin with. Also you had your speculators buying houses left and right creating large inventories in their portfolios. Then the bust came and they were left holding the bag. Most of them just walked away from hundreds and thousands of loans.
Most American's are very ignorant of how gas prices work.
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...but they give our money to people who basically can't afford to buy a home, have bad credit and only less money than to put down for a security deposit so they can buy!!!! 
