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A crash will help the economy tremendously. Pop the bubble, scare away the investors ans stop the needless development, take a rest! Let people realize the error of their ways, stop spending money they don't have. Let the retail sector shrink, have people cut their own lawns, reduce the need for low paid construction labor. With the economy flat, the illegal immigrants will either move or be run out of town. With easy flipping money gone, where will the bubble capital come from? Northeasterners will be losing next, new global economics will dry up inflated wages. Rising energy prices will highlight inflation, pushing interest rates higher. Higher interest rates = less borrowing. Where will the money come from? Who knows? The current sitiation is insane and immoral, and highly unstable. Add another hurricane and it's 1926 all over again. History repeats itself people!
Florida's only hope is to build real industry. We need more information technology, we need a STABLE infrastructure, (FPL take notice). Build 20 more nuclear powerplants. Put up tidal turbines and windfarms. Improve our tourist industry with lower priced hotels/motels for family travelers as well as the high-end hotels. Build more mass-transit for the people who need to commute. Oh and how about educating people about how lousy most construction really is!
Of course if I had my way all new residents would have to live two years without air conditioning and would be required to leave their Northeastern, californicator, or Latin American attitude at the state line. With the right kind of people and better government there's no stopping Florida from success. The way we are going now failure is only a short time away.
What will happen when foreclosures don't sell for the amount owed on the loan?
Has anyone been to any of the auctions? Are people buying at auction or just staying away?
What I have noticed on a lot of listings as of late are short sale announcements. What that means is before the bank forecloses it may allow the seller to sell the house for less than they owe on the mortgage. The bank will then charge off the forgiven amount. The seller will then at tax time receive a 1099c form in the mail. The seller will then have to declare the forgiven money as earnings for the tax year.
Banks do not generally want to foreclose as it costs them a lot of money to do this. It is really a last resort and often will not recoup what is outstanding on the mortgage.
The auctions that I have watched online have for the most part been reserve. This is an auction with a set minimum bid price the seller will accept for the sale of the home. In the auctions that I have seen the bidding was very low and in the end the sellers did not have to sell the home for the lowest bid so it has ended up being a complete waste of everyones time and money.
The lowest prices are seen in Absolute or No Reserve. At an absolute auction, the house goes up for bid and sells to the highest bidder regardless of price. I have seen a few homes go up on the block like this and the prices were quite low but not ridiculously low either.
For those that are worried about losing value in your homes, I am sorry for your loss.
I hope there are not many of you that borrowed equity from your home. If you did, I can see how much this would absolutely hurt you. It would be tough having to pay back the bank for a house that is not worth near what you owe on it.
If you borrowed no equity and have lived in your home for a long time then this "correction/ crash" should not negatively affect the quality of your life other than it will lower your property taxes and in turn your insurance bill as well.
If you have not been in your home for a long time and you find yourself underwater in it, rest assured it will not be forever and down the road it will appreciate in value once again.
For all of you that are wanting to buy a home because you missed your chance before the run up (for what ever reason) you will now get your chance.
A lot of people bought homes during the run up, the media, and The NAR had a huge influence on that. Remember "buy now or be priced out forever" or "They are not building anymore land". These catchy one liners scared a lot of people into buying something they really couldn't afford.
When Alan Greenspan lowered the interest rates to 1% and kept them there for an entire year this caused a huge amount of people to join the ranks of home ownership. Combining that with his push and suggestion for adjustable rate mortgages, stated income, reverse mortgage, interest only etc..a lot of people that never should have became homeowners did. Thus once again contributed to the run up in housing prices. Remember the bidding wars!
This run up was not a usual appreciation by any means, it was built on bad credit deals and pure speculation that this run up would never end. A lot of people that got into a risky mortgage never worried about it because they were told that the value would continue to go up and they could either re finance it or sell it and make a profit.
Well like all good things this to came to an end and now values are declining, mortgage rates have increased (the talk on the horizon is more increases), ARM's are re setting and everything that people believed about housing became one big fat lie.
Housing prices do not always go up.
A poster has asked "tell us all how it has made your life bad with house prices going up".
It has made everyone's life bad as for all of the reasons I have mentioned and even the ones that have not been born yet. Do you really want your three kids to have to pay 500,000 for their first starter home? If this crash doesn't happen and the run up continued, this would have been the case. I do not think salaries are going to catch up any time soon.
The reason your taxes (well maybe not yours if you are in SOH) but for others the reason their taxes are so high is obvious, the assessment of their home is to high. The insurance is to high for the same reasons.
Before the bubble we didn't have all of these problems.
This crash is the best thing to have ever happened to society as a whole.
For the ones that lose their home to REO (Real Estate Owned) that is not the end of the world either. Yes, your credit will take a hit, your score will be lower and you will have a black mark on your reports for seven years.
You will also be relieved of the monkey on your back which is sucking the life out of you to keep it there. You will get credit again, re build and go on.
This crash/correction (what ever we are going to call it) is needed to put our Nation back on an even keel again.
A crash will help the economy tremendously. Pop the bubble, scare away the investors ans stop the needless development, take a rest! Let people realize the error of their ways, stop spending money they don't have. Let the retail sector shrink, have people cut their own lawns, reduce the need for low paid construction labor. With the economy flat, the illegal immigrants will either move or be run out of town. With easy flipping money gone, where will the bubble capital come from? Northeasterners will be losing next, new global economics will dry up inflated wages. Rising energy prices will highlight inflation, pushing interest rates higher. Higher interest rates = less borrowing. Where will the money come from? Who knows? The current sitiation is insane and immoral, and highly unstable. Add another hurricane and it's 1926 all over again. History repeats itself people!
Florida's only hope is to build real industry. We need more information technology, we need a STABLE infrastructure, (FPL take notice). Build 20 more nuclear powerplants. Put up tidal turbines and windfarms. Improve our tourist industry with lower priced hotels/motels for family travelers as well as the high-end hotels. Build more mass-transit for the people who need to commute. Oh and how about educating people about how lousy most construction really is!
Of course if I had my way all new residents would have to live two years without air conditioning and would be required to leave their Northeastern, californicator, or Latin American attitude at the state line. With the right kind of people and better government there's no stopping Florida from success. The way we are going now failure is only a short time away.
Here Here Tallrick!!!!!!!! Excellent thoughts.
You had me captivated up until the two years with no a/c part.
why not get better paying jobs . the crash will wreck fl economy . then everyone will start on about poverty slums ect . so which way would you like it . i know cheap house 100k a year jobs no taxes great schools no crime .
seems people would like to have it all but pay nothing for it . when you find this place will you let us know so we can all move there . till then you can have all the above excepte taxes all you have to do is go out get a job and pay your way in life . before anyone says about low pay there is work out there that pays better ie cut grass clean houses it is up to you if you work for 7 8 dollars ahour. so yes let it all crash and see where everone is then no job no house can not pay rent sounds like fun hey
I am TIRED of the "Our schools suck, crime is awful, our roads suck, but please get rid of any taxes I have to pay ever" crowd on this board. ...Because I'm just so SURE that if the government got rid of taxes on the first 200k of home value, your community is going to be a GREAT place to live when it has no tax base. Sales tax? Yeah sure... nobody wants to spend their tourist dollars in a slum. It's why South Beach attracts visitors from all around the world while "Little Havana" does not.
Take a look at any community in America that has no tax base (Detroit, etc.) and tell me if that's somewhere you want to live! Lower taxes to more realistic levels that reflect NEED and not assessed home values, fine, but pretending a crashed economy is "good in the long run?" Are you serious? What school of economics did THAT idea come from? University of West Somalia?
No. People can reverse spending habits without wishing for catastrophic economic collapse and deadly hurricanes to blow away everything people have worked for in their lives, just because YOU think it's "too crowded" and can't keep your own head above water yourself.
If these numbers are accurate somebody needs to tell the County Tax Appraiser's office here in Orlando. THIS week they raised our land value another $1300.00 and raised building value another $1200.00 for a total of another $2500.00 in value. This is addition to the 90+K they have ALREADY raised it this year without any improvement or addition to the property.
According to them it is based on what current homes in the area are selling for...and I checked there were over 50 homes sold within 1 mile of our home since January '07. The average selling price was $150.00 per square foot.
You should appeal this because whoever gave you that info is wrong. The county tax assessors compile their data for 2007 taxes based on what happened form Jan 1 2006 through dec 31 2006. This is the basis for the 2007 assessments. UNfortunately in the early part of 2006 prices were still holding and the drop really did not begin until the third quater of 2006. What this means is that we will have to wait another year to get the benefit of a fully declining market.
Do your research before you atart the appeal. Look up sales for similar houses within 1 mile of yours and write down the differences in your properties and the others. Zillow.com will give you some fairly accurate data although their info is a little dated. In Fl there is a good amount of transparency of govt records. The property record dept can be found for each county on their rspective websites. Do a little digging and you will find the info you need. If ya help just pm and I will try to help.
Quote:
Originally Posted by Floridian to relocate
Are some people on here glad that prices are down so that they can now afford a house on there crap wages and crap jobs . Sit there whising people bad luck because they can do no better for themselfs how sad. The same people go on how bad schools are roads ect then do not like paying taxes to make things right. Home prices will go up and dpwn i will tell you all to look at the values ten years ago and not one house as gone down in value. It is a long term thing. So some people should stop being happy at people who did what they thought was right for them and now face a very hard time.
You got it, Floridian! This is a national crash but you don't see anyone whining about it on the other state pages, at least not to the extent here.
Actually you BOTH got it! Prices have corrected across the country and we have already seen the crash. IN Fl prices have come down about 20 - 30% depending on your market area. Also, alot of sellers have removed their properties from the market knowing that in a few years they will get a proper return. In fact the local rag had an article on the Sarasota-Bradenton area saying sales were up quite abit over last year approx 16% up. As mentioned earlier in this thread, there is also activity in Deep Creek, Venice is showing signs of life as is parts of North Port. The maerket has adjusted now the other half of the problem needs to be corrected.
The other facet to this correction is not just the "greedy" builders and speculators ( its in quotations) but what the real bandits have been doing....local govt! I read alot about how politicians want to put a tax on windfall profits, OK then how a bout a refund tax on the windfall profits the local govt have been racking up.
The ins mess and the outrageous increase in Prop taxes are both worse than any overbuild in the state. I have had my taxes go up over 300% in the last 5 years. Ins is close behind in fact I just got my renewal for this year and it went up 32% so much for the Charlie Crist BS about lowering ins.
And to all those who are praying for a housing armageddon.....well when the framer and electrician doesn't buy a new truck and the car salesman doesn't go out to dinner as much and when the waitress cant pay her rent.....I truly hope this all comes crashing down on your world. WHat a narrowminded self centered world you must live in.
mystree66 not being rude but if you can not afford the house you like if it comes down in price say by 50 to 75 k you can still not afford it . As the up keep taxes insurance will kill you . fl is not cheap anymore . People playing the game on house prices will always think there is a better deal .
Why pay 50-75k more than you have to?Prices are overinflated and they need to come down,and they will.
why not get better paying jobs . the crash will wreck fl economy . then everyone will start on about poverty slums ect . so which way would you like it . i know cheap house 100k a year jobs no taxes great schools no crime .
seems people would like to have it all but pay nothing for it . when you find this place will you let us know so we can all move there . till then you can have all the above excepte taxes all you have to do is go out get a job and pay your way in life . before anyone says about low pay there is work out there that pays better ie cut grass clean houses it is up to you if you work for 7 8 dollars ahour. so yes let it all crash and see where everone is then no job no house can not pay rent sounds like fun hey
Oh yes, and where will these "better paying" jobs come from? You will need to pay people 100-200K per year to support the housing bubble. Also realize that if you earn 30,000 you keep more of it than if you earn 100,000 because of income taxes, property taxes, etc. Life is better when you save more than you spend, and less expenses=higher quality of life.
Schools were much better 30-50 years ago when they had less money. Look at pictures of Miami in the 1950's, tell me it is better now!
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