[VegasVicsezhowdy]

The class action lawsuits by the counties against MERS are beginning to take shape. I read that MERS had deprived states/counties of @$7 billion nationally. Current as well as back fees for lost revenue would pretty much bankrupt them one would think.

[tbill618]

Originally Posted by lvoc

You need to look at the difference between Las Vegas and the 20 city composite on the Case Shiller chart. The Las Vegas market was a very orderly one until after 2000. It basically barely kept up with inflation. That there is a 30% differential between Las Vegas and the rest of the country simply makes no sense.

Note that the crash in Las Vegas was virtually the single handed action of the lenders. While selling at a virtually flat out rate they continued to drop price month after month. In fact reality set in only when the lenders ran out of inventory.

There is no practical way for the lenders to ever get even. The period from 2004 through 2007 is simply to far out for any reasonable part to be covered in even the next 10 years. I would think the whole mortgage default thing will be resolved in another two or three years.

Again we could have3 some economic tragedy take place and kick the whole country back into recession or even depression. But barring that sort of a disaster we are digging out.

I agree that the trajectory for LV real estate is to slowly dig our way out of the mess and that the only thing to keep that from happening would be some outside shock. There are too many good reasons for LV RE to see good demand.

-Still low prices, but this reason could disappear in a year with 10-20% appreciation.
-New buyers are stronger hands. New mortgage requirements of 20% down. Out of state/country investors who won't be forced to sell in a recession.
-Demographics. Where are you going to retire. Cali has high taxes. Utah is no fun. Arizona is too hot. Before we moved here my mother was here since 1998 and I still am discovering new fun things to do.

What will be a problem.
-higher interest rates.
-the next recession.

[von949]

Originally Posted by tbill618

-New buyers are stronger hands. New mortgage requirements of 20% down. Out of state/country investors who won't be forced to sell in a recession.

That's probably the most important. For the past 3-4 years, buyers have had to really show and prove before qualifying for a new mortgage. Not too many people have been able to over extend themselves in the past couple of years...well, at least that's what current underwriting should be preventing.

Above average credit, money in the bank, stable career, plan B, more money in the bank, down payment, background check, criminal record and a detailed explanation letter for a late payment made back in high school.

Approved!


Posted from Nokia 8210

[Trader Joe99]

Common you guys....what stronger hands are you talking about here.
Your buyers today are BROKE casino workers with FHA loans running to culinary union
and asking them money for a down payment and speculators who are looking for quick bucks.

Do you have any idea how many culinary workers who can't scrap $4000 total go to union and asks for a down payment????
If those are your strong hands then you are out of your mind.

In December over 50% home sales were cash transactions. Investor driven speculators and FHA broke borrowers that is your housing market today in Las Vegas.

I know housing cheerleaders don't like me repeating this but I will say again that we are in terrible shape as a country.
We're going to get out our austerity too, there is no other way out of this mess with more debt, and less ability to cushion it with monetary excess. Do you think the debt problems are being solved by central banks taking on more debt to protect debt and encourage more debt? Yes, you are more comfortable today and some of you are dreaming of being a happy homeowners again. But what comes tomorrow, when we face the same meltdown we had in 2008 because of debt problems, and there is less and less 'real' money in the system to deal with it? Bernanke bought time; but it was a very expensive pricetag, 20% off the Dollar, to inflate prices and assets, keep the same bubble condition alive that destroyed the global economy. Is that how we cure cancer, we bulk up on carcinogens? Anyone who thinks we made it through the Dark Times by not going through the Dark Times is goiing to be shocked to find out there is an even Darker Times between us and the next organic Growth Season.

More Debt can't get us out of this mess.
STOP luring people into DEBT. Raise the interest rates and let the bankruptcies and defaults begin. PUNISH the SPECULATORS and REWARD the responsible savers who are always the pioneers of healthy growth not growth filled with DEBT.

[WestieJeff]

That's definitely not the case. A person buying a primary residence can still buy at 3.5% down (FHA) or 10% conventional with PMI.

They are definitely stricter now on credit, income, and reserve requirements though.

FHA mortgage insurance rates are through the roof though, so maybe that will encourage people to save up a bigger down payment.

Originally Posted by tbill618

-New buyers are stronger hands. New mortgage requirements of 20% down.

[aardogfsu]

In my most recent situation, the size of my down payment had nothing to do with my ability to get approved for a loan. It made absolutely no sense but that was the case in talking with 3 lenders.

[von949]

Originally Posted by Trader Joe99

Common you guys....what stronger hands are you talking about here.
Your buyers today are BROKE casino workers with FHA loans running to culinary union
and asking them money for a down payment and speculators who are looking for quick bucks.

Do you personally know any of these "broke casino workers"? Or are you just trying to paint us a vivid picture of your view?

[Clarkcty]

Originally Posted by Trader Joe99

More Debt can't get us out of this mess.
STOP luring people into DEBT. Raise the interest rates and let the bankruptcies and defaults begin. PUNISH the SPECULATORS and REWARD the responsible savers who are always the pioneers of healthy growth not growth filled with DEBT.

What I find hard to accept is that the government is extending help to those who are in foreclosure and those doing strategic default on their mortgage while on the other hand the responsible homeowners who are continually paying off their mortgage on time do NOT get any help at all.

Government doing it backwards, if anything let the ones who defaulted on their mortgage lose their homes while help the responsible homewowners with their mortgage loan via a principal reduction. Responsible homeowners who continue to pay their mortgage are contributing positively in the community by not defaulting.

On a positive note, ever since I got my condo 4 years ago, I have been doing renovations. I've purchased "Made in the USA" laminate flooring and "Made in the USA" porcelain tiles for the bathrooms. My mattress in the bedroom and area rug in the living room are also "Made in the USA". Whenever I buy something for the condo, I make sure to find something that is made in this country. Others should do the same.

[aardogfsu]

Hey Clark...because my products I resell are not made in the USA, I'm able to employ 4 people to ship and handle incoming orders and take inventory. If I produced the product in the USA to then sell to America and the rest of the world, I wouldn't be able to compete and I'd have to fire my American workers due to being forced to scale down my business because of the lack of sales.
Also, the USPS can no longer compete (price-wise and quality of service) with Hong Kong Post and China EMS so we, the small business owner are already at a disadvantage in the shipping dept. to begin with. Just something to think about.
I do strongly agree with your first 2 paragraphs though... =)

[lvoc]

Here is a chart of the sales in a Providence Tract in the last year.



We are looking at a resale in this tract which is simultaneously a new and a resale market.

The chart shows a couple of things. First off very heavy sales in the last couple of weeks. And the parking lot at the builders models was heavy with traffic...

Second the resales have been at $80 per SF though the builders is running $115.

So what should a buyer pay for a nice 6 months old resale? The one in question is listed for $117 per SF.

Remember if it is financed you have to get past an appraisal.