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Old 03-01-2010, 11:10 AM
 
135 posts, read 335,376 times
Reputation: 26

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Quote:
Originally Posted by valentine92 View Post
LifeTimeLocal - Thank you for all the links and information. This is a bit shocking to me, especially since we bought our home in 2002. I guess I was hoping that my home wouldn't depreciate more than what I paid for it, but it looks like if this pans out we will be loosing quite a bit of money.

2002 is close to the cut off and I know many people who were buying around then who got "normal" prices then. Honestly if I were one of the people who overpaid or refinanced the crap out of the false equitity in their home I would walk away and file bankruptcy. Banks do it all the time and more and more people are catching on to this. I am sure you have to know someone who filed bankruptcy because I know many people over the years(I am getting old I suppose). 6 months to 1 year after they file they are getting credit cards again and within 2-3 years tops you can qualify for a govt fannie/freddie loan(if those 2 dont bankrupt the US by then). The facts are out there and plain and simple, prices aren't coming back and if you listen to realtors(since 2007) next year is the bottom and the rebound lol.

People have truely wised up and you can take at look at multiple listing service to see that. There are homes that need work grant you but with asking prices of 40-60k why arent they being bought? The paper and realtors say homes from 200k and down are selling fast but the majority of homes for sales have been for 6 months or much more with multiple price drops that dont even get a walk thru. People are starting to come to the realization they made a horrible mistake, salesman lie and bankers are greedy. Check the internet for a search of lehigh valley, allentown, pa, housing bubble, home values drop and you'll see articles, posts, blogs from people during the bubble and the first year or two of the decline claiming how it's coming back and yadda yadda yadda!

That's all it was YADDA YADDA YADDA!

SHORT SALE!
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Old 03-01-2010, 01:44 PM
 
169 posts, read 605,893 times
Reputation: 47
I am hoping we got a normal price. We paid 137k, which I think was maybe inflated by 5-7k, but when we bought people were lining up literally to see houses and they would be snatched up immediately. We never took any equity out of our home and I personally will never ever do so. I know some people who filed bankruptcy however I know a ton more that took all the equity out of their home to either invest in the stock market or pay off credit card debt and make some improvements. They are the ones that will suffer terribly in this mess. We arent going anywhere, this is our home and we need a roof over our head and for us it beats paying rent
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Old 03-01-2010, 03:33 PM
 
135 posts, read 335,376 times
Reputation: 26
Quote:
Originally Posted by valentine92 View Post
I am hoping we got a normal price. We paid 137k, which I think was maybe inflated by 5-7k, but when we bought people were lining up literally to see houses and they would be snatched up immediately. We never took any equity out of our home and I personally will never ever do so. I know some people who filed bankruptcy however I know a ton more that took all the equity out of their home to either invest in the stock market or pay off credit card debt and make some improvements. They are the ones that will suffer terribly in this mess. We arent going anywhere, this is our home and we need a roof over our head and for us it beats paying rent

Where do you live? Is it a single family home? I am with you about knowing so many people who took all the equitity out too. So many people took the equitity out and spent like crazy because they were duped into the logic which was being preached about "buy now or be priced out forever" etc. What did you think about the graph showing how insane the increases were? The housing bubble makes the dot.com crash seem like a walk in the park. So many people bought or sold and upgraded knowing all along they couldnt afford the payments but figured the gravy train of equitity would bail them out or could sell in 1 or 2 days for much more than they payed a year earlier and sometimes only a few months. I read somewhere that in 2005 something like 25-30% off all homes purchased were speculative(house flippers). I was at a going away party a few weeks back and started talking to a couple that was at the party. They were talking about selling a twin home they purchased in 2005 for 250k and now they are talking about selling it for 275k. Since they purchased the home they have only had 1 tenant stay for the entire year everyone else either left before the lease or were evicted for nonpayment. The rent was $1,400 a month(thats why everyone left). The majority of the people that screwed them simply found a similar house for under 1k and just ate the cost of losing the security deposit. In the long run they saved money by leaving. Now the rental side is available for rent but nobody has even called once to check it out. This is in Salisbury and they have reduced the rent to $1,000 but still no buyers. The taxes are a little over 5k a year so doing the math that means they have paid over $25,000 during the time they lived there. That means even if they sold it for what they want they still lost money and there is no way they will ever get what they paid. My wifes friend who was throwing the party knew the original owner because she lives in her parents former house. Before they bought it in 2005 there was 1 other person who bought it in 2000 and paid $120,000 5 years later they doubled there money. Thats how punch drunk people became during the bubble years. People thought it would never end.
http://graphics8.nytimes.com/images/...aph2.large.gif

This chart is pefect to show how history has always done whats needed. That rental property was not even upgraded and still has wood paneling and old electric, plumbing the works. These people are in trouble because without tenants they are getting deeper and deeper in the hole. Thats why I have no problem with people just walking away. I read on article on a couple that bought during the bubble and stayed in the house while the foreclosure process was going on and have been in there for over 1 year so far. They have been taking 3/4 of the former mortgage note and putting it in savings. Now they have over 20k and until they are forced out they are staying. It's happening everywhere and as I stated earlier filing bankruptcy might stay on your record for 5-10 years or whatever it is but your able to buy from the fed's in a couple years and credit starts coming back within a year.
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Old 03-01-2010, 04:17 PM
 
169 posts, read 605,893 times
Reputation: 47
We are in a single family home in the city of Bethlehem, we live in a very nice area. I'm not gonna stress about it too much, if the prices go down they go down, like I said earlier we are here for the long haul and this is our home. I thought the graph was very interesting, I am curious to see how this all pans out in a few years.
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Old 03-01-2010, 07:51 PM
 
135 posts, read 335,376 times
Reputation: 26
Quote:
Originally Posted by valentine92 View Post
We are in a single family home in the city of Bethlehem, we live in a very nice area. I'm not gonna stress about it too much, if the prices go down they go down, like I said earlier we are here for the long haul and this is our home. I thought the graph was very interesting, I am curious to see how this all pans out in a few years.

Your the type of person that will be fine . Too many people start planning on buying their 2nd home before they even close on there 1st one.
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