When is the best time to buy a home in Miami ? NOT NOW. Please read (Brownsville: short sales, foreclosures)

[big mean bear]

Originally Posted by rogerbacon

Of course! If you owed 350k on a house worth 200k why on Earth would you "sell" your hosue at 200k and then have to shell out another 150k to the bank?

You make forclosures seem like a walk in the park. They take forever (especially nowadays) and the bank always wins. There are a lot of people who paid 10% of their house's current value decades ago and are not satisfied with getting ten times that amount. (For example, a $50,000 home in 1987, assessed at $500,000 in 2007, and the guy's askin' $659,000 or something else outrageous. And if he reduces the price it's only by a measely $20,000 or something.)

This is a perfect example of a what many second generation Cuban-American families do with the equity in their parents' house. That is if they haven't already squandered the equity by mortgaging the elderly parents' house throught the roof. All they want is $$$ to buy that new car.

[StoneOne]

Originally Posted by big mean bear

You make forclosures seem like a walk in the park. They take forever (especially nowadays) and the bank always wins.

Walking away from a mortgage takes virtually no effort. It's simple abandonment, nothing more. It might be a mess for the bank, but not for the person defaulting.

[big mean bear]

Originally Posted by StoneOne

Walking away from a mortgage takes virtually no effort. It's simple abandonment, nothing more. It might be a mess for the bank, but not for the person defaulting.

Well, if this is now a legitimate and common way to step out of a mortgage, then it helps explain why Miami's housing market and economy are in such a mess. Home mortgages have certainly never been abused as much as they have been in the past four or five years. This activity puts banks out of business and people out of jobs. It also makes it more difficult for legitimate mortgage seekers to get a loan. Like everything else in Miami, greedy people make it hard for the rest of us.

[Wild Style]

Originally Posted by big mean bear

Well, if this is now a legitimate and common way to step out of a mortgage, then it helps explain why Miami's housing market and economy are in such a mess. Home mortgages have certainly never been abused as much as they have been in the past four or five years. This activity puts banks out of business and people out of jobs. It also makes it more difficult for legitimate mortgage seekers to get a loan. Like everything else in Miami, greedy people make it hard for the rest of us.

Are you serious? Do you even have a small bit of understanding as far as what happened to create this bubble? interest rates were lowered, creative mortgages were created, mortgage brokers helped silly speculators and ignorant would be home owners get adjustable rate loans. Interest rates reset, people couldn't pay and it was either feed family or walk away, people choose to walk away. I personally don't blame them one bit. To try and make banks seem like the victims is extremely naive and shows a lack of comprehension as far as the dynamics of this entire situation is concerned

[big mean bear]

Originally Posted by Wild Style

Are you serious? Do you even have a small bit of understanding as far as what happened to create this bubble? interest rates were lowered, creative mortgages were created, mortgage brokers helped silly speculators and ignorant would be home owners get adjustable rate loans. Interest rates reset, people couldn't pay and it was either feed family or walk away, people choose to walk away. I personally don't blame them one bit. To try and make banks seem like the victims is extremely naive and shows a lack of comprehension as far as the dynamics of this entire situation is concerned

My understanding of what is still unfolding, not what 'happened', is not invariably pegged to cliche terms like 'bubble'. This wave of irresponsibility by homeowners and investors biting off more than they can chew is not the banks' fault. No matter what kind of exotic loan a bank can up with, it is still the mortgage holders' choice to take out a loan. A great deal of people who are getting screwed are minorities and first time buyers. People would have demonized and conspiracy theorized the banks even more if they hadn't given the low and no-credit-rating crowd loans at all. It would have been called the "mortgage discrimination crisis" if that would have happened. At least they created alternate ways for first time buyers to attain a mortgage. Apparently this effort was made in vein.

Most responsible people did not join the risk bandwagon that swept Miami and the rest of the country two years ago. Those who did so went into housing deals at their own risk. There is no big conspiracy here; this is a free market, and the market is purging itself of the greediest ten percent, as well as the dumbest ten percent.

[copacetic]

It is not the banks fault at all. It is the fault of the people who foolishly signed up for these kind of absurd loans. Sure maybe the bank pushed it on them. Still, it is the home-buyer's responsibility to read all the fine print before signing.

If you want to know who is at fault in the strict legal sense, just look at the note that was drawn up. That note is a legal contract between two parties--the bank and the home buyer. Now, which party has failed to comply with the terms of the contract?

The home buyer.

[Wild Style]

Originally Posted by big mean bear

My understanding of what is still unfolding, not what 'happened', is not invariably pegged to cliche terms like 'bubble'. This wave of irresponsibility by homeowners and investors biting off more than they can chew is not the banks' fault. No matter what kind of exotic loan a bank can up with, it is still the mortgage holders' choice to take out a loan. A great deal of people who are getting screwed are minorities and first time buyers. People would have demonized and conspiracy theorized the banks even more if they hadn't given the low and no-credit-rating crowd loans at all. It would have been called the "mortgage discrimination crisis" if that would have happened. At least they created alternate ways for first time buyers to attain a mortgage. Apparently this effort was made in vein.

Most responsible people did not join the risk bandwagon that swept Miami and the rest of the country two years ago. Those who did so went into housing deals at their own risk. There is no big conspiracy here; this is a free market, and the market is purging itself of the greediest ten percent, as well as the dumbest ten percent.

cliche terms like "bubble" eh? *chuckle*

As far as the rest of your statement, you should do more research, gaining a understanding of what happened. Then come back and speak, or not.

[rogerbacon]

Originally Posted by big mean bear

This wave of irresponsibility by homeowners and investors biting off more than they can chew is not the banks' fault. No matter what kind of exotic loan a bank can up with, it is still the mortgage holders' choice to take out a loan.

I think tha banks indeed DO share a lot of the blame. They gave loans to people they knew couldn't afford them because they planned to repossess the house a year or two later and then sell it again for a higher cost. Of course, the bubble burst and the houses aren't worth what the banks hoped they'd be worth. Instead, they are stuck holding a lot of them with more on the way. Predatory lending definately was part of the problem.

Now my comment about walking away from a house that is worth less than you owe is certainly not limited to people who took loans they couldn't afford. Even responsible borrowers who took fixed loans that they can afford to pay back still have an incentive to walk away. If the house isn't worth what they owe it might be good to walk away, depending on factors such as how long it will take to save for a new downpayment, value of credit rating, perceptions on how far down prices will go, etc. How the 'poor' bank will react to your walking away should NOT be one of the factors in making the decision.

[big mean bear]

Originally Posted by Wild Style

cliche terms like "bubble" eh? *chuckle*

As far as the rest of your statement, you should do more research, gaining a understanding of what happened. Then come back and speak, or not.

I already have 'a' understanding.

[Wild Style]

Originally Posted by big mean bear

I already have 'a' understanding.

guess we are going with the "or not" portion of my statement then. Gotcha.