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Except it's not that simple. It's quite expensive unless laws are drafted to expedite the proceedings. One problem with foreclosure is that the associated legal costs eat into the recovery rate on collateral.
That's the point that proposal would make it an eviction of a renter instead of a foreclosure.
That's the point that proposal would make it an eviction of a renter instead of a foreclosure.
I guess it could be cheaper than foreclosure, though you still have some of the same sources of costs (they might put up more of a fight than the typical renter, you might get damage to collateral)
I'm skeptical of the proposal because it sounds like a "government sponsored" mortgage rescue scheme.
The problem with mortgage rescue schemes is that many who participate simply can't afford to make those payments, ever (and they're only attractive to the rescuer if the home owner has some equity). So to price in the credit risk properly, they need to balloon the payments to levels that would choke everyone, including those who maybe just need a temporary break.
The government sponsored version would work by having the tax payer pick up the spread between the lifestyle these people can afford, and the lifestyle that they're living.
Yeah, those darn unrealistic buyers. I mean, come on, the way buyers are acting you'd think that prices have plummeted 20% from peak already, and that we have record high inventory plus a massive number of foreclosure and preforeclosure homes that the banks haven't tried to unload yet, and that the stock market is sitting at less than half of where it was a year ago, and that we're near record unemployment and steadily heading into a depression or something.
Come on buyers -- get with the program! Don't throw your money away and be a bitter renter -- buy now or be priced out forever! House values always go up! You can do this!
Did you read what they are wanting? Yes, according to him, he and his office are going through this on a daily basis.
Quote:
Originally Posted by LeavingNJ
FWIW, I have heard very similar sentiments from four different realtors representing four different firms in the last week.
I'm glad it's not just him and his agency. He says it's quite frustrating and shows them the recent sales in the towns they are looking at for the types of homes they are looking for. He says it doesn't matter what kind of evidence he has for them.
Oh well, as he says - they're just not going to buy a home then.
Did you read what they are wanting? Yes, according to him, he and his office are going through this on a daily basis.
Good! Finally, the public is waking up and realizing that they cannot afford the insane prices that some people think they will get for their real estate in NJ.
Cheers to buyers who refuse to buy more than they can afford (and then ask for a govt bail out)!
You can't sell homes if people cannot afford them. And since there will always be people who need to sell (divorce, death, relocation, unemployment, etc.) and will be forced to sell at the prices being offered, they will drag NJ house prices back down to earth.
Maybe your friend doesn't understand that. People are no longer being given enough rope to hang themselves; they now realize that they cannot afford the inflated prices, hence, those prices will evaporate.
He's pretty disgusted with the unrealistic expectations of the buyers.
Just wondering if anyone else out there is going through this.
Why would he react with disgust ?
It seems to me that some of the real estate agents who post here have an "insider protection" mindset. That is, they think that if you don't own a starter home, you have absolutely no right to be in the market for anything other than a starter home.
The "disgust" appears to be driven by contempt for the notion that these potential buyers would dare bypass the "real estate caste system", and jump the queue ahead of those who "worked their way up the real estate ladder" (never mind that the "ladder" in question was a ponzi scheme, or that 300,000 would buy you a nice place in 2000)
Good! Finally, the public is waking up and realizing that they cannot afford the insane prices that some people think they will get for their real estate in NJ.
Cheers to buyers who refuse to buy more than they can afford (and then ask for a govt bail out)!
You can't sell homes if people cannot afford them. And since there will always be people who need to sell (divorce, death, relocation, unemployment, etc.) and will be forced to sell at the prices being offered, they will drag NJ house prices back down to earth.
Maybe your friend doesn't understand that. People are no longer being given enough rope to hang themselves; they now realize that they cannot afford the inflated prices, hence, those prices will evaporate.
I sometimes feel like one of those buyers who refuse to pay a certain amount for housing in my area. Knowing that prices are going to drop and not wanting to stretch myself makes it easy to validate. I keep noticing that I am about 10-20k off. Meaning MY TOP # tends to be about 10-20k below final selling price. I figure just holding tight for a few more months shoud close that gap to some degree.
I sometimes feel like one of those buyers who refuse to pay a certain amount for housing in my area. Knowing that prices are going to drop and not wanting to stretch myself makes it easy to validate. I keep noticing that I am about 10-20k off. Meaning MY TOP # tends to be about 10-20k below final selling price. I figure just holding tight for a few more months shoud close that gap to some degree.
Yeah. Unlike most buyers out there, you sound like you're the type of guy who already has enough of his own rope, i.e. you've saved up lots of cash, and so all you have to lose is your own money. As opposed to most of the shmucks out there who are trying to overspend with the lender's money and are now finding out that those days are over and banks won't lend to them anymore.
You're actually in the best position to buy, but also in a tough position right now because you probably don't have the lenders putting on the brakes for you, and so you have to put on your own brakes and remember that the hard-earned money that you saved up can evaporate into thin air if you buy an overpriced house.
I think you know the deal though -- your patience will pay off, and I suspect within a year prices will hit your sweet spot. Hang in there!
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