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Old 05-23-2015, 04:42 PM
 
18,172 posts, read 16,409,991 times
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Quote:
Originally Posted by incognitoe View Post
The rich? LOL, you mean like back in 2008 when the bubble burst and the rich had to move.
The Rich do not and did not have to move.
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Old 05-24-2015, 01:44 AM
 
Location: OC/LA
3,830 posts, read 4,665,531 times
Reputation: 2214
Quote:
Originally Posted by expatCA View Post
The Rich do not and did not have to move.
Yeah that's why prime areas were not hit nearly as hard in the financial crisis. Wealthy people have either 1) already paid off their mortgage or 2) have enough savings to continue paying there mortgage during an economic downturn. Obviously there were still many homes that were foreclosed in prime areas but compared to the inland empire it was nothing.
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Old 05-29-2015, 07:12 AM
 
1,078 posts, read 1,077,114 times
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Pretty sure those who bought during the bubble are the ones who faced foreclosure because they overpaid and wanted out.

Look at all the million dollar homes that are banked owned and foreclosed. Those people obviously had money to qualify to purchase those million dollar homes.
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Old 05-29-2015, 09:11 AM
 
2,986 posts, read 4,579,037 times
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Quote:
Originally Posted by incognitoe View Post
Pretty sure those who bought during the bubble are the ones who faced foreclosure because they overpaid and wanted out.

Look at all the million dollar homes that are banked owned and foreclosed. Those people obviously had money to qualify to purchase those million dollar homes.
No, that was the problem with the last bubble. People couldn't afford their loans and banks were giving out loans that were not 100% amortizing or adjustable rate. The clerk at 711 making $10 an hour was qualifying for a 400k loan with $0 down in those days. Just because you bought a 1M dollar house back then didn't mean you were rich or could afford your house. Banks were just giving out loans left and right.

The people who were truly wealthy or well off didn't have to move anywhere.
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Old 05-30-2015, 07:25 AM
 
Location: So Ca
26,747 posts, read 26,841,237 times
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Quote:
Originally Posted by incognitoe View Post
Pretty sure those who bought during the bubble are the ones who faced foreclosure because they overpaid and wanted out.
Not everyone who buys a home--during a housing bubble or not--is putting down paltry amounts and taking out enormous mortgages.
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Old 05-30-2015, 08:28 PM
 
Location: Hyrule
8,390 posts, read 11,609,474 times
Reputation: 7544
Quote:
Originally Posted by cgk2013 View Post
Electrician4you, I wish I could rep you more for this!

My husband and I find ourselves in this very situation right now, along with so many others we know. With around 40% of our income going to rent , along with raising three children, maxing out retirement accounts, keeping a decent emergency fund, along with all of the other expenses that go into day to day living, there is little left over to save for a home. We have no debt, either! We are trying to put away around 1,000.00-1500.00 per month in our house fund, but like you mentioned that would take us around 6-7 years to save 20% for a down payment. By that time our kids will be in high school and college, so its almost seems pointless.

Waiting this bubble out and hoping for the best. If we can never afford a home here in OC, then after the kids are grown, we'll take our savings and buy a nice little cabin in the mountains
Or drive 45 min behind you to Murieta and buy a huge 5 bedroom for 400, 000.
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Old 05-30-2015, 09:47 PM
 
1,078 posts, read 1,077,114 times
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Quote:
Originally Posted by CA4Now View Post
Not everyone who buys a home--during a housing bubble or not--is putting down paltry amounts and taking out enormous mortgages.
Are you even shopping for a home right now? Everyone is putting down around 15-20% and taking advantage of the "low interest rates".

There are those who pay cash (those freaking Asians), and there's everyone else taking advantage of the low rates.
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Old 05-31-2015, 10:12 AM
 
Location: So Ca
26,747 posts, read 26,841,237 times
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Quote:
Originally Posted by incognitoe View Post
Everyone is putting down around 15-20% and taking advantage of the "low interest rates".
Right. "Everyone."
Low- And No-Downpayment Mortgage Options For 2015 Housing
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Old 05-31-2015, 10:32 AM
 
Location: So Ca
26,747 posts, read 26,841,237 times
Reputation: 24800
Quote:
Originally Posted by incognitoe View Post
Pretty sure those who bought during the bubble are the ones who faced foreclosure because they overpaid and wanted out.
There are plenty of people who bought during the bubble who were previous homeowners, so obviously they did not face foreclosure, did not feel they overpaid (they would have just sold at an inflated price), nor did they "want out."
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Old 05-31-2015, 03:49 PM
 
1,078 posts, read 1,077,114 times
Reputation: 1041
Quote:
Originally Posted by CA4Now View Post
Exactly. There's even an no down-payment mortgage option to buy during the bubble. Which mean, after the BUST there is no need to worry about losing the downpayment you put in.

Which gives more people all the reasons to foreclose in the bust.
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