1.5 millions people will lose their home this year

[bennylong]

I must be evil as I take a lot of pressure in seeing the housing crash. I wish the housing crash would happen in LA. Damn dirty old 1bd room, 600 sq ft condo in Koreatown still sell for $300k.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aoxvdkPVfUNo&refer=home

Foreclosures May Hit 1.5 Million in U.S. Housing Bust (Update3)

By Bob Ivry

March 12 (Bloomberg) -- Hold on to your assets. The deepest housing decline in 16 years is about to get worse.

As many as 1.5 million more Americans may lose their homes, another 100,000 people in housing-related industries could be fired, and an estimated 100 additional subprime mortgage companies that lend money to people with bad or limited credit may go under, according to realtors, economists, analysts and a Federal Reserve governor. Financial stocks also could extend their declines over mortgage default worries.

The spring buying season, when more than half of all U.S. home sales are made, has been so disappointing that the National Association of Home Builders in Washington now expects purchases to fall for the sixth consecutive quarter after it predicted a gain just last month.

 

[KLin]

pressure? pleasure? flied lice?

 

[StrangerGuy]

If I am living there I might as well live in a van.

 

[IHateMyJob2004]

2001 tech was going to end the world

2003? What ever happened to all the biotech crap? HYPE

2007? The end of the world via housing

Get over it .... nothing long term is going to happen. Seems almost every winter you'd think every retailer was going to go out of business.

 

[SuperNaruto]

sweeeet.... i just save a ton of money the past 4 year and bought a home last month.. close on 3/29... prices have come down a lot around here recently... we dont need to wait any longer..

 

[Queasy]

Originally posted by: bennylong
As many as 1.5 million more Americans may lose their homes, another 100,000 people in housing-related industries could be fired, and an estimated 100 additional subprime mortgage companies that lend money to people with bad or limited credit may go under, according to realtors, economists, analysts and a Federal Reserve governor.

There's your problem right there. I can't remember where I read it but I saw something the last couple of days saying that most of the foreclosures are coming from subprime loans. These are loans with ridiculous interest rates on ARMs. I sold my house to a couple and was shocked at their loan - it was a 3 year ARM with a starting interest of something like 8% and jumped upwards from there. After the initial ARM window is up, these people buying into subprime loans get hit hard and are find themselves in deep financial doo-doo.

 

[3NF]

$300K for 600 sq ft. That's about 25 ft x 25 ft. Something is very wrong with that picture. My basement is bigger than that.

 

[Slew Foot]

Ummm, most of CA has had price declines if you count Fall 2005 as the peak.

 

[MagnusTheBrewer]

And the rich get richer.

 

[3NF]

Originally posted by: MagnusTheBrewer
And the rich get richer.

Yup. I read something once that said that 80% of the world's wealth is owned by 10% of the population - something like that.

 

[KK]

And how many of those 1.5 million should have never over extended themselves when buying their home.

 

[IHateMyJob2004]

Originally posted by: 3NF
$300K for 600 sq ft. That's about 25 ft x 25 ft. Something is very wrong with that picture. My basement is bigger than that.

Supply/demand is a b!tch

 

[IHateMyJob2004]

Originally posted by: 3NF

Originally posted by: MagnusTheBrewer
And the rich get richer.

Yup. I read something once that said that 80% of the world's wealth is owned by 10% of the population - something like that.

I think it's somethign like 99% of the wealth is owed by 1% of the population. Think about hte Warren Buffetts and such of the world and it starts making alot more sense.

 

[puffff]

Originally posted by: 3NF
$300K for 600 sq ft. That's about 25 ft x 25 ft. Something is very wrong with that picture. My basement is bigger than that.

600 sq ft will cost you 600k in manhattan...

 

[3NF]

Originally posted by: IHateMyJob2004

Originally posted by: 3NF
$300K for 600 sq ft. That's about 25 ft x 25 ft. Something is very wrong with that picture. My basement is bigger than that.

Supply/demand is a b!tch

Doesn't make sense to me A person shouldn't have to pay $300K to live in a 25 foot X 25 foot box!

 

[Corporate Thug]

Originally posted by: 3NF
$300K for 600 sq ft. That's about 25 ft x 25 ft. Something is very wrong with that picture. My basement is bigger than that.

where do you live?

 

[3NF]

Originally posted by: puffff

Originally posted by: 3NF
$300K for 600 sq ft. That's about 25 ft x 25 ft. Something is very wrong with that picture. My basement is bigger than that.

600 sq ft will cost you 600k in manhattan...

I guess it's all relative. I have a friend who lives in Manhattan with his wife and they both make over $150K per year, so I guess they can afford it

 

[Corporate Thug]

Originally posted by: KK
And how many of those 1.5 million should have never over extended themselves when buying their home.

A lot of it ignorance. My best friend works in the financing field and he tells me that most people dont even know what an A.R.M. when they sign on the dotted line.

 

[SsupernovaE]

How can anybody survive in California? I mean, you would have to have a roommate, right?

 

[Corporate Thug]

Originally posted by: SsupernovaE
How can anybody survive in California? I mean, you would have to have a roommate, right?

as long as you can pull 75k/yr, you're OK.

 

[3NF]

Originally posted by: Corporate Thug

Originally posted by: KK
And how many of those 1.5 million should have never over extended themselves when buying their home.

A lot of it ignorance. My best friend works in the financing field and he tells me that most people dont even know what an A.R.M. when they sign on the dotted line.

But don't most people refinance into a fixed rate mortgage before their initial rate period ends?

 

[3NF]

Originally posted by: Corporate Thug

Originally posted by: 3NF
$300K for 600 sq ft. That's about 25 ft x 25 ft. Something is very wrong with that picture. My basement is bigger than that.

where do you live?

In a place where the average family home is about $200K, and the property taxes are too high

 

[Slew Foot]

Originally posted by: 3NF

Originally posted by: Corporate Thug

Originally posted by: KK
And how many of those 1.5 million should have never over extended themselves when buying their home.

A lot of it ignorance. My best friend works in the financing field and he tells me that most people dont even know what an A.R.M. when they sign on the dotted line.

But don't most people refinance into a fixed rate mortgage before their initial rate period ends?

Tough to refinance when you owe more than the house is worth.

 

[db]

Price hasn't gone up in CA for some time now. Housing prices are flat or just under.

 

[3NF]

Originally posted by: Slew Foot

Originally posted by: 3NF

Originally posted by: Corporate Thug

Originally posted by: KK
And how many of those 1.5 million should have never over extended themselves when buying their home.

A lot of it ignorance. My best friend works in the financing field and he tells me that most people dont even know what an A.R.M. when they sign on the dotted line.

But don't most people refinance into a fixed rate mortgage before their initial rate period ends?

Tough to refinance when you owe more than the house is worth.

I suppose that could be a problem I was thinking in general, not necessarily the places where the home values are really dropping hard.