1.5 millions people will lose their home this year

[IEC]

California homes are overpriced and overvalued. They also need to pipe in water and electricity from other states. In the event of a large-scale disaster or war, they're sunk. Overpopulation FTL.

 

[chr6]

yeah i live in ca, and the housing is a pain.

for example, a small condo (within about 150yds of a train track) is over 500K here in orange county

 

[Vetterin]

Originally posted by: 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.

It's actually called the 80 - 20 rule or Pareto's Principle.

 

[Gulzakar]

California homes are overpriced and overvalued. They also need to pipe in water and electricity from other states. In the event of a large-scale disaster or war, they're sunk. Overpopulation FTL.

Not entirely true.

To classify California as a whole is ignorant. Northern California (Bay Area) is much different from Southern.

Overpriced? In terms, somewhat. Quite frankly, you pay for what you get. There is a large job base, a variety of companies, and the weather is nothing short of Mediteranean.

It's SoCal that needs all the water, not NorCal.

Sure, I could afford a MUCH nicer home in another state, but is there a job market that's strong enough to support me? Not entirely.

People live here for the weather and culture. If culture isn't your thing, then at least acknowledge the weather. It's temperate year round. Even when we get a good "freeze" it lasts for a couple weeks at most (if we get them at all). It's dry,but not Arizona dry, if you want to go skiing, it's 3 hours away...if you want an ocean, it's usually 1 hour away.

Given the amount of people in the Bay Area versus the actual number of reasonably distant housing from work (combining the factors above), it's easy to see why housing is so expensive. I'm not saying that it's not overpriced, but I am saying that it's not as far off as people make it to be.

And as far as war and disaster? Who do you think they'll save first...the massive economy that is California? Or Billy Bob in Montana? Loma Prieta Earthquake, 1989... What, is Canada going to invade Washington, Oregon, and settle in California? Oh no! what about that pesky Chinese Army?

Do you think most states are independant of needs? The electricity you're suckling probably came from another state. Power tranmission isn't exactly a linear subject...

 

[Ktulu]

I personally don't see house prices dropping in California anytime soon. As soon as houses come down a little bit, you get a bunch of idiots trying to out bit each other raising the price back to absurd levels. I blame stupid uneducated home buyers and greedy real estate agents for this.

 

[razor2025]

Man.. I wished I could've short-sold NEW and LEND... would've made super killing.

A interesting question is.. what happens to loans made to NEW and LEND? If both companies goes under, who will pick up their loans? I mean.. you would be stupid to buy any of these loans that's destined for foreclosure. Unless you're buying it for super-duper cheap, foreclose them, and then flop the house (even though doing so will saturate a market that's already flooded with inventory), I don't see anyone picking up these IOUs.

 

[Miramonti]

Originally posted by: razor2025
Man.. I wished I could've short-sold NEW and LEND... would've made super killing.

A interesting question is.. what happens to loans made to NEW and LEND? If both companies goes under, who will pick up their loans? I mean.. you would be stupid to buy any of these loans that's destined for foreclosure. Unless you're buying it for super-duper cheap, foreclose them, and then flop the house (even though doing so will saturate a market that's already flooded with inventory), I don't see anyone picking up these IOUs.

You could have shorted it when you posted this and still made a nice return.

(~$4 now.)

 

[Vette73]

Originally posted by: razor2025
Man.. I wished I could've short-sold NEW and LEND... would've made super killing.

A interesting question is.. what happens to loans made to NEW and LEND? If both companies goes under, who will pick up their loans? I mean.. you would be stupid to buy any of these loans that's destined for foreclosure. Unless you're buying it for super-duper cheap, foreclose them, and then flop the house (even though doing so will saturate a market that's already flooded with inventory), I don't see anyone picking up these IOUs.

Mortgages are a commodity for the most part now. They are traded left and right. I am sure many will come in here and say how many times they get a letter from XYZ Company now owns your mortgage.
With that said someone will buy them. They will get a huge discount and even if the person defaults they will own the home which has a equal or greater value then what they paid for the mortgage. Or better yet they get bought and the buyer sells the home owner a NEW fixed mortgage.

 

[KLin]

http://www.prnewswire.com/cgi-bin/stori...www/story/03-13-2007/0004545154&EDATE=

NYSE suspended trading on new century financial today. I wonder how many are going to follow?

 

[Miramonti]

Originally posted by: KLin
http://www.prnewswire.com/cgi-bin/stori...www/story/03-13-2007/0004545154&EDATE=

NYSE suspended trading on new century financial today. I wonder how many are going to follow?

I find that morbidly hilarious...the stock goes from $30 to $1.66 in about a month and the NYSE halts trading to 'protect the shareholder.' :laugh::roll:

 

[FoBoT]

http://pics.bbzzdd.com/users/Organized_Chaos/onoes.gif

 

[bennylong]

Stock market drops 2% on sub prime fear ! Foreclosure at new high! Late payment at 3 years hig! h20,000 riot in China! I'm still a virgin! The world is going to end!!!



Late Mortgage Payments Jump to 3.5 Year High, New Foreclosures Hit All-Time High

WASHINGTON (AP) -- Late mortgage payments shot up to a 3 1/2-year high in the final quarter of last year and new foreclosures surged to record levels as borrowers with tarnished credit histories had trouble keeping up with monthly payments.

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The Mortgage Bankers Association, in its quarterly snapshot of the mortgage market released Tuesday, reported the percentage of payments that were 30 or more days past due for all loans tracked jumped to 4.95 percent in the October-to-December quarter.

The latest snapshot of the mortgage market stoked Wall Street investors' worries about troubles facing "subprime" lenders who make loans to people with poor credit. The Dow Jones industrials tumbled 242.66 points.

 

[gsethi]

Originally posted by: 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 BARELY OK.

Fixed

 

[bennylong]

Originally posted by: gsethi

Originally posted by: 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 BARELY OK.

Fixed

I pull less than 75K a year and I'm doing fine. I can still save $19k a year between my IRA and 401K at less than 75k a year.

I will never own a home though as long as I live in SF or LA. You will fine as long as you have no dream of ever owning a home.

 

[dmcowen674]

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

Really, how dare those Americans not want to live on the corner in a cardboard box.

 

[everman]

Good news if you want to buy a home in a few years.

 

[Vette73]

Originally posted by: everman
Good news if you want to buy a home in a few years.

No in a few years all the houses now will be bought back up and worse case the market will be flat.

If you don't buy probable this year then you will miss it. Flippers with money and time will buy all the cheap houses, rent them, and then sell when the market stablizies again.

 

[rudder]

Originally posted by: bennylong
As many as 1.5 million more Americans may lose their homes,

Most of those are people who should have waited to have more downpayment before getting in a home or got in a bigger home than they could afford due to ARM. Now they are paying the piper. Unfortunately it will hurt a lot of people.

 

[Vette73]

Originally posted by: rudder

Originally posted by: bennylong
As many as 1.5 million more Americans may lose their homes,

Most of those are people who should have waited to have more downpayment before getting in a home or got in a bigger home than they could afford due to ARM. Now they are paying the piper. Unfortunately it will hurt a lot of people.

Of course it will help a lot of people as well. Me and my wife will probable sell our house in Cary NC where the market is still running fine and move to VA or MD near DC where it has cooled off. More houses on the market means lower price for us. Let alone the mortgage rates are also down. Win win for us.