1.5 millions people will lose their home this year

[miri]

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

average people like me dont own homes and rent apartments

I will be happy and sad when i buy my first home

sad because it will mean I will most likely have to move out of california. Moving after living 2 miles from the beach with nice year round temperatures and no crime will be sad.

 

[GMI]

Those 1.5million people have no real business buying the house they bought in the first place, should have done more research or bought something they can actually afford. From what I seen of the bay area housing market, houses in good school neighborhood are still being snatch up rather fast. It's the POS houses that people think are worth 500k, 600k that's not moving.

 

[masterxfob]

housing market in california sucks, i'll need to move to another state to buy a damn house in los angeles county.

 

[her209]

CRASH!!! CRASH!!! CRASH!!!

 

[Miramonti]

NEW, New Century Financial, this year's enron. LEND is another one that's gotten destroyed.

 

[Alprazolam]

Sucks for them. People keep buying homes in the Subdivision's my Dad and Me own, so I have no effect from the housing "crash".

 

[Greenman]

I think pretty much everyone knew those "creative" loans were bound to blow up sooner or later. A lot of people used interest only, and even reverse amortisation loans thinking that they would sell in five years and make a bundle of of the appreciation. Now that a lot of that appreciation has vanished they have big problems. I'd guess that the mortgage industry is going to get a bit of a shake out, but it seems like it almost had to happen, so many of the loans they put together were flat out insane they had to expect a high failure rate.

 

[RichardE]

Canada housing market is up :beer:

 

[herkulease]

of the 1.5 million people losing their homes.

how many of those are homes they actually live in and didn't buy hoping to flip.

Of the ones hoping to flip, how many went for the interest only option.

 

[JS80]

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.

that sounds about right, 10% are productive/risk takers, 90% are lazy/complacent.

 

[NoShangriLa]

Median household in come in my town is $55,900 CAD, and the average new house is around 560-580K. Fixer-upper is around 450-475K. However, there are condemned houses on skid row that could be had for as little as 325K. And, the expected housing price gain of 7-8% for the year 2007.

 

[jagec]

Originally posted by: JS80

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.

that sounds about right, 10% are productive/risk takers, 90% are lazy/complacent.

It's laughably absurd to think that the world is a fair place where hard work and merit are rewarded appropriately.

You forgot to mention the lazy rich who inherited their money, and just happen to have hard working or lucky brokers, the hard-working poor who are too busy trying to get bread on the table to actually save up enough to start a business, the risk-taking business owner who had a good product, but at the wrong time, and so on. Some rich people earned their money, some poor people deserve where they're at, but it's by no means a universal rule.

 

[Mallow]

this country is about people living beyond their means. Those people need a smack down and need to be brought down to earth. Next time get a mortgage you can afford.

 

[chuckywang]

Originally posted by: NoShangriLa
Median household in come in my town is $55,900 CAD, and the average new house is around 560-580K. Fixer-upper is around 450-475K. However, there are condemned houses on skid row that could be had for as little as 325K. And, the expected housing price gain of 7-8% for the year 2007.

How the heck can you afford those houses on that salary?

 

[Miramonti]

Originally posted by: JS80

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.

that sounds about right, 10% are productive/risk takers, 90% are lazy/complacent.

We all look forward to when your autobiography comes out about how you overcame years of hunger and disease of 3rd world poverty to where you are today. Its sure to inspire the masses.

 

[bennylong]

Originally posted by: jjsole
NEW, New Century Financial, this year's enron. LEND is another one that's gotten destroyed.

Yea, the good news just keeps rolling in! There 's going to be a lot of people out of work.

"In corporate news, New Century said Tuesday that regulators subpoenaed documents under inquiries into accounting errors that inflated the value of the company's loan portfolio. The Irvine, Calif., company said the Securities and Exchange Commission and the U.S. Attorney's Office for the Central District of California began the investigations two weeks ago.

Accredited Home shares plunged $5.87, or 51.5 percent, to $5.53 after it disclosed its liquidity troubles.

Investors may pay attention to a report due later Tuesday from the Mortgage Bankers Association on mortgage delinquencies and foreclosures for the final quarter of 2006."

 

[b0mbrman]

Originally posted by: MagnusTheBrewer
And the rich get richer.

You mean the people who were smart enough to stay away from exotic loans and only buy as much home as they could afford?

I hope they're the ones getting richer as they deserve it.

 

[b0mbrman]

Originally posted by: bennylong

Originally posted by: jjsole
NEW, New Century Financial, this year's enron. LEND is another one that's gotten destroyed.

Yea, the good news just keeps rolling in! There 's going to be a lot of people out of work.

It's great news. That's just the economy adjusting to what's more allocatively efficient.

Let me guess, you also cry for horseshoe makers who are out of work since we all use cars now

 

[J0hnny]

Here's the thing, you're hoping that the housing market will crash. Why? Because you would love to be able to buy in at a lower value. So is everyone else! There is so much demand for it that you will have to pay the exorbitant prices! The prices will continue to increase because the demand will not drop unless there is an artificial glut in supply.

Here are reasons that home prices will not drop:

The "1.5 Million" number is journalism at its best.

Think about it, of the 1.5 million people losing their homes, how many of those are homes they actually live in and didn't buy hoping to flip. Of the ones hoping to flip, how many went for the interest only option.

Also, you'd have to think about Feds raising rates vs. keeping it low. Concensus is, rates will stabilize, which means continued demand for homes.

Places where demand will always be high will not see the drop you're hoping for. Pockets in Cali, Manhattan, any economic city center, suburbs with really good schools.

 

[crystal]

Originally posted by: bennylong

Originally posted by: jjsole
NEW, New Century Financial, this year's enron. LEND is another one that's gotten destroyed.

Yea, the good news just keeps rolling in! There 's going to be a lot of people out of work.

"In corporate news, New Century said Tuesday that regulators subpoenaed documents under inquiries into accounting errors that inflated the value of the company's loan portfolio. The Irvine, Calif., company said the Securities and Exchange Commission and the U.S. Attorney's Office for the Central District of California began the investigations two weeks ago.

Accredited Home shares plunged $5.87, or 51.5 percent, to $5.53 after it disclosed its liquidity troubles.

Investors may pay attention to a report due later Tuesday from the Mortgage Bankers Association on mortgage delinquencies and foreclosures for the final quarter of 2006."

Saw a post about housing yesterday that links to NEW & LEND. Saw it again to today. down over 50%. :shocked:

 

[j00fek]

its called morons who buy a house with a adjustable mortgage and then their pmts go up up up up and away....

 

[Miramonti]

Originally posted by: b0mbrman

Originally posted by: bennylong

Originally posted by: jjsole
NEW, New Century Financial, this year's enron. LEND is another one that's gotten destroyed.

Yea, the good news just keeps rolling in! There 's going to be a lot of people out of work.

It's great news. That's just the economy adjusting to what's more allocatively efficient.

Let me guess, you also cry for horseshoe makers who are out of work since we all use cars now

Its great news that they are cracking down on some corruption, but they are only doing it now because the bubble has burst and securities investors are losing a ton of money.

The dishonest/illegal lending practices were well known during the boom but widely ignored so that the economy could benefit and people could make money.

Exact same thing after the .com bubble burst - only then did the securities regulators pretend to take their jobs seriously by going after the deceptive balance sheets and false company statements.

My point is that this crackdown should have happened long ago.

 

[Vic]

Originally posted by: MagnusTheBrewer
And the rich get richer.

1. Rich invest in high-risk subprime mortgages that lend money to poor/bad credit people to buy homes.
2. Subprime mortgages fail to perform, resulting in foreclosure and sale at loss.
3. ???
4. Profit!

 

[Vic]

Originally posted by: J0hnny
Here's the thing, you're hoping that the housing market will crash. Why? Because you would love to be able to buy in at a lower value. So is everyone else! There is so much demand for it that you will have to pay the exorbitant prices! The prices will continue to increase because the demand will not drop unless there is an artificial glut in supply.

Here are reasons that home prices will not drop:

The "1.5 Million" number is journalism at its best.

Think about it, of the 1.5 million people losing their homes, how many of those are homes they actually live in and didn't buy hoping to flip. Of the ones hoping to flip, how many went for the interest only option.

Also, you'd have to think about Feds raising rates vs. keeping it low. Concensus is, rates will stabilize, which means continued demand for homes.

Places where demand will always be high will not see the drop you're hoping for. Pockets in Cali, Manhattan, any economic city center, suburbs with really good schools.

This is correct. If home values do fall (and they have already flattened to dipped slightly in some areas), it will not be due to a lack of demand, but to a lack of financing availability. Meaning that even if prices do fall out the bottom, the OP won't be able to buy a house anyway due to the fact that he won't be able to get a mortgage for it.
See my post above. Mortgage investors are getting burned right now due to poorly-performing mortgages. The OP (and some others) should be careful what he wished for.

 

[Gulzakar]

In Cali?

If you're a renter, you can get by on 50k.

If you're a home owner? 100k minimum for a small house in a decent area. That's also assuming you have 20% down.


My GF and I could only afford the ARM loan.

5 Year ARM at 6.25%, then it's adjustable. We've only lived in the house for 6 months, so our goal is to re-fi after 3 years or so for a 30 year fixed.