I am not surprised with the housing data, it will get worse.

[swtrader]

Quote from Trendytrader:

I think it is going to get worse. Last week I have a friend who "invested" in the Florida real estate boom....he is now telling me he is upside down on all his properties, rental income (that he has) doesn't come close to paying the mortgage. Banks are calling him everyday, so he has decided to BK himself and send the keys back to the banks and start afresh.
.

jingle mail, jingle mail
paid too much for your stuff
oh what fun it is to ride a bubble till it's bust

 

[swtrader]

Quote from Tigerjaw:

I think you make some very good points. Of course the specific circumstances youre in makes a big difference. (A modest house bought years ago at a reasonable price, versus an inflated MacMansion purchased in what was 'known' as a 'hot' market a couple years ago.) - - But the idea that a house is 'your biggest investment' that was sold to everyday Joe&Jane Doe is silly. - - There is a lot of inventory on their books that the banks don't want to recognize as losses. (To do so would reveal that theyre bankrupt.) When that inventory hits the market house prices will tank to where they belong. The govt will try to 'prop' up this price crash, but Mr Market always wins in the long run. Unfortunately a lot of resources can be appropriated and misdirected in the meantime. - -

"There is a lot of inventory on their books that the banks don't want to recognize as losses."

i've heard that many banks wont forclose, becasue then they get stuck with the property taxes

 

[jprad]

Quote from Scataphagos:

Back in the days when mortgage loans were prudent and we didn't have these troubles....

1. 20% down payment required (or PMI if not)

2. Payment max of 28% of income.

And, 34% max debt, inclusive of the mortgage plus a 2 year income history.

Greenspan, Mozillo, Frank, Dodd, et al. should be tried and hung for treason.

 

[dandxg]

Quote from swtrader:

"There is a lot of inventory on their books that the banks don't want to recognize as losses."

i've heard that many banks wont forclose, becasue then they get stuck with the property taxes

And I would think HOA dues too. Sky high in parts of South Florida since so many vacancies.

 

[MattF]

Quote from jprad:

And, 34% max debt, inclusive of the mortgage plus a 2 year income history.

Greenspan, Mozillo, Frank, Dodd, et al. should be tried and hung for treason.

Right now loan mods are accounting for about 31%...still too high as is, but also showing how many were way over it.

 

[Mnphats]

Quote from jprad:



Greenspan, Mozillo, Frank, Dodd, et al. should be tried and hung for treason.

It appears as though they will get a pass for all their wrong doings.