Less than 20% fall in home prices will destroy the banking system?

[volente_00]

Quote from ElCubano:

I know one of the best agents in the builders market and she only closed 2 out of 9 homes she had for the month....because 7 of them couldn't get qualified....they missed it by a couple of months i guess... so if and when there is a mass exodus from homes there will be less people qualified to buy them... :eek:

Or perhaps people will be less willing to walk away because they have been seeing all over the news that subprimes are not going to be easy to get anymore.

 

[volente_00]

One last point.



The only ones who will be walking are the ones who bought recently and were late to the party. If you bought a 300k home out west 3 years ago and now it is worth 400k, with a 20% correction it will still bring 320k. Do you think this person is going to walk ?

 

[blast19]

Quote from volente_00:

One last point.



The only one who will be walking are the ones who bought recently and were late to the party. If you bought a 300k home out west 3 years ago and now it is worth 400k, with a 20% correction it will still bring 320k. Do you think this person is going to walk ?

Do you think everyone who bought homes in the last two years have good equity in their homes? You probably do...nevermind.

 

[volente_00]

Quote from blast19:

And you're the perfect example of the fleeting ignorance and why this market is still holding up as well as it is.

$350k homes in San Diego? Really? Where? I'm serious...your friends might have found El Dorado....

Actually it is in Imperial beach . My apology.

 

[volente_00]

Quote from blast19:

Do you think everyone who bought homes in the last two years have good equity in their homes? You probably do...nevermind.

Did I say that ?

How many loans were wrote in the last 2 years ?


How many in the last 5 years ?

 

[blast19]

Quote from volente_00:

Actually it is in chula vista. My apology.

And he pays $3,500 in rent? That's insane! I think someone is shafting him. No joke and no offense meant.

 

[volente_00]

Here's your list of cheap rentals that they will be flocking too.

http://sdhomessearch.signonsandiego.com/Rentals/SearchResults.asp



And if it starts do you think rentals will stay at this price with extra demand ?

 

[volente_00]

Quote from blast19:

And he pays $3,500 in rent? That's insane! I think someone is shafting him. No joke and no offense meant.

It's in imperial beach, I was thinking of someone else I know in chula vista.

 

[blast19]

Quote from volente_00:

Did I say that ?

How many loans were wrote in the last 2 years ?


How many in the last 5 years ?

It's not a matter of how many loans were "written" last year or last two years...it's a matter of the loans given, the value of the house at the time of sale, the value now, the location, etc. Look at where the most homes were sold in the last two years and their prices then and now...have fun!

 

[ElCubano]

Quote from volente_00:

One last point.



The only ones who will be walking are the ones who bought recently and were late to the party. If you bought a 300k home out west 3 years ago and now it is worth 400k, with a 20% correction it will still bring 320k. Do you think this person is going to walk ?

I agree.....even if it went to under their purchase price that still isnt reason to walk away. unless they had fancy financing and it causes their monthly payment to go up or interest only loans that are specifically used for short term buys and sells...