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

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Quote from volente_00:

That cali smog is sure refreshing in the morning eh ? You've got us beat on the humidity problem but that seems like small trade off for 500 Sqft housing, $ 1 per gallon more per gas, and a state income tax. As far as scenery, you can find pretty much everything in texas from mountains to sandy beaches. I know of some larger ranches that will blow your mind with breath taking bluffs and spring fed creeks.
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Smog? Have you been outside of LA? The rest of the state isn't bad at all. Couple that with a little bit of coastline. Los Angeles, while I don't like it much, is a hotbed of culture.

Scenery in California v. Texas: I'm not really going to waste either of our time debating this one...CA has everything. CA has some of the most diversely amazing scenery in the world I'd say.

You like living in Texas apparently. Maybe it's a difference of affordability. I would take California over Texas.
 
Quote from SteveD:

Speculators will lease out at market price...whatever that may be....that cuts the "carrying cost" down...sit and wait it out...tax benefits also help close the gap...


A lot of people don't realize that "walking away" has some unintended consequences....

Loan is for $200,000.....lender forecloses, sells house for $150,000 at auction....lender sends you and IRS a 1099 for $50,000...forgiveness of debt is considered "income" for tax purposes....


Also, for a country ready to go into a deep depression, there sure seems to be a lot of buyers at the foreclosure auctions.....

I guess they haven't read the postings on Elite Trader, LOL


SteveD
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Can someone clarify the situation in the US - if you default on your mortgage, how are you able to "walk away" from the debt if the lender sells at a loss? Wouldn't you have to declare bankruptcy and lose all your other assets in that case?
 
Quote from Cutten:

Can someone clarify the situation in the US - if you default on your mortgage, how are you able to "walk away" from the debt if the lender sells at a loss? Wouldn't you have to declare bankruptcy and lose all your other assets in that case?
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I think it depends on the state. If, and I believe this will happen, lenders get defaults piling up, they're simply not going to be able to go after everyone. Someone mentioned something similar with S&L.

Even if the government doesn't protect "homeowners" which I'm hoping they won't...they'll probably protect those that default on their loans somehow. The government doesn't want that many people declaring bankruptcy I don't think...probably rather see the banks/lenders/private wealth take a hit.

We'll see...but I honestly don't think the lenders will be able to go after the amount of people who are going to default.

Also...the qualification standards of these lenders was LOW and they took on a huge risk and I'm sure there will be blame galore heaped upon them for writing loans they knew a majority of their borrowers wouldn't be able to afford in 1-5 years. That's like the guy who had his weed stolen going to the cops.
 
Quote from blast19:

Smog? Have you been outside of LA? The rest of the state isn't bad at all. Couple that with a little bit of coastline. Los Angeles, while I don't like it much, is a hotbed of culture.

Scenery in California v. Texas: I'm not really going to waste either of our time debating this one...CA has everything. CA has some of the most diversely amazing scenery in the world I'd say.

You like living in Texas apparently. Maybe it's a difference of affordability. I would take California over Texas.
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Scenery ? So what's your neighbors house like on that zero lot line ?
How much is your homeowners insurance out there considering the earthquake risk ? Have you ever been to Texas ?
 
Quote from volente_00:

Scenery ? So what's your neighbors house like on that zero lot line ?
How much is your homeowners insurance out there considering the earthquake risk ? Have you ever been to Texas ?
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Chill out. :D

The scenery in California is AMAZING. I don't live in CA.

I've been to Texas...not on purpose. I have a number of friends who've lived all over Texas. Some said it was okay, some said it sucked, none said it was great.

Sorry if the truth bothers you...chill out and be happy if you are happy...if you aren't secure about where you live that's not my fault.
 
Obviously a lot of people prefer the cali lifestyle and pay a premium for it but if you look at the growth in san antonio over the last seversl decades it is obvious that the hill country is quite desirable as well. as it should be. nice to have affordablity along with the beauty there. a nice secret.

in addition to lots of land in tx it is less restrictive than many areas of the country which makes it easier to add supply when demand increases. many areas that have much higher prices have restrictive building codes that make increasing supply quite hard.
 
There is a big difference between foreclosure and bankruptcy..

There is no "one size fits all" solution for this situation...

Lender will examine each borrower as to why they defaulted...loss of job..sickness....scam artist...over leverage speculator etc etc....

A speculator who dropped 3 houses in Las Vegas may have made a lot of money over the last 5 years....lender will sue him for the deficiency and secure a judgement against his other asset.....he will pay them off or lose some assets or file Ch 11...he has a positive net worth but NO CASH....The lender can just send a 1099 to borrower for deficiency...I don't believe IRS debt is dischargeable in Bankruptcy, LOL.....


A guy who lost his job with little equity in his new home and no other assets will probably left alone....lender has to pay lawyers to file lawsuit....cost money....just foreclose on house, sell it at appraised value, write off loss, go on your way..


Most, if not all, of the "robber barons" who the politicians like to pound on will be found, for the most part, to be OK....

Here's the problem for the borrower: He signed loan documents that said he made $50,000 a year...stated income loan....now he sues....lender discovers he only made $35,000....borrower committed BANK FRAUD....go to jail.....


SteveD
 
Quote from blast19:

Chill out. :D

The scenery in California is AMAZING. I don't live in CA.

I've been to Texas...not on purpose. I have a number of friends who've lived all over Texas. Some said it was okay, some said it sucked, none said it was great.

Sorry if the truth bothers you...chill out and be happy if you are happy...if you aren't secure about where you live that's not my fault.
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If it is so great then why don't you live there ? The new england are offers better scenery than the west coast if you really want to argue. I never said Texas is perfect. The humidity flat out sucks. Take a guess where this pic was taken.
 

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Quote from volente_00:

If it is so great then why don't you live there ? The new england are offers better scenery than the west coast if you really want to argue. I never said Texas is perfect. The humidity flat out sucks. Take a guess where this pic was taken.
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I don't live in CA because I live in NYC. It's the next best thing to Europe in the states. NE is nice, but California and the nearby surrounding areas offers some of the most beautiful scenery I've ever seen. It's a pretty amazing place including the nearness of AZ, Mexico, and Oregon.

The pic isn't impressive as a dry desert with a plain sunrise/sunset isn't exactly amazing to me.

Let's just agree to disagree. :D
 
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