US Housing Market Faggotry

[Climb Thar Hill]

Afterwards, did you hammer the gf and her sister at the same time? It's ok if the "some dude" was involved too, we won't tell.

I think the dude is the sisters on again/off again boyfriend.

Funny thing though, my gf and her sis are identical twins. It's like I've already boned the sister.

 

[Krilons Resa]

lol

 

[dorian gray]

That's freaking awesome

 

[lurch70]

It's like I've already boned the sister.

you might have

 

[Reign in Acai]

@ Mike!!!

Not to mention our buddy Adam witnessed you and your gf getting it on, while he slept with one eye open on an adjacent sofa. It's almost like he had sex with you.

 

[dorian gray]

 

[JayKeeley]

Right then, spoke with a financial advisor. Chances of mortgage interests rocketing over the next 6-12 months are GOOD.

Some people are fearing that the interest rates on an ARM may go as high as 9%. So if any of you folks are paying adjustables, you're basically gonna get fucked.

So much so that I'm thinking of giving up my 4.6% early (by 8 months) and switching over a 6.5% fixed for 30 years. If I wait for my fixed rate to expire, there's a good chance I could be paying anywhere between 7.5 to 8%.

Holy schnikey. I could end up living in a van down by the river.

 

[dorian gray]

6.5% is pretty darn good yo

 

[JayKeeley]

Yeah, I think I'm gonna take it. I'll talk to my bank and see what they can offer, but otherwise E*Trade will probably get my business. They already have my business so I suppose they have incentive to keep it.

 

[dorian gray]

Considering I got 6.25% in 2004, 6.5% now might be some kind of trickery. Be sure to read the "fine print" and whatnot. Make sure that 6.5% isn't after you shell out thousands of cold hard cash to bring it down from something else (these are called "points" and are what makes up a fair amount of your closing costs). Good luck

 

[J.]

ive got a fixed 6.5% 30 year.

 

[NAD]

As long as there are no shenanigans attached to that loan, I'd go for it.

he LA Times. “In the county of Riverside, in the city of Corona, on a street called Plume Grass, there’s a foreclosed house that no one wants to buy. A decade ago it was worth $148,000. That’s what Theodore and Cassandra Judice paid the developer, Beazer Homes, borrowing nearly all of that sum.”

“Life threw some curveballs. In 2000, they refinanced, drawing cash out in exchange for a bigger monthly mortgage. Theodore would marvel at his neighbor’s boats, their swimming pools, their toys. He and Cassandra did some remodeling, getting the patio done, he remembers, was particularly urgent.”

“The couple refinanced again in 2001, 2003 and 2004, borrowing larger sums each time.”

“In September 2005, the Judices borrowed $447,500. Almost immediately after that, they put the house on the market for $480,000. It was time to go: They had drawn so much cash out of their home they couldn’t afford to live there anymore. The ATM had turned into a trap. With no equity cushion, they couldn’t afford to cut their price either.”

“‘They got offers, but they weren’t high enough for them to break even,’ says their agent, Peter Pesek. ‘They wanted to keep waiting for something better.’ It never came; the market had peaked.”

“The couple moved to Austin, Texas, and bought another house. They couldn’t afford both mortgages, so for Plume Grass they tried to negotiate a short sale, an agreement in which the lender accepts less than it is owed. The deal fell through.”

“A notice of default was filed June 9, 2006, making the house one of the first in Corona to enter the foreclosure process in the current downturn.”

http://www.boogeresque.com/horns.wav

Man, people are stupid.

 

[JayKeeley]

It's really bad when the market tanks and you end up with negative equity. See this is another problem of living somewhere where this can conceivably happen -- I doubt, for example, that housing in California or New York can drop so significantly?

The E*Trade loan costs about $1K to switch.....but if I open an E*Trade account with a $100, they'll take $500 of the closing cost. *shrugs* We do need more info, plus a chat with our bank and see what they can counter.

 

[NAD]

California housing already has dropped, although not nearly what it (likely) will. Add in builder incentives for new homes and prices are 10% lower than they were a year ago. Has rent gone up? Nope. Have wages gone up? Nope.

http://realestate.msn.com/Buying/Article2.aspx?cp-documentid=5124615

You can't have 500% increase in prices, with no discernable reason (no excess of jobs, no entertainment attraction, no vast pools of oil) other than buyer speculation and not expect prices to eventually drop back down to earth. Will houses in Laguna Niguel plummet? Likely not, but a shitty house that cost $125,000 in 2001, going for $380,000 in 2005, will come back down significantly. Just because they are listed at $350,000 doesn't mean they sell for that much.

Case in point, my boss's house is listed on Zillow for $900,000 but a larger house down the street from him is being foreclosed at $690,000. Who would pay $210,000 more for less house with a worse view when inventories are sky high? An utter dolt perhaps, but that's it.

 

[JayKeeley]

How much did your boss pay for his house? If he has to match the $690K figure, will he go into negative equity?

That graph is awesome. I have two home purchases on that timeline ('95 and '01). Lucky for me, but the exponential growth at the tail end is just stupid. Of course this bubble has to burst....

....like I said previously, not even I would pay the current asking price for the same home I live in.

I always thought the problem was with an abundance of wealth and people willing to pay exhuberant prices for crappy shacks by the river, but looking at it now, I don't blame the people -- because it turns out they weren't ever that rich to begin with -- I blame the money lenders and banks willing to hand out these crappy loans.

Although there were lots of bad decisions made by these borrowers, I think they were quite easily duped. It's not easy understanding financial advice when there is so much jargon to throw at you. Most consumers just think, "ok they're telling me I can afford it so it must be true!"

People can't think for themselves or do their own homework, but you know, I don't think this has ever been any different.

 

[NAD]

I think the majority of the blame is with the lender as well. But at times it's 49/51 because a lot of these deals can't possibly make snes to anyone with a 4th grade education. You make $3,000 a month and just signed up for a $5,000 mortgage? You're an idiot.

Boss probably paid no more than $200,000 for his pad I'm sure. 5 years ago that was what houses in Redlands went for.

Check this out:

That house went for 25% less than the other estimates for similar houses, including itself. Think any one of those will go for $800k? There's no way. Especially since a chunk of those are in foreclosure right now.

 

[JayKeeley]

ay carumba

back to basics:

1. working out what you can afford in a mortgage is taking your salary and multiplying it by 3

2. make sure your monthly payments are less than what you make

3. get rid of your credit cards, that is why god (and I do mean Allah) invented the debit card so you only spend money that you actually have

4. DEL *.*

 

[NAD]

I just noticed that house is 4 years old and has been sold 4 times.

Sale History
02/15/2007: $619,090
11/21/2006: $610,008
07/22/2005: $720,000
new in 2004: $427,000

First dude made some cash, second dude lost his ass (add in 6% commission to a realtor and he's out $150,000 plus any interest or closing costs lost in the process), third dude probably bailed on it because it was a second, third, or fourth home and realized the market was going to shit.

But housing is a safe investment, it never goes down! BULLSHIT.

 

[NAD]

ay carumba

back to basics:

1. working out what you can afford in a mortgage is taking your salary and multiplying it by 3

2. make sure your monthly payments are less than what you make

3. get rid of your credit cards, that is why god (and I do mean Allah) invented the debit card so you only spend money that you actually have

4. DEL *.*

Yep. Except with #1 from 2004 to 2006, because the median income in CA was $60,000, and the median price was around $580,000. Anyone who bought then is fucked in one of three ways:

1) can't afford, lose house to foreclosure
2) can afford, stuck with ridiculous mortgage payments
3) can't afford, sell for lesser loss

 

[NAD]

I have to go over to the porn thread for awhile now, I'm getting mad at numbers.