The next mortgage crisis

[Pliablemoose]

http://www.cbsnews.com/video/watch/?id=4668112n

Hold onto your shorts folks... It's not getting any better anytime soon.

I want people to serve time for this shit. :|

 

[Zebo]

I saw this on 60 min yesterday. Very scary.

 

[wnied]

I can think of quite a few congressmen, presidents, and senators I would like to see serving time for the current mess we're in...

...and on a side note...while we're dreaming...I'd also like a Ferarri, a nice house, and Salma Hayek to have 20 of my children.

~wnied~

 

[alien42]

that graph at 3:30 makes baby jesus cry.

 

[Zebo]

Originally posted by: wnied
I can think of quite a few congressmen, presidents, and senators I would like to see serving time for the current mess we're in...

...and on a side note...while we're dreaming...I'd also like a Ferarri, a nice house, and Salma Hayek to have 20 of my children.

~wnied~

LOL!

Are you sure about that? http://a59.ac-images.myspacecd...9b490a69137d163492.jpg

Plus Latina's tend to get bigger after the first.

 

[OCGuy]

Originally posted by: Pliablemoose
http://www.cbsnews.com/video/watch/?id=4668112n

Hold onto your shorts folks... It's not getting any better anytime soon.

I want people to serve time for this shit. :|

Who? The borrowers that got in over their head?


Many Option ARMS have recast already. I dont see it being as big as the 2/28s and 3/27s that have already ran their course.


As a "younger" person, it is not all bad. Houses are starting to be in the price range that a couple can actually afford to get into a house/condo again around here.

 

[Aharami]

wow

 

[TheSlamma]

That acupuncturist is a moron.. she even admitted she didn't read the paperwork. Jesus they give you 3 days to look it over AFTER you sign it to turn it down, let alone all the time you have to read it before you sign. Greed makes people blind I guess.

 

[CPA]

I actually wish my ARM would reset. With the 1 year Libor as low as it is, my new rate (if a reset would actually occur) would be 2 percentage points lower than my current rate. Unfortunately, I have 4 years left on my 7 year ARM.

BTW, before anyone starts bitching, I have no problems making my mortgage payments and don't forsee it, either. Also, I'm not ready to go through the hassle of refinancing, as I have second mortgage to deal with and I live in Texas which has screwy mortgage/refinance rules, so don't yell at me to refinance now.

 

[LegendKiller]

Originally posted by: Ocguy31

Originally posted by: Pliablemoose
http://www.cbsnews.com/video/watch/?id=4668112n

Hold onto your shorts folks... It's not getting any better anytime soon.

I want people to serve time for this shit. :|

Who? The borrowers that got in over their head?


Many Option ARMS have recast already. I dont see it being as big as the 2/28s and 3/27s that have already ran their course.


As a "younger" person, it is not all bad. Houses are starting to be in the price range that a couple can actually afford to get into a house/condo again around here.

I agree that most of the biggest problems have run their course. Option arms, subprime, and NINJAs are the biggest problem. Alt-As are largely jumbos or low-doc. ARMs that recast are going to be fine, especially considering the low rates right now.

 

[Pliablemoose]

Originally posted by: Ocguy31

Originally posted by: Pliablemoose
http://www.cbsnews.com/video/watch/?id=4668112n

Hold onto your shorts folks... It's not getting any better anytime soon.

I want people to serve time for this shit. :|

Who? The borrowers that got in over their head?


Many Option ARMS have recast already. I dont see it being as big as the 2/28s and 3/27s that have already ran their course.


As a "younger" person, it is not all bad. Houses are starting to be in the price range that a couple can actually afford to get into a house/condo again around here.

If the borrowers knowingly committed fraud, yes, if the lenders knowingly committed fraud, then yes.

 

[Jaskalas]

Originally posted by: alien42
that graph at 3:30 makes baby jesus cry.

Words do not describe what happens when you build a nation on a house of cards.

 

[chess9]

Originally posted by: Pliablemoose
http://www.cbsnews.com/video/watch/?id=4668112n

Hold onto your shorts folks... It's not getting any better anytime soon.

I want people to serve time for this shit. :|

So, this will drive home values down even further over the next two years, and what will it do to the credit markets? How will people afford new cars, for instance? This will also drive unemployment up.

I'd say this is yet another reason why the auto bailout doesn't make sense.

Yes, I saw it on 60 minutes too, and I normally don't watch tv.

-Robert

 

[Slew Foot]

Cant wait for the jumbos to reset so all the dumbshits in the bay area who bought homes at 10x their incomes get kicked out and home values revert to sustainable levels.

 

[Pliablemoose]

Originally posted by: Slew Foot
Cant wait for the jumbos to reset so all the dumbshits in the bay area who bought homes at 10x their incomes get kicked out and home values revert to sustainable levels.

Yeah, I'm in Fresno, and have co workers that did that shit and lost their homes, they justified what they did by saying "Well everyone else was doing it." Holy fuck, I learned to not do that kind of follow the leader into hell in freaking grade school.

Florida's going to implode too...

 

[chess9]

Originally posted by: Pliablemoose

Originally posted by: Slew Foot
Cant wait for the jumbos to reset so all the dumbshits in the bay area who bought homes at 10x their incomes get kicked out and home values revert to sustainable levels.

Yeah, I'm in Fresno, and have co workers that did that shit and lost their homes, they justified what they did by saying "Well everyone else was doing it." Holy fuck, I learned to not do that kind of follow the leader into hell in freaking grade school.

Florida's going to implode too...

Florida has already imploded. My rental home in Orlando has lost 30% of it's value in the last two years. I expect it to lose another 20% at least.

-Robert

 

[Red Dawn]

Originally posted by: chess9

Originally posted by: Pliablemoose

Originally posted by: Slew Foot
Cant wait for the jumbos to reset so all the dumbshits in the bay area who bought homes at 10x their incomes get kicked out and home values revert to sustainable levels.

Yeah, I'm in Fresno, and have co workers that did that shit and lost their homes, they justified what they did by saying "Well everyone else was doing it." Holy fuck, I learned to not do that kind of follow the leader into hell in freaking grade school.

Florida's going to implode too...

Florida has already imploded. My rental home in Orlando has lost 30% of it's value in the last two years. I expect it to lose another 20% at least.

-Robert

Cool by the time I retire I might be able to afford to buy a place and move down there:thumbsup:

 

[mAdMaLuDaWg]

You know what I don't understand, NYC real estate hasn't been affected that much yet. You'd think with the financials shedding jobs there would be a huge drop in real-estate but its been pretty steady.

 

[dmcowen674]

Originally posted by: mAdMaLuDaWg
You know what I don't understand, NYC real estate hasn't been affected that much yet. You'd think with the financials shedding jobs there would be a huge drop in real-estate but its been pretty steady.

Steady?

11-26-2008 Buildings permits in New York City down 70%

Buildings permits in New York City were down 70% in October, compared with the same month last year, as new residential construction comes to a standstill.

?With no availability of credit, why would anybody be moving forward on projects?? asked Steven Spinola, president of the Real Estate Board of New York.

 

[Pliablemoose]

Originally posted by: Red Dawn

Originally posted by: chess9

Originally posted by: Pliablemoose

Originally posted by: Slew Foot
Cant wait for the jumbos to reset so all the dumbshits in the bay area who bought homes at 10x their incomes get kicked out and home values revert to sustainable levels.

Yeah, I'm in Fresno, and have co workers that did that shit and lost their homes, they justified what they did by saying "Well everyone else was doing it." Holy fuck, I learned to not do that kind of follow the leader into hell in freaking grade school.

Florida's going to implode too...

Florida has already imploded. My rental home in Orlando has lost 30% of it's value in the last two years. I expect it to lose another 20% at least.

-Robert

Cool by the time I retire I might be able to afford to buy a place and move down there:thumbsup:

Yep, there's more to drop...

I'm gonna be your neighbor down there Red, can you or GB drive after dark?

 

[chess9]

Originally posted by: Red Dawn

Originally posted by: chess9

Originally posted by: Pliablemoose

Originally posted by: Slew Foot
Cant wait for the jumbos to reset so all the dumbshits in the bay area who bought homes at 10x their incomes get kicked out and home values revert to sustainable levels.

Yeah, I'm in Fresno, and have co workers that did that shit and lost their homes, they justified what they did by saying "Well everyone else was doing it." Holy fuck, I learned to not do that kind of follow the leader into hell in freaking grade school.

Florida's going to implode too...

Florida has already imploded. My rental home in Orlando has lost 30% of it's value in the last two years. I expect it to lose another 20% at least.

-Robert

Cool by the time I retire I might be able to afford to buy a place and move down there:thumbsup:

My advice would be to wait at least another year before you buy anywhere. But, Florida has a gazillion foreclosed properties. I rode my bike to the gym today and I must have seen 50 homes for sale or for rent, and the gym is only 1.25 miles away! Restaurants can't close fast enough. Garage owners are shutting down because people can't afford to fix their cars, let alone buy new ones. Our local tennis center was to open 6 new Har-Tru tennis courts, but has put it off. One of my friends is selling his home (I should say he's trying.) because he's lost everything in the stock market. Another retired lawyer friend is selling his home in NC because he now cannot afford to keep two homes, plus he may need heart bypass surgery and that's going to cost an arm and a leg even with Medicare.

The shit has hit the proverbial fan, folks. We may all be looking to move to some place with jobs, like Somalia, or the Sudan. Just a bit of macabre kidding of course, but things are not looking bright at the moment. Let's hope something breaks and it isn't us.

-Robert

 

[mAdMaLuDaWg]

Originally posted by: dmcowen674

Originally posted by: mAdMaLuDaWg
You know what I don't understand, NYC real estate hasn't been affected that much yet. You'd think with the financials shedding jobs there would be a huge drop in real-estate but its been pretty steady.

Steady?

11-26-2008 Buildings permits in New York City down 70%

Buildings permits in New York City were down 70% in October, compared with the same month last year, as new residential construction comes to a standstill.

?With no availability of credit, why would anybody be moving forward on projects?? asked Steven Spinola, president of the Real Estate Board of New York.

I'm talking about home values and rental prices. They have had a very little drop AFAIK.

 

[dmcowen674]

Originally posted by: chess9
Florida has a gazillion foreclosed properties. I rode my bike to the gym today and I must have seen 50 homes for sale or for rent, and the gym is only 1.25 miles away!

Restaurants can't close fast enough.

Garage owners are shutting down because people can't afford to fix their cars, let alone buy new ones.

Our local tennis center was to open 6 new Har-Tru tennis courts, but has put it off.

One of my friends is selling his home (I should say he's trying.) because he's lost everything in the stock market.

Another retired lawyer friend is selling his home in NC because he now cannot afford to keep two homes, plus he may need heart bypass surgery and that's going to cost an arm and a leg even with Medicare.

The shit has hit the proverbial fan, folks.

We may all be looking to move to some place with jobs, like Somalia, or the Sudan.

Just a bit of macabre kidding of course, but things are not looking bright at the moment.

Let's hope something breaks and it isn't us.

Amazing since I was told for years this wasn't go to happen.

Hell, we were told the economy is strong up until one week before the election.

We should chase the jobs and displace the locals of the countries our jobs went to.

 

[mAdMaLuDaWg]

Originally posted by: chess9

Originally posted by: Pliablemoose

Originally posted by: Slew Foot
Cant wait for the jumbos to reset so all the dumbshits in the bay area who bought homes at 10x their incomes get kicked out and home values revert to sustainable levels.

Yeah, I'm in Fresno, and have co workers that did that shit and lost their homes, they justified what they did by saying "Well everyone else was doing it." Holy fuck, I learned to not do that kind of follow the leader into hell in freaking grade school.

Florida's going to implode too...

Florida has already imploded. My rental home in Orlando has lost 30% of it's value in the last two years. I expect it to lose another 20% at least.

-Robert

Question, you'd think that with the housing market in Florida in the gutter, demand for rentals would go up. I mean people have to live somewhere right? Or was there such a glut of development in Florida that it outstripped the population living there by far?

 

[Jhhnn]

Originally posted by: LegendKiller


I agree that most of the biggest problems have run their course. Option arms, subprime, and NINJAs are the biggest problem. Alt-As are largely jumbos or low-doc. ARMs that recast are going to be fine, especially considering the low rates right now.

Dunno about that, LK. We may have a bit of a breather in 2009, but it's far from over wrt option ARM's- it's only just beginning.

http://bp3.blogger.com/_pMscxx.../s1600-h/IMFresets.jpg

http://calculatedrisk.blogspot...r-why-charts-dont.html

As people pay the minimum on option ARM's, as I understand it, then the reset/ recast date comes closer... lots of these loans are also at "teaser" rates, as well. Even though rates are low now, that won't help a helluva lot for people with those loans- rates aren't that low...

And when they're upside down on the valuation, no other lender will touch 'em...

This isn't going away anytime RSN....