This is a great idea if it is economically feasable for you. That way you don't take the hit on selling your current home in this market and build more equity until the industry gets better.

Doubt the Real Estate industry will recover for 5-10 years.

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An unwavering defender of those I see worth protecting.

"promote the general welfare, not provide the general welfare"

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

Some of those catchy "bundles" of loans and the bonds, bond "insurance"
and related ponzi parts, have been written off, to the tune of
$100 Billion bucks thus far. I read that snippet today in the WSJ;
trying to find the link. Besides the enomorous, almost incomprehensible
sum, there are more shoes to drop.

For those of you whom were asleep in Money & Banking class, a good
analogy for a "million" vs a "billion" is:
a million seconds equals 11 days...
a billion seconds equals nearly 33 YEARS.

Walmat/DebtorNation

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I think an important issue as well is that it's simply too easy to walk away from your loan, I think there should really be more consequences, it's simply too easy to take the hit, I have a huge issue with that

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It will take longer in certain areas that experienced rapid home value appreciation in recent years like California, Florida, etc., but not everywhere will be a 5 year process. Home prices in some of these areas were increasing far more per year than the average persons salary was. There was a point where the market had to reset itself. If values kept skyrocketing as they were, a lot of people would not be able to afford the smallest of homes.

The suburbs of Atlanta have not been hit as bad as as the previously mentioned areas. There are many more homes on the market, but on average home prices havn't declined too much (so far). Then again, home prices here have been appreciating at a relatively low 5% per year (approx) before this whole credit crunch hit, much less than Cali or Florida for example.

The predatory lending practices of many financial institutions has finally caught up with the market. We really shouldn't be surprised. The term "predatory lending" has been around for a while now and should have been a red flag in itself. A lot of people were sold ARM loans to get into the house that they desired, but couldn't afford on a fixed note, and when rates went up they were unable to make the monthly payment. The house then went into foreclosure and brough down the value of homes around it. It was bad practice on the part of the buyer and the bank. The homeowner got the home they wanted, the loan officer closed a loan and got their commission, and the bank was getting paid (for the time being), so at one point everyone was happy. There has also been a lot of loans written for far more than the home was worth in the first place due to bad appraisals and flat out fraud on the part of the appraisers, loan officers, sellers and agents.

just in case you dont know, banks like to make mass, first time it was in 1917 i think and second was around 1933 the great depression, responsible were Rockefellers, Morgans and Rothchilds. there was another person but i forgot the name.......... they could crash stock merket because many people bought stocks with 10% down and 90% financing by the bank, bu there was a catch to this, borrover had to return the money within 24 hours, so one day biggest banks asked for their money from smaller banks, so smaller banks in turned told theyir customers to give money back, people had to sell stocks to get the money, and when people sold stocks massively all market crashed.

small banks went belly up and the big banks(the ones that started all of this) bought all of them for a fraction of the price....


Sry for spelling and grammar point dosnt change

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That's a great rate! The conforming 30 year is around that right now and the jumbo is about a point higher. if you bought early, you could probably make a nice chunk of change if you sold your place now. But if the rent you get for your home covers the expenses and then some, then I'm all for keeping property because as long as you have it, you'll never lose its value. As for getting in on foreclosures, there's a lot of work involved. For every great foreclosure deal you hear someone get, there's at least one or two others who are stuck with a money pit. You buy a foreclosure in its as is condition; unlike a typical real estate purchase where you can negotiate to have the seller pay for certain things like termite, retrofitting, etc., nothing is done to a home in foreclosure and the seller could be spiteful and mess up the home even more. I get weekly lists of homes in default and a lot of them aren't great deals. Since we're both in LA, let me know if you have any questions about our market.

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TQ2K


'04 N62 - Alpine White/Truffle
'03 S62 - Petrol Mica/Champagne
'97 S52/4/5 - Alpine White/Dove
'91 M42/4/5 - Brilliantrot/Tan

So, why do you keep making your car payments? This is not about homes that now worth less than last year. The fact is, prices were over-blown, to begin with. If you bought your house three or four years ago, it's still worth more now than when you first bought it... it just did not quadruple in value.

This is about people buying homes they could not afford by getting into Adjustable Rate Mortgages (ARMs), which allowed them to make minimum, interest-only payments for the first three to five years (this is how most people could afford their homes). After three or five years, the homeowner has to start making principal payments. Most people had planned to either sell or refinance. BUT, it's hard to refinance or to sell, if you have no equity in your house, or -- worse yet -- you have negative equity (you owe more than your house is worth).

Again, bad loans... and an over-anxious public who would do anything to get into a bigger house.

Juan

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