DebtsNMesses's Discussions

Well, since I live in San Diego, part of the stupidity was not only the bank's outrageous willing to loan anyone any amount, but ALSO the stupidity that 2 working people were applying. If one looses a job, they loose their most important asset, their house. I heard 80% of the families have dual incomes. Prices may not come down as much over this change of lifestyle, because 62K (income) x2 (qualifing buyers) x 4.5 (approx purchase amount) is approx 558K!

Well, since I live in San Diego, part of the stupidity was not only the bank's outrageous willing to loan anyone any amount, but ALSO the stupidity that 2 working people were applying. If one looses a job, they loose their most important asset, their house. I heard 80% of the families have dual incomes. Prices may not come down as much over this change of lifestyle, because 62K (income) x2 (qualifing buyers) x 4.5 (approx purchase amount) is approx 558K!

We had a similar thing happen in Calif... we were in our contingency period and the sellers wanted to keep our $1000 (lenders were dropping like flies), but MY agent wouldn't hear of it. Go to YOUR agent's broker and get furious. Plus, your in escrow, shouldn't escrow handle disputes according to the contract? (I could be wrong on this point, because we didn't have to fight.) Second Point... There are practically NO buyer's agents right now... they are HUNGRY, and so are the mortgage people. My agent is great, she reviewed carefully every word in every document, and pointed out ANYTHING that concerned HER.Third Point... I learned from my mistake, next time I get into bidding the bidding war again, I will lock in the loan, and have all paperwork ready and submitted.

Woooo hoooo!! Yippee!! I'm dancing in my seat! This is the greatest news for my family... all of us kids want to buy! I tried to buy in July, but it didn't work out. -But in July I could STILL talk 4 out of 5 houses I bid on down $50K from asking price. :-) Hope that all give you an idea of sales prices for the SAVY buyer.

An Agent cannot work as an agent unless he/she is working under a Broker (who took more real estate law classes than the agent) The broker is the BOSS and takes part of the agents commission. The broker is also who carries the insurance if a lawsuit irrupts from a bad agent. The broker is responsible for the agents bad conduct.Call the office and ask for the Broker. Every office has at least one Broker, or the agent would be in violation of their license. If they don't give you the name, you should be able to find the Broker's name and info from the Department of Real Estate (or whatever it's called in your state).

Borrowers are NOT getting bailed out. We all know the money will NOT flow downhill... the politician's pocket it before it gets to a single person! Plus, remember that bailouts are not for the Americans, but for the Mexican's that can't speak English and didn't know what they were signing. -Yes, that's the excuse for the bailout... language problems.Next, the banks have EARNED every stinking house they get returned to them, and they have EARNED to loose mass money over it. They CREATED this bubble by giving loans that they KNEW the people could NOT pay back. This in turn increased the supply of borrowers, which pushed up the price of homes. Basic economics, supply and demand.

The foreclosure process (in Calif)... the bank holding the 1st cannot bid above what is owed on the house. Therefore, the bank typically picks up the house at 80% value. In a declining market, like this one (i'm in San Diego), the banks have still overpaid what the house is worth and are having to sell them for even less. On the other hand, the banks do NOT want to price the home below everyone else to sell it quickly, because they hold notes on MANY homes in the area, and if more of their client's homes prices drop below what they paid for them, they will get more homeowners walking away from their mortgages. It's a catch 22. I was looking at buying a home that had been foreclosed. The bank bought it at 472K, listed it at 459K, and 4 months later sold it at 378K. Can you believe it? Somebody had originally bought the home at the peak at about $580,000!

Jumbo Loans are loans over $417,000. Homes priced above this amount are very difficult for buyers to get qualified for nowadays.

I agree, nationwide many, many areas will not be substancially negatively affected. Many areas did not 'bubble' as bad as the area I am in. Subprimes did not start to take hold nationwide until much more recently, whereas in my area prices went through the roof.

LOL And how much cash do YOU have to put on a house? Have you saved $105,000 to put 20% down on a house AND keep under the 417 number? I don't know about you, but I can't buy anything in my area with my MEAGER $40,000. It covers closing costs, and keeps enough in the bank (6 months of mortgage payments required by bank) to qualify for the loan, not to mention a little money left over to EAT on if we run into trouble.