Option ARMs Threaten U.S. Housing Rebound as 2011 Resets Peak | |
Anonymous Coward User ID: 457415 United States 06/12/2009 02:37 PM Report Abusive Post Report Copyright Violation | Thanks man. All indications are California is toast. Quoting: Anonymous Coward 652833I sense an Epic Bail followed by an Epic Fail. Fail Bail. Someone make an emote of that lol..... Having a residence in both southern California and southern Michigan (and family in Austin), allows me a glimpse into the economic realities seemingly missed by the, "oooh nooos, California is gong to fall into the sea" fools. Here in Pasadena, I see construction everywhere, people are working, retail expansion, homes selling. The pencil dicks I see suffering... speculators that bought shit in bad areas... the oh look, a nice condo under the runway at LAX types... and the "South Central is such a good investment" bankers. My brother in Austin is struggling. The real estate updates I get from my people in seven days a week show that in Michigan... rare lake properties continue to sit on the market.... they are giving that shit away. I'll be buying a nice island cottage on my own island ... off the grid and boat access only this fall.... for cash. And for not very much of it. Here in Pasadena/Arcadia, on my street there have been three homes go on the market this year. They all got asking price in a week. Hey look... BushTard is on TV... looking as stupid as ever. I too live in southern Cal, and think you have it wrong. Pasadena/Arcadia are both maintaining relatively high home valuations solely because they have good schools in their respective cities. You have affluent Asian/Caucasians that really have no where else to go, unless you want to move to Newport or San Marino. There are very few affordable neighborhoods left in socal that have decent schools. If you look at the demographics, the families living here have high salaries relative to the surrounding neighborhoods. Sorry, but go east 5 miles and you hit El Monte, the shit hole of the world. Go north and you get Pasadena, not South Pasadena, and you get a large african-american population. Not to be a racist here, but I guarantee you that you will find cheap homes in Pasadena. And if you really do live in Pasadena, then just take a walk on Colorado Blvd through Old Town and notice all the for lease signs on the main blvd. I don't know what you're looking at, but your examples are but microcosms of the real story. |
Anonymous Coward User ID: 299322 United States 06/12/2009 02:45 PM Report Abusive Post Report Copyright Violation | Thanks man. All indications are California is toast. Quoting: Anonymous Coward 457415I sense an Epic Bail followed by an Epic Fail. Fail Bail. Someone make an emote of that lol..... Having a residence in both southern California and southern Michigan (and family in Austin), allows me a glimpse into the economic realities seemingly missed by the, "oooh nooos, California is gong to fall into the sea" fools. Here in Pasadena, I see construction everywhere, people are working, retail expansion, homes selling. The pencil dicks I see suffering... speculators that bought shit in bad areas... the oh look, a nice condo under the runway at LAX types... and the "South Central is such a good investment" bankers. My brother in Austin is struggling. The real estate updates I get from my people in seven days a week show that in Michigan... rare lake properties continue to sit on the market.... they are giving that shit away. I'll be buying a nice island cottage on my own island ... off the grid and boat access only this fall.... for cash. And for not very much of it. Here in Pasadena/Arcadia, on my street there have been three homes go on the market this year. They all got asking price in a week. Hey look... BushTard is on TV... looking as stupid as ever. I too live in southern Cal, and think you have it wrong. Pasadena/Arcadia are both maintaining relatively high home valuations solely because they have good schools in their respective cities. You have affluent Asian/Caucasians that really have no where else to go, unless you want to move to Newport or San Marino. There are very few affordable neighborhoods left in socal that have decent schools. If you look at the demographics, the families living here have high salaries relative to the surrounding neighborhoods. Sorry, but go east 5 miles and you hit El Monte, the shit hole of the world. Go north and you get Pasadena, not South Pasadena, and you get a large african-american population. Not to be a racist here, but I guarantee you that you will find cheap homes in Pasadena. And if you really do live in Pasadena, then just take a walk on Colorado Blvd through Old Town and notice all the for lease signs on the main blvd. I don't know what you're looking at, but your examples are but microcosms of the real story. Any advice on buying in LA. Glendale and Burbank look like they are starting to have houses that have come way down, but I hoping they haven't bottomed out at all. |
Anonymous Coward User ID: 701181 United States 06/12/2009 02:46 PM Report Abusive Post Report Copyright Violation | |
Lost Fisherman
User ID: 226145 United States 06/12/2009 02:57 PM Report Abusive Post Report Copyright Violation | |
Omega
(OP) User ID: 696603 United States 06/12/2009 03:00 PM Report Abusive Post Report Copyright Violation | Has UD weighed in lately? Quoting: Lost FishermanLike to get his take on the situation. He comes around on occasion, saw him here yesterday...... Not to speak for him however he believes the economy is secondary and this fall will be a ball buster....with no additional detail.... But I know....;>) Handguns are a skill; shotguns an art; rifles a science. _____________________________________ Democracy is two wolves and a sheep voting on whats for dinner. Disarmament is the precursor to Genocide. Better to take action now rather than chances later. Your choice. |
Phasesphere
User ID: 694428 United States 06/12/2009 04:00 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 401449 United States 06/12/2009 04:22 PM Report Abusive Post Report Copyright Violation | Any advice on buying in LA. Glendale and Burbank look like they are starting to have houses that have come way down, but I hoping they haven't bottomed out at all. Quoting: Anonymous Coward 299322I live in Glendale. There are a few foreclosures to be had but I think prices still have about 20% more to fall. |
Anonymous Coward User ID: 457415 United States 06/12/2009 04:59 PM Report Abusive Post Report Copyright Violation | Thanks man. All indications are California is toast. Quoting: Anonymous Coward 299322I sense an Epic Bail followed by an Epic Fail. Fail Bail. Someone make an emote of that lol..... Having a residence in both southern California and southern Michigan (and family in Austin), allows me a glimpse into the economic realities seemingly missed by the, "oooh nooos, California is gong to fall into the sea" fools. Here in Pasadena, I see construction everywhere, people are working, retail expansion, homes selling. The pencil dicks I see suffering... speculators that bought shit in bad areas... the oh look, a nice condo under the runway at LAX types... and the "South Central is such a good investment" bankers. My brother in Austin is struggling. The real estate updates I get from my people in seven days a week show that in Michigan... rare lake properties continue to sit on the market.... they are giving that shit away. I'll be buying a nice island cottage on my own island ... off the grid and boat access only this fall.... for cash. And for not very much of it. Here in Pasadena/Arcadia, on my street there have been three homes go on the market this year. They all got asking price in a week. Hey look... BushTard is on TV... looking as stupid as ever. I too live in southern Cal, and think you have it wrong. Pasadena/Arcadia are both maintaining relatively high home valuations solely because they have good schools in their respective cities. You have affluent Asian/Caucasians that really have no where else to go, unless you want to move to Newport or San Marino. There are very few affordable neighborhoods left in socal that have decent schools. If you look at the demographics, the families living here have high salaries relative to the surrounding neighborhoods. Sorry, but go east 5 miles and you hit El Monte, the shit hole of the world. Go north and you get Pasadena, not South Pasadena, and you get a large african-american population. Not to be a racist here, but I guarantee you that you will find cheap homes in Pasadena. And if you really do live in Pasadena, then just take a walk on Colorado Blvd through Old Town and notice all the for lease signs on the main blvd. I don't know what you're looking at, but your examples are but microcosms of the real story. Any advice on buying in LA. Glendale and Burbank look like they are starting to have houses that have come way down, but I hoping they haven't bottomed out at all. Burbank and Glendale should be coming down relative to Pasadena and Arcadia. These two cities are more gentrified and a lot less desirable by those who are still in their asset gathering years (20s to 40s). However, I have to qualify that statement since Glendale just recently added to their attractions with the Americana shopping mall. Why on earth anyone would put two malls side by side with two lane streets running between them is beyond me. I personally like Burbank, but you just had NBC leave, leaving Disney the only major business there. Then again, you have your own airport. :) But Burbank would probably be your cheapest bet. It all depends on what you're looking for. If you have kids, the schools aren't the greatest. Good luck on your search. |
Anonymous Coward User ID: 694305 United States 06/12/2009 05:27 PM Report Abusive Post Report Copyright Violation | HELLO, THERE IS A LOT TO BE WORRIED ABOUT WITH THE HOUSING MARKETS, BUT NOT THESE PARTICULAR RESETS. THE HEADLINE IS ACCURATE, BUT THE MEANING IS EXAGGERATED. THIS IS A VERY SMALL NUMBER VS THE MACRO PROBLEMS AT HAND, AND THIS RESET AND THESE RELATED TRADES HAVE BEEN PRICED IN, BOOKED AND RECEIVED OR CLOSED OUT BY MANY FINANCIAL INSTITUTIONS (THE ONES THAT EXIST ANYWAY:) THIS IS VERY SMALL IN THE WAY OF WHAT COULD EFFECT THE PRICE OF HOUSING IN THE NEXT FEW YEARS, ALTHOUGH OF COURSE IT IS TERRIBLE TO ANYONE WHO IS UNFORTUNATELY FACING A HUGE INCREASE IN PAYMENT. |
Anonymous Coward User ID: 701313 France 06/12/2009 06:07 PM Report Abusive Post Report Copyright Violation | Has UD weighed in lately? Quoting: OmegaLike to get his take on the situation. He comes around on occasion, saw him here yesterday...... Not to speak for him however he believes the economy is secondary and this fall will be a ball buster....with no additional detail.... But I know....;>) Howdy O: It will take a combination of things to kill the dollar completely and yes some of it will be the housing situation. Unemployment/underemloyment is another piece but to really put the fork in the system you need massive amounts of people that can't work. I think this VERY likely! All it would take to start propping this back up is a real war, let Kim do something really stupid that would take intervention by the US and against the wishes of China that would get the ball rolling. I think this is semi-unlikely. |
The Chef
User ID: 671624 United States 06/12/2009 07:06 PM Report Abusive Post Report Copyright Violation | HELLO, THERE IS A LOT TO BE WORRIED ABOUT WITH THE HOUSING MARKETS, BUT NOT THESE PARTICULAR RESETS. THE HEADLINE IS ACCURATE, BUT THE MEANING IS EXAGGERATED. THIS IS A VERY SMALL NUMBER VS THE MACRO PROBLEMS AT HAND, AND THIS RESET AND THESE RELATED TRADES HAVE BEEN PRICED IN, BOOKED AND RECEIVED OR CLOSED OUT BY MANY FINANCIAL INSTITUTIONS (THE ONES THAT EXIST ANYWAY:) THIS IS VERY SMALL IN THE WAY OF WHAT COULD EFFECT THE PRICE OF HOUSING IN THE NEXT FEW YEARS, ALTHOUGH OF COURSE IT IS TERRIBLE TO ANYONE WHO IS UNFORTUNATELY FACING A HUGE INCREASE IN PAYMENT. Quoting: Anonymous Coward 694305Check out this link. The Alt-a mortgage resets coming dwarf the subprime resets. How about 2.4 trillion dollars worth. If interest rates continue to climb and it looks like they will these people will not be able to refinance. They will be stuck with maybe 7% if they are lucky and that's not even for the larger loans which have the interest already at 7%+ These new resets have in no way been priced in. True the subprime resets are mostly done but as I said this new batch is going to be much worse and we are just now on the uptick with these. Follow the link. [link to www.marketoracle.co.uk] |
Tullamore Dew
User ID: 699150 United States 06/12/2009 07:31 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 642285 United States 06/12/2009 09:05 PM Report Abusive Post Report Copyright Violation | Welcome to Blood Bath part two. The really BLOODY part! Unless the US steps in and starts calling these loans what they were - illegal as hell - and refinances them at a NO MORE THAN 24% of borrowers gross income for as long as it takes to pay off the loan at 1 or 2 percent interest (and better at zero percent interest for a period of 1-3 years to let some of the owners get a little savings built back up and some stability again if they can manage to do it... If they don't admit this is the only fix that has a snowball's chance in hell of working - then we will see the economy go further down into the crapper and this time, it's going to stay there. Right now we have a 9 month to 2 year supply of unsold houses on the market. Fine. We will catch up as long as interest and prices stay low. Raise either or increase the supply (with more foreclosures) and the economy cannot absorb more and we're going to see a 1930's style depression and/or worse - but it will last for ten years! This could DESTROY what little remains of the USA. Not with a battle or a war. Just without any money, no income, and no food. We're fucked - so fucked I cannot describe it. Feel like you have a big thick cock up your ass? Well, guess what?? YOU DO! The government is fucking you raw and bloody and you don't even know it yet! This next part of the meltdown is going to be the fistfuls of salt that they're going to shove up your ass to make sure it hurts for a good long time! Bend Over and OPEN WIDE - you're going to get a fucking you'll NEVER FORGET! Scream louder baby - it makes him harder when you really hurt!!! |
Anonymous Coward User ID: 683924 United States 06/12/2009 09:11 PM Report Abusive Post Report Copyright Violation | I am just amazed that this is happening so fast. I guess it has been happening for awhile but the ceiling finally broke. While we were gently floating upward in our bubble of ignorance, we did not see the dangerous spike of greed above. Now we are going to crash so hard nothing will be the same.... ever. |
Anonymous Coward User ID: 694305 United States 06/12/2009 10:49 PM Report Abusive Post Report Copyright Violation | HELLO, THERE IS A LOT TO BE WORRIED ABOUT WITH THE HOUSING MARKETS, BUT NOT THESE PARTICULAR RESETS. THE HEADLINE IS ACCURATE, BUT THE MEANING IS EXAGGERATED. THIS IS A VERY SMALL NUMBER VS THE MACRO PROBLEMS AT HAND, AND THIS RESET AND THESE RELATED TRADES HAVE BEEN PRICED IN, BOOKED AND RECEIVED OR CLOSED OUT BY MANY FINANCIAL INSTITUTIONS (THE ONES THAT EXIST ANYWAY:) THIS IS VERY SMALL IN THE WAY OF WHAT COULD EFFECT THE PRICE OF HOUSING IN THE NEXT FEW YEARS, ALTHOUGH OF COURSE IT IS TERRIBLE TO ANYONE WHO IS UNFORTUNATELY FACING A HUGE INCREASE IN PAYMENT. Quoting: The ChefCheck out this link. The Alt-a mortgage resets coming dwarf the subprime resets. How about 2.4 trillion dollars worth. If interest rates continue to climb and it looks like they will these people will not be able to refinance. They will be stuck with maybe 7% if they are lucky and that's not even for the larger loans which have the interest already at 7%+ These new resets have in no way been priced in. True the subprime resets are mostly done but as I said this new batch is going to be much worse and we are just now on the uptick with these. Follow the link. [link to www.marketoracle.co.uk] i appreciate the link, i had a reply but no link so i erased it! let me come back with somehting useful for you - its bad but not as bad as u guys are saying and nowhere near as unexpected or unprepared as u think |
Phasesphere
User ID: 694428 United States 06/12/2009 10:52 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 701198 United States 06/12/2009 10:53 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 640056 United States 06/13/2009 12:19 AM Report Abusive Post Report Copyright Violation | “The problem is, real estate values went down,” [Peter Paul of Paul Financial, the loan orginator] said. Why did Secretary Paulson keep "going into the President [Bush] and telling him that property values had to go down?????" Paulson has spent most of the last twenty years commuting to China. Just exactly what was he doing there for Goldman Sachs????????????????? Property values don't go down, they go up. (Simple supply and demand - they aren't making any more real estate and they are making new human beings.) You have to go back to the 19th Century in America to see housing prices go down (1870's, I think, before the influx of new immigrants pushed it back up.) The housing prices fell because BANKS WEREN'T MAKING MORTGAGES. So which came first, the chicken or the egg? We need to figure out what the global bankers end game is in order to combat it. Without that key piece of information we are lost in the wilderness. |
Anonymous Coward User ID: 640056 United States 06/13/2009 12:20 AM Report Abusive Post Report Copyright Violation | |
loosecannon User ID: 467201 United States 06/13/2009 12:23 AM Report Abusive Post Report Copyright Violation | Shit ~ they truly would have been better off to pay off ALL mortgages in the U.S. ~ the economy would be rosy cheeks, all the banks would be solvent, GM & Chrysler would still be making cars and our asses wouldn't be in the financial sling. Quoting: DaJavooand it would have cost less than the bailouts. Esp so if they had merely refied every mortgage in the US at the same rates the fed extends to banks. |
Anonymous Coward User ID: 640056 United States 06/13/2009 12:25 AM Report Abusive Post Report Copyright Violation | Wall Street is shitting its pants over these options ARMs resetting. Quoting: Anonymous Coward 701181Why doesn't Wall Street and the Global Bankers just renegotiate a new mortgage at an affordable interest rate for these consumers so that they can stay in their homes?? Answer that question and you will have solved the riddle of what is really going on. |
Anonymous Coward User ID: 699732 Japan 06/13/2009 12:27 AM Report Abusive Post Report Copyright Violation | I agree that the banks/lenders are holding off on foreclosures. I know people living in houses they don't make payments on. My question: How can these lenders fail to not report this lack of anticipated revenue from their holdings? Until the next annual audit? Omega: Quoting: OmegaWait until you hear the loud cry from the banks when they "re-set" their balance sheets to the neg. amortization booked on (new) defaulted loans. Now that will be very interesting. From what I am reading they are trying their damnest to delay foreclosures, etc to keep this toxicity off their books. Lets see how long they can hold out lol..... |
Anonymous Coward User ID: 699732 Japan 06/13/2009 12:31 AM Report Abusive Post Report Copyright Violation | A small failure in analogy here. Prices of homes MUST GO DOWN because the high prices were unrealistic to the true demand. Remember all the "flip" opportunities. Demand/buyers were not all real buyers and the boom bust the market. “The problem is, real estate values went down,” [Peter Paul of Paul Financial, the loan orginator] said. Quoting: Anonymous Coward 640056Why did Secretary Paulson keep "going into the President [Bush] and telling him that property values had to go down?????" Paulson has spent most of the last twenty years commuting to China. Just exactly what was he doing there for Goldman Sachs????????????????? Property values don't go down, they go up. (Simple supply and demand - they aren't making any more real estate and they are making new human beings.) You have to go back to the 19th Century in America to see housing prices go down (1870's, I think, before the influx of new immigrants pushed it back up.) The housing prices fell because BANKS WEREN'T MAKING MORTGAGES. So which came first, the chicken or the egg? We need to figure out what the global bankers end game is in order to combat it. Without that key piece of information we are lost in the wilderness. |
Anonymous Coward User ID: 429261 United States 06/13/2009 12:36 AM Report Abusive Post Report Copyright Violation | |
loosecannon User ID: 467201 United States 06/13/2009 12:37 AM Report Abusive Post Report Copyright Violation | Welcome to Blood Bath part two. The really BLOODY part! Quoting: Anonymous Coward 642285Unless the US steps in and starts calling these loans what they were - illegal as hell - and refinances them at a NO MORE THAN 24% of borrowers gross income for as long as it takes to pay off the loan at 1 or 2 percent interest (and better at zero percent interest for a period of 1-3 years to let some of the owners get a little savings built back up and some stability again if they can manage to do it... If they don't admit this is the only fix that has a snowball's chance in hell of working - then we will see the economy go further down into the crapper and this time, it's going to stay there. Right now we have a 9 month to 2 year supply of unsold houses on the market. Fine. We will catch up as long as interest and prices stay low. Raise either or increase the supply (with more foreclosures) and the economy cannot absorb more and we're going to see a 1930's style depression and/or worse - but it will last for ten years! unfortunately home values have fallen so far that it may be impossible to refi many of them, and commercial interest rates are rising. I fully agree with your sentiments, but the golden window of opportunity is gone. Geithner had other plans. |
Anonymous Coward User ID: 640056 United States 06/13/2009 12:37 AM Report Abusive Post Report Copyright Violation | Any advice on buying in LA. Glendale and Burbank look like they are starting to have houses that have come way down, but I hoping they haven't bottomed out at all. Quoting: Anonymous Coward 401449I live in Glendale. There are a few foreclosures to be had but I think prices still have about 20% more to fall. This is really interesting: I just checked Realtor.com for single family homes for sale in burbank. There are only two homes for sale under $300,000, 23 homes between 300-400,000 and 48 listings between 400-500,000. That means that there are only 73 homes for sale under $500,000. I know Burbank and there even at the height of the boom, there were many houses available between $350-500,000. I checked my community, formerly the fastest growing city over 100,000 in America, and it is the same - low inventory!!! I think we are being lied to about everything! the housing "over supply," EVERYTHING!! Check it out for yourself for your city [link to www.realtor.com] |
loosecannon User ID: 467201 United States 06/13/2009 12:41 AM Report Abusive Post Report Copyright Violation | Why doesn't Wall Street and the Global Bankers just renegotiate a new mortgage at an affordable interest rate for these consumers so that they can stay in their homes?? Answer that question and you will have solved the riddle of what is really going on. Quoting: Anonymous Coward 640056It's so obvious and yet the wall street trained econ techs in Obama's dream team passed this idea over in exchange for simply buying up bad assets after they failed. Clearly you are right. |
Anonymous Coward User ID: 661716 United States 06/13/2009 03:08 AM Report Abusive Post Report Copyright Violation | Welcome to Blood Bath part two. The really BLOODY part! Quoting: Anonymous Coward 642285Unless the US steps in and starts calling these loans what they were - illegal as hell - and refinances them at a NO MORE THAN 24% of borrowers gross income for as long as it takes to pay off the loan at 1 or 2 percent interest (and better at zero percent interest for a period of 1-3 years to let some of the owners get a little savings built back up and some stability again if they can manage to do it... If they don't admit this is the only fix that has a snowball's chance in hell of working - then we will see the economy go further down into the crapper and this time, it's going to stay there. Right now we have a 9 month to 2 year supply of unsold houses on the market. Fine. We will catch up as long as interest and prices stay low. Raise either or increase the supply (with more foreclosures) and the economy cannot absorb more and we're going to see a 1930's style depression and/or worse - but it will last for ten years! This could DESTROY what little remains of the USA. Not with a battle or a war. Just without any money, no income, and no food. We're fucked - so fucked I cannot describe it. Feel like you have a big thick cock up your ass? Well, guess what?? YOU DO! The government is fucking you raw and bloody and you don't even know it yet! This next part of the meltdown is going to be the fistfuls of salt that they're going to shove up your ass to make sure it hurts for a good long time! Bend Over and OPEN WIDE - you're going to get a fucking you'll NEVER FORGET! Scream louder baby - it makes him harder when you really hurt!!! LOL!!! |