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Wow.. thanks all for your response.. after talking with my wife a few friends we are just gona stay put.. im not one to pull this off, i never could.. It should only be as a ultimate last resort.. All i can do i pretty much hope the market picks up and and once the quick sales are sold,, there sold.. and im sure down the road in a year or two im hoping things will be different.. Sorry of my late response.. been away on business.
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That's a good idea. Thank you for coming back to post. We thought you might have been scared off by all the bantering on this thread.
In Florida the rate is also very very high for people who either walk away or can't afford their mortgage due to buying houses they never could have afford anyway.
Some people even stated they are losing so much money when they do a short sale and they haven't make a single down payment than having a 80/20 mortgage and basicaly they paid rent and didn't own a thing. So how can they lose $ 30 K or more because the value went down, and having a zero down mortgage.....Maybe 50% is high, but the amount of people effected by this is way larger than 50%. This due to HOA fees going up, sales tax cuts for going back to school being not being issued this year, just as the hurricane sales tax cuts wern't given this year, all due to less property taxes coming in, so the people who paid their property taxes (even if it is less due to the value going down) we are all effected by this.....more examples....lawns not maintained, houses not maintained, etc.....whichis effecting all neighbors, even the people who just want to move to a bigger house and can't get their home sold to do so.....so the amount of 50% is a very low amount.
Than we have to mortgage bailout and most people in my area won't get it because they are to far behind in mortgage payments, behind in proerty taxes for 1 year or longer, HOA liens, etc. and don't have enough income.
Different subject. The question is whether 50% of the homes in the US are underwater. That is false.
That everyone is effected by large economic problems like the mortgage crunch or the overall credit crunch is clear.
'And by the way, what I said was that it was not affecting the entire nation IN THE SAME WAY.'
Uhh I guess you missed where I quoted you at the top of my post. I guess your area is special and insulated in its own lil bubble. Nice.
Well I think you have hit on a key factor -- we are not now and haven't in the past been "in a bubble". That 4.3% appreciation is about identical to what we have experienced over the past 5 -10 years. Not spectacular like FL, NV, CA etc but sustainable given our thus far healthy job market. Cost of living is also low making sub-prime mortgages unnecessary. Given these factors it is relatively easy for a first time home buyer to save up a good down payment without resorting to exotic mortgages. Most people around here also view a house as a home, not an investment vehicle.
What city and state are you in? That fascinating that your city completely bypassed the nation wide housing bubble > to housing bubble pop catastrophe.
What city and state are you in? That fascinating that your city completely bypassed the nation wide housing bubble > to housing bubble pop catastrophe.
Actually it is not unusual. In the general Las Vegas neighborhood housing values went way way up...and have now come back down more than half what they went up. But the "standard" house is still worth a good bit more than it was in 2003 and will likely stay that way.
There is a set of victims who bought during the peak years and they have taken a very large beating. But they are in fact a small percentage of the populations. Maybe 15% or so including the people who climbled on the band wagon and harvested the equity increase while it was available.
The other 85% or so chug merrily along. Sorry that they did not sell in 2005 but happy that their home is still well above what they paid for it.
offtopic
but Denver, also did not experience a huge bubble either. Our market has been steady since 2001. Some areas are down yes (mainly the exurbs that overbuilt and areas that were rather blighted and had some shady mortgages) but the metro as a whole has been flat. Yes our market is affected hugely by the mortgage issues of the country as a whole and that makes people skittish about buying.
'But the "standard" house is still worth a good bit more than it was in 2003 and will likely stay that way.'
Hi there. Can you please explain how you know it will not go down in value beyond 2003 in Vegas. I have family there and they are concerned due to the amount of foreclosures around them and to them values continue to drop.
I'm not sure about this. Research showed that people who took advantage of DPA were 2-3x more likely to be foreclosed on. So eliminating this program will reduce future foreclosures, which should help the market stabilize more quickly. Instead of propping up prices now and creating a set of foreclosures that will happen 3-4 years down the road, it'll force sellers to lower prices now and lead to stability sooner. The trip there might be more painful for some, but the overall effect is positive.
What do you think they're doing with the 400,000 loans they're going to renegotiate/refinance? It's also basically a bailout so ... if that's not propping up prices, I don't know what is.
'But the "standard" house is still worth a good bit more than it was in 2003 and will likely stay that way.'
Hi there. Can you please explain how you know it will not go down in value beyond 2003 in Vegas. I have family there and they are concerned due to the amount of foreclosures around them and to them values continue to drop.
The foreclosure impact is quite selective. We basically have two price points roughly 50K apart. Many of the older more stable neighborhoods have dropped very little in price. Some are actually stable. What I see is the REPOs stablilizing around the existing price. They have been pretty well stable for the last month or so. Volume is very high tending to create upward pressure on REPO priciing. Recently there has been a sizable increase in the average price for REPOs...something we have not seen before. The median is the same but the average is well up. That implies a widening of the sales range to the more expensive product.
An example of the value variation. At the start of the problems Sun City Anthem carried about a 15% premium over Sun City Summerlin. Newer/shineir and all that... At the present it is inverted with Sun City Summerlin at about a 15% advantage. This is a very wide swing and will likely end up years from now with Sun City Anthem at a small advantage. This is the impact of the heavy foreclosures in Sun City Anthem. Note that both communities are down but Sun City Anthem a whole lot more than Summerlin.
What do you think they're doing with the 400,000 loans they're going to renegotiate/refinance? It's also basically a bailout so ... if that's not propping up prices, I don't know what is.
Do you really think it is that many? In our neighborhood most people won't have a chance to refi since they have to much debt and don't fall into the category although they bought in '05.....but I guess the fitness equipment and the bigger SUV's , etc...are going to hunt them (lines of credit, tax liens, hoa liens, etc).
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