molson_golden2002 Posted March 28, 2008 Share Posted March 28, 2008 We're coming mighty close the the end of that road...I can read the words "Dead End" on the sign because we're that close... In unison now, everyone say "Baahhhhh" Is artificial inflation non-organic with lots of preservatives and trans-fats in it? Link to comment Share on other sites More sharing options...
SD Jarhead Posted March 28, 2008 Share Posted March 28, 2008 I found myself in a similar situation to what many are facing during the last California housing meltdown in the early 90's. I had just returned from the Gulf War and had saved up a bunch of cash. Me and the wife wanted to buy a place and could only afford a condo. We bought a 2 bedroom, 2 bath condo new in the first phase of a complex for $119k. Shortly after we purchased the California housing market started melting down. The builder of the complex decided to liquidate the 2nd phase of the community by selling the homes at auction. Exactly one year after we purchased our condo for $119k a similar unit sold at auction for $77k! In addition, I used my VA loan and borrowed through a plan that was called the 3-2-1 loan, meaning we had neg-am for the first three years This was right around the time we started our family and once we had two kids we outgrew the 900 sqft. Long story short, we moved out and rented the condo and rented a larger house. I had to pull $350 a month out of pocket to make the mortgage note on the condo. It was a write off, but still... The bottom line is it took me seven years to meet the market on that place where I could sell it for what I owed. I could've walked away and destroyed my credit. But I sucked it up. Everyone makes financial mistakes in their lives, but it's how people deal with them that separates the herd. I have very little compassion for those who make a mistake and blame someone else. Like someone opined above, bad things happen to good people. That stated, I sympathize with Chef and I'm sure there are a few people out there who have had something similar happen. I can tell you that if someone intentionally screwed me, I'd hunt them down and execute a plan of silent vengeance so that they'd never know what hit them. But by and large, most people were just stupid or greedy OR that deadly combination of both. Link to comment Share on other sites More sharing options...
Lakesider Posted March 28, 2008 Share Posted March 28, 2008 95% of the outstanding mortgages are currently paid per agreed-upon schedule. Why do I want to even consider supporting a bail-out for the irresponsible property owners within the other 5%? Aren't the traditional fail-safe mechanisms still in place for the few who truly need mortgage assistance? Link to comment Share on other sites More sharing options...
DC Tom Posted March 28, 2008 Share Posted March 28, 2008 But by and large, most people were just stupid or greedy OR that deadly combination of both. To a stunning degree, really. I don't know how many closings my wife did where the buyer had an interest-only mortgage "Because otherwise I couldn't afford this." (This being an $800,000 luxury condo. ) And when they were told, point-blank, that when the principal came due they would lose their property, they'd usually respond something like "I have five years to worry about that. I'm sure I'll get a raise by then..." Anyone who was genuinely defrauded by a lender (which did happen quite a bit, particularly with scum-sucking mortgage brokers), I have some sympathy for. Most people being foreclosed on right now...not really. Link to comment Share on other sites More sharing options...
RkFast Posted March 28, 2008 Share Posted March 28, 2008 To a stunning degree, really. I don't know how many closings my wife did where the buyer had an interest-only mortgage "Because otherwise I couldn't afford this." (This being an $800,000 luxury condo. ) And when they were told, point-blank, that when the principal came due they would lose their property, they'd usually respond something like "I have five years to worry about that. I'm sure I'll get a raise by then..." Anyone who was genuinely defrauded by a lender (which did happen quite a bit, particularly with scum-sucking mortgage brokers), I have some sympathy for. Most people being foreclosed on right now...not really. While I said above...Long Island is ridiculously overpriced, youd be shocked how many rubes overextended themselves with huge houses they cant afford and with the matching 45K Acura MDX in the driveway. Comical, really. I looked at a house this past week here.....500K...for a 3br cape....CAPE...on a 50X100 lot and bordering a major highway. I almost punched the realtor for wasting my time with something like that. But some !@#$ will overextend himself and buy it....and then guess what....WE ALL will have to bail this shitbag out in a few years. Link to comment Share on other sites More sharing options...
blzrul Posted March 28, 2008 Author Share Posted March 28, 2008 While I said above...Long Island is ridiculously overpriced, youd be shocked how many rubes overextended themselves with huge houses they cant afford and with the matching 45K Acura MDX in the driveway. When I bought my very first house, I knew exactly where I wanted to live. Sadly, those houses were out of my price range, and what I could afford in that area were in disrepair. So I bought a house I could afford somewhere else. Is that such a difficult concept for people to understand? Link to comment Share on other sites More sharing options...
bills_fan Posted March 28, 2008 Share Posted March 28, 2008 When I bought my very first house, I knew exactly where I wanted to live. Sadly, those houses were out of my price range, and what I could afford in that area were in disrepair. So I bought a house I could afford somewhere else. Is that such a difficult concept for people to understand? No, but understand his perspective. "Somewhere else" is really not an easy concept in the tri-state area. Minimum housing prices in even halfway decent suburb areas start at $500k, and believe me, you are not getting much. In the city (not Manhattan, but Brooklyn/Queens etc.) discussions begin at 750k and go up very quickly from there. Link to comment Share on other sites More sharing options...
DC Tom Posted March 28, 2008 Share Posted March 28, 2008 When I bought my very first house, I knew exactly where I wanted to live. Sadly, those houses were out of my price range, and what I could afford in that area were in disrepair. So I bought a house I could afford somewhere else. Is that such a difficult concept for people to understand? Yep. Doubly so when you're in an image-conscious job in an image-conscious city, like too many DC residents are. Link to comment Share on other sites More sharing options...
Chef Jim Posted March 28, 2008 Share Posted March 28, 2008 "I have five years to worry about that. I'm sure I'll get a raise by then..." You'd be suprised...well maybe not, how many people treat their retirement like that. "I'll worry about that later." When you need $1-2mil to properly replace your income at retirement the time to worry about that was 20 years ago, not 20 years from now. I just laugh at them now. I know I'll be responsible for paying for their retirement through some social program but I enjoy laughing at them now. Perfect example. Came accross a case of a guy making a $100k salary with a $100-150k annual bonus. His pension will replace about 90% of his salary. We told him he needed to save a good portion of his bonus for retirement because his pension will only take care of his salary not his bonus, which of course he relied on as well. When we told him to fully fund his and his wife's IRA for 2007 and 2008 ($18k) he said no. He had to figure out where else to spend the bonus first. I hope they enjoy their annual trips to Europe now because when they're retired they'll spend them in Pomona. Link to comment Share on other sites More sharing options...
KD in CA Posted March 28, 2008 Share Posted March 28, 2008 To a stunning degree, really. I don't know how many closings my wife did where the buyer had an interest-only mortgage "Because otherwise I couldn't afford this." (This being an $800,000 luxury condo. ) And when they were told, point-blank, that when the principal came due they would lose their property, they'd usually respond something like "I have five years to worry about that. I'm sure I'll get a raise by then..." Jaw dropping. Really. Do people go to some kind of special school to become that ignorant? No, but understand his perspective. "Somewhere else" is really not an easy concept in the tri-state area. Minimum housing prices in even halfway decent suburb areas start at $500k, and believe me, you are not getting much. In the city (not Manhattan, but Brooklyn/Queens etc.) discussions begin at 750k and go up very quickly from there. But that's the issue....idiots who think they have to live in the five bouroughs; or within six blocks of their mother. The surburbs go out in every direction for a long, long way and (in general) the prices get cheaper the further from the city you get. Link to comment Share on other sites More sharing options...
bills_fan Posted March 28, 2008 Share Posted March 28, 2008 But that's the issue....idiots who think they have to live in the five bouroughs; or within six blocks of their mother. The surburbs go out in every direction for a long, long way and (in general) the prices get cheaper the further from the city you get. True, but there is a point of dimishing returns, i.e. the farther out you go, the longer the commute. Over 2 hours each way is not uncommon, and you are still talking 450-500 for a modestly sized 3 bd ranch. Link to comment Share on other sites More sharing options...
GG Posted March 28, 2008 Share Posted March 28, 2008 True, but there is a point of dimishing returns, i.e. the farther out you go, the longer the commute. Over 2 hours each way is not uncommon, and you are still talking 450-500 for a modestly sized 3 bd ranch. I'd disagree with that. 2 hrs away can get you a 3-br ranch for under $300K (Orange Co & Stroudsburg areas). Figure to add 50K+ for each 15 minute increment. Link to comment Share on other sites More sharing options...
Chilly Posted March 28, 2008 Share Posted March 28, 2008 Someone explain to me how stricter regulation would have prevented this problem. Link to comment Share on other sites More sharing options...
GG Posted March 28, 2008 Share Posted March 28, 2008 Someone explain to me how stricter regulation would have prevented this problem. Please define "problem." The problem is different things depending on who you talk to. Link to comment Share on other sites More sharing options...
bills_fan Posted March 28, 2008 Share Posted March 28, 2008 I'd disagree with that. 2 hrs away can get you a 3-br ranch for under $300K (Orange Co & Stroudsburg areas). Figure to add 50K+ for each 15 minute increment. I'm talking door to door commuting time. I don't know much about Orange Co. or Stroudsburg, so I don't really know how long it realistically takes to commute from there, during rush hour. I'd expect that it would be easier from Orange Co., just because of the train. Stroudsburg is a bus commute, and who knows what traffic is like. I know that on Long Island, where he was talking, a two hour commute, door-to-door puts you in Babylon on the South Shore or Northport on the North Shore, still $400-500k for a 3 bedroom ranch. Link to comment Share on other sites More sharing options...
Chilly Posted March 28, 2008 Share Posted March 28, 2008 Please define "problem." The problem is different things depending on who you talk to. “To renew our economy — and to ensure that we are not doomed to repeat a cycle of bubble and bust again and again — we need to address not only the immediate crisis in the housing market; we also need to create a 21st century regulatory framework, and pursue a bold opportunity agenda for the American people,” Obama said. Link to comment Share on other sites More sharing options...
RI Bills Fan Posted March 28, 2008 Share Posted March 28, 2008 I'm confused, weren't most of you guys beating on the idiots who live too far away from their jobs and spend too much on gas in another thread not long ago? Which way do you want it? Cost of commute or cost of mortgage? Link to comment Share on other sites More sharing options...
bills_fan Posted March 28, 2008 Share Posted March 28, 2008 I'm confused, weren't most of you guys beating on the idiots who live too far away from their jobs and spend too much on gas in another thread not long ago? Which way do you want it? Cost of commute or cost of mortgage? Noone is saying that you drive 2 hours...you take a commuter train. Link to comment Share on other sites More sharing options...
jjamie12 Posted March 28, 2008 Share Posted March 28, 2008 I'm confused, weren't most of you guys beating on the idiots who live too far away from their jobs and spend too much on gas in another thread not long ago? Which way do you want it? Cost of commute or cost of mortgage? It's NOT an either/or!!! If you can't afford to buy something, you shouldn't buy it. End of story. Link to comment Share on other sites More sharing options...
KD in CA Posted March 28, 2008 Share Posted March 28, 2008 It's NOT an either/or!!! If you can't afford to buy something, you shouldn't buy it. End of story. Apparently the concept of an individual finding a job/home/commuting balance that he can afford is just too complex for RI to understand. Link to comment Share on other sites More sharing options...
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