New Mortgage Rules Proposed
Both the Sacramento Bee and the Times- Standard take a look this morning at the aftermath of the housing market boom coupled with the mortgage lending practices that developed from high housing prices.
The chickens came home to roost and many people are finding themselves in trouble not being able to afford the loan payments. This comes as no surprise to some of us.
One state legislator is considering legislation to supposedly prevent at least some such occurances from happening in the future. Whether such legislation would help or hurt the situation, I'll leave to judge later.
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I was driving through Eureka the other day and it seemed like there were more homes than I'd seen in a while up for sale. Don't know if it's just me. Maybe there's no more for sale than usual.
Still, I couldn't help but wonder if some local homeowners are trying to get out from under a difficult situation? Certainly some are as the Times- Standard mentioned there are 161 homes in Humboldt under some stage of foreclosure.
That doesn't sound as bad as I would of expected, though. I wonder if that's about average?
posted by Fred Mangels @ 8:10 AM
12 comments
12 Comments:
Perhaps Brian Morrissey could weigh in with some figures and educate us all. He has access to them.
I don't think that's his department. Besides, Security National isn't the only bank that's in the mortgage business.
It wasn't an attack. Don't be so defensive.
Fred, leave your pissy attitude at the door. Just because youre home interest rate went up to 11 percent and now you cant afford to live in your shack doesnt mean anyone cares. Maybe you could do something more lucrative othger than mowing lawns, like flip burgers.
Nope, sorry. We bought our house long ago. We weren't affected by the housing sale thing. I'm concerned about others who were, though.
No joke Fred, there is some serious supply, and little demand- ironically the prices are still out of reach for most. Is there such a thing as affordable housing?
I think this is a mess. I know of one guy who bought a house back during the boom/ bubble. He's got a place on California Street in Eureka. Not only was he foolish enough to buy a house with the prices so high, he's trying to sell it now and I was told he's already offering the place for less than he paid for it.
It still won't sell.
This is going to be a rehash of the DotCom burst. Everyone has been throwing their money around, trying to get rich quick. Well, the chickens are about to come home to roost. Who in there right mind would spend 300-400k on a house on California Street? Were talking about the worst street in the entire county! No home is worth over 135,000. The realtors will try to slow the spiral, but its obvious its crashing. I cannot believe the total idiots that made money during the boom...
What is a house worth right now?-Nothing...someone has to hold the sh*t end of the stick.
Currently, there are 41 homes on the Foreclosure list and 479 homes for sale on the MLS! This is only the beginning and it is going to get MUCH worse.
Might well get worse, since no one is buying, no one can afford them and if they drop the selling price to where people can afford them, they'll lost big bucks and still owe the banks the difference between what they bought it and sold it for (I think).
I'm no expert on home financing, but I do know if I bought a house for $250,000 and had to sell it for $175,000, I'd be in deep doo- doo, although I suppose it would depend on the loan agreement.
Houses are still selling. Top end doing better than low end.
If you got a sub prime rate loan that is or may be a negative loan you might regret it. Interest rates have been going up and your "starter rate" is now much higher - might be a problem.
If you have owned your house for a while - I don't think the market is crashing - just adjusting, My crystal ball doesn't tell me everything - just what happened today. Sorry about my crystal ball forecast.
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