tag:blogger.com,1999:blog-13037130.post7297900735882594879..comments2024-03-28T12:28:25.633-07:00Comments on Manhattan Beach Real Estate-Redondo Beach Townhomes: Southern California Real Estate: Walking Away is StupidKayehttp://www.blogger.com/profile/09003331406008950614noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-13037130.post-53725325198633893762008-02-22T21:09:00.000-08:002008-02-22T21:09:00.000-08:00Anonymous 2:46,A shortsale is completely different...Anonymous 2:46,<BR/>A shortsale is completely different from someone who could pay theri mortgage and chooses not to do so. <BR/><BR/>I'm somewhat mystified at how a home you have owned for 15 years is currently worth less then you paid for it 15 years ago and that you have no equity left. I don't see how that could happen unless you have refinanced the property.<BR/><BR/>I have a very good idea who is impacted and who will be impacted in the future. The fact is that all of us will be impacted. Money is going to be tight, loan rates are going to be higher and it will be harder to qualify.Kayehttps://www.blogger.com/profile/09003331406008950614noreply@blogger.comtag:blogger.com,1999:blog-13037130.post-36656105153415708742008-02-21T14:46:00.000-08:002008-02-21T14:46:00.000-08:00What a load of crap written by people totally unaf...What a load of crap written by people totally unaffected by this whole mess. I put my 20% down for my home, have a 793 credit score and have never been late on my mortgage payment. I was transferred by my company and placed my home up for sale. Imaging my shock to learn that the home I bought for $479,000 is now worth $350,000 - well below what I owe. I have lost 15 years of home equity because greedy banks lended money to sub-prime people who could neither afford nor qualify for these homes. What happens to the sub-prime owner? Nothing - they go back to renting just like before with their crappy credit just like before and have not lost one dime. They put no money down and inmany cases took money out with second mortgages. In the meantime, I have been paying 2 mortgages, made up for $1800 a month in rent shortfall - only to learn yesterday that my renter is skipping out. You bet I am doing a shortsale. In total I have lost $123,788 dollars. I have my ARM due in one year and can either short sell or pay another $85,000 for a house I already put $95,800 plus closing costs. While it is so easy to sit in your fat California home that you have owned for 20 years and judge, you have no idea who is really impacted by this whole damn thing...the middle class who has prime credit. And I trust you have not sold that home because you cannot afford to pay taxes on the new one - another brilliant California law that I paid for. In the future - shut up, roll up your sleeves and come up with some constructive ideas for a change.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13037130.post-14108062101410995262008-01-31T08:23:00.000-08:002008-01-31T08:23:00.000-08:00Anonymous 8:07, No question everyone shares in the...Anonymous 8:07,<BR/> No question everyone shares in the blame for this mess.. and I do believe lenders have to shoulder more guilt here.. <BR/><BR/>I have never figured out the rational that says you can qualify for a higher loan with a payment that adjusts then for one that is fixed.. This has never made any sense to me..<BR/><BR/>I think we will see prices decline a bit more although I don't think we will see 20% in our immediate market unless there is a major crisis such as massive unemployment. <BR/><BR/>Inventory is still low. Until we see big increases in inventory the market will remain relatively the same.Kayehttps://www.blogger.com/profile/09003331406008950614noreply@blogger.comtag:blogger.com,1999:blog-13037130.post-79992852168702926252008-01-31T08:07:00.000-08:002008-01-31T08:07:00.000-08:00I saw the 60 min. report this past Sunday and was ...I saw the 60 min. report this past Sunday and was amazed - it gave a great picture of the problem (owners and bankers).<BR/><BR/>I concluded that the problem was on both sides and that owners should never taken the loans, and banks/lenders should have never made the deals. I put more of the responsibility on the banks/lenders b/c it is their business to understand the loans (not that the owner doesn't have a responsibility).<BR/><BR/>I think prices really need to come back down, not by 50%, but by another 20% or so to make this market affordable again. Without the creative financing, no documentation, flippers, and contractors out of the market, hopefully we will see prices pull back. <BR/><BR/>I know their are a lot of people like me waiting buy, but prices still need to come down and news like the 60 miniutes report put in clear perspective what is happening and what needs to happen.<BR/><BR/>Our local economy would benfit if we could start selling the inventory on the market.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13037130.post-3880744381784144352008-01-30T15:21:00.000-08:002008-01-30T15:21:00.000-08:00Anonymous 11:44,Actually only a purchase money loa...Anonymous 11:44,<BR/>Actually only a purchase money loan on the original purchase is considered to be non recourse in CA.. I understand that several lenders who held both the first and second (100%) are foreclosing on the first and if the second is a HELOC then are going after the buyer for payment on the second.<BR/><BR/>If a property has been refinanced then the lender can foreclose and seek a deficiency judgment if they choose. <BR/><BR/>In the 90's I had several lenders not allow a short sale on a refi unless the buyer signed a note to pay the balance. <BR/><BR/>I absolutely agree about future interest rates and the cost of money.. But I suspect that lenders will allow 10% down the loans will just cost more (higher rate or 2 points upfront). I see rates at 7%-8% and that will certainly impact the real estate market. <BR/><BR/>Truthfully if prices stay relatively flat over the next few years we will be well ahead of other markets.Kayehttps://www.blogger.com/profile/09003331406008950614noreply@blogger.comtag:blogger.com,1999:blog-13037130.post-66950698644553611402008-01-30T11:44:00.000-08:002008-01-30T11:44:00.000-08:00it's very difficult for a bank to go after a delin...it's very difficult for a bank to go after a delinquent borrower with a recourse loan in CA because we are a single issue state. that means the banks must choose between foreclosure and pursuing a deficiency judgment. they cannot do both. historically, they've gone the route of FC, because of the time, expense and low recovery rate on the latter tack.<BR/><BR/>the reality is that the phenomena of 100% LTV and low doc loans were predicated on ever-rising house prices. some banks may have been cynical and made the loans thinking that "dumb" homeowners would continue to stay current on expensive, upside down mortgages, but my experience has been that the reputable ARM lenders in CA were well aware that 100% LTV loans would be toxic in a down market. that's why they will be in business 5 years from now.<BR/><BR/>taking a long-term view, it's difficult to escape the conclusion that mortgage credit is going to be more expensive in the future than its been the past 10 years. we are going back to the days of 20% down payments and fully documented income. at the same time, the flight of capital away from the US (and the housing market) will lead to wider credit spreads (e.g., 100-200bps vs 25-50bps). throw on top of that a higher inflation rate now that the Great Deflation is over (e.g., back to 3%) and it's easy to conclude that mortgage rates over the next 10 years will average >7% (2% real rate + 3% inflation risk premium + 2% credit spread + .5% servicing fees).<BR/><BR/>you are in a much better position than any of us to predict what 20% down payments, +7% mortgage rates and full income documentation will do to the local market.<BR/><BR/>housing may get a cyclical lift from the fed rate cuts, but when i look out 5 years, i see headwinds as far as the eye can see. The collapse of the inland areas will put pressure on the westside due to the availability of cheaper substitutes. mortgage credit is getting tighter. inflation is in a secular bull market. none of this is good for housing demand.<BR/><BR/>if nominal prices in MB/HB are flat from today's prices over the next 5 years, i think it should be considered a very optimistic outcome.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13037130.post-21052548310198423622008-01-29T23:19:00.000-08:002008-01-29T23:19:00.000-08:00Anonymous 11:05,Great point.. banks don't get extr...Anonymous 11:05,<BR/>Great point.. banks don't get extra cash if the value goes up. I suspect that lenders will look at those who had the wherewithal but don't pay a bit differently then those who could not make their payments. <BR/><BR/>I think banks will get tough if walking by qualified borrowers becomes an accepted practice. That of course will make it much harder on people who genuinely have financial problems. It will also make it more difficult for buyers to get loans in the future.Kayehttps://www.blogger.com/profile/09003331406008950614noreply@blogger.comtag:blogger.com,1999:blog-13037130.post-60321495098343762062008-01-29T23:05:00.000-08:002008-01-29T23:05:00.000-08:00Well said. When values increase, the banks don't s...Well said. When values increase, the banks don't share in the equity gains. Yet it amazes me that some homeowners think that it's okay for the banks to take the equity hit on the downside. I hope that the bankers go after the recourse loans, and future lenders figure out which people scammed banks previously before lending to them again.Anonymousnoreply@blogger.com