Remember when I said housing wasn't affordable and everyone disagreed with me?

Le Jacquelope

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Well, those subprime mortgages that people were using to buy houses they really could not afford, are now coming back to haunt the entire economy.

I won't even bother with all the articles about this. You'd have to live in a cave not to know what's happening to subprime lenders now, and it's entirely due to people trying to buy homes, which by nature are out of their financial reach due to overspeculation.

You can blame all of what's going on now, on housing speculators.

I warned you about them bastards, but no one believed me.





Tick tock. $1.3 trillion in subprime mortgages are still sitting around out there. Tick tock. That's almost as high as California's whole economic output. Tick tock. $265 billion in subprime mortgages are set to be reset this year. BOOM.

Now even those of you who weren't involved in this shit, will be taking more hits when stocks all around start taking another ding this summer when collective purchasing power (read: refinance-driven purchasing power) takes a dive. PLUS, your home values will drop because the coming foreclosures will put a shitload more houses on the market.

Good luck trying to sell in the summer. Mutual fund managers, get out your high waters, and check your scuba gear just in case.
 
LovingTongue said:
Well, those subprime mortgages that people were using to buy houses they really could not afford, are now coming back to haunt the entire economy.

I won't even bother with all the articles about this. You'd have to live in a cave not to know what's happening to subprime lenders now, and it's entirely due to people trying to buy homes, which by nature are out of their financial reach due to overspeculation.

You can blame all of what's going on now, on housing speculators.

I warned you about them bastards, but no one believed me.





Tick tock. $1.3 trillion in subprime mortgages are still sitting around out there. Tick tock. That's almost as high as California's whole economic output. Tick tock. $265 billion in subprime mortgages are set to be reset this year. BOOM.

Now even those of you who weren't involved in this shit, will be taking more hits when stocks all around start taking another ding this summer when collective purchasing power (read: refinance-driven purchasing power) takes a dive. PLUS, your home values will drop because the coming foreclosures will put a shitload more houses on the market.

Good luck trying to sell in the summer. Mutual fund managers, get out your high waters, and check your scuba gear just in case.


there are going to be a lot of people who are going to get rich :D
 
vetteman said:
This tick has been tocking for the last year, oh and will someone please turn off the false alarm?
False alarm my ass. We've already seen several subprime lenders taking hits, and going out of business. That's many jobs lost right there.

Every chicken little's real estate market prediction short of an outright recession has come true about this so far.
 
LovingTongue said:
Well, those subprime mortgages that people were using to buy houses they really could not afford, are now coming back to haunt the entire economy.

I won't even bother with all the articles about this. You'd have to live in a cave not to know what's happening to subprime lenders now, and it's entirely due to people trying to buy homes, which by nature are out of their financial reach due to overspeculation.

You can blame all of what's going on now, on housing speculators.

I warned you about them bastards, but no one believed me.







Tick tock. $1.3 trillion in subprime mortgages are still sitting around out there. Tick tock. That's almost as high as California's whole economic output. Tick tock. $265 billion in subprime mortgages are set to be reset this year. BOOM.

Now even those of you who weren't involved in this shit, will be taking more hits when stocks all around start taking another ding this summer when collective purchasing power (read: refinance-driven purchasing power) takes a dive. PLUS, your home values will drop because the coming foreclosures will put a shitload more houses on the market.

Good luck trying to sell in the summer. Mutual fund managers, get out your high waters, and check your scuba gear just in case.

*dusts off my savings account and begins eyeballing good investments with potential to take a big hit and recover*
 
I saw an article saying that there was a boom on late mortgage payments.


DAMN ARMs are killers.

I am happy to have a fixed rate
 
Just a matter of time before the subprimes took a hit. Not devastating as a whole but it's gonna sting.
 
Emerald Eyed said:
I saw an article saying that there was a boom on late mortgage payments.


DAMN ARMs are killers.

I am happy to have a fixed rate
I've been hearing the "Cut off your ARM now!!!" jokes for a while now.
 
Strange. A post of mine simply disappeared.

My plan of action on this trend is to snap up some houses this summer, hire a property manager, and set up a rent to own agreement for tenants.

We could make a pile off the houses and make people into homeowners at the same time.

Someone give Ham Murabi a handkie :D
 
vetteman said:
This tick has been tocking for the last year, oh and will someone please turn off the false alarm?

Haven't been watching the stock market drop like a stone have you? 200 point drop just yesterday due to several sub-prime lenders reporting that they were cash-poor.

One's stock dropped almost 70% in hours after an announcement. I'm glad I just refinanced at a fixed rate with a large mortgage company.
 
Last edited:
Ulaven_Demorte said:
Haven't been watching the stock market drop like a stone have you? 200 point drop just yesterday due to several sub-prime lenders reporting that they were cash-poor.

One's stock dropped almost 70% in hours after an announcement. I'm glad I just refinanaced at a fixed rate with a large mortgage company.

We were offered those strange refinance terms many times as well, and we rejected every one of them. While it looked really good at the time, we also understood it was a huge risk to us to go along with it.

I am so glad we did not do it, because nothing in this life is free.
 
They were good for a band-aid loan, short term, fix your credit and refi within a year or two. It is when people started using them to upgrade their standard of living with them that it's gotten out of hand.

I would love to pick up a few spec houses just sitting empty all around me right now, rent them for a year or two, possibly with a lease option, and then sweep up.
 
Yep, there are a lot of houses with for sale signs that went up about 6 mos ago and still there. Also, there are a lot of new homes with nobody moving in.
 
Joaquin1975 said:
Yep, there are a lot of houses with for sale signs that went up about 6 mos ago and still there. Also, there are a lot of new homes with nobody moving in.

Exactly! It has turned more and more towards a buyers market right now. Every block in this area of town, for miles and miles have two to three brand new homes sitting empty. And the spec-investors contracted to have them built when the market was still hot. Now they are stuck with the mortgages and no buyers. Good deals to be made out there.

Edit for typing too fast.
 
sortacurious said:
Exactly! It has turned more and more towards a buyers market right now. Every block in this area of town, for miles and miles have two to three brand new homes sitting empty. And the spec-investors contracted to have them built when the market was still hot. Now they are stuck with the mortgages and no buyers. Good deals to be made out there.

Edit for typing too fast.
Ayup.

You know, I remember this one real estate commentator in Washington, damned if I can recall his name though... he sold out his Seattle house what, 1-2 years ago? and cashed out of the market, saying this was the time for it to crash.

I remember him because right now he's serving up a whole lot of cups of IToldYouSo™
 
LovingTongue said:
Ayup.

You know, I remember this one real estate commentator in Washington, damned if I can recall his name though... he sold out his Seattle house what, 1-2 years ago? and cashed out of the market, saying this was the time for it to crash.

I remember him because right now he's serving up a whole lot of cups of IToldYouSo™

So, do you think this is a crash or a correction?
 
sortacurious said:
So, do you think this is a crash or a correction?
Definitely a correction. Definitely NOT a crash.

I'm a nihilist (the "corrupt institutions should be destroyed, not reformed" definition) and I'd like to see a total crash. Failing that, laws against real estate speculation - the very thing that put us in this situation.
 
LovingTongue said:
Definitely a correction. Definitely NOT a crash.

I'm a nihilist (the "corrupt institutions should be destroyed, not reformed" definition) and I'd like to see a total crash. Failing that, laws against real estate speculation - the very thing that put us in this situation.

I agree that it is a correction and not a crash.

And agree that all I see is corruption in the industry, but not just within the speculation part of it. It is mind boggling to witness.
 
vetteman said:
I'm not worried, I've been in the market a long time and I'm well diversified.

This is where I got lost and am trying to educate myself more.
 
Sure for you LT. You get your residence from the gargage heap at Sears.

I guess it could be expensive if one of the workers comes out, catches you, and then whoops your ass.
 
vetteman said:
Are you going to tell me you aren't going to make money on this LT? I'd be looking for bargains.
There were people who got rich off the Great Depression.

By your logic that means there was no need for alarm when investors were jumping off bridges and the whole nation's economy was going into the shitter.

Clue brick, dude. Housing investors are in a panic. People who couldn't afford a normal, small house and who had to take out subprime loans to get one, are next to fall. There's great cause for alarm for a lot of people.

Elitist shitsacks like you who live in your mommy's basement safe and sound from all the ruckuss, don't think there's a panic because you're sheltered. But that doesn't make it not a panic.

As for what I plan on doing, well we plan on buying a few alligators from some distressed investors and putting them up for rent-to-own. I'll make money off that, indeed, but I'll be giving more people an actual shot at home ownership.
 
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