Mortgage industries are going down fast...

[drunk_medic]

A little OT but Ill never buy a new house here in AZ. They are total garbage and the asking prices are insane. The house next to me(I rent) is going up for sale, the renters put in an offer of 230k and were turned away. The house is 1 story 3bed just normal basic house and they are shooting for 250k for it! The houses are just garbage, the walls are so cheap you can press your hand on them and they flex. Tiny lot too with neighbors on all sides etc.

There is a reason for that. Gilbert was THE hot spot for home sales just a couple of years back, and just below that particular "suburb" of Phoenix were the others - Tempe, Mesa, etc. I'd be willing to bet that places just west of and surrounding Avondale will follow suit soon.
When places are found to be hot spots, people want to buy there for cheap, so that they can get a good deal and flip the house for positive equity in a couple of years. I have the notion that the builders know this, and sometimes the quality of workmanship is low, especially with the "cookie-cutter" builds that you see in some subdivisions. They DO have to pass inspection, but as we all know, some people take tests to do their best, and some take tests to not care, so long as they just pass.

 

[ToyoHabu]

buy a house using an ARM , barely make payments at introductory rate but gamble that you car refinance later. Economy starts heating up, feds raise prime, Uh-oh you cant Refinance now at a rate you can afford. Damn, thats crazy, the econmoy getting better plants the seed of its own demise.
lesson, never ever buy more than you can afford. If you start feeling the urge to stretch in order to acquire the perfect house, hit yourself in the head with a frying pan until urge goes away or your unconscious both will work.

 

[starscream5000]

so what would this mean for me with a 6.25% fixed mortgage?

Jeff

As long as your Escrow (taxes and insurance) do not raise drastically, and you are making steady/reliable income, and have plenty left over at end of each month after all your bills are paid, to the point where you feel comfortable, you should be just fine .

That and hope that your mortgage company stays afloat, because if it goes under, you have a good chance of having information on you and your property getting lost/missplaced when being transfered to your new lender. That, and the huge hassel of contacting all the borrower (new lender here) and telling them where to send their new payments at now.

On another note, Countrywide and Citi are laying off employees left and right to cut expenses to help stay afloat. Now they increase the workload of the associates still there, to the point where they can no longer service the huge amount of loans that they have under their belts. It's a domino effect, and it's already start for Countrywide, not so sure on Citi Fi though...

 

[starscream5000]

buy a house using an ARM , barely make payments at introductory rate but gamble that you car refinance later. Economy starts heating up, feds raise prime, Uh-oh you cant Refinance now at a rate you can afford. Damn, thats crazy, the econmoy getting better plants the seed of its own demise.
lesson, never ever buy more than you can afford. If you start feeling the urge to stretch in order to acquire the perfect house, hit yourself in the head with a frying pan until urge goes away or your unconscious both will work.

Well said.

 

[SupraMario]

buy a house using an ARM , barely make payments at introductory rate but gamble that you car refinance later. Economy starts heating up, feds raise prime, Uh-oh you cant Refinance now at a rate you can afford. Damn, thats crazy, the econmoy getting better plants the seed of its own demise.
lesson, never ever buy more than you can afford. If you start feeling the urge to stretch in order to acquire the perfect house, hit yourself in the head with a frying pan until urge goes away or your unconscious both will work.

I was always raised this way, don't buy it unless, you can afford it. To many CC people and loans people out there.

 

[boosted17]

You don't have to tell me! My mortgage company that I was working with to get my 2nd house can not lend out money any more. Argghhh! They closed down all there offices. I had to switch to another company at the last minute!
It sucks that is for sure. I have already sold my first house too or I would just have taken my house off the market and wait untill this settles.

 

[Evilempire1.3JZ-GTE]

Lol people are dumb thats all this means the economy was never good a bunch of dumb people over financing and over paying what there howes really were because they thought they were getting a good deal based on morgage rate %

people think just because its a house its not on as volitile and changeable market at the stock market.

there is a way to make money off this!

but first i wasnt so stupid
My credit scores is over 830
I bought my house fixed at 6% and i paid no more then 80% then its market value so even if the home market fell 50% the most i loose is 30% i paid no more then 200,000 for my home in sunny socal 3 bedroom1800 square feet my home will be paid off in less then 5yrs

This is perfect and this is about time! and long over due infact i think it will get a lot worse like in the 80s where people will just start walking from there homes because it will be cheaper and better to just buy a foclosed home for 20,000$ thats huge verse keep paying that every 4 months for the next thirty years for there current home and then when there home is forclosed it well be put back on the market verry cheap!


this is de-inflating the market because cost of living is becoming in reach again while more people can aford homes again they can aford to spend more money and shop because homes are getting cheaper so your dollar goes farther you can now aford to buy a home and I plan to buy several homes at 20,000 then rent them out i hope my whole naborhood forcloses i would be happy to pay cash for the homes and since rent is going up a little bit and homes are really cheap it works out great for me also with rising intrest rates maybe inflation will finaly get under control.

 

[tte]

I read an article in the newspaper a few days ago.

Apparently Tracy, Stockton, Modesto (Central California) were the worst hit areas in the whole country.
New cities sprung up before and alot of new houses were built on hill tops, malls built and businesses came over....now people are selling the houses for less than half the cost that they bought them for and yet still nonone is buying. Malls closed down and business left...amazing...

I think one needs to be making 3 times the mortgage monthly payments in income to live well.

But you know I also heard from some wealthy people that its sometimes good to buy houses in bad times like this....they did and made alot of money later on.

Cheers,
Roy

 

[starscream5000]

this is de-inflating the market because cost of living is becoming in reach again while more people can aford homes again they can aford to spend more money and shop because homes are getting cheaper so your dollar goes farther you can now aford to buy a home and I plan to buy several homes at 20,000 then rent them out i hope my whole naborhood forcloses i would be happy to pay cash for the homes and since rent is going up a little bit and homes are really cheap it works out great for me also with rising intrest rates maybe inflation will finaly get under control.

Be carefull with that. I've seen people do this before, and fail miserably. If the economy is bad, the renters will not pay the rent first. People would rather pay the utilities in the home that they are 6 payments down by then pay the past due payments. Same goes for their car and creature comforts. It's just a fact of human nature. The mortgage payment comes in almost dead last, even though it's one of the most important.

Ever think of exactly why these homes are going to foreclosure? Doesn't just have to be interest rates, good jobs could be hard to come by around there. You will have non-paying rentors.

Also, you will be extremely lucky to get a house for rock bottom price. Most banks/mortgage companies will buy back their own properties if they can't sell them for a decent price at the courthouse steps. Good luck on getting one for a steal...