MOST IMPORTANT POST EVER

NEW -> Contingent Buyer Assistance Program
<p>IrvineCommuter - I lived in the Bay area right at the beginning of the crash. It was ugly as I had many friends in the industry. The joke was you would go to a bar and if you saw someone drinking a pink drink so you knew who had received a pink slip recently. There was a lot of pink drinks in the Red Room in SF during the worst of it. At first I just thought it was the color of the bar but it was real.</p>

<p>Irvine123 - I think you might want to double check Bill Gross' record with regards to rates. I will say he has been right lately but he has been wrong a lot in the past. I'm not saying I am smarter than him but I have followed his words closely for the last six years. Either way a rate cut won't help. In 93 rates were low but people still couldn't qualify because of the tight guidelines. I found two articles in the OCR archives about this. </p>

<p>On general note for the people who get foreclosed on or walk away from their homes will have tough time finding a rental. More than one 30 day late on a mortgage or rent and you aren't going to be renting from me. Maybe if they could pay for the year in advance but I doubt that they could. </p>
 
<p>It looks like there are 2 groups here. One group for something to be done to rescue the overall economy. And the other group is to punish the idiots that had gotten us into this.</p>

<p>I am all for punishing those that had led us to this. But I think there has to be something done for those that didn't cause all this. </p>

<p>Sure, flush them all down the toilet as someone had posted . But in flushing them, must the innocents be flushed down, also?</p>

<p> </p>
 
<p>What is up with you guys always putting words in people's mouths?</p>

<p>I hear all the time about how all points of view are welcome, as long as they are presented respectfully, but I don't see it.</p>

<p>Why would you say I am in "stage 3"?</p>

<p>I have a beautiful home that I can afford. The only thing that would make me sell is if my husband or I could not negotiate the stairs anymore - and that's hopefully a long way off.</p>

<p>I am not a "bull". I believe there is more pain coming.</p>

<p>I spent 20 years in all areas of the lending industry, so I happen to have an opinion. I am on to another industry as we speak.</p>

<p>Regardless of how the chips fall, I hope we can all recover and live a great life.</p>

<p>Now be nice damnit!</p>

<p> </p>
 
<p>Who is innocent and who isn't? How do we make that determination? What criterias are used to determine if one deserves bailing out while the other does not? </p>

<p>The only fair and just system I know of is to let the market determine who should survive and who should fall. I personally know far too many people who should not have bought a home under their current financial conditions, yet lenders were more than willing to provide lines of credit to them for their HDTV's, fancy vacations, Lincoln Navigators and such. People don't learn by watching TV, reading books, or sitting in their lawnchairs reading the sunday paper. They learn when their pocketbooks are hit and their lifestyles changed... people learn when there is pain and sacrifice. </p>
 
Janet,





I don't think they meant to be disrespectful, and the kind of comment he/she was referring to was notable from others on this thread as well. It is more of an observation of the stages of grief people go through as they accept an unpleasant reality.





There was a poster on the main blog in July named Janet who was very angry and in full denial (I do not know if this was you, and you don't need to tell me). The next stage before complete acceptance is bargaining.





Nobody is going to drive you away as long as I am administrating this blog.
 
reason,





I remember your circumstances, and I do hope everything works out for you.





Now that you see more clearly how this market got to where it is and what is likely to occur, you still have an opportunity to make other choices if you wish. Whatever you do from here, you do so from a place of strength and wisdom. We might all be wrong, none of us can be certain.
 
<p><em>Why would you say I am in "stage 3"?</em></p>

<p>The comment isn't directed specifically at you, but instead is focused more on the general tone of the discussion in the bubble blogs. </p>

<p>Previously, data and hypothesis that the market would correct was met with first derision and then anger at the 'smear' campaign of bloggers and how everything would be fine if they just shut up. As of late, with the main media pops, the lending move, the tone is shifting towards 'let's prevent a crash, its bad for everybody', 'can we get a soft landing', 'how can we save the innocents' etc. it's a fairly identifiable shift in the tone of the discussion from 'you guys are trying to make it bad' towards 'help us not make it really bad'.</p>

<p>Overall, I'd say I'm an RE Bull. I think RE is one of the best ways to make money. I also think the current SoCal environment is incredibly bad for RE.</p>
 
<p>Thanks.</p>

<p>I am absolutely firm in my belief that whatever I have invested in my home - which is substantial - is either gone or could be.</p>

<p>I don't consider that a death, so I have no need to process it.</p>

<p>My only concern is being able to make a living, hence adios mortgage industry!</p>

<p>Actually, I am really excited about my new career. It is doing what I have always wanted to do, and leverages my true talents.</p>

<p>I have always believed that fearing the worst case scenario is the real torture.</p>

<p>Rarely, is it ever as bad as we envision. That's very liberating emotionally.</p>

<p>So to all those who may be reading this who are really under duress:</p>

<p>You will get through it - no matter what. It is what it is - don't let it ruin your love for life. </p>

<p> </p>
 
<p><em>It looks like there are 2 groups here. One group for something to be done to rescue the overall economy. And the other group is to punish the idiots that had gotten us into this.</em></p>

<p><em>I am all for punishing those that had led us to this. But I think there has to be something done for those that didn't cause all this. </em></p>

<p><em>Sure, flush them all down the toilet as someone had posted . But in flushing them, must the innocents be flushed down, also?</em></p>

<p>Nobody is punishing anyone. They punished themselves by choosing to live outside their means.</p>

I'm about as far left of a person as you'll ever meet, but we simply cannot to afford to bail people out of their mistakes. The deficit is awful enough.





In fact, I find the entire concept of debt driving this economy as reprehensible. When's the last time anyone in government told citizens to save money? Who teaches high schoolers how to be responsible with their money (outside of a few parents)? Everything in this culture is geared towards "spend spend spend, it will all be ok!" Yet when that's what happens, this is what it gets us. Both on a federal and personal level.
 
<p>JW,</p>

<p>Agree with you there.</p>

<p>How is it that my 20 year old stepson, who is a full-time student, gets credit card offers?</p>

<p>He's a good kid though, doesn't even want a car because he knows he will have to work to keep in on the road!!!</p>

<p>Then again, he's Canadian!</p>
 
I do not want the gov't per se to bail anyone out. I do want to see Fannie Mae and Freddie Mac expand their guidelines though. I think they need to bump up the conforming loan amount from 417k to 625k. It already is 625k in Hawaii.
 
<p>And don't get me started on the cash advance (check) offers I get virutally every day of the week! </p>

<p>The credit card companies are relentless with these offers. Hard core.</p>
 
<p>IrvineCommuter and IrvineRenter,</p>

<p>I know the fundamentals have been off for a few years and needs correction, I don't disagree. Obtuse statements like this: "I wouldn't mind a recession either" are concerning and show some level of disconnect with reality. A recession based on housing will not "pass like a fart in the wind" Excuse my language. </p>
 
I get where you're coming from lendingmaestro. Can't say I agree, but I respect your opinion. Obviously you know far more about the industry than I do.





My personal opinion of expanding conforming guidelines is that they're endorsing that it's normal for people to spend above $417000 for a residence. 20% down on that amount on a 30 year fixed at the best interest rate gets you what, a 2800 payment or so? I still think that's unreasonable for most households. I'm in a dual income no kids household, both of us are educated professionals making decent salaries, and 2800 would be awfully hard for us to service.





And that doesn't include tax, mello-roos, and HOA!
 
Interloper, I don't want a recession. .. it's just an economic reality. . .If by some miracle housing prices can return to market fundamentals without triggering a recession, I'm all for it.
 
<p>JW,</p>

<p>Those loans have debt-to-income requirements and are full doc.</p>

<p>It doesn't mean everybody can all of a sudden go to $650k.</p>

<p> </p>
 
You must log in or register to reply here.
Back
Top