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Thread: Home price drops exceed Great Depression: Zillow

  1. #51
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by MaggieD View Post
    The way this debacle is being handled shows why BUSINESSmen need to have a voice in Congress and in the White House. Mortgage Modification my lily white ass.

    A home was purchased 4 years ago for $200,000. The lender let the buyer get into the house with 0-3% down. Now that house's worth $150,000. Let the current owner default on the $200K and re-mortgage $150K at today's interest rates!!!!

    Nah. That makes too much sense. Sooooo, they foreclose on the property...the current owners live rent/mortgage free for 12-18 months; bank gets nothing; then they strip the house and half-destroy it when they move. THEN the bank puts $5-$10K into the house getting it ready for sale and it still only gets $150K for the house. Stooooopid!!!
    two problems with that maggie, first of all 'the bank' doesn't own most mortgages in this country. most of them are wrapped up as various types of cdo's. nearly all of which have been shifted and sold to pension funds and gse's and the fed, which means you and i will pay for them as some point. while it is true that banks tend to be the servicers of most of this debt, and therefore they're the one's doing the foreclosures, that doesn't mean they own the debt. this is why bank of america just paid the gse's $1.8Billion to settle the garbage loans that have been foreclosed on that bank of america took on after it bought countrywide for pennies on the dollar at the government's urging. many see the acceptance of this settlement as a defacto bailout for bank of america since the future losses on this debt is likely to be much much higher than $1.8 billion.

    the second problem is that the only reason they got away with all this fraud at yours and my expense, is because the BUSINESSmen have the ONLY voice in congress. they tell congress what to do, your congressman tells you why it's what's best for you.
    Last edited by Zyroh; 01-13-11 at 07:36 PM. Reason: fat fingers
    Democracy is two wolves and sheep voting on what's for dinner. Liberty is a well armed sheep willing to contest the vote.

  2. #52
    Student Zyroh's Avatar
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by MaggieD View Post
    If your home is worth the same as it was four years ago, you're the ONLY person in the United States who hasn't lost equity in this market. The only one!! I'd say you're living a pipedream. But if it makes you happy...
    yeah, i keep seeing him say that, and i still don't believe it. try it a few more times maybe it'll work.

    the white house has dropped 25% in value, and don't blame on the fact that black people moved in, i don't think that has much to do with it.
    Democracy is two wolves and sheep voting on what's for dinner. Liberty is a well armed sheep willing to contest the vote.

  3. #53
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by Zyroh View Post
    two problems with that maggie, first of all 'the bank' doesn't own most mortgages in this country. most of them are wrapped up as various types of cdo's. nearly all of which have been shifted and sold to pension funds and gse's and the fed, which means you and i will pay for them as some point. while it is true that banks tend to be the servicers of most of this debt, and therefore they're the one's doing the foreclosures, that doesn't mean they own the debt. this is why bank of america just paid the gse's $1.8Billion to settle the garbage loans that have been foreclosed on that bank of america took on after it bought countrywide for pennies on the dollar at the government's urging. many see the acceptance of this settlement as a defacto bailout for bank of america since the future losses on this debt is likely to be much much higher than $1.8 billion.

    the second problem is that the only reason they got away with all this fraud at yours and my expense, is because the BUSINESSmen have the ONLY voice in congress. they tell congress what to do, your congressman tells you why it's what's best for you.
    Maybe the reason they can't is because they can't even unravel who owns what mortgage. The financial end of it makes sense no matter who owns it. Keep the homeowner in the home.

    Re your last statement. Love it! But just maybe we need them there so that the foxes will be overseeing the foxes. ;-)
    The devil whispered in my ear, "You cannot withstand the storm." I whispered back, "I am ​the storm."

  4. #54
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by Aunt Spiker View Post
    You know what - this is my general view on the housing market:

    Home production increased.
    Ergo - the cost of homes should have dropped - but it didn't it steadily increased. Sometimes faster than other times - but it increased for many years.
    Why did it increase?

    Why is it not like all other products in which an increased SUPPLY and an increased DEMAND lowers the cost?
    Because credit kept getting easier and easier to be given out so loaning institutions would have more people indebted to them for greater amounts.
    Also, we need to legalize recreational drugs and prostitution.

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by PeteEU View Post
    Never claimed I was. But any idiot can see what went wrong in the US, Ireland, UK, Spain and many other places.

    People were warning about the housing bubble for years and years but no one did anything about it because the banks and financial institutions were earning trillions on selling and reselling financial products that had the US mortgage market at its core. And as long as the housing market was going up up and up then there was no reason to pull the brake because people were greedy and getting rich.

    When reality finally settled back into the US housing market and prices started to fall and banks realized that more and more of the financial assets they had been peddling to people around the world and making a killing off.. were in fact worthless, then you had the start of the financial crisis.

    It does not take any "expertise" to understand when a large number of home owners for a decade plus re-mortgaged and re-mortgaged because their homes value went up and up and up, and then used that extra income to consume and driving the US economy.. that when the value of the homes suddenly goes down (a lot even), then you have a lot of people sitting in homes that are worth less than the mortgage they have taken out in it.

    This intern means the banks have to start taking losses and when the snowball effects starts, then welcome to the financial crisis. This in tern again drives prices even more down since the market has become a buyers market not a sellers.. and if buyers cant get loans or are insecure about the future, then sellers are forced to lower prices even more and so on and so on. Add to the fact many loose their homes because of the crisis, and suddenly the market is flooded with homes for sale... which again drives prices down.. that is of course unless banks sit on homes and waiting for better times, which banks do. This of course is also dangerous as hell because when prices finally do stabilize and even go up, then if the banks start selling off the homes they have been sitting on, then suddenly the supply on the market is flooded yet again (if they are not careful), and that in tern yet again will drive down prices if you are not careful.

    At some point the markets will get into a sort of equilibrium yet again, but that can take a considerable amount of time considering the time it took to get the peak in the first place.

    And as long as the banks are sitting on hundreds of billions if not trillions of debt that they have no idea what the value is, and there is no incentive by regulators or even the markets to deal with it, then nothing will happen. Home prices can fall another 15% but if the banks wont loan people money to buy, then prices can easily fall even more.

    So no amount of tax breaks, special programs from the government or wishful thinking can do anything about the problem since the core of the problem is yet again.... the banks and the last decade plus of excess of greed. Hell unemployment can go to 6% and growth to 5%, but as long as the banks refuse to loan money.. then well.

    No there is more hurt on the way, but I believe we are at the start of the end of the tunnel (at least), both in the US and around the world when it comes to housing prices.
    That makes you an expert.
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  6. #56
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by MaggieD View Post
    Maybe the reason they can't is because they can't even unravel who owns what mortgage. The financial end of it makes sense no matter who owns it. Keep the homeowner in the home.

    Re your last statement. Love it! But just maybe we need them there so that the foxes will be overseeing the foxes. ;-)
    Maggie, no need to worry. Really.

    Look, with the way Obama is spending, and printing money, we just have to churn the presses a little harder, throw in a little more government to sap wealth, kill jobs and we can enjoy a nice bout of inflation, then BINGO! Your house price will shoot up like a buoy that's been deep under water and cut free! We can call the currency The Reich's Dollar.

    Quote Originally Posted by American View Post
    That makes you an expert.
    Aw c'mon... give him credit, it was a lot of typing.

    .
    Last edited by zimmer; 01-13-11 at 08:48 PM.
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    when you have NO MORAL COMPASS.

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by Albert Di Salvo View Post
    Obama's mortgage modification schemes have only prolonged the agony of delinquent borrowers and the real estate market.
    Well at least you didn't say it was the left, but I'm sure that's next.

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by EnigmaO01 View Post
    Well at least you didn't say it was the left, but I'm sure that's next.
    To be fair, the crisis was also the fault of Republicans who cooperated with Leftists. The lesson to be learned is never cooperate with leftists on anything ever.

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by American View Post
    That makes you an expert.
    It doesn't take an expert to see that the US is in bad shape and on the verge.

    It's kinda like you see someone that's 50lbs overweight, starts panting while walking up a slight incline, eating a greasy spoon cheeseburger everyday... it doesn't take an expert to say that if that person doesn't change that a heart attack becomes almost inevitable.

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by American View Post
    That makes you an expert.
    So am I wrong or not?
    PeteEU

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