Dear folks who wish you owned your own home

[somdrenter]

Originally Posted by MMDad

Gee, if I didn't know better, I might think that the market is a bit more complex than any single issue. Fortunately I have Forest and Renter to explain it so well.

Perhaps not the single issue but.....

“US stock markets have fallen heavily in recent months in reaction to an ongoing housing market downturn, a widespread credit crunch and rocketing oil prices which hit a record 106.54 dollars per barrel Friday.”
AFP: Dow falls under 12,000 as job losses roil Wall St.

“The subprime crisis and disintegrating U.S. housing market have been at the back of the turbulence in the financial markets, and there was more bad news Thursday afternoon.”
Stocks Slide Down The Housing Drain - Forbes.com

“Stocks tumbled Thursday as renewed concerns about the credit markets and another dose of disappointing housing numbers intensified the market's worries about the sagging economy. The Dow Jones industrials fell more than 100 points while the broader Standard & Poor's 500 index gave up more than 1 percent.”
Credit Woes, Housing Data Drag on Stocks - Forbes.com

“US STOCKS-Wall St sinks on mortgage fallout, economy”
Feed Article | Business |

[LexiGirl75]

A key feature of the foreclosure-prevention bill is likely to be a government-backed fund that would purchase pools of subprime mortgages that lenders had reduced to affordable amounts for borrowers, then refinance them into loans insured by the Federal Housing Administration.

Can they just buy my house from me. This is like a nightmare, I want out. I have other plans now.

[BuddyLee]

Originally Posted by LexiGirl75

Can they just buy my house from me. This is like a nightmare, I want out. I have other plans now.

I can make a 10 dollar down payment.

[LexiGirl75]

Originally Posted by BuddyLee

I can make a 10 dollar down payment.

If the mortgage company finances you, you may have it. I'll even gift you the $10.

If only.

[BuddyLee]

Originally Posted by LexiGirl75

If the mortgage company finances you, you may have it. I'll even gift you the $10.

If only.

Where do you reside now?

[LexiGirl75]

Originally Posted by BuddyLee

Where do you reside now?

You took all of the fun out of this.

[somdrenter]

Originally Posted by MMDad

Have you noticed how Patchy and this renter dude say that all down days in the stock market are due to mortgages, and Forest says that it's all due to Bush and oil prices. Gee, if I didn't know better, I might think that the market is a bit more complex than any single issue. Fortunately I have Forest and Renter to explain it so well.

How subprime killed Bear Stearns
A problem with risky mortgages has led to a global financial crisis. The bigger issue: Experts don't know when it will end.

NEW YORK (CNNMoney.com) -- It started last summer when borrowers with weak credit started defaulting on their mortgages. Last night, it brought down an 85-year-old pillar of Wall Street.

How did we get to this point? How did rising foreclosures among subprime borrowers lead to Bear Stearns being scooped up in a fire-sale for two bucks a share?

The answer starts with investment banks: They sold complex securities backed by debt that was a lot riskier than most realized. The realization that the banks had failed to manage this risk sparked widespread concern among investors and other financial firms. Suddenly, investors found they couldn't put a value on much of what the banks were selling. As a result, the lending markets that keep Wall Street humming seized up because people feared they wouldn't get paid back.

"We got to the point where the various parties in the financial system started not to trust each other," said Lawrence White, an economics professor at New York University.

What's worse is that no one knows when it will end.

Every week, it seems, another part of the U.S. financial system falters and the federal government has to come up with a new rescue plan. The Federal Reserve Bank's actions have helped soothe the markets in past crises, but the magnitude of the current meltdown may prove unprecedented, experts said. Today's troubles ensnare not only traditional banks, but investment firms, hedge funds, insurance companies and non-bank lenders.

No place like home

The roots of the current crisis lie in the euphoria of the real estate boom. With housing prices soaring and the economy solid, financial firms dove into the lucrative mortgage market. To meet the insatiable desire for mortgage-backed securities, firms loosened their lending standards and extended credit to people with weaker financial backgrounds.

Subprime to Bear Stearns: The road to meltdown - Mar. 17, 2008

[gumbo]

Originally Posted by vraiblonde

Prices are low and you're STUPID if you don't buy now. Why the hell would you wait until the market picks up and homes cost more?

You wouldn't. Unless you're stupid.

There's a 5 BR, 3 BA right up the street from me that is a creampuff - great condition, hardwood floors, brick fireplace, family room, nice lot, fabulous neighborhood (if I do say so myself) for only $299,900. Mortgage payment of $1600 a month.

There's another one in Excuse the Eff Out of Me Society Hill in Ltown for $229,900, 3 BR, 2BA - $1200 a mo.

A big fat ol' house, 4 and 3, in Great Mills, for $1350 a mo.

And you'll OWN it!

You are TOTALLY not going to get that kind of deal a year from now.

Buy low. Sell high. Duh.

Prices are low so NOW is the time to buy.

If you have decent credit and can actually afford to buy a home, NOW IS THE TIME!

Don't be stupid and let this buyer's market opportunity pass you by.

So STOP that renting!!! Renting is for losers! The American dream is to OWN a home, not friggin rent one.

And NOW is the time.

Call me crazy. By this summer those prices will drop further.

[backagain39]

I don't think all the blame can be laid on bad mortgage loans.......

Between the higher prices of heating and cooling the home, the taxes going up on the home, higher insurance costs on homes and cars, the cost of a phone, food, gas and people getting laid off or loosing jobs due to companies gong bankrupt....all of this has contributed to our current situation.

[somdrenter]

Originally Posted by backagain39

I don't think all the blame can be laid on bad mortgage loans.......

Between the higher prices of heating and cooling the home, the taxes going up on the home, higher insurance costs on homes and cars, the cost of a phone, food, gas and people getting laid off or loosing jobs due to companies gong bankrupt....all of this has contributed to our current situation.

Why have these cost increased? Could it be the devaluation of the dollar? Why has the value of the dollar dropped?