Dear folks who wish you owned your own home

[somdrenter]

Ah but I will be paying $1400 a month for only 20 more years but you will be paying more forever.

Sorry Pete. No one is advocating renting for 20 years, much less forever.

 

[Pete]

Sorry Pete. No one is advocating renting for 20 years, much less forever.

So then you wait until you are 50 and buy a house on a 30 year fixed and end up paying until your 70's or 80's. Take your pick.

 

[somdrenter]

Ah but I will be paying $1400 a month for only 20 more years but you will be paying more forever.

Speaking of which...when did you buy??

 

[somdrenter]

So then you wait until you are 50 and buy a house on a 30 year fixed and end up paying until your 70's or 80's. Take your pick.

Sorry Pete, no one is advocating renting long term. By the way, when did you buy?

 

[Pete]

Sorry Pete, no one is advocating renting long term. By the way, when did you buy?

2003

How old are you?

 

[somdrenter]

2003

How old are you?

You’re on to something here Pete. I think I’d like to purchase something on 6 June 2003, but wait a sec, my time machine is down and I wasn’t living here in 03.

Old enough to know better.

 

[vraiblonde]

No and no. Absolutely not. Not one penny, nadda, none.

Furthermore, someone mentioned tax breaks a few pages back. These folks that are/will get government bailouts and/or will have their lender renegotiate the terms of their loans; do these folks deserve tax breaks? I think not…

Good, then we agree on something.

However, due to the high coverage the media is giving this situation, and the hysteria they are generating by suggesting that foreclosures are happening to everyone, there are folks who are insisting that government "do something". And Bush is such a weener that he says, "Okay," and gives it credence.

So this "crisis" is media generated, just like when they said that AIDS can happen to anyone and would drag out some kid who got it through a transfusion, even though that's a million to one shot, scaring everyone to death and creating a panic.

It's a sham, and it disappoints me that you've not only bought into it, but are perpetuating it.

 

[Baja28]

Good, then we agree on something.

However, due to the high coverage the media is giving this situation, and the hysteria they are generating by suggesting that foreclosures are happening to everyone, there are folks who are insisting that government "do something". And Bush is such a weener that he says, "Okay," and gives it credence.

So this "crisis" is media generated, just like when they said that AIDS can happen to anyone and would drag out some kid who got it through a transfusion, even though that's a million to one shot, scaring everyone to death and creating a panic.

It's a sham, and it disappoints me that you've not only bought into it, but are perpetuating it.

:bittercuzhe'sstuckrentingathisage:

 

[Lugnut]

:bittercuzhe'sstuckrentingathisage:

 

[somdrenter]

So this "crisis" is media generated,

And here’s where we disagree. When home prices stray from fundamentals and people buy more home than they can afford (especially with toxic mortgages) eventually prices will revert to the mean. Simple economics. And given the resent stats, it doesn’t have to be the majority of home owners to cause a negative effect The media did not write the loan terms, and does not issue NODs.

Furthermore, for quite some time the only people the MSM would quote regarding real estate, were those in the REI. They still do to an extent, but I don't think they are as willing to drink the cool-aid.

 

[MMDad]

Furthermore, for quite some time the only people the MSM would quote regarding real estate, were those in the REI. They still do to an extent, but I don't think they are as willing to drink the cool-aid.

But now the media is showing us examples of people who are paying the price. Speculators who lost it all. Stupid people who bought way too much house by getting interest only loans.

Show us the effect on normal people, not people who gambled and lost or stupid people who never should have gotten a loan in the first place.

It would be interesting to see statistics on how sick the market really is if we could exclude those people who do not deserve our sympathy.

 

[Pete]

You’re on to something here Pete. I think I’d like to purchase something on 6 June 2003, but wait a sec, my time machine is down and I wasn’t living here in 03.

Old enough to know better.

The real point is when I bought I made a spreadsheet and did a bunch of research and bought what I could afford. I did not and would not buy more than I could afford of fudge the numbers with 80/20 interest only, ARM just to get into a house.

I was smart and bought what I could afford right then and it was $100K less than I was approved for. If I was buying today or a year ago I would have done the same thing. Maybe I would have rented, maybe I would be in a different house, who knows.

Fools and their money are soon parted and there is no degree of government intervention that can stop it. The auto industry has been screwing people for decades. Rolling in upside down parts of old loans, marking up, 100% financing, high risk loans yet it is not a big deal?

 

[dems4me]

But now the media is showing us examples of people who are paying the price. Speculators who lost it all. Stupid people who bought way too much house by getting interest only loans.

Show us the effect on normal people, not people who gambled and lost or stupid people who never should have gotten a loan in the first place.

It would be interesting to see statistics on how sick the market really is if we could exclude those people who do not deserve our sympathy.

I agree, I have absolutely NO sympathy for those freakn' idiots that bought a house knowing full well they can't afford it and I get even further enraged at the idea of them expecting a bailout for their interminable stupidity. I didn't run out and buy a house I couldn't afford, why should I now have to pay for their mistakes with my tax dollars? I didn't even get the benefit of living in my own home or any of the perks - not every one was stupid. UFB!!! Or maybe I was just as stupid for NOT having done the same and hope for a bailout. I still havn't decided but I did what was right and to me that's NOT buying something you CAN'T afford then expect others to bail you out. So I'm thinking I did the right thing but if they get the bailout, I will be very pizzed.

I have about the same amount of sympathy for those that pop out kids left and right that can't afford them and then expect the government (my tax dollars) to bail them out for their stupidity.

I'm done now.

 

[vraiblonde]

people buy more home than they can afford (especially with toxic mortgages)

Nobody forces them at gunpoint and makes them get a particular loan type. It is completely in their control. Mortgage brokers will typically go over every option - mine did - with the pros and cons. Then it's up to you.

If we weren't freaking out, we'd call this a "correction" and it would be no big deal. I know it's too late for me, but I'd like to see housing prices fall to a normal rate instead of those crazy inflated prices they were sitting at. If my house is still worth the $299,900 I paid for it 10 years from now, I'll still be living in it and it won't make a bit of difference to me.

This is very similar to the "dotcom crisis" in the 90's. All these people jumped on the tech bandwagon and bought stock in worthless companies, then lost their money when the company went belly up.

 

[kom526]

This is very similar to the "dotcom crisis" in the 90's. All these people jumped on the tech bandwagon and bought stock in worthless companies, then lost their money when the company went belly up.

saladofthemonth.com crushed my portfolio.

 

[cattitude]

I agree, I have absolutely NO sympathy for those freakn' idiots that bought a house knowing full well they can't afford it and I get even further enraged at the idea of them expecting a bailout for their interminable stupidity. I didn't run out and buy a house I couldn't afford, why should I now have to pay for their mistakes with my tax dollars? I didn't even get the benefit of living in my own home or any of the perks - not every one was stupid. UFB!!! Or maybe I was just as stupid for NOT having done the same and hope for a bailout. I still havn't decided but I did what was right and to me that's NOT buying something you CAN'T afford then expect others to bail you out. So I'm thinking I did the right thing but if they get the bailout, I will be very pizzed.

I have about the same amount of sympathy for those that pop out kids left and right that can't afford them and then expect the government (my tax dollars) to bail them out for their stupidity.

I'm done now.

Make sure you vote for Obama

 

[dems4me]

Make sure you vote for Obama

No Catt, I'm still not a republican Although I love Sharon's siggy.

 

[somdrenter]

Show us the effect on normal people, not people who gambled and lost or stupid people who never should have gotten a loan in the first place.

One effect is the devaluation of the dollar. Helicopter Ben, in an attempt to bail out Wall Street, has the printing presses running overtime.

 

[somdrenter]

I was smart and bought what I could afford right then and it was $100K less than I was approved for. If I was buying today or a year ago I would have done the same thing. Maybe I would have rented, maybe I would be in a different house, who knows.

What the heck Pete? What do you think I’m doing? I’ve ran the numbers, I watch the market, and I have planned accordingly. No one is suggesting otherwise.

 

[somdrenter]

If we weren't freaking out, we'd call this a "correction" and it would be no big deal. I know it's too late for me, but I'd like to see housing prices fall to a normal rate instead of those crazy inflated prices they were sitting at. If my house is still worth the $299,900 I paid for it 10 years from now, I'll still be living in it and it won't make a bit of difference to me.

This is very similar to the "dotcom crisis" in the 90's. All these people jumped on the tech bandwagon and bought stock in worthless companies, then lost their money when the company went belly up.

I call it a correction. Many people call it a correction. It’s just that after such a large run up that strayed from fundamentals, well, expect a large correction.