Tough Times!!!

[bowdoc]

Due to the slowing housing market I must part with my 2007 22Ve. My dealer has it under brokerage @ gainesvillemarina.com Stock #B0230
(used boats). I told my 3 boys when things get better I will buy another Tige' so they can continue to surf and wakeboard.

[bsnook212]

Sorry to hear that Bowdoc

[kko]

nice boat sorry to hear the bad news but im sure you will be back when the time is right. good luck!

[ddmracing05]

wow man, sorry. I can tell you I defanetly dont miss those days. Cant get a Older used cheap boat temporary???like an older mid 90's mastercraft? find those Cheapo

[ragboy]

bummer. We have been trying to move for the last 2 years, looks like we have to wait another year. This market is pretty nasty. Hope you get that boat back soon.

[TigeDuner]

Hope you have good luck with the sale. Tige's are great on the resale end.
You will be back in one sooner than you think.

[Ks]

Can someone explain what is happening in the USA with this? Our news only touches on it with a goverment set morgage or something to that effect.

Sorry don't want to open a can of worms or upset anyone, just would like to know what is happening.

Sorry for all the hardships your going through, but history will repeat it's self and th USA will bounce back stronger then ever.

[sparky216]

Can someone explain what is happening in the USA with this? Our news only touches on it with a goverment set morgage or something to that effect.

Sorry don't want to open a can of worms or upset anyone, just would like to know what is happening.

Sorry for all the hardships your going through, but history will repeat it's self and th USA will bounce back stronger then ever.

housing boom, that was fueled by low interest rates and loose lending standards. Sub-prime is blowing up and credit is tough to come by even for those with good credit. False economy blown up by ARM's that are soon coming to re-set meaning that people who could not afford homes bought with interest-only loans assuming the market would keep going and would sell for massive profit. Alas the market has cooled and many cannot keep up with the rise in payments. The fed today lowered the bench by 50 basis points (I believe) and this will help those looking to get into a home but will not help those who need to refinance, and cannot due to negative equity or creative financing, or credit score. If you want more info go to www.patrick.net or google housing bubble.

Bowdoc I'm sorry to hear that you need to sell your toys but you are fortunate that you have something to sell. Many here in Oregon are losing their homes, not their toys. I'd hate to sell my boat but I would if need be. I was lucky to sell at the peak in early 06 and cash out all my equity. Now I'm a comfortable 31yr old living very well in Oregon having left Hawaii and flipped a few homes here in Oregon. I do wish the best for you and your family.

The market will rebound as long as the Fed keeps rates up and allows the market to correct properly. I'm frusterated that the fed lowered rates today, more fuel to the fake fire................I'm in it for the long haul and would like to see my kids be homeowners, but with this administration and these fiscal policies it seems that this will never happen.......

Regards.

[RID22]

Can someone explain what is happening in the USA with this? Our news only touches on it with a government set mortgage or something to that effect.

Sorry don't want to open a can of worms or upset anyone, just would like to know what is happening.

Sorry for all the hardships your going through, but history will repeat it's self and th USA will bounce back stronger then ever.

Wow, that's easy to answer. Wall street firms saw an opportunity to make money with the booming housing market. What they did is create new and exotic mortgage programs that gave the average American the ability to by homes 3 times more expensive than they actually should be buying. This drove the home values up, which then gave the average American the ability to refinance and strip the inflated equity out of their home. Eventually, these exotic ARM loans started to go through their first interest rate adjustments and people couldn't afford their new payments. This lead to the wall street firms loosing their a$$ on pools of defaulting loans or (mortgage back securities) So in response to these losses, wall street quickly stopped buying/offering the exotic loans that made it possible for people to by homes out of their price range. Now we have tons of Americans grasping to make their newly adjusted mortgage payments, and they can't refinance out of their bad loans because no mortgage programs exist for them anymore. They flat don't qualify for their homes anymore. So now they have no equity and no way to improve their payment situation. That's why many Americans are just saying screw it and letting their home go. Wall street whored out the mortgage industry and has completely turned it's back on it. We've now taken a mortgage lending time machine back to the early 90's when subprime didn't even exist.

Our only saving grace is new FHA & Fannie/Freddie programs that may help us a little. We need a Fed Fund rate cute and not the weak rate cuts Bernanke has been making to the discount rate. That only helps the cost to banks lending money to each other overnight, which sort of trickles down to equity loans attached to prime, but those loans are not the big payment loans. I read in the wall street journal that this recent rate cut only saved the average home equity loan holder $25 to $30 dollars.(It moved the prime rate from 8.25 to 7.75% with some banks) That's not much when the average subprime ARM adjustment to a $250,000 loan increase the mortgage payment by $350 or much more.

Sorry for the rant, that's my take on the whole thing and Kscales asked!

[sparky216]

Wow, that's easy to answer. Wall street firms saw an opportunity to make money with the booming housing market. What they did is create new and exotic mortgage programs that gave the average American the ability to by homes 3 times more expensive than they actually should be buying. This drove the home values up, which then gave the average American the ability to refinance and strip the inflated equity out of their home. Eventually, these exotic ARM loans started to go through their first interest rate adjustments and people couldn't afford their new payments. This lead to the wall street firms loosing their a$$ on pools of defaulting loans or (mortgage back securities) So in response to these losses, wall street quickly stopped buying/offering the exotic loans that made it possible for people to by homes out of their price range. Now we have tons of Americans grasping to make their newly adjusted mortgage payments, and they can't refinance out of their bad loans because no mortgage programs exist for them anymore. They flat don't qualify for their homes anymore. So now they have no equity and no way to improve their payment situation. That's why many Americans are just saying screw it and letting their home go. Wall street whored out the mortgage industry and has completely turned it's back on it. We've now taken a mortgage lending time machine back to the early 90's when subprime didn't even exist.

Our only saving grace is new FHA & Fannie/Freddie programs that may help us a little. We need a Fed Fund rate cute and not the weak rate cuts Bernanke has been making to the discount rate. That only helps the cost to banks lending money to each other overnight, which sort of trickles down to equity loans attached to prime, but those loans are not the big payment loans. I read in the wall street journal that this recent rate cut only saved the average home equity loan holder $25 to $30 dollars.(It moved the prime rate from 8.25 to 7.75% with some banks) That's not much when the average subprime ARM adjustment to a $250,000 loan increase the mortgage payment by $350 or much more.

Sorry for the rant, that's my take on the whole thing and Kscales asked!

hmmm...but fannie and freddie do not help the majority of Left Coast purchasers as the majority of homes are Jumbo.....ie over $417000. It's a sham either way. Rate cuts will not help the economy, they will though help inflation and the devaluation of the dollar.

[spharis]

Nuk n Futs hit it on the head. There was alot of trading of useless paper which in turn meant funds and others needed to sell liquid stock and assets to keep on pushing the gains. This inflated the market and eventually lead to the record highs and subsequent drop we have seen in the past 3 months. Many, many people made millions off this. My thoughts on it go back to buying what you can afford. I know I can't afford a $400k house, so there is no way I would ever try and ARM one; especially if I had sketchy credit and contracts. I know there were many that were buying houses way to much for their income, equity lining in a few months, picking up boats, Escalades, lifted 3500's, etc....now they are foreclosing on their homes because they gambled and lost.

Your house should be 2.5 times your annual household income max. The only safe way to do it.

I read where 1 in 15 homes in Nevada are foreclosing.....unreal. Even down here in the South where the average home is about $95/sqft there are subdivisions that are just sitting empty b/c contractors were trying to make a buck.

[dogbert]

But don't fear, Congress is working to bail out the risk takers. Guess what? The rest of us get to foot the bill with more taxes. The real irony is that the federal budget deficit is driving the current credit crunch. Making more money available is only going to postpone the correction and make it much worse when it actually happens. But, they don't care...by then they'll have been elected and can blame it on the next president

I'm with spharis, it's not worth it to keep up with the Jones. That way I can spend $1000s on gas and boards

[Domsz06]

Nuk n Futs hit it on the head. There was alot of trading of useless paper which in turn meant funds and others needed to sell liquid stock and assets to keep on pushing the gains. This inflated the market and eventually lead to the record highs and subsequent drop we have seen in the past 3 months. Many, many people made millions off this. My thoughts on it go back to buying what you can afford. I know I can't afford a $400k house, so there is no way I would ever try and ARM one; especially if I had sketchy credit and contracts. I know there were many that were buying houses way to much for their income, equity lining in a few months, picking up boats, Escalades, lifted 3500's, etc....now they are foreclosing on their homes because they gambled and lost.

Your house should be 2.5 times your annual household income max. The only safe way to do it.

I read where 1 in 15 homes in Nevada are foreclosing.....unreal. Even down here in the South where the average home is about $95/sqft there are subdivisions that are just sitting empty b/c contractors were trying to make a buck.

Here in Bako we add 140 homes in foreclosure every month. The problem is that even at 2.5 your annual income that will buy you a shack in Cali, even still. But also out here image is everything. You have to have the bling boat, car house etc. Now that the market is crashing they are giving the homes up and letting the bank have them then they are buying them back for less then what they owe.

It's even worse in LA and the other areas. There 700k will buy you a 1000sqft condo. Just simply CRAZY!! The old saying goes when the market is bad, housing market is good, and whent he housing market is bad Wall Streett is good.

But don't fear, Congress is working to bail out the risk takers. Guess what? The rest of us get to foot the bill with more taxes. The real irony is that the federal budget deficit is driving the current credit crunch. Making more money available is only going to postpone the correction and make it much worse when it actually happens. But, they don't care...by then they'll have been elected and can blame it on the next president

I'm with spharis, it's not worth it to keep up with the Jones. That way I can spend $1000s on gas and boards

No one has any long term goals, and no one ever will. Since all politicians these days are career suckers all they do is feed us so that we will vote them in again. Until somehow we make it so they can't all be liflers we will all suffer.

[spharis]

I don't buy anything new, and we have a budget for everything. It's the only way to do it IMO. I have a nest egg growing crazy, awesome beautiful affordable home, really clean nice rigs (2500HD and a TrailBlazer.....go Chevy), and can afford to up and take trips whenever I feel like. I don't feel the need to have 4000 sqft home, a vaction home, an escalade, or a new car every 2 years. Maybe I'm wierd....I dunno.

It really ticks me off that I may now be responsible to step in and pay taxes to help those who weren't.......really ticks me off. Between this, a national health plan, subsidies for insurance bailouts, and a welfare/social security system for Mexico, I am about ready to go ahead and leave this place for a little less socialism....heck even Canada is looking favorable.

Domz.....I love Cali....I think it is beautiful, but I will never buy a house or live there for the exact reasons you mention unless I hit the lotto. I have seen what a 300k home looks like out there, and image just isn't that important to me.

[RID22]

hmmm...but fannie and freddie do not help the majority of Left Coast purchasers as the majority of homes are Jumbo.....ie over $417000. It's a sham either way. Rate cuts will not help the economy, they will though help inflation and the devaluation of the dollar.

You are correct, the left coast will see no benefit from FHA or Fannie/Freddie. Unfortunately, $417,000 is way too low of a conforming limit. Expect to see that raised substantially in the next 12 months as part of their program changes (My speculation). The wall street journal had an article earlier this week that said that in spite of classic central banking theory, the dollars value actually stayed the same or increased in value during the three previous down turning rate cycles. All in all, many people feel a rate cut will create horrible inflation and I personally feel the opposite due to the industry I'm in. The truth is; America is a credit driven nation and were flat not responsible for our own actions. A rate cut will only delay the inevitable or ease us into it. No rate cut will guarantee that the smaller and mid-tier financial institutions will suffer badly for their actions. Unfortunately, we have government that has a reputation for bailing out corporations for the sake of the economy. Everyone is just waiting for the 11th hour when Bernanke is going to step in. How bad does it have to get? I know in my neighborhood which is comprised of homes in the $900 to $1.5mill range, nothing is selling because buyers can't get a jumbo loan with little money down. It's scary and I stand to loose a lot of money because of the wall street banks. I didn't make a poor credit decision, I can afford my home, why should I have to pay the price for my neighbor not being an adult? This is just my opinion and I'm in noway an expert on this stuff, my company is on the front lines and we talk to the Americans loosing their homes. It's a tough decision, maybe my point of view is jaded.