Tough Times!!!

[spenchey2]

Sorry to hear that.
not to make any one mad or insult anyone, but if you can't write a check for it why are you looking at it in the first place. Americans think wow i just made 50 grand this year i'll go take a loan out for a new truck and a boat. i don't get it.

[G-MONEY]

I have seen what a 300k home looks like out there, and image just isn't that important to me.

They have 300k homes in so cal

[chpthril]

We to, have some the effects of the housing market down turn. We have seen a high number of Homeowner Policy cancellations due to foreclosures for the very reasons mentioned. Too many people got sucked into ARM's and interest only mortgages, and now cant handle the adjustment. Just Sad, alot of hard working, responsible, good people, have lost a lot.

[spharis]

I wouldn't call it being suckered.....I'd call it being stupid.

[Domsz06]

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.

trust me I didn't come here to live, I came here due to work. I'll be ok, due to the company covering me, otherwise your right, I wouldn't have come here. and I doubt I come back!

I have bought one new car in my life, and it was my dream car. Now I just always buy used, or pay cash for it. I'm going for the plan to retire early and what not. I'm saving as much as I can out here, just can't wait to get back to where it's reasonable!!

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.

welcome to America, land of the free and stupid!!

[Domsz06]

Sorry to hear that.
not to make any one mad or insult anyone, but if you can't write a check for it why are you looking at it in the first place. Americans think wow i just made 50 grand this year i'll go take a loan out for a new truck and a boat. i don't get it.

it's the american way, and if your smart it works to your advantage. I have bought so many things on credit, ie zero interest, same as cash, etc. For me it works great!! Take 6 months, pay it off, and it's the same as cash, while I make a little interest from my money sitting in the bank. Yeah I could save for 6 months, but why not have it now? costs me the same and I get to use it for 6 months!!

Problem is most americans try to do it this way and then they end up paying interest on it and now they can't afford it!!

They have 300k homes in so cal

Yeah isn't this a pic of one?

I wouldn't call it being suckered.....I'd call it being stupid.

well for some sales people I would call it being suckered as they will tell anyone they can afford it, they don't care, because if they can get you the credit approval, they get thier money.

[ragboy]

Its not like that everywhere in California. I have been all over the country, and I have never found another place that I love better than california. Especially due to the weather. I can't take humidity. Don't know how you guys do it in the south. I remember being in Texas and Virginia and getting out of my air conditioned car, and my glasses instantly fog up from the moisture so bad I couldn't see. Incredibly green and beautiful places out there, but the humidity kills me.

In California, you just have to get away from the bay area/Sacramento and LA. The only problem is, those areas are pretty depressed, so hard to find a job. But if you can work remotely, or are a programmer or something like that, its great. There are lots of beautiful houses under 300k where I live right now. I am looking at a big house with 5.5 acres on Paradise lake for only $475k. But if you need to be near LA, SF, or SAC, forget about it.

[Domsz06]

I agree with you Ragboy. I wish I could live remotely then I would love it out here, but since I can't, I hate it

[talltigeguy]

Well said on the issues regarding the housing market fiasco. Good comments by all.

It is sad that Americans have become so greedy. This causes a lot of reckless behavior: People buy houses they cannot afford without thinking of the long term problems it might cause. Politicians only supply quick fixes, instead of long term stable solutions. They can't do long term solutions because those are extremely unpopular, so nothing gets done. Hopefully, they can temper how bad the correction is and the country can get through this. But I worry for the future. There are only a few people who want to WORK their way to a better future...they are called Mexicans.

I have a good friend who is selling his home in my neighborhood. He made easy money flipping a few homes, and he sold a business that prospered. The home is selling for 800K. He currently has no real occupation. He gets spending money pouring concrete with his brother. Only in America does a young guy with no real occupation have a home of that value. He is feeling the crunch because now he realizes that even though he will make a fair amount on the sale of this home too, he cannot afford a mortgage 1/4 of that by pouring concrete. With the housing crisis, he can't make the easy money anymore.

[Domsz06]

Well said on the issues regarding the housing market fiasco. Good comments by all.

It is sad that Americans have become so greedy. This causes a lot of reckless behavior: People buy houses they cannot afford without thinking of the long term problems it might cause. Politicians only supply quick fixes, instead of long term stable solutions. They can't do long term solutions because those are extremely unpopular, so nothing gets done. Hopefully, they can temper how bad the correction is and the country can get through this. But I worry for the future. There are only a few people who want to WORK their way to a better future...they are called Mexicans.

I have a good friend who is selling his home in my neighborhood. He made easy money flipping a few homes, and he sold a business that prospered. The home is selling for 800K. He currently has no real occupation. He gets spending money pouring concrete with his brother. Only in America does a young guy with no real occupation have a home of that value. He is feeling the crunch because now he realizes that even though he will make a fair amount on the sale of this home too, he cannot afford a mortgage 1/4 of that by pouring concrete. With the housing crisis, he can't make the easy money anymore.

there is still money to be made in flipping homes, the key is in location. My friends in OK are buying homes fixing them up and still making a killing. You just have to move to the right location. Right now Cali isn't the cheap easy money like it used to be. HOWEVER if you have some money you should buy in about 6 months and rent them for a few years and it will turn around and then boom, there is your kiling again!

[bowdoc]

I'm not loosing my house or anything like that. I built my own house 10 years ago. I sell construction products to new residential builders, and with the down turn I must re-buget and the first thing that must go is the toys.

[Domsz06]

yup that is what stinks for sure!!!! To bad it's not next year, I'd buy your boat from you.

[da.bell]

Bowdoc,

Good luck to you and hope everything works out okay. Definitely keep us posted to what you are doing from time to time so we can welcome you back. Just don't forget the pictures of the next boat.

[Domsz06]

heck don't leave, just don't have a boat, you can still post and hang out here!!

[bowdoc]

I'm not gonna quit just yet!! As far as I'm concerned we are still part of the Tige' family and always will be!! Things will get better and we will buy another boat. Heck I might just win the lottery tomorrow night then we will not have to worry about the slowing housing market or selling the boat. Since we bought the boat our family has had more fun than EVER before. Thanks for the support