Posted on 12/13/2006 4:40:07 AM PST by GodGunsGuts
Wednesday, December 13, 2006
Falling prices trap new homebuyers
Neighbors in a new Garden Grove tract say a developer's plan to slash prices by about $140,000 has left them owing more for their homes than they're now worth.
By JEFF COLLINS
The Orange County Register
(Excerpt) Read more at ocregister.com ...
Bump for reference. Prices still dropping here in Texas. Never thought I'd see it.
" owing more for their homes than they're now worth. "
Everybody who didn't see this coming, raise your hands..
(I'm talking to *YOU*, Cavuto - and your gaggle of head-in-the-sand pollyanas)
Buy High, Sell Low! That's my motto!
PS. What your home is worth today is irrelevant unless you sell it today.
All the realtors that said this couldn't happen in Orange County were quite simply wrong...
Yep.
If they were in the market in order to flip the house, tough cookies. They had a hand in driving up the price to ridiculous levels. If they bought the house as a long-term residence, so what? Assuming they could afford the payments for what they bought, all they ned to do is wait for the market to cycle through the dip. Meanwhile, demand a break on property taxes.
LOL! To be fair, he did have on a few people here and there who said housing was going to tank. But not many.
Typical entitlement mentality. Now someone else should foot the bill for their buying a 100% financed home with an exotic mortgage in a falling market.
$870,000 for that house? You could score something like that for 1/4 the price on the east coast. I can see appraisers in that area getting their butts chewed by the loan officers and realtors when appraisals start coming in significantly below sales prices.
Democrats in Congress will have a plan for dealing with this.
Better duck. There are plenty of FReepers that will tell you equity is money in the bank. Heck, even the govt. includes that in your "household worth". Too many people think equity is concrete.
But...but...but... Everybody needs a place to live! So Somebody is going to have to come along and buy my Cape Cod on an eighth acre for $950,000!
You could see this coming from a mile away.
And one-sixth in the midwest.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus
There will plenty of finger pointing (and worse) to go around before this is all over.
" PS. What your home is worth today is irrelevant unless you sell it today. "
The current value of your home is very relevant to the bank that actually owns it.
When all of those "creative" mortgages come to their balloon or higher-payments points, and people find out that they can't refinance, (as promised as a 'selling point') and can't sell, and can't make the payments --
Can you say "Banking Crisis"? (Hint -- the S&L bailout was a sandbox game compared to what could happen, here)....
yep..... and I noticed it's not thier fault. It's the developer's fault. It's always somebody elses fault.
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