Posted on 03/29/2008 7:34:41 PM PDT by Lorianne
A year ago Irvine, Calif., was still riding high on the subprime boom; then almost overnight the industry and more than 4,000 good paying jobs vanished.___ IRVINE, Calif. (CNNMoney.com) -- The subprime mortgage meltdown has shaken the entire U.S. economy. But nowhere might the impact be as stark as Irvine, California, a planned community nestled between Los Angeles and San Diego.
A year ago at this time, Irvine was home to 18 subprime lenders, including many of the leaders in the field, such as New Century Financial and Option One. Then, in what seemed like the blink of an eye, 4,100 good-paying white collar jobs were gone, or roughly 2% of the city's work force.
And while that may not sound like a huge number of jobs lost, the ripple effects of the collapse of what was once a vibrant industry has extended far beyond the mortgage lending arena.
Irvine had become the center of the subprime industry almost by accident. As the business of writing mortgages to riskier borrowers grew rapidly in the middle of the decade, many top employees at the established subprime firms struck out on their own, setting up shop nearby.
(Excerpt) Read more at money.cnn.com ...
The only real relief would be nothing short of a constitutional amendment that would ban property taxes on a primary residence, and force the tax burden to be shared equally among renters and owners.
Anyways, the important thing is to have an economy where these people can get back in the game. Other place in the world, and the history of man, one chance one time, often for generations. Not good.
Most people come good and come through. Loans and debts are good things.
You mean we’re NOT all gonna die?? How are all the doom-pimps gonna make a living?
True in a sense, Leisler, but...we the taxpayers are paying up the kazoo for not only the bailout of Bear but for the economic downturn exacerbated by the greed/sub-prime.
the venue of Irvine in this mess is no accident
in terms of per-capita ratios (# of sub-prime mortagages per each 1,000 homes sold in last five years)
the tri-county region - Orange (where Irvine is located), and adjacent Riverside and San Bernardino counties in Mexifornia - represents one of the major centers of the sub-prime mess
Don’t wish too hard for more population, Leisler! The illegals will be flooding to MASS if they aren’t already...
You have FRmail.
What percentage of alt-a loans are still good? How about subprime?
They are here, and in the decayed, dying towns. It is one of the things that are fluffing up the demographics. We are losing young, educated young people and getting uneducated, social service eating illegals. And yet the State gov says everything is fine and the bond marked loves us. Ah, yeah, right. Much like an AIDS person says they are on a diet and being fat is bad.
The people I feel sorry for are the ones who bought houses in CA at a much inflated price, make their mortgage payments on time, do all the right things, and see the value of their homes declining rapidly. It’s really bad for people who have to sell their homes right now, due to a change or transfer in their jobs. These people will have to go to the closing (if they’re able to sell their houses) with their checkbooks in hand.
Most people...except Americans who have no business buying a home and illegal aliens who leave their homes in the middle of the night, leaving taxpayers to pick up the tab...
Sorry to hear that (that “They are here” already), but I already know that. And it’s 40 million-plus, not 12 million you hear the open borders a**holes quote so often. At least 18 million alone in CA, another 10 million in Texas...
Seems like it’d be hard to finance a house over five years.
But the buyers would, if the terms were five years at $10K a month. That’s a bit (like, say, seven large) beyond the average Houstonian homeowner.
Stockton, Ca will be one such ghost town.
Forward to the so-called mortgage crisis.
Buy it. So what if you can't afford it. It will be worth twice as much in a year, then you can flip it and get rich. It's a no-brainer.
The no-brainer part was right on.
I have little sympathy for a greedy fool who commits to a contract to buy something he can't afford in the hope that he will be able to sell it for a fat profit before the day of reckoning.
Since 95% of people with mortgages are servicing them satisfactorily,the 5% who aren't hardly rises to the level of a crisis.
No matter how much the MSM pumps it.
Boo Hoo
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