Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Insight: Falling home prices drag new buyers under water...(Circling the drain?)
Reuters ^ | 04/27/12 | Tim Reid

Posted on 04/27/2012 11:31:07 AM PDT by AngelesCrestHighway

More than 1 million Americans who have taken out mortgages in the past two years now owe more on their loans than their homes are worth, and Federal Housing Administration loans that require only a tiny down payment are partly to blame. That figure, provided to Reuters by tracking firm CoreLogic, represents about one out of 10 home loans made during that period. It is a sobering indication the U.S. housing market remains deeply troubled, with home values still falling in many parts of the country, and raises the question of whether low-down payment loans backed by the FHA are putting another generation of buyers at risk.

(Excerpt) Read more at reuters.com ...


TOPICS: Miscellaneous; Unclassified
KEYWORDS:
Probably won't see this on the nightly news... On a side note...When the stock market drops it will be so damn fast no one will have a chance to get out.
1 posted on 04/27/2012 11:31:11 AM PDT by AngelesCrestHighway
[ Post Reply | Private Reply | View Replies]

To: AngelesCrestHighway

—When the stock market drops it will be so damn fast no one will have a chance to get out.—

Reminds me of this:
http://www.grandpappy.info/honehour.htm


2 posted on 04/27/2012 11:33:56 AM PDT by cuban leaf (Were doomed! Details at eleven.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway

Here’s your money quote:

“We have all three branches of government trying to keep people in four bedroom houses who can’t afford chicken coops.”

And I just finished my 8x8 chicken coop last night. 14 hens.


3 posted on 04/27/2012 11:37:50 AM PDT by cuban leaf (Were doomed! Details at eleven.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cuban leaf

The Federal government is just playing three card monte with us....It’s all crap!


4 posted on 04/27/2012 11:40:28 AM PDT by AngelesCrestHighway
[ Post Reply | Private Reply | To 3 | View Replies]

To: cuban leaf

Interesting views...The larger cities could indeed just fall apart.


5 posted on 04/27/2012 11:42:39 AM PDT by AngelesCrestHighway
[ Post Reply | Private Reply | To 2 | View Replies]

To: cuban leaf

“Even for loans taken out in December - less than four months ago and the last month for which data is available - nearly 44,000 borrowers, or about 7.5 percent of the total, now find themselves under water.”...


6 posted on 04/27/2012 11:44:51 AM PDT by AngelesCrestHighway
[ Post Reply | Private Reply | To 3 | View Replies]

To: AngelesCrestHighway
You also won't see stories on the nightly news that discuss how borrowers are falling behind on loans that have previously been modified.

Next up: principal writedowns. Not many bullets left in the chamber after you've reduced the interest rate to 2%, reset the maturity to 40 years, and foreborne principal of $100K (or more).

7 posted on 04/27/2012 11:46:31 AM PDT by Night Hides Not (My dream ticket for 2012 is John Galt & Dagny Taggart!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway
and Federal Housing Administration loans that require only a tiny down payment are partly to blame.
Can't blame Bush so they blame the FHA.
These people bought their houses in the last two years and didn't know the real estate market had crashed and was still dropping? BS.
And so what if they're "under water?" They have plenty of time for the market to recover while they pay off their 20 and 30 year mortgages.
8 posted on 04/27/2012 11:47:04 AM PDT by oh8eleven (RVN '67-'68)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway

So, really bad time to get a house. Crap, we’re in process right now...


9 posted on 04/27/2012 11:51:18 AM PDT by Thorliveshere
[ Post Reply | Private Reply | To 1 | View Replies]

To: Thorliveshere
So, really bad time to get a house. Crap, we’re in process right now...

No, it's a great time to buy a house as long as you have a fixed rate mortgage. As soon as hyper inflation kicks in, you'll be able to pay off your house for the price of a cup of coffee.

10 posted on 04/27/2012 11:55:34 AM PDT by Tao Yin
[ Post Reply | Private Reply | To 9 | View Replies]

To: oh8eleven

The “No better time to buy” and “housing is at the bottom” buyers. Then again it depends on how much they’re under water + taxes and financing vs. accumulated rent payments to determine if they’re really losing money.


11 posted on 04/27/2012 11:57:21 AM PDT by Justa
[ Post Reply | Private Reply | To 8 | View Replies]

To: Tao Yin
No, it's a great time to buy a house as long as you have a fixed rate mortgage. As soon as hyper inflation kicks in, you'll be able to pay off your house for the price of a cup of coffee.

Yep. House is 1/10th it's original price, and it's a fixed rate, so we're good.
12 posted on 04/27/2012 12:03:58 PM PDT by Thorliveshere
[ Post Reply | Private Reply | To 10 | View Replies]

To: AngelesCrestHighway

I bought my 13 acre farm and new home in central KY two weeks before Obama was elected. It cost less than one years wages. It’s actually worth more now.

However, that is because people are slowly moving from the cities into rural areas (me, for example) and there was no price runup to speak of out here.

I lived in Seattle when we bought this place. There is NO WAY I would have purchased ANYTHING in that place. Or any other city. For starters, the only reason I bought this place was because you don’t rent a place like this. It is a tool for survival and where we expect to die.


13 posted on 04/27/2012 12:04:13 PM PDT by cuban leaf (Were doomed! Details at eleven.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Thorliveshere
So, really bad time to get a house.
With mortgage rates at all time lows, it's a great time to buy a house.
Take your time, do your research, buy within your means.
14 posted on 04/27/2012 12:18:27 PM PDT by oh8eleven (RVN '67-'68)
[ Post Reply | Private Reply | To 9 | View Replies]

To: oh8eleven

I agree. Especially within ones means. With % rates so low, its better than renting because rental rates are skyrocketing.


15 posted on 04/27/2012 12:25:24 PM PDT by hope
[ Post Reply | Private Reply | To 14 | View Replies]

To: AngelesCrestHighway

snip-”The laundering of trillions of dollars of U.S. taxpayer money — and the wrongful taking of the homes of those taxpayers — was known by the Administration and expressly supported by it.”

http://www.marketwatch.com/story/home-owners-across-the-nation-sue-all-bank-servicers-and-their-offshore-havens-spire-law-officially-announces-filing-of-landmark-lawsuit-2012-04-23


16 posted on 04/27/2012 12:29:15 PM PDT by Mortrey (Impeach President Soros)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway

Everyone who ever held an auto loan has been under water from month one.


17 posted on 04/27/2012 12:34:32 PM PDT by larryjohnson (USAF(Ret))
[ Post Reply | Private Reply | To 1 | View Replies]

To: Thorliveshere

It is a GREAT time to buy a house. The people buying them today are investors. Most of the doom and gloomers bought at the top of the cycle and wish they could buy at the current price. The important thing is do not buy more than you can afford. Also, lock in your interest rate(3-4%) for as long as you can. All real estate is local. It is better to buy a cheap property in an expensive town than the opposite. Your house should never be worth more than the others in your neighborhood.

Where are you buiyng ?


18 posted on 04/27/2012 12:44:47 PM PDT by woodbutcher1963
[ Post Reply | Private Reply | To 9 | View Replies]

To: larryjohnson

no one buys a vehicle to use expecting it to appreciate.


19 posted on 04/27/2012 12:57:53 PM PDT by RitchieAprile
[ Post Reply | Private Reply | To 17 | View Replies]

To: Tao Yin
As soon as hyper inflation kicks in,

I pulled out all the equity I could, refi'd at 3.75 fixed for 30 yrs, and plan to pay it back with Baraqqi/Bernanke minibucks.

20 posted on 04/27/2012 1:02:17 PM PDT by nascarnation
[ Post Reply | Private Reply | To 10 | View Replies]

To: AngelesCrestHighway

House prices are still insanely high for the market (or lack of). Could be that many of them are listed so high, because the borrowers have mortgaged them to the gills. There won’t be an upside, until all of them are foreclosed and resold cheap. Maybe not even then (see decades of us Baby Boomers croaking).


21 posted on 04/27/2012 1:16:26 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: woodbutcher1963

In Minnesota.


22 posted on 04/27/2012 1:25:02 PM PDT by Thorliveshere
[ Post Reply | Private Reply | To 18 | View Replies]

To: Tao Yin; Thorliveshere
As soon as hyper inflation kicks in, you'll be able to pay off your house for the price of a cup of coffee.

Yeah, but then property taxes will eat you alive.

23 posted on 04/27/2012 1:37:03 PM PDT by Sarajevo ( Alcohol does not solve any problems, but then again, neither does milk.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: AngelesCrestHighway

Nuts! I am fortunate as mine is a fixed rate and I only have approximately 2 1/2 years until mine is paid off in November,2014.


24 posted on 04/27/2012 2:09:59 PM PDT by bigredkitty1 (March 5,2010. Rest in peace, sweet boy. I will miss you, Big Red.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: oh8eleven
These people bought their houses in the last two years and didn't know the real estate market had crashed and was still dropping? BS.

It wasn't too long ago some people on these boards were saying that "now is the time to buy" and disregarded warnings about trying to catch a falling knife.

25 posted on 04/27/2012 3:53:45 PM PDT by Oatka (This is America. Assimilate or evaporate.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: AngelesCrestHighway

Aren’t there a lot of foreclosed houses being dumped on the market right now, since the “robo-signing” deal got settled? That’s got to drive the values down for everybody else.


26 posted on 04/27/2012 3:57:57 PM PDT by tacticalogic ("Oh, bother!" said Pooh, as he chambered his last round.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oatka
It wasn't too long ago some people on these boards were saying that "now is the time to buy"
I think you have to know your own (local) market. Here in western NY it's fairly stable.
My two sons have both purchased houses in the last year. Their mortgage rates combined don't equal the one I had in 1977 - 7%.
Of course, a few years later and President Jimma' chased the rate up to 14% and higher.
27 posted on 04/27/2012 4:05:03 PM PDT by oh8eleven (RVN '67-'68)
[ Post Reply | Private Reply | To 25 | View Replies]

To: oh8eleven
I think you have to know your own (local) market.

Agreed, but there were many people here sounding like things could only go up from 2009 and were making blanket statements.

Things in Nevada, outside of Las Vegas as well, are still drifting downward in a stagnant market - even among the under $200,000 range. In my desert area, lots that were $15-20K shot up to $40K - and people bought in - are now at $8.5K are starting to sell - from people around the Salt Lake City area.

28 posted on 04/27/2012 5:32:49 PM PDT by Oatka (This is America. Assimilate or evaporate.)
[ Post Reply | Private Reply | To 27 | View Replies]

To: Oatka
there were many people here sounding like things could only go up from 2009 and were making blanket statements.
I know exactly what you mean. I retired in late '07 and started looking for a winter place in Florida.
Before I got close to making a decision, real estate tanked. Within six months I started getting realtors' messages like, "Market has bottomed - good time to buy."
In fact, I never did buy and have decided to rent instead.
29 posted on 04/28/2012 5:15:48 AM PDT by oh8eleven (RVN '67-'68)
[ Post Reply | Private Reply | To 28 | View Replies]

To: AngelesCrestHighway

It’s very localized as others have pointed out. There are decent brick three bedroom, two bath ranchers with basement on an acre here for $115,000. Combine that with the low interest rates and people are starting to buy again. Unemployment is still historically high and wages are stagnant to declining overall, but for those properties that actually are in some way desirable and are priced within reach and within the historical guidelines of 2.5 to 3 times household income, they’re selling, finally. More “sold” signs than new “for sale” signs popping up around here.


30 posted on 04/28/2012 5:28:25 AM PDT by RegulatorCountry
[ Post Reply | Private Reply | To 1 | View Replies]

To: oh8eleven
"Market has bottomed - good time to buy."

They're STILL saying that around here. Reminds me of the guy who jumped off the Empire State building, and as he passed the 50th floor, was heard to say "So far, so good". :-)

31 posted on 04/28/2012 8:39:24 AM PDT by Oatka (This is America. Assimilate or evaporate.)
[ Post Reply | Private Reply | To 29 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson