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Appraisers Pushed to Inflate Home Values
Newhouse News ^
| 06-26-03
Posted on 06/26/2003 5:22:44 PM PDT by Brian S
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Somebody please remind me again that there is not a "real estate bubble" with a big ole "prick-pin" headed right for it...
1
posted on
06/26/2003 5:22:44 PM PDT
by
Brian S
To: Brian S
"Somebody please remind me again that there is not a "real estate bubble" with a big ole "prick-pin" headed right for it..."
You'll have to ask the same tech-geeks to remind you of that. You know, the ones with the "What Me Worry" posters plastered on their walls who still own shares in Pets.com, etc.
2
posted on
06/26/2003 5:38:42 PM PDT
by
Beck_isright
(If Dennis Kucinich ran for President would anyone know it?)
To: arete
Ping, for your reading enjoyment...
3
posted on
06/26/2003 5:39:01 PM PDT
by
Beck_isright
(If Dennis Kucinich ran for President would anyone know it?)
To: Brian S
But appraisals are fading in importance as lenders focus more on borrowers' ability and willingness to repay What prospective borrower would not indicate a willingness to repay?
Truly a la-la land out there, just like NASDAQ in 1999-early 2000 and to a lesser extent now. There is actually more denial now; many NASDAQ speculators knew they were buying to sell to a greater fool, homebuyers now think they're buying a Rock of Gibraltar that can only appreciate.
The residential real estate bubble has potentially worse ramifications when people lose the roofs over their heads due to joblessness (one or both), depreciation and the fact they rolled other debts into the loan during REFIs, forfeiting their equity.
The fact that so many marginal borrowers were allowed into the market will increase the supply of homes at foreclosure sales and depress prices further.
The exterior walls are made out of balsa wood; people just don't know that.
4
posted on
06/26/2003 5:48:10 PM PDT
by
steve86
To: Brian S
There is no real estate bubble if:
We continue with unlimited unrestricted immigration
We continue efforts to maintain housing shortages
Should the state ever decide to remove artificial restrictions & stimuli on the housing market like slow, reverse or halt immigration or allow people with land the right to build on their own land without lawsuits real estate prices could drop dramatically.
Demografics say when the Baby boomers die off there will be a huge glut of housing that the immigrants cannot afford to use at current market prices.
So if you are due to retire after the SS system becomes insolvent (20 years from now) don't rely on home equity to finance your retirement either in the long term. Housing prices will definetly drop in the long term (20+ years)Overseas economic competition will definetly be higher in the future too so retirement to Spain or Mexico may not be an option.
5
posted on
06/26/2003 5:50:43 PM PDT
by
Rodsomnia
To: Beck_isright
This has been going on for a long time. Everyone wins until they lose. Easy money and the desire to make a fast buck makes crooks out of otherwise honest people.
Richard W.
6
posted on
06/26/2003 5:51:56 PM PDT
by
arete
(Greenspan is a ruling class elitist and closet socialist who is destroying the economy)
To: Rodsomnia
It is quite true that if we continue with unlimited immigration there is no housing bubble. The prices are almost entirely created by immigration. Anyone who thinks it has very much to do with interest rates has rocks in their head.
To: Brian S
Ugh, just wonderful.
8
posted on
06/26/2003 5:58:43 PM PDT
by
TheSpottedOwl
(America...love it or leave it. Canada is due north-Mexico is directly south...start walking.)
To: arete
"Easy money and the desire to make a fast buck makes crooks out of otherwise honest people."
Sounds like the NASD....
9
posted on
06/26/2003 6:00:08 PM PDT
by
Beck_isright
(If Dennis Kucinich ran for President would anyone know it?)
To: Brian S
There are crooked appraisers in every state, just like there are crooked lawyers, crooked realtors, crooked insurance agents,................
10
posted on
06/26/2003 6:03:57 PM PDT
by
Rebelbase
(........The bartender yells, "hey get out of here, we don't serve breakfast!")
To: henderson field
The prices are almost entirely created by immigration. Anyone who thinks it has very much to do with interest rates has rocks in their head.I'm not sure interest rates can be completely discounted in price inflation. On big ticket items that have to be financed, very many people tend to buy on the monthly payment amount more than on total price. Lower interest rates can make higher prices end up with the same monthly payment.
11
posted on
06/26/2003 6:08:08 PM PDT
by
templar
To: Brian S
When you've failed at all else, when you're minutes away from putting a gun into your mouth, try selling real estate. You'll get rich.
The profession ranks just slightly above lawyers in the despicibility category.
12
posted on
06/26/2003 6:39:00 PM PDT
by
yooper
To: Brian S
Somebody please remind me again that there is not a "real estate bubble" with a big ole "prick-pin" headed right for it... Let's see, they are talking about housing prices rising 4 to 4.5% and we are talking about a bubble. Oh %&*ing puh_leeeeeez.
To: Brian S
I have seen suspected examples of this, first hand, in the course of my work the past few years.
Borrowers don't want to hear about it....not if it would threaten the loan.
14
posted on
06/26/2003 6:46:45 PM PDT
by
Petronski
(I'm not always cranky.)
To: Brian S
dog bites man... film at 11
15
posted on
06/26/2003 6:48:01 PM PDT
by
delapaz
To: Brian S
Don't discount the government's ability to control the market & population, they have been funneling immigrants into New York and restricting housing in new england for how long?
To: Brian S
Somebody please remind me again that there is not a "real estate bubble" with a big ole "prick-pin" headed right for it There is no real-estate bubble. Pay no attention to the Criminal/Congressionál/GAO investigation into the GSEs.
17
posted on
06/26/2003 8:26:52 PM PDT
by
AdamSelene235
(Like all the jolly good fellows, I drink my whiskey clear....)
To: Petronski
Conseco was really aggressive about this just before filing their 11. I saw one set of papers this week that wood make your jaw drap - they'd suckered a couple which was current and with good credit into getting rid of their 7% loan on 101k, and taking on 125k (on a crap appraisal) on a 10-16% ARM. To add insult to injury, the initial good faith estimate was for 3 origination points, by the time these folks closed (only a few days after Conseco solicited them at the dinner table), origination points were up to 5, and there were many, many extras. When it was all done, these people paid 7k in origination and other fees to Conseco for the screwing of a lifetime.
And it was all done prepetition, so they are screwed save for a bit of a voluntary write-down.
18
posted on
06/26/2003 8:34:59 PM PDT
by
Chancellor Palpatine
(Winning flame wars on the net is like winning a medal at the Special Olympics)
To: Petronski
Oh, and I forgot to mention that they overcharged for items invoiced at far less on the HUD1....
19
posted on
06/26/2003 8:36:59 PM PDT
by
Chancellor Palpatine
(Winning flame wars on the net is like winning a medal at the Special Olympics)
To: Chancellor Palpatine
"would make your jaw drop"
Geez, typos are out of control today.
20
posted on
06/26/2003 8:42:34 PM PDT
by
Chancellor Palpatine
(Winning flame wars on the net is like winning a medal at the Special Olympics)
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