Originally posted by amatrine

Still though, we were renting before this home and my rent payment was 800. My mortgage is now 800. So it made sense. Rents in the Phx area have shot up and there is nothing that is a three bedroom under 1k. So it is just a , "wish I would have waited a couple more months" .....

Needless to say, this is a Renters Market?
Is this era worse than the 80's market?
How many years until things are normal...estamate?

unfortunately, as they bail out their buddies, they degrade the dollar, and low and behold, it then costs more to live, cost more to run a business....
I've got a feeling that before all is said and done that there might be many people who didn't have their mortgage adjusted, who did have a solid plan to begin with, but just ain't gonna be able to stay ahead of the rising cost of living....they will lose their homes also. might even lose their jobs.
so, to sit there and say that these people are burger flippers who should have never bought their home in the first place isn't true I don't think.
they are losing their homes because the government just couldn't let the big fish go under!! not their buddies and pals!

Well in the Phoenix area it is not a renters market. The prices are high because of so many loosing their homes. Soon there will also be competition from ASU students returning and renting. People are also getting tougher here with renting standards. Casa Grande just passed a bill that if you rent and get charged with any crime on that property, you have to pay the city an additional 300 dollars, and have to move out . They are trying to control who these out of state investors rent to, with the surge in crime rates and rental properties getting trashed.

I live in a rural area about 69 miles from Phoenix. I do take solace in the fact that a large theme park that will be bigger than disney land is in the works, to be built 5 miles away. It will require 5,000 employees, and those people have to live somewhere. I am hoping when it opens that the values will go back up here. When they do, I am out of here,lol

I do not think home prices are going to be fixed anytime soon, until some change comes to this economy. If it never fixes, neighborhoods could look like Mexico.

I do think it will fix though, but I think it will take years. I think 2009 predictions are way off. We are still going down. think more like 2019, but thats me.

Originally posted by magicmushroom


JSO, when there is a housing slump values do go down, here in the UK prices have been dropping for the last 8 months so if you have the money its good news if your house hunting but not for those selling or losing their homes.

You guys are right; a housing slump affects house values. I was talking about the "normal" situation, which is rare.

JSO, putting money into bricks and mortar is normally a safe bet but you can always rely on the banks to manipulate a slump so then they can clean up and make billions out of peoples misery and miss fortune.

Originally posted by magicmushroom
JSO, putting money into bricks and mortar is normally a safe bet but you can always rely on the banks to manipulate a slump so then they can clean up and make billions out of peoples misery and miss fortune.

This time it is disgraceful. They made billions off the fees they charged those buyers. They should be penalized.

Owning your own place is the American dream. But I hope that this time, the people who made the mistake of getting one of these sub-prime loans are treated with a little class. Don't penalize them for the rest of their lives.

This is excellent news! I hope this keeps up for a few years so I can get a cheap house, although I doubt I'll be that lucky. Its great to hear banks are finally clamping down on people who bought houses they couldn't afford, and taking the loss of having to sell the property below loan value.

Of course IF we were interested in the facts and not pumping up hysteria, we'd look at home foreclosures over time all the way back to the last few recessions.

...But hey, what am I saying? This is ATS!

[edit on 25-7-2008 by ALightinDarkness]

Its not all bad.

Now all the people who were priced out of the market
have a chance to become a homeowner, hopefully
they learn from this mess and do it the right way.

the renters should get your credit
squeaky clean, save up all you can and in late 2009
or early 2010 make your move, thats when I predict the
bottom of the housing market.

Well it depends how you go. We were priced out before. We were approved through three places, and Fha had the best interest rate so we went with them.

I have a lot of medical debt, but they still approved us because it was medical.

they've tighted the lending rules, it will be much harder to get a loan.
and, well, if you are a homeowner, and you decide to take the offer of help this bill provides, well, if you sell it afterwards and get a profit, you might have to pay them a percentage of it....not sure how it works, it depends on how long it is before you sell it...but still....

America is in trouble ,none of the present politicians save for Ron Paul know how to fix it, And Ron Paul is laughed at by the ignorant masses
America is headed for a complete and utter collapse
both GM and Ford are slated for bankruptcy and will fire 500,000 high paid jobs to move their operations to Mexico and China.
Americans don't understand whats coming ,not one American in 1000 will be above third world living standards.
and this is with the military hiring anyone that comes forward for a job.
You have turned your backs on your constitution now watch how it is destroyed
and you are brought under the British Empire.

Hi All,

Here's my humble take on all of this nonsense. The wife and I bought a 140 year old tenement in 2004. It was, essentially, a skeleton to work with. This purchase happened in the unfortunate town of Providence RI (USA). This Hamlet has long been known as the "city of broken dreams". We plopped down 110% of the current value in a HUD backed loan. We put up $5k deposit, rolled up our sleeves, and began to bleed ourselves dry.
We both worked in Boston. This was not a problem when fuel cost was at $2.00 a gallon. Once fuel cost worked it's way past $3.00 a gallon, they had our attention. It gets better.
I destroyed myself trying to fix this Schist-hole. I dug out 2 feet of detritus from the basement. I installed Lali columns where only cedar logs used to live. I poured a fracking concrete floor in the basement. I gutted and rebuilt the top two floors of this unfortunate building. We paid out of pocket as we went. To the tune of $20k. All the while my hip was degrading. I am the possesor of an incredibly bad arthritic hip. It had to go. Then, it stopped working.
Then, we were approached by THE EVIL BANKING CARTEL. We were offered a loan of $45k. Considering, at the time (2006), our house was valued at $325+k, we jumped......TO OUR FINANCIAL DEATH.
Our property is now 80% refinished. That's great for the new owners (WF, and CITI), but since they didn't put an ounce of sweat, or blood, or tears, into the place they shouldn't be entitled to a cent. I digress.

My hip surgery went well. The prosthetic was installed with little fanfare. It cost us a pile. but not nearly as much as it might have.

So here it is. This once fine palace of pain is now appraised at below $100k.

It's all just games. This is the destruction of the dollar writ large.

It's also the destruction of our banking system.

Oh shoot, I'm raising waves. I shouldn't do that.

Where are we now if the value of a home, purchased in 2004 is HALF! of what it is worth now?

Were I to find JP Morgan himself, I'd break his BIG FAT NOSE!

The banks have to pay local taxes and fees for the foreclosed homes. They also have to pay for re-appraisals every so often as required by law. All this has to be done on properties that aren't making them any money.

What will happen is that the banks will stop lending to home builders to draw down the home inventories and therefore create a market for the repossessed homes.

This will be a painful process.

But not for the top shareholders of the banks and the home-builders, they will just get tax-funded bailouts while their workforce is thrown out on the streets only to be hired for peanuts again on the next up cycle.