ATG
Banned
+5,233|6767|Global Command
Prelude:

The table is set, the plates are served. A knock came at the door. Sheriffs, marshals with a court order to vacate.

Their lawyer kept saying " it will be alright, you'll have time..."

But the time is up.

They paid 1.3 million for this house, that excludes the pool and hardscape. Now it has been sold at auction for $485,000.00. This will send further shock waves through the community; devaluing neighboring properties and sowing more seeds of doubt. Too many now ask " why should I stay? "
I hear what is going on, show up uninvited and help break down beds and load a uhaul. That will not fit inside the moving truck is left for whoever will haul it away.


This was my Friday night.  He is grateful for the help and asks what he can do for my family. I laugh sardonically.




So, here we are on the edge of the second tier of the cliff, ready to fall off.

https://i31.tinypic.com/2qiy0le.jpg

Foreclosures are building at a blinding pace. Businesses are imploding. Commercial property waits in the wings, ready to default in shocking numbers. Cities crumble as the tax base shrinks. Budgets are unrealistic, and the pain mounts.







During the savings and loan debacle of the 90's, the government bought up " toxic assets " of failed savings and loans, after they failed. This time around, they are given vast sums of money at tax payers expense, propped up, as it were. Bailed out. But they do nothing for the consumer.
It is all about the banks.

My friend Mike, whom I helped move last night; the bank demanded 870k in cash to avoid foreclosure, and then sold the property to another party for 480k when he couldn't come up with it. While it would seem to make sense to us to re-write the loan, the perception is that the banks would rather absorb the loss on the tax payers dime, than work with the buyer who is on the down and out. Mike could have afforded the payments on a 480k loan, but after the collapse of his plastics supply business, the 10k per month was not workable.







I see the governments in full collapse as the tax base evaporates. I see budget numbers rendered meaningless when the money fails to materialize. The populace has been largely sucked dry.

I see riots as the unemployed begin to starve when their benefits run out. I see murder and mayhem when the bank is given vast swaths of property with tax payers money and the tax payer is kicked to the gutter. I see hardship in the next natural disaster. I see the united States government going to the IMF with hat in hand begging for food and energy.


I see hyper-inflation and hungry babies as the bankers and political elite eat Kobe beef on credit that will in time run dry.  I see euthanasia of the infirm and elderly who cannot fend for themselves.


I see Dark Days.
13urnzz
Banned
+5,830|6735

ATG wrote:

I see hyper-inflation.
while personalized, the above sentence will be the only one that affects all forum members. i feel for Mike, just alot sooner than i feel for you. me. Kmarion. chuyskywalker. Gooners. even that pissant Macbeth . . .
Turquoise
O Canada
+1,596|6643|North Carolina
All I can say is...  China is going to pick up the economic slack.  America's primacy is ending, but it had to happen at some point.
Macbeth
Banned
+2,444|5823

What are we debating here? In anycase burnzz next tornado make sure you hold onto your friend. As for the OP, well sounds like a shit day, I don't think we will go all roiting and such.
Kmar
Truth is my Bitch
+5,695|6839|132 and Bush

Most lenders are working with people who are down and out. It's in everyone's best interest. The banks don't want the government controlling them.

I've seen people not make a payment for almost two years and they are still in their home.
Xbone Stormsurgezz
DrunkFace
Germans did 911
+427|6919|Disaster Free Zone

burnzz wrote:

ATG wrote:

I see hyper-inflation.
while personalized, the above sentence will be the only one that affects all forum members. i feel for Mike, just alot sooner than i feel for you. me. Kmarion. chuyskywalker. Gooners. even that pissant Macbeth . . .
I'd like to know how this effects me?

And if you're so worried about it and so sure it will happen, take your money and invest it in another currency, or better yet pick up and move.
Kmar
Truth is my Bitch
+5,695|6839|132 and Bush

Inventory is coming down fast. Sales are up 24% in my market.
Xbone Stormsurgezz
ATG
Banned
+5,233|6767|Global Command

Kmarion wrote:

Most lenders are working with people who are down and out. It's in everyone's best interest. The banks don't want the government controlling them.

I've seen people not make a payment for almost two years and they are still in their home.
I don't see that.

http://www.latimes.com/business/la-fi-l … 8718.story
jsnipy
...
+3,277|6760|...

Yes the world is coming to end, everything sucks, the U.S. will burn, the economy will crumble, nuclear conflicts will emerge, we will starve, we will get raped, everyone will be eating each others corpses in the street. So say that is so. So what?

Last edited by jsnipy (2009-08-16 10:07:53)

Pug
UR father's brother's nephew's former roommate
+652|6780|Texas - Bigger than France
Sorry about your friends' bad luck.  Hopefully things will change for them in the future.
Kmar
Truth is my Bitch
+5,695|6839|132 and Bush

ATG wrote:

Kmarion wrote:

Most lenders are working with people who are down and out. It's in everyone's best interest. The banks don't want the government controlling them.

I've seen people not make a payment for almost two years and they are still in their home.
I don't see that.

http://www.latimes.com/business/la-fi-l … 8718.story
Working with people does not necessarily mean a modify.. although they are doing that as well. It takes time.
Xbone Stormsurgezz
Harmor
Error_Name_Not_Found
+605|6786|San Diego, CA, USA
I hope people in our generation learn that a house is not an asset, but can be a liability in hard times.  I have no sympathy for people who buy homes larger than they can afford and have no back-up-plan when things go sour (i.e. loose job, investments fail, etc...).

If you think you're about to get behind in payments, try to sell your home immediately.  Hopefully you won't owe more than its worth.
Reciprocity
Member
+721|6819|the dank(super) side of Oregon
So, I bet Mike will be more considerate of reality the next time he purchases a home.  Transfer of wealth is a bitch.
ATG
Banned
+5,233|6767|Global Command

Harmor wrote:

I hope people in our generation learn that a house is not an asset, but can be a liability in hard times.  I have no sympathy for people who buy homes larger than they can afford and have no back-up-plan when things go sour (i.e. loose job, investments fail, etc...).

If you think you're about to get behind in payments, try to sell your home immediately.  Hopefully you won't owe more than its worth.
What about those that can afford the payments but do not want the burden of being massively upside down because of a bubbled over inflated market?



For example, me. I owe 435k and they tell me the value is around 220k and falling. I never refinaced or took an equity line.

I could rent Mikes place for around 2k per month, it has 1500 more square feet, a massive yard and a swimming pool.


Too many of us have to ask " what the hell am I doing here? "

" it's throwing good money after bad "
" you have to make a strategy decision that is financially sound for your family. "


The fact is, myself and hundreds of thousands of people in just Southern California look at the situation as dispassionately as possible and it just doesn't make sense to keep paying.

Until they fix that, there is a very serious problem.
Reciprocity
Member
+721|6819|the dank(super) side of Oregon

ATG wrote:

What about those that can afford the payments but do not want the burden of being massively upside down because of a bubbled over inflated.
anyone trying to ride the bubble when it burst deserves what they get.  For all the millions of people out on their ass there are millions more who are now building their wealth on the ruins.
ATG
Banned
+5,233|6767|Global Command
My post above was edited.

I cared nothing about making money on the property or riding the bubble. Buying a house is just what you do when you have a family and a ( formerly ) successful business. If I had been " one of those " there would be evidence because at one point I could have refinaced and taken an equity line.
Kmar
Truth is my Bitch
+5,695|6839|132 and Bush

Reciprocity wrote:

ATG wrote:

What about those that can afford the payments but do not want the burden of being massively upside down because of a bubbled over inflated.
anyone trying to ride the bubble when it burst deserves what they get.  For all the millions of people out on their ass there are millions more who are now building their wealth on the ruins.
This is true.. I've put 3 offers on short sales in the last week and have been outbid every-time (out of my buyers range). They all went for more than asking price.
Xbone Stormsurgezz
Sup3r_Dr4gon
Boat sig is not there anymore
+214|6565|Australia

ATG wrote:

Harmor wrote:

I hope people in our generation learn that a house is not an asset, but can be a liability in hard times.  I have no sympathy for people who buy homes larger than they can afford and have no back-up-plan when things go sour (i.e. loose job, investments fail, etc...).

If you think you're about to get behind in payments, try to sell your home immediately.  Hopefully you won't owe more than its worth.
What about those that can afford the payments but do not want the burden of being massively upside down because of a bubbled over inflated market?



For example, me. I owe 435k and they tell me the value is around 220k and falling. I never refinaced or took an equity line.

I could rent Mikes place for around 2k per month, it has 1500 more square feet, a massive yard and a swimming pool.


Too many of us have to ask " what the hell am I doing here? "

" it's throwing good money after bad "
" you have to make a strategy decision that is financially sound for your family. "


The fact is, myself and hundreds of thousands of people in just Southern California look at the situation as dispassionately as possible and it just doesn't make sense to keep paying.

Until they fix that, there is a very serious problem.
Wouldn't you be worse off? I know it seems pointless to pay twice the value for your property, but it won't stay like that. If you leave it several years, the value of your property will climb again. If you default, you'll be back to square one - no house, and after such a large default I don't think the bank will be too eager too lend you money for another one.
I don't know the details of your loan though, so I'm probably missing something here.
nickb64
formerly from OC (it's EXACTLY like on tv)[truth]
+77|5849|Greatest Nation on Earth(USA)

Sup3r_Dr4gon wrote:

ATG wrote:

Harmor wrote:

I hope people in our generation learn that a house is not an asset, but can be a liability in hard times.  I have no sympathy for people who buy homes larger than they can afford and have no back-up-plan when things go sour (i.e. loose job, investments fail, etc...).

If you think you're about to get behind in payments, try to sell your home immediately.  Hopefully you won't owe more than its worth.
What about those that can afford the payments but do not want the burden of being massively upside down because of a bubbled over inflated market?



For example, me. I owe 435k and they tell me the value is around 220k and falling. I never refinaced or took an equity line.

I could rent Mikes place for around 2k per month, it has 1500 more square feet, a massive yard and a swimming pool.


Too many of us have to ask " what the hell am I doing here? "

" it's throwing good money after bad "
" you have to make a strategy decision that is financially sound for your family. "


The fact is, myself and hundreds of thousands of people in just Southern California look at the situation as dispassionately as possible and it just doesn't make sense to keep paying.

Until they fix that, there is a very serious problem.
Wouldn't you be worse off? I know it seems pointless to pay twice the value for your property, but it won't stay like that. If you leave it several years, the value of your property will climb again. If you default, you'll be back to square one - no house, and after such a large default I don't think the bank will be too eager too lend you money for another one.
I don't know the details of your loan though, so I'm probably missing something here.
You have a very valid point, unless the economy is totally f**ked...

Then your point loses much of it's validity, because the house will continually lose value until worth virtually nothing...
FEOS
Bellicose Yankee Air Pirate
+1,182|6649|'Murka

How long has the sky been falling, again?
“Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.”
― Albert Einstein

Doing the popular thing is not always right. Doing the right thing is not always popular
Varegg
Support fanatic :-)
+2,206|7048|Nårvei

FEOS wrote:

How long has the sky been falling, again?
Since October 2009 ...
Wait behind the line ..............................................................
Macbeth
Banned
+2,444|5823

Varegg wrote:

FEOS wrote:

How long has the sky been falling, again?
Since October 2009 ...
??? o fuck we've been skipped ahead into the future.
ATG
Banned
+5,233|6767|Global Command

FEOS wrote:

How long has the sky been falling, again?
mmmmkay. It's just me
Varegg
Support fanatic :-)
+2,206|7048|Nårvei

Macbeth wrote:

Varegg wrote:

FEOS wrote:

How long has the sky been falling, again?
Since October 2009 ...
??? o fuck we've been skipped ahead into the future.
Pretty cool no?
Wait behind the line ..............................................................
FEOS
Bellicose Yankee Air Pirate
+1,182|6649|'Murka

ATG wrote:

FEOS wrote:

How long has the sky been falling, again?
mmmmkay. It's just me
Not saying things couldn't be better...but the "world is ending" stuff is pretty much localized. Much of it in CA and Las Vegas, tbh.
“Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.”
― Albert Einstein

Doing the popular thing is not always right. Doing the right thing is not always popular

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