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(Bloomberg)   Today's Fark-ready headline: "American Housing Casino Revives After Big Drop"   (bloomberg.com) divider line 40
    More: Asinine, American Housing, second mortgages, Americans, Renee, Blackstone Group, CoreLogic, casinos, KB Home  
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935 clicks; posted to Business » on 28 Nov 2012 at 12:35 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-11-28 10:58:34 AM
Yikes.

www.bloomberg.com

www.russia-ukraine-travel.com
 
2012-11-28 12:47:34 PM
They defaulted on a home in 2010, and just bought another home in 2012 for $475,000. I think I see where the problem is. What retarded loan officer approved this? Did they learn nothing?
 
2012-11-28 12:49:46 PM

AngryDragon: They defaulted on a home in 2010, and just bought another home in 2012 for $475,000. I think I see where the problem is. What retarded loan officer approved this? Did they learn nothing?


Housing Bubble II: Electric Boogaloo
 
2012-11-28 12:53:22 PM
On the plus side, recycled lumber is going to be really cheap in 10 years.
 
2012-11-28 12:57:47 PM
Banks are still holding off on foreclosures.

It's going to get worse.
 
2012-11-28 01:00:00 PM
"It's like we won the lottery," said Renee, sitting on the patio of the four-bedroom house at Red Rock Country Club beside Dwaine, her police officer husband.

Why are they paying $475k for a four bedroom in the sticks? Do they have a gold-plated shiatter?
 
2012-11-28 01:00:29 PM
Paying $475,000 in Las Vegas for a property?

Unless it's a mansion with 1+ acres of level land, they got hosed.
 
2012-11-28 01:05:21 PM

mcreadyblue: It's going to get worse.


Unlikely. Interest rates are at 3.4%, which means a principal/interest ratio of roughly 2 to 1. That's hard to beat.
 
2012-11-28 01:06:54 PM

mainstreet62: mcreadyblue: It's going to get worse.

Unlikely. Interest rates are at 3.4%, which means a principal/interest ratio of roughly 2 to 1. That's hard to beat.


I wasn't clear enough. I mean a P/I ratio of 2 on a monthly payment.
 
2012-11-28 01:07:35 PM

Rapmaster2000: "It's like we won the lottery," said Renee, sitting on the patio of the four-bedroom house at Red Rock Country Club beside Dwaine, her police officer husband.

Why are they paying $475k for a four bedroom in the sticks? Do they have a gold-plated shiatter?


Yeah, what the hell? It's like they were paying to be overcharged for a house, because I don't see what else they're getting here.
 
2012-11-28 01:27:21 PM

intotheabyss81: AngryDragon: They defaulted on a home in 2010, and just bought another home in 2012 for $475,000. I think I see where the problem is. What retarded loan officer approved this? Did they learn nothing?

Housing Bubble II: Electric Boogaloo


I really hope so actually. That way as soon as my house value rises to meet my mortgage debt, I can sell my house and move into an apartment.
 
2012-11-28 01:32:48 PM

sweetmelissa31: Yikes.

[www.bloomberg.com image 620x413]

[www.russia-ukraine-travel.com image 600x439]


I see those and think we have a generation of SimCity players as urban planners, and they think all they need to do is build it, and people will come.
 
2012-11-28 01:36:10 PM
I bought a short sale house outside Phoenix last summer (2011) and it's up 50% since then, so I'm really getting a kick etc...
 
2012-11-28 01:47:07 PM
They got another house that quick. Hell 4 years ago I caught hell from the loan people because of some creative things my ex did to my credit 6 years before that.
 
2012-11-28 01:47:08 PM

AngryDragon: They defaulted on a home in 2010, and just bought another home in 2012 for $475,000. I think I see where the problem is. What retarded loan officer approved this? Did they learn nothing?


They learned how to sell them to Fannie Mae who will just get bailed out again.
 
2012-11-28 01:54:13 PM

sweetmelissa31: Yikes.

[www.bloomberg.com image 620x413]

[www.russia-ukraine-travel.com image 600x439]


That's not fair.

The second photo is MUCH more appealing.
 
2012-11-28 01:56:22 PM

groppet: They got another house that quick. Hell 4 years ago I caught hell from the loan people because of some creative things my ex did to my credit 6 years before that.


I just bought a house this year, I was questioned over an 8$ and 25c deposits in my account that werent from my direct deposit.
 
2012-11-28 01:57:10 PM

mcreadyblue: Banks are still holding off on foreclosures.

It's going to get worse.


Holding off on foreclosures != not performing any foreclosures. A lot of that inventory has indeed been foreclosed. At worst, foreclosures are being carried out as fast as new inventory is coming in at this point.
 
2012-11-28 02:00:43 PM

SacriliciousBeerSwiller: mcreadyblue: Banks are still holding off on foreclosures.

It's going to get worse.

Holding off on foreclosures != not performing any foreclosures. A lot of that inventory has indeed been foreclosed. At worst, foreclosures are being carried out as fast as new inventory is coming in at this point.


(except for Florida...Florida is f*cked, but who is surprised?)
 
2012-11-28 02:10:55 PM
Renee and Dwaine McCuistion, who lost their Las Vegas (SPCSLV) home after defaulting in 2010, are feeling lucky again. They bought another property last month for $475,000, 42 percent less than what the previous owner paid.

...and still overvalued by 70%. WhTF do people see in living in the middle of the farking desert? You can barely call this "Las Vegas adjacent".
 
2012-11-28 02:34:23 PM

sweetmelissa31: Yikes.

[www.bloomberg.com image 620x413]

[www.russia-ukraine-travel.com image 600x439]


Why is there a picture from "russia-ukraine-travel.com"?
 
2012-11-28 02:55:21 PM

Arkanaut: sweetmelissa31: Yikes.

[www.bloomberg.com image 620x413]

[www.russia-ukraine-travel.com image 600x439]

Why is there a picture from "russia-ukraine-travel.com"?


It's a comparison between cookie cutter houses in AZ and (likely) Soviet era block apartments. I'd take the former over the latter in a heartbeat.
 
2012-11-28 02:55:49 PM

AngryDragon: They defaulted on a home in 2010, and just bought another home in 2012 for $475,000. I think I see where the problem is. What retarded loan officer approved this? Did they learn nothing?


The loan officers probably didn't learn anything either. Before the crash, loan officers were incentivized to sign off on mortgages they knew might be risky, because the bank would give them a bonus check for any mortgage, no matter how toxic, that could be bundled and sold to doofus investors.
 
2012-11-28 02:56:35 PM

DenisVengeance: I bought a short sale house outside Phoenix last summer (2011) and it's up 50% since then, so I'm really getting a kick etc...


Do you live in the AZ area or are you in San Jose (based on your profile info)?
 
2012-11-28 03:04:14 PM
I am intrigued.

Does this Housing Casino comp your food and drinks?
 
2012-11-28 03:14:04 PM
FTA:

the couple had a $175,000 joint income

They bought a $679,000 four-bedroom in a golf development in the northwest part of town, taking out a 30-year jumbo loan for $611,000 with a fixed 7 percent interest rate, as well as a $57,000 second mortgage. A third mortgage for a condominium they rented out, plus mortgage insurance because of a low down payment, made for $6,000 of monthly housing costs.


WTF??? Who thought this was a good idea?
 
2012-11-28 03:23:13 PM

HMS_Blinkin: AngryDragon: They defaulted on a home in 2010, and just bought another home in 2012 for $475,000. I think I see where the problem is. What retarded loan officer approved this? Did they learn nothing?

The loan officers probably didn't learn anything either. Before the crash, loan officers were incentivized to sign off on mortgages they knew might be risky, because the bank would give them a bonus check for any mortgage, no matter how toxic, that could be bundled and sold to doofus investors.


A lot of loan officers have been thrown out on their asses since 2008 and are now working at jobs that better fit their skill sets, like selling used cars. I work for an FI, and I can tell you the number of changes and additons to regulations surrounding the origination and sales of mortgages have been staggering. The good ol' 80% first trust mortgage, 15% second home equity, and 5% cash down with no verified source of income or using other overinflated properties as collateral are things of the past. Even the article states that this couple is unique in being able to get back into the housing market after defaulting on their mortgage. And many individuals are stuck with mortgages at 6% or higher that missed out or do not qualify for the recent government assistance programs.
 
2012-11-28 03:32:02 PM

Lollipop165: FTA:

the couple had a $175,000 joint income

They bought a $679,000 four-bedroom in a golf development in the northwest part of town, taking out a 30-year jumbo loan for $611,000 with a fixed 7 percent interest rate, as well as a $57,000 second mortgage. A third mortgage for a condominium they rented out, plus mortgage insurance because of a low down payment, made for $6,000 of monthly housing costs.


WTF??? Who thought this was a good idea?


In 2007? Nearly 100% of Las Vegas home purchasers and loan originators.
 
2012-11-28 03:51:24 PM
Compared to these folks, I am a colossal idiot.

I put 20% down for a 30-year fixed mortgage ten years ago, at the midpoint of the upward slope of the bubble, my home is worth less than what I bought it for and I've always been current.

I shoulda bought with a skeevy variable balloon mortgage, defaulted, declared bankruptcy, then rebought when prices fell. Instead I bought and held. The responsible way, I thought. The stupid way. The "I'm a sucker" way.
 
2012-11-28 03:57:25 PM
I just left a big drop after lunch, and I have to say I do feel a bit revived now.
 
2012-11-28 04:06:21 PM

StopLurkListen: Compared to these folks, I am a colossal idiot.

I put 20% down for a 30-year fixed mortgage ten years ago, at the midpoint of the upward slope of the bubble, my home is worth less than what I bought it for and I've always been current.

I shoulda bought with a skeevy variable balloon mortgage, defaulted, declared bankruptcy, then rebought when prices fell. Instead I bought and held. The responsible way, I thought. The stupid way. The "I'm a sucker" way.


But the banks who put you in this position were bailed out so that's nice.
 
2012-11-28 04:09:48 PM

valkore: Lollipop165: FTA:

the couple had a $175,000 joint income

They bought a $679,000 four-bedroom in a golf development in the northwest part of town, taking out a 30-year jumbo loan for $611,000 with a fixed 7 percent interest rate, as well as a $57,000 second mortgage. A third mortgage for a condominium they rented out, plus mortgage insurance because of a low down payment, made for $6,000 of monthly housing costs.


WTF??? Who thought this was a good idea?

In 2007? Nearly 100% of Las Vegas home purchasers and loan originators.


I always knew Las Vegas was a bubble. There's absolutely no economic or lack of land issue that would cause the prices to soar like they did over there. Same thing with Phoenix, Atlanta, and Miami.

But seriously, that's about the same salary as my husband and I make. Our housing costs are almost a THIRD of that and we don't own cars. Farking ridiculous.
 
2012-11-28 04:10:52 PM

valkore: DenisVengeance: I bought a short sale house outside Phoenix last summer (2011) and it's up 50% since then, so I'm really getting a kick etc...

Do you live in the AZ area or are you in San Jose (based on your profile info)?


Live in SJ, bought the house as a rental property. Still good deals to be had down there; similar to Vegas, but less "Vegas-ey".
 
2012-11-28 04:12:53 PM

StopLurkListen: Compared to these folks, I am a colossal idiot.

I put 20% down for a 30-year fixed mortgage ten years ago, at the midpoint of the upward slope of the bubble, my home is worth less than what I bought it for and I've always been current.

I shoulda bought with a skeevy variable balloon mortgage, defaulted, lived in the house free and clear while the bank was dealing with an avalanche of similar defaults, declared bankruptcy, then rebought when prices fell. Instead I bought and held. The responsible way, I thought. The stupid way. The "I'm a sucker" way.


Added one section but otherwise you're spot on.
 
2012-11-28 04:17:16 PM

DenisVengeance: Live in SJ, bought the house as a rental property. Still good deals to be had down there; similar to Vegas, but less "Vegas-ey".


Really, you just decided one day it'd be a great investment opportunity to buy a property 700 miles away because of the upswing in the market? Not being snarky, just curious. I lived in Scottsdale circa 2002/2003, just when all this madness was beginning.
 
2012-11-28 04:53:22 PM

HMS_Blinkin: AngryDragon: They defaulted on a home in 2010, and just bought another home in 2012 for $475,000. I think I see where the problem is. What retarded loan officer approved this? Did they learn nothing?

The loan officers probably didn't learn anything either. Before the crash, loan officers were incentivized to sign off on mortgages they knew might be risky, because the bank would give them a bonus check for any mortgage, no matter how toxic, that could be bundled and sold to doofus investors.


I wouldn't call them "doofus investors", but rather investors that thought the rating agencies were actually doing the work for which they were hired.
 
2012-11-28 05:46:34 PM

SuperT: groppet: They got another house that quick. Hell 4 years ago I caught hell from the loan people because of some creative things my ex did to my credit 6 years before that.

I just bought a house this year, I was questioned over an 8$ and 25c deposits in my account that werent from my direct deposit.


Just think of the questions you'd have gotten if $8 and $0.25 WERE your direct deposits.,
 
2012-11-28 06:29:09 PM

valkore: DenisVengeance: Live in SJ, bought the house as a rental property. Still good deals to be had down there; similar to Vegas, but less "Vegas-ey".

Really, you just decided one day it'd be a great investment opportunity to buy a property 700 miles away because of the upswing in the market? Not being snarky, just curious. I lived in Scottsdale circa 2002/2003, just when all this madness was beginning.


No - my brother in-law is a real estate agent there and helped out with a lot of it. Plus he works with a good property manager so we felt pretty comfortable with the whole thing.
 
2012-11-29 03:31:07 AM

sweetmelissa31: Yikes.

[www.bloomberg.com image 620x413]

[www.russia-ukraine-travel.com image 600x439]



www.bloomberg.com

Looks like a neighborhood of lab rats
 
2012-11-29 02:40:05 PM
It's thinking like that subby that keeps you poor. Great buying opportunity in real estate right now as long as you remember that real estate is a local market and location, location, location.
 
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