Bad home loans

[Ron61]

Scott,

I know of 5 homes in a mile or so of me that have been foreclosed on. All were bought within the past 6 years and they gave about 4 times what the houses were actually worth in this inflated market.
I just took the dogs for their morning walk and there is a brand new house just built about 4 weeks ago for sale so I stopped and got one of the papers the Realty company left in the holder on their sign. My God, I can't believe what they want for it. Here is what they have: Lot Size 50' by 135'. House 1,204 square feet. Three bedroom 2 bath. Has central heat & air, dish washer, gas stove, city water and power, PG&E gas. A 24'by 24'garage.

Now I know that I built my little house is 1976, but I have kept it up and had vinyl siding and triple insulation on it, plus double windows and insulated garage. My lot is 150' by 140'. House is 1,288 square foot as my Mother didn't want the sunken den so I left it open and that took 235 feet off the living area. I also have the T installed in the street sewer line for the upper lot in case I ever built a garage there. And I couldn't begin to get that much for this place. I also have central air and heat and no gas as my electric bill is about the same as my friends when he adds his gas and electric together. I have a place for the built in dish washer, just never got one. Also have washer and dryer in garage so you don't have to go out in the weather to use them. My garage is 22' by 24' so that one is a couple of feet wider.

In Redding the repossessed houses aren't moving at all and the neighbors have started an adopt a house program and work weekends cutting the brush and weeds that have grown up in the yards and trying to put wood over the broken windows.

Ron

[Silverback51]

Originally Posted by Ron61

Scott,

I know of 5 homes in a mile or so of me that have been foreclosed on. All were bought within the past 6 years and they gave about 4 times what the houses were actually worth in this inflated market.
I just took the dogs for their morning walk and there is a brand new house just built about 4 weeks ago for sale so I stopped and got one of the papers the Realty company left in the holder on their sign. My God, I can't believe what they want for it. Here is what they have: Lot Size 50' by 135'. House 1,204 square feet. Three bedroom 2 bath. Has central heat & air, dish washer, gas stove, city water and power, PG&E gas. A 24'by 24'garage.

Now I know that I built my little house is 1976, but I have kept it up and had vinyl siding and triple insulation on it, plus double windows and insulated garage. My lot is 150' by 140'. House is 1,288 square foot as my Mother didn't want the sunken den so I left it open and that took 235 feet off the living area. I also have the T installed in the street sewer line for the upper lot in case I ever built a garage there. And I couldn't begin to get that much for this place. I also have central air and heat and no gas as my electric bill is about the same as my friends when he adds his gas and electric together. I have a place for the built in dish washer, just never got one. Also have washer and dryer in garage so you don't have to go out in the weather to use them. My garage is 22' by 24' so that one is a couple of feet wider.

In Redding the repossessed houses aren't moving at all and the neighbors have started an adopt a house program and work weekends cutting the brush and weeds that have grown up in the yards and trying to put wood over the broken windows.

Ron

Ron,

You left out how much they were asking for the new house.

[Dan40]

In 1971, I bought a house south of San Fransisco for $47900. [2600 sf]. Sold it in 84 for $255,000. I was out in Ca in 2004, went past the house, it was on the market again for $1,200,000. My son [a former cobra owner] bought one in the mid 90's for $395,000. [slightly larger in San Jose] about a week before the bottom dropped out he sold it for $1,400,000. Both excellent deals for us, but the houses were grossly over inflated in price. There had to be a correction at some point. But throw sub-prime mortgages into that mix and its a disaster instead of a correction.
In the market bailout, I want to see a brigade of top to near-top management arrested, prosecuted and their monies confiscated. Just like drug dealers are. They didn't create $50 and $100 million dollar paychecks out of corporate LOSSES without breaking SOME laws. The Enron scammers were prosecuted, why should this crop of liars and thieves get a pass? A whole lot of them in prison with a cellmate named Ben Dover would make for some record lap times in the clean up of the system.

Dan

[Ronbo]

While the value of the houses was too high the big problem was the morgage companies writing loans to people they knew would default.

Over the last ten years I saw this happen to a few people I knew, had nothing to do with the value of the house itself, they simply were in over their head. Every time I asked myself the same question "How the heck did you get qualified for a morgage that big?", when I saw the house I asked myself "you paid how much for this?".

Was a time when you stood a slim chance in he!! of buying a home that was more than two ~ three times your annual income. Not to mention a good credit history.

When I saw 7yr car loans pop up a couple years ago...