If someone paid too much for their house, I don't pity them.

stock_trad3r · Mar 16, 2008

Real estate isn't what its cracked up to be

TraderZones · Mar 18, 2008

Quote from Jayford:

They are walking away en masse here in San Diego, and no one is going after these people. The banks are taking back the properties and auctioning them. That's it.

I highly doubt that. I know several people who tried that and the banks pursued all very aggressively. I saw the demand letters from the banks. Just because you are not party to the correspondence does not mean it is not happening.

This is completely supported by the court system. The banks will get their money. Only bankruptcy can break this event.
More...

gnome · Mar 18, 2008

Quote from TraderZones:

Quote from Jayford:

They are walking away en masse here in San Diego, and no one is going after these people. The banks are taking back the properties and auctioning them. That's it.

I highly doubt that. I know several people who tried that and the banks pursued all very aggressively. I saw the demand letters from the banks. Just because you are not party to the correspondence does not mean it is not happening.

This is completely supported by the court system. The banks will get their money. Only bankruptcy can break this event.
More...

In most states, a home mortgage is a "full recourse" loan... which is why the low down payment.

However, I've heard a few times that in California, a "primary residence mortgage" is non-recourse... that is, the mortgagee can just walk and the lender has no further recourse beyond repossession of the house.

Is that your impression/understanding?
More...

ElCubano · Mar 18, 2008

Quote from HedgefundTrader2:

More lame generalized statements that are not facts. Lenders have more than higher defaults than last year but its not a national phenomena as if masse exodus is taking place. There are always defaults in all types of markets now the level is higher.
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lets put it this way...we have people here in miami walking away from entire buildings en masse.....

ProfitTakgFool · Mar 18, 2008

That is not called a market correction, it's called a widespread economic depression. Do your homework. Study what caused the Great Depression. The current crisis is almost identical.

Quote from seasideheights:

They knew what they were buying & how much they could afford.

Housing prices still need to correct to get back down to where people with median salaries can purchase them.

Will that take people down who bought too much house than they could afford? YES.

Will that take speculators down who did the buy it & flip it game? YES.

Will foreclosures spike? YES.

Is any of that a problem? NO.

It's called a market correction.

Deal with it.
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sucre_estave · Mar 18, 2008

Quote from TraderZones:

Quote from Jayford:

They are walking away en masse here in San Diego, and no one is going after these people. The banks are taking back the properties and auctioning them. That's it.

I highly doubt that. I know several people who tried that and the banks pursued all very aggressively. I saw the demand letters from the banks. Just because you are not party to the correspondence does not mean it is not happening.

This is completely supported by the court system. The banks will get their money. Only bankruptcy can break this event.
More...

Right. I can't see banks looking the other way on this. It may take time, but they will have armies of people dedicated to recouping all they can. This isn't like charging off a few thousand in delinquent credit card balances. Homeowners are into them for hundreds of thousands each.
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blackjack007 · Mar 18, 2008

Quote from gnome:

In most states, a home mortgage is a "full recourse" loan... which is why the low down payment.

However, I've heard a few times that in California, a "primary residence mortgage" is non-recourse... that is, the mortgagee can just walk and the lender has no further recourse beyond repossession of the house.

Is that your impression/understanding?
More...

calif is non-recourse for owner-occupied primary residence, except for cash-out refi's, in which case the cash portion is recoverable by the lender.

even if they go for your assets, certain things are off limits such as 401k, pension, ira.

gnome · Mar 18, 2008

Quote from bunds:

Why is it Americans seem to fuck everything up?

The mortgage strategies that were put in place- did the BUSH administration approve these methods? If so, they should be locked up
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Too bad for us that we Americans don't pay as close attention as you.

Our President, Congress, Federal Reserve... every one of them should be KICKED IN THE BALLS BY EVERY AMERICAN before being sent out of town on a rail.

moron28 · Mar 18, 2008

Quote from HedgefundTrader2:

Stocks can go to zero, real estate does not.
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You are so wrong:

http://www.realtor.com/map/search/l...90a1f&lid=1097214487&lsn=1&srcnt=18971#Detail