Posted on Thursday, 2/19/2009 - 3:32 p.m. PST — by hobbie1
Brentwood - finished Discovery Bay - finished Antioch - finished Concord - stay tuned Walnut Creek - stay tuned Nearly all of the homes sold from 2000 to date are up side down. Most are jumbo loans and most have people who put 20% downpayments. It has now reached a business decision and is most likly time to walk. The fed program does nothing for Jumbo transactions. Next up the re basis for property tax - going down.... so these cities who got drunk on sky high building fees are all going to be in big trouble. I too have called my bank and of course their not talking - why - because I'm not behind. Paid up on time. market forces are the only way out and it starts by viewing this as a business decision - just like the banks. The only options: 1. Reset the rate to move the prin down quickly - not likly to happen 2. Walk - not good but at least somewhat empowering.- maybe the way to go.
Joined: Apr 2008
Current Posts: 32
let's see. you do everything right. you save for a down payment. you stretch it every month, but make sacrafices and it's working. you don't take out a second and buy "stuff". and, you're now expected to foot some of the bill for those they did the complete opposite. this is all a very bad joke. OUR, WE THE PEOPLE, elected officials are a disgrace!! for those that like this state of affairs...you should be ashamed. a lot needs to change and fast.
does anyone out there have an idea or two to get the ball rolling???
Joined: Feb 2009
Current Posts: 2
To get the ball rolling, it will be key for responsible homeowners to embrace renters as an important political class. Toether, they are the majority, and together they can fight the expensive handouts to irresponsible owners.
Although renters make up more than 30% of the American population, they have been marginalized from the national--and often even local and region--discussion. I hazard to guess that we are the largest political minority that gets no attention at all. (Count the number of times Mr. Obama has discussed the needs of "renters.)
Historically, many homeowners have issues with renters. We are somehow seen as second-class citizens who mar the neighborhood landscape, no matter how much we strive to be "good neighbors." So I think part of forming this union will be to bridge the gap between renters and responsible homeowners, who both, quite frankly, are the people who live within their means, pay their bills every month, and stand to be taxed more to pay for the feckless behavior of the few.
Joined: Nov 2007
Current Posts: 83
This story just shows how out of touch Washington is to the real housing problem. Many parts of the Bay area are upside down 50% so the 5% is just about dumb as thinking the Raiders under the current ownership will ever have a winning season. Obama promised a change in Washington. Perhaps he needs to visit the Bay Area instead of Canada.
Joined: Feb 2009
Current Posts: 2
Seems it's not just Mr. Obama and his administration is out of touch.
All these Bay Area residents who bought houses that cost 10 times their annual salaries with no money down on an option ARM--that's out of touch.
Besides, the country simply doesn't have the money to bail out the wealthy class who spent a million on a house now worth $500K. Just not possible.
Joined: Oct 2008
Current Posts: 2
Why should my tax money be used to bail those people who refinanced to buy cars, vacations HDTVs etc. Let the depression begin. We need it. Houses there are way over priced.
Joined: Jan 2009
Current Posts: 34
The housing economy has been a house of cards for too long and what we see now is the natural course of reality. Let the economy fix itself. The home prices in CA have been comically over inflated for years. People were paying $600K for houses smaller than the cabin I go camping in and in neighborhoods where you get car jacked. If you followed the well established guide lines for home loan borrowing and have managed to keep your job you'll be fine. Most every one else was tacking a gamble. And no one covers my blackjack losings at the casino. I shouldn't have to cover your home loan gamble. Get a damn apartment.
Joined: Sep 2006
Current Posts: 53
"All these Bay Area residents who bought houses that cost 10 times their annual salaries with no money down on an option ARM--that's out of touch."
I agree with this logic. If you bought a house you couldn't afford, it is not the responsibility of the rest of us to bail you out. The market is correcting itself by adjusting both demand and prices to levels that are supportable.
It is sad for these people to lose their homes but it will mean others will have a chance to buy those ridiculously priced, upside down homes for a price that makes sense. Painful and ugly for some who got sucked up into the frenzy, but the ultimate end result is a return to prices and loans that people can support on the amount of income they make.
Joined: Feb 2009
Current Posts: 8
I agree, the whole thing is ridiculous. My family made a concious decision NOT to buy a home during the "no down payment, interest only" craze for purchasing a house that was 10 times the price it should have been for a simple reason... WE KNEW WE COULDN'T AFFORD IT WHEN THE INTEREST ONLY EXPIRED. So now, because we didn't buy into the craze, we are having to pay for all of the others that made the stupid decision knowing they couldn't pay when the terms changed. I know someone who actually bought a house like this, could barely afford the interest only loan and knew they couldn't afford it when the terms changed. So now, they're the first ones in line to get a hand out. And they're using his wife's income, saying that they're separated, so they can get more money. In the meantime (and before they put the limits on borrowing), he bought another house (that was still out of their means) saying they were "renting" their first house so they could get a new house before they had to declare bankrupcty. So now, they have TWO houses they're upside down on and can't afford. Yeah it's fair they everyone has to bail them out now. Hey, maybe next, they'll start trying to bail out the people who bought the big SUVs and now can't afford to pay gas for them.
Joined: Dec 1969
Current Posts: 1
The new stimulus package when it comes to mortgage relief is UNFAIR!! Not just to homeowners that have played by the rules, but also to those who are renters because they knew that they could not afford one of the creative loans for which so many others have taken advantage. Renters pay federal taxes too! They have no interest in bailing out homeowners who took advantage of the easy loans. If anything it is to their best advantage to not have their hard earned money used for this purpose. [They may be the main beneficiaries of having the home mortage prices fall below the prices that have been in place for the last 9 years, because they may be able to buy now!! I am not a renter, I am one of those who brought their smaller home with a well-documented-fixed rate loan, 10 years ago, but my neighborhood is surrounded by with jumbo homes that should not have been brought by people who could not afford them in the first place. These foreclosed jumbo homes are now selling for what I paid for my home ten years ago. These same unresponsible buyers want to be bailed out. WHY SHOULD THEY BE BAILED OUT WITH MY OR THE RENTERS' TAX MONEY? WHAT DOES ANY OF THIS DO TO THE VALUE OF MY HOME? I believe that if you can't afford the mortgage that you signed up for, you should find an apartment to rent like the majority of American citizens. Irresponsibility should not be rewarded.