man the credit crunch is pissing me off.

[eddie_van_earache]

It all about people not being responsible and thinking. All these belly up loans and stupid people, banks and home owners, doing stupid things.

The results - the economy getting hammered. Many reasons this is helping for sure.

I can't use any of these old lending vehicles because of the mess. God Damn it pisses me off. I work on cash flow. So I dont borrow what I can maintain with a positive cash flow. I wanted to snag anothe home - for rental - but now the only money you can get causes you to lay out $100,000 in cash. This is all because of stupid people. It was a great way to make money in real estate in the past. I pay my bills and dont get my dumbass in hot water. Guess I am the minority today. now i am hearing some people even borrowed MORE that the home was worth.







Fuck it.

[Rich#6]

Banks overvalued houses so people could get bigger loans and everyone took out variable loans instead of locking in a a little higher rate and now they are fucked. FHA loans are coming back for first time home buyers but yeah rental property is not going to fly right now. I just sold a house a took a $30-40K drop in price to sell it too.

[Shawn Lutz]

Both the borrower and the lender at equally at fault for everytning as far as I'm concerned. Banks give mortgages to people that they shouldn't, they take a coin toss on the whether the risk is worth the reward and it came back and bit them both in the ass. It looks good for them until foreclosures roll in. The banks preyed on the risky and weak folks who just like America, cant control spending and have "keep up the Jones" mentaltity. The credit to debt ratios are way outta line which is why the whole think is a house of cards sitting in tornado alley. The banks know those people have no self control and send pre-approved platinum cards at 50-100k to the same people they gave too risky of mortages to making it so easy for the guy getting into a competition with his neighbor to see how much debt they can get themselves into and later default on

Who pays for the fuck ups on both sides? You and me pal........

Cash is king people...if you dont have cash today to buy something you wont have cash to pay for it tomorrow.

[necrotechno]

I don't disagree that our credit dependency is a huge problem in this country right now. But I can't feel sympathy for someone who wants to buy *another* house just to make money off other people's naivete when it comes to buying a home themselves. Seriously, why should someone else pay YOUR mortgage?

One acre across the street from me, and two acres next door, sold last year for some crazy amounts of money, at least twice what they should have realistically been worth. Why? Because there were too many middle-men with their fingers in the pie who had to make a profit. Guys buying property with no intention of doing anything with it other than re-selling it. Which is why the trailer parks and strip malls just keep creeping closer and closer. The first asshole comes in here and offers me a million for mine, I'm outta here.

[Axewielder]

I don't get why everyone is blaming ARM's. Mortgage rates haven't really gone up very much in the past 5 years. In fact, they have gone down in some areas.

[Rich#6]

a few years ago the arm was at around 4%. Prime was over 7% a few months ago so all mortgages were sub prime. Think of going up 2.5% on your interest rate on $200,000. That is a lot for anyone, especially for those people who could barely afford the mortgage they had.

[dg]

Also, factor in the low fixed initial rate period most of these loans start with. People who couldn't afford the rate bump that they knew was coming were either stupid or fooling themselves, and the realtors & lenders were preying on their stupidity/wishful thinking. Neither deserve a bailout, but if that's what it takes to try to contain the wider damage to the economy, then what alternative is there? Chad's situation shows exactly how this is fucking everything up. He can't buy a rental property he could've bought before, even though he can afford it. A home won't sell, money won't get spent to improve it, etc.

I'm glad I bought before this fucking mess, because I'm self-employed & had to get a "stated income" loan. I got a good fixed rate based mainly on my credit score. I'm sure I wouldn't be able to do that now, because there were tons of abuses going on with those types of loans. People lying about their income or wishful thinkers hoping they'd make more soon & be able to swing their McMansion payments fucked that up for honest, responsible people.

[eddie_van_earache]

dg hit it on the head. I am not a speculator in the short term. For me its an investment vehicle as well. I am transient in and out of N. Va. So I would live in the place off and on over the years.

Man what a mess.

[fett]

The days of little down and a quick flip or even running a positive cashflow on a longer term hold are over. Just wait a year or 5 and the cycle will start again. Being 57, I have seen these cycles. What is different here is the lenders have been shaken to the core. They did it to themselves and we will pay for it.