Investors!

Danzig · #1 08-16-2007, 05:04 PM

Quote:

Originally Posted by Cajungator26

Countrywide looks to be in serious trouble.

yeah, and that's who i have my mortgage thru...wonder if some loan buying will be going on...but we're ok, fixed rate, and VA--so really won't affect us regardless. thank goodness!

Sightseek · #2 08-16-2007, 05:07 PM

Quote:

Originally Posted by Danzig

yeah, and that's who i have my mortgage thru...wonder if some loan buying will be going on...but we're ok, fixed rate, and VA--so really won't affect us regardless. thank goodness!

Be very happy you have a fixed rate. The Mortgage market is a bit scary right now with no secondary market and alot of people being unable to lock in with a refinance. Lenders are going crazy with their tighter lending terms and 3rd party appraisals.

#3 08-16-2007, 05:42 PM

Quote:

Originally Posted by Danzig

yeah, and that's who i have my mortgage thru...wonder if some loan buying will be going on...but we're ok, fixed rate, and VA--so really won't affect us regardless. thank goodness!

If they already paid for your house (or sold the mortage to someone else), and you are paying them... should be no problems. I mean if the people who you bought your house from got their money... I would think you are in the clear?

I think its the people trying to buy, or a sale is pending that are getting popped cuz Countrywide is low on cash to finance. So the housing market just backs up cause no buying can occur. I think this is the problem... along with the after effects of this.

Sightseek · #4 08-16-2007, 05:45 PM

Quote:

Originally Posted by pgardn

If they already paid for your house (or sold the mortage to someone else), and you are paying them... should be no problems. I mean if the people who you bought your house from got their money... I would think you are in the clear?

I think its the people trying to buy, or a sale is pending that are getting popped cuz Countrywide is low on cash to finance. So the housing market just backs up cause no buying can occur. I think this is the problem... along with the after effects of this.

This is correct, but I think she was referring to the people who thought they were getting a deal with their variable rate mortgages who can now no longer afford their monthly payment. American Home Mortgage went down the tubes last week too.

#5 08-16-2007, 05:55 PM

Quote:

Originally Posted by Sightseek

This is correct, but I think she was referring to the people who thought they were getting a deal with their variable rate mortgages who can now no longer afford their monthly payment. American Home Mortgage went down the tubes last week too.

Aha.
Thanks.

I never liked the variable rate thing. I like to know exactly how much I have to pay. Heck I hate borrowing money period. When I first bought my house in 1987 the fixed interest rate was 10.5%. I refinanced fixed at 7.5%, then I got lucky with mutual funds and just bought the dang house.

Im not a good American. I hate borrowing.

Sightseek · #6 08-16-2007, 06:04 PM

Quote:

Originally Posted by pgardn

Aha.
Thanks.

I never liked the variable rate thing. I like to know exactly how much I have to pay. Heck I hate borrowing money period. When I first bought my house in 1987 the fixed interest rate was 10.5%. I refinanced fixed at 7.5%, then I got lucky with mutual funds and just bought the dang house.

Im not a good American. I hate borrowing.

The rates dropped so low a few years ago that a lot of people took the risk. I think for some, they don't think long term and the economy looked pretty healthy not so long ago. They see, they want. Even with the initial savings most would have been better off at prime or higher, but I'm not so sure how this affected the guy selling you the loan.

Danzig · #7 08-16-2007, 06:09 PM

hmm...countrywide won't be doing loans over 400-some thousand dollars. are those the ones who default the most? the high dollar mcmansion buyers?? some people no doubt are 'house poor'--get ambitious, buy a huge house--and then can't even afford to furnish it.

Sightseek · #8 08-16-2007, 06:11 PM

Quote:

Originally Posted by Danzig

hmm...countrywide won't be doing loans over 400-some thousand dollars. are those the ones who default the most? the high dollar mcmansion buyers?? some people no doubt are 'house poor'--get ambitious, buy a huge house--and then can't even afford to furnish it.

This is completely a guess, but with the economy I have to think these are the harder homes to sell. Rental units will always do well, but I think a lot of buyers feel uneasy buying a home that high when they listen to the news...plus many of them have to sell before they can buy.

trifecta124 · #9 08-16-2007, 06:14 PM

Quote:

Originally Posted by Danzig

hmm...countrywide won't be doing loans over 400-some thousand dollars. are those the ones who default the most? the high dollar mcmansion buyers?? some people no doubt are 'house poor'--get ambitious, buy a huge house--and then can't even afford to furnish it.

This is something that I think most people knew would happen. I have been renting because I live in a market where it is very difficult for first time buyers to get involved. I won't buy until I know that I can comfortably afford it.

otisotisotis · #10 08-16-2007, 07:41 PM

Quote:

Originally Posted by Danzig

hmm...countrywide won't be doing loans over 400-some thousand dollars. are those the ones who default the most? the high dollar mcmansion buyers?? some people no doubt are 'house poor'--get ambitious, buy a huge house--and then can't even afford to furnish it.

i believe that is all the amount govt. agencies will insure.

Danzig · #11 08-16-2007, 05:49 PM

Quote:

Originally Posted by pgardn

If they already paid for your house (or sold the mortage to someone else), and you are paying them... should be no problems. I mean if the people who you bought your house from got their money... I would think you are in the clear?

I think its the people trying to buy, or a sale is pending that are getting popped cuz Countrywide is low on cash to finance. So the housing market just backs up cause no buying can occur. I think this is the problem... along with the after effects of this.

no, we've been in this house nine years....

tony and i want to buy about 100 acres, and now would be the time to do it...BUT, he's been off work, so....he's dying to get back, just a few more weeks hopefully.

as for investing--you need to look at long term, not short ups and downs. hard to make money chasing after a momentary or there-about change in the market.

Sightseek · #12 08-16-2007, 05:56 PM

It's kinda interesting what happened with AHM as we do business with them and as early as January or February they were closing offices.

http://articles.moneycentral.msn.com...AMeltdown.aspx

#13 08-16-2007, 06:04 PM

Quote:

Originally Posted by Sightseek

It's kinda interesting what happened with AHM as we do business with them and as early as January or February they were closing offices.

http://articles.moneycentral.msn.com...AMeltdown.aspx

That article brings in a very interesting phenomena that may be a regional issue. A 500,000 dollar mortage loan is very big where I live. The fact that these companies were not looking closely at the credit backgrounds just seems very ill-advised. I just dont get it. I thought the idea was to lure buyers that could pay their mortage...? I guess they thought they could just sell the mortage to other companies that were willing to take more risks?

Sightseek · #14 08-16-2007, 06:08 PM

Quote:

Originally Posted by pgardn

That article brings in a very interesting phenomena that may be a regional issue. A 500,000 dollar mortage loan is very big where I live. The fact that these companies were not looking closely at the credit backgrounds just seems very ill-advised. I just dont get it. I thought the idea was to lure buyers that could pay their mortage...? I guess they thought they could just sell the mortage to other companies that were willing to take more risks?

A lot of Mortgages are assigned right at the closing table, which is part of the problem now. These secondary lenders have been burned and now are tightening up their requirements.

It's insane how much the price of real estate varies in this country. When I lived in RI, you couldn't get a decent house that you would be willing to raise a family in for less than $290K+. When I lived in Kentucky, I lived with someone who had a 3 bedroom, 2 bath ranch on some land that was built to their desire for less than $90K. I think the housing prices in NY are extremely fair. You know things aren't looking good when Home Depot reports losses.

Danzig · #15 08-16-2007, 06:12 PM

Quote:

Originally Posted by Sightseek

A lot of Mortgages are assigned right at the closing table, which is part of the problem now. These secondary lenders have been burned and now are tightening up their requirements.

It's insane how much the price of real estate varies in this country. When I lived in RI, you couldn't get a decent house that you would be willing to raise a family in for less than $290K+. When I lived in Kentucky, I lived with someone who had a 3 bedroom, 2 bath ranch on some land that was built to their desire for less than $90K. I think the housing prices in NY are extremely fair. You know things aren't looking good when Home Depot reports losses.

you ought to see what a three bedroom, two bath house goes for here. it's all relative tho--wages down here for many is pathetically low. we bought our house for about 1/5th what we'd pay for it in maryland, where we used to live. it's funny tho, we both make far more here than we did there, and the cost of living is loooooow.
but i'm not complaining!!

#16 08-16-2007, 06:25 PM

Quote:

Originally Posted by Sightseek

It's insane how much the price of real estate varies in this country. When I lived in RI, you couldn't get a decent house that you would be willing to raise a family in for less than $290K+. When I lived in Kentucky, I lived with someone who had a 3 bedroom, 2 bath ranch on some land that was built to their desire for less than $90K. I think the housing prices in NY are extremely fair. You know things aren't looking good when Home Depot reports losses.

The house that I live in San Antonio in the same type of socio-economic area would go for 1/2 million in Dallas. Same state. It ridiculous. The house is valued at 145,000 in San Antonio.

So I guess like Z said. If you can get a nice paying job (which I dont), in an area where the cost of living is low and you like (which I do), everything works out nicely.

#17 08-16-2007, 05:58 PM

Quote:

Originally Posted by Danzig

no, we've been in this house nine years....

tony and i want to buy about 100 acres, and now would be the time to do it...BUT, he's been off work, so....he's dying to get back, just a few more weeks hopefully.

as for investing--you need to look at long term, not short ups and downs. hard to make money chasing after a momentary or there-about change in the market.

It worked before. But if I get burned so be it. The only time I ever sold off holdings in the stock market was to buy our house clear. So I am a long term guy that thinks he can bottom fish.

I will get my head slapped most likely. Live and learn.