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  • Another Housing-Market Collapse - ?!

    Team Obama is setting us up for another housing-market collapse

    The Obama administration is doing its best to give the nation another mortgage meltdown.
    As Paul Sperry recently noted in The Post, Team Obama has pushed mortgage lenders to offer home loans to folks with shaky credit, setting up conditions for another housing-market collapse.
    Wasn’t the last one bad enough?
    Credit scores of approved borrowers, for example, have been trending down, even as their debt levels have grown.
    The Federal Housing Administration and government-sponsored “independent” lenders Fannie Mae and Freddie Mac have been demanding lower credit standards — just as the feds did starting under President Bill Clinton, in pursuit of the same “affordable housing” goal.
    Some borrowers need only put 3 percent down to get a Fannie Mae loan — even if the downpayment is a gift. Fannie also has started up a new subprime-lending program.
    The Office of the Comptroller of the Currency recently warned that mortgage underwriting standards have slipped and now reflect “broad trends similar to those experienced from 2005 through 2007, before the most recent financial crisis.”
    When the economy and housing prices turn south again, a lot of these loans will go bad, just as they did last time.
    ...
    http://nypost.com/2016/04/09/team-ob...rket-collapse/
    TANSTAAFL = There Ain't No Such Thing As A Free Lunch

  • #2
    When did it ever recover? Houses that finally get sold around here are going for far below fair market value. Far more are being demolished due to their deteriorated condition. Even commercial property has sat vacant for years including entire strip malls in the better part of the county.

    The Solar Technology Park built with Obama Stimulus Money has only one manufacturer occupying a small corner in the 80 acre farm field subdivided into streets with curb and gutter and all utilities installed.
    “Breaking News,”

    “Something irrelevant in your life just happened and now we are going to blow it all out of proportion for days to keep you distracted from what's really going on.”

    Comment


    • #3
      It wasn't poor credit scores last time. It was allowing all those squirrelly mortgages like interest only, or ARMs, and zero down ones that got us in trouble. Those allowed people with some money to start speculating in a market they were really not capable of handling financially.

      The poor couldn't afford houses and still can't. Obama isn't going to a change that substantially any time soon. The whole "affordable housing" idea is really more Progressive wishing in one hand while the other fills up...

      Comment


      • #4
        Well, our county is doing very well. Lots of building, lot of Help Wanted signs out. We are at 4.5 unemployment. And they recently had a job fair out here where a company wanted to hire 200 people and they only had 20 or 30 show up.

        The thing that I would worry about is the Student loan thing. Kids are borrowing 50 thousand to 100,000 or more to go to school and those loans are being sold like the housing loans were pre-2008, with people consolidating them and selling them as investment vehicles. Go see the movie "The Big Short" to understand how this happens.
        Homo homini lupus

        Comment


        • #5
          Originally posted by SRV Ron View Post
          When did it ever recover? Houses that finally get sold around here are going for far below fair market value.
          If the home sold, that is the market value. It may have been lower than the perceived, replacement, or original value, but it is the current market value, nonetheless.
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          • #6
            http://www.bloomberg.com/research/ma..._57987_53458-1

            Just read an article in the St. Louis Post Dispatch a couple of days ago about how good our housing market is doing. A part of the article is in the above piece. We are supposedly in one of the best sellers' markets in the country right now. And they don't think its because the loan companies are pushing bad loans but that there is a pent up demand here.

            I sort of have a sense that we are having a business boom here.
            Homo homini lupus

            Comment


            • #7
              Originally posted by SRV Ron View Post
              When did it ever recover? Houses that finally get sold around here are going for far below fair market value. Far more are being demolished due to their deteriorated condition. Even commercial property has sat vacant for years including entire strip malls in the better part of the county.

              The Solar Technology Park built with Obama Stimulus Money has only one manufacturer occupying a small corner in the 80 acre farm field subdivided into streets with curb and gutter and all utilities installed.
              Tear it all down and make a pasture, a park, or a farm.
              “I do not wish to have the slave emancipated because I love him, but because I hate his master."
              --Salmon P. Chase

              Comment


              • #8
                Originally posted by Herman Hum View Post
                If the home sold, that is the market value. It may have been lower than the perceived, replacement, or original value, but it is the current market value, nonetheless.
                Not entirely true today.

                The way mortgages are set now with the "fix" Congress put (Frank-Dodd act, the pair that caused most of the problems to begin with...) in is that the general price / average price of homes in your immediate area are what your home is going to be worth in terms of what a mortgage company will loan to.
                Therefore, if you've done all sorts of home improvements, kept your house up well, then you are likely to take a hit on what you can get for your home. If on the other hand you did the minimum and your house isn't a wreck for flipping, you will end up with the average on a sale and come out ahead.

                Basically, the fix is a disincentive to upgrade or renovate an older home because you get nothing for doing it as lenders are stuck using the market average in your immediate area to set what they will lend to.

                Comment


                • #9
                  Originally posted by Savez View Post
                  Tear it all down and make a pasture, a park, or a farm.
                  The huge Fort Saginaw Mall, located next to a busy expressway, finally became an open field 4 years ago. A four story motel nearby has been abandoned. Several chain restaurants have been boarded up for years as well.

                  The Chinese now own the former GM Steering Gear where wages don't even meet what California wants the McDonald Workers to make.

                  In that area, homes are going for $5,000. That is, if they haven't been stripped of anything of salvage value.

                  Elsewhere, $250,000 homes are going for $125,000 and the average older home in good neighborhoods that used to sell for $125,000 for about $60,000. There are two older 3 bedroom homes down the road with an asking price of $38,000 still waiting for a buyer. Property value on the taxes dropped another $2,000 this year.

                  This view is the better West Side. Note the stats of this area. 20% unemployment, average income $28,000, Job growth last year -8.77%
                  http://www.homes.com/Home-Prices/MI/SAGINAW/
                  “Breaking News,”

                  “Something irrelevant in your life just happened and now we are going to blow it all out of proportion for days to keep you distracted from what's really going on.”

                  Comment


                  • #10
                    Originally posted by Jannie View Post
                    http://www.bloomberg.com/research/ma..._57987_53458-1

                    Just read an article in the St. Louis Post Dispatch a couple of days ago about how good our housing market is doing. A part of the article is in the above piece. We are supposedly in one of the best sellers' markets in the country right now. And they don't think its because the loan companies are pushing bad loans but that there is a pent up demand here.

                    I sort of have a sense that we are having a business boom here.
                    If correct, which I somewhat doubt this is a very regional market. It is better, but it is NOT one of the best.
                    My worst jump story:
                    My 13th jump was on the 13th day of the month, aircraft number 013.
                    As recorded on my DA Form 1307 Individual Jump Log.
                    No lie.

                    ~
                    "Everything looks all right. Have a good jump, eh."
                    -2 Commando Jumpmaster

                    Comment


                    • #11
                      The funny thing is Obama wants to take the drug and crime invested areas of Baltimore and other areas and integrate those people in low income and government subsidized housing into affluent neighborhoods. If the zoning department rejects this they get sued.

                      More crime and drugs coming to your doorstep.

                      http://www.foxnews.com/politics/2016...hborhoods.html
                      My worst jump story:
                      My 13th jump was on the 13th day of the month, aircraft number 013.
                      As recorded on my DA Form 1307 Individual Jump Log.
                      No lie.

                      ~
                      "Everything looks all right. Have a good jump, eh."
                      -2 Commando Jumpmaster

                      Comment


                      • #12
                        Originally posted by 101combatvet View Post
                        If correct, which I somewhat doubt this is a very regional market. It is better, but it is NOT one of the best.
                        This is a quote from the same article:

                        Affordability is a factor that put St. Louis on a top 10 list for 2016. In December, realtor.com ranked St. Louis second,behind Providence, R.I., as a top housing market to watch. Jonathan Smoke, realtor.com's chief economist, said some top markets -- San Diego and Boston -- are also among the priciest.

                        Some markets -- including Providence, New Orleans and St. Louis -- are experiencing real estate recoveries based on better economic conditions forecast for 2016, Smoke said.
                        All I know is what I read--if it's true or not is not for me to determine.
                        Homo homini lupus

                        Comment


                        • #13
                          SRV Ron: I saw that same sort of thing happen in Midland, TX when my son was a beginning Petroleum Engineer in the late '80s. The Oil prices collapsed so badly that development just came to a screeching halt. It is frightening to see malls stopped in mid building and you can see right through to the other side and weeds growing up in the insides of buildings.

                          One thing about it--he did not hang around waiting for things to get better, his company sent him overseas to work and he leaped at the opportunity. So did we as we loved visiting him over there.
                          Homo homini lupus

                          Comment


                          • #14
                            Originally posted by Jannie View Post
                            ...

                            The thing that I would worry about is the Student loan thing. Kids are borrowing 50 thousand to 100,000 or more to go to school and those loans are being sold like the housing loans were pre-2008, with people consolidating them and selling them as investment vehicles. Go see the movie "The Big Short" to understand how this happens.
                            Bingo.
                            THAT is the big one, and last I heard about 40% of the borrowers have no way to pay it back.
                            When that bubble bursts, there will be hell to pay. Obama might even get his chance to Nationalize the Banks this year.
                            "Why is the Rum gone?"

                            -Captain Jack

                            Comment


                            • #15
                              Originally posted by Jannie View Post
                              This is a quote from the same article:



                              All I know is what I read--if it's true or not is not for me to determine.
                              Don't know, but with all the unrest in St. Louis I would think that the smart people pulled pitch and got out of there. Maybe, those home owners that left have sold their homes for less than market value and those properties were bought up making it look all like a great market. Maybe great for some but poor for others which equals out to nothing.
                              My worst jump story:
                              My 13th jump was on the 13th day of the month, aircraft number 013.
                              As recorded on my DA Form 1307 Individual Jump Log.
                              No lie.

                              ~
                              "Everything looks all right. Have a good jump, eh."
                              -2 Commando Jumpmaster

                              Comment

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