Now they think housing bust will linger to mid 2009...

#26
#26
Now is the time to buy a house, so pleeeeease hire me Company X, so I can move back to Knoxville and buy one.
 
#27
#27
will a bunch of teaser loans resetting this year. i think the time to buy might not be here yet
 
#28
#28
I'm hoping to get a house sometime around the summer of 2009. Right now I guess I will just have to keep living in Pebble Beach. :cray:
 
#34
#34
oklavol said:
If they are not trying to make as much money as possible then why are they hiring all these illegals then? What's the incentive to hire them? The majority of illegals work in farming and building trades.
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I never said we arent trying to make as much money as possible. I said I wasnt filling my pockets with money as you implied. Most repudible builders dont hire illegals directly, because of workmans comp. issues. Most builders use sub contractors that have workmans comp. Now those subs might have illegals working for them, but that is not the builders problem. As builders we have to use a combination of the best sub and the best sub for the price. In the home building buisiness if you dont watch all your dollars there wont be any left for the builder when the sale is complete.
 
#35
#35
T-TownVol said:
But can you afford to play golf there?
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Homeowners association allows a couple of free ones a year :rock: My back yard overlooks the spanish bay golf course.

And yes.... there is a giant UT flag flying off the back fence for the pro-am!
 
#36
#36
Doesn't some of this have to do with people buying homes on an adjustable interest rate? People are putting house payments on their freakin credit cards. I was just talking to a friend the other day about how people live so above their means. He had a client who spent to the hill on designer clothes and when she passed away, she didn't have a penny to her name, she didn't care.
 
#37
#37
volsgal03 said:
Doesn't some of this have to do with people buying homes on an adjustable interest rate?
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Probably so, but ARMs aren't necessarily a bad thing. More than anything it's people making bad decisions. I know home values are dropping in some places, but for the most part it still takes a bona fide moron to get into a deal where you are upside down in a house while using a mortgage product that has a big rate adjustment or a balloon payment at the end.
 
#38
#38
ARM's should be against the law. It is a way for banks to prey on the uneducated home buyer. Just because a homebuyer is not educated about the finance business does not mean they should be sheared by a slick talking banker. If you cant afford your mortgage on a 15 year fixed then you cant afford the house. To bad that personal finance is not a manditory class in high school. It might help alot of this country's debt problems we have today. :banghead2:
 
#39
#39
**ORANGEBLOOD** said:
ARM's should be against the law. It is a way for banks to prey on the uneducated home buyer. Just because a homebuyer is not educated about the finance business does not mean they should be sheared by a slick talking banker. If you cant afford your mortgage on a 15 year fixed then you cant afford the house. To bad that personal finance is not a manditory class in high school. It might help alot of this country's debt problems we have today. :banghead2:
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ARMs clearly have a purpose and they do make sense. Protecting people against their own stupidity should be against the law.

I'd say that home ownership is the means to some form of wealth for the majority of Americans and the 30 year mortgage has made that reality for vast numbers who couldn't do 15 year. Why, as a small time homebuilder, would you want to limit the crowd. While you're setting standards, why don't we just move toward 50% down as the baseline.
 
#40
#40
**ORANGEBLOOD** said:
ARM's should be against the law. It is a way for banks to prey on the uneducated home buyer. Just because a homebuyer is not educated about the finance business does not mean they should be sheared by a slick talking banker. If you cant afford your mortgage on a 15 year fixed then you cant afford the house. To bad that personal finance is not a manditory class in high school. It might help alot of this country's debt problems we have today. :banghead2:
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That sounds well and good, but the 30 year mortgage is what has fueled the housing market for years. Plenty of 30 year and adjustable mortgages that make perfect sense. It's easy to blame the people selling the mortages, but let's not pretend that there wasn't a whole lot of financial denial that went into 90% of the subprime mortages out there.
 
#41
#41
BigPapaVol said:
Protecting people against their own stupidity should be against the law.
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The scramble among the candidates to propose quick fixes for the housing market is absolutely pathetic.

Hillary hit a new low today when she proposed a 90 day moratorium on foreclosures. That has to be the most idiotic thing I've ever heard.
 
#42
#42
GAVol said:
Hillary hit a new low today when she proposed a 90 day moratorium on foreclosures. That has to be the most idiotic thing I've ever heard.
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Protecting people against their own stupidity / laziness / ineptitude / lack of initiative is at the very root of the democratic party today. That isn't changing.
 
#43
#43
GAVol said:
Dave Ramsey would probably agree with you, but the 30 year mortgage is what has put most of America in their homes. Plenty of 30 year and adjustable mortgages that make perfect sense. I did a 5 year ARM on my last home because 1) I had plenty of equity, 2) I knew I'd be moving within 3-4 years. 3) The money was dirt cheap at 4% and I could take the savings on the payment and make it work for me elsewhere.
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The problem is, you are in the minority. In that you are educated enough to handle your arm. The fact is arm's were created by the banks to make them huge chunks of money. The bank will put up with one customer (you) who makes his arm work for him, while there are mass amounts of home owners going bankrupt solely because of these mortgages. It IS WITHOUT A DOUBT THE NUMBER ONE REASON FOR FORECLOSER IN AMERICA. This problem is massive, and could be discussed on pages and pages in this thread. I just feel that a product that causes so much financial distress in America (and always has) should be done away with. The average home buyer would do whatever it takes to get them in the home of their dreams. If that banker says " Why dont we try this for a year and see how it works?" Joe Homeowner is going to jump all over it. Homeowners for the most part never think about worse case scenarios, hense the arm's and all the foreclosers.

JMO

Dont mean to get on a soapbox here, this just happens to be my kinda topic.:)
 
#44
#44
**ORANGEBLOOD** said:
The problem is, you are in the minority. In that you are educated enough to handle your arm. The fact is arm's were created by the banks to make them huge chunks of money. The bank will put up with one customer (you) who makes his arm work for him, while there are mass amounts of home owners going bankrupt solely because of these mortgages. It IS WITHOUT A DOUBT THE NUMBER ONE REASON FOR FORECLOSER IN AMERICA. This problem is massive, and could be discussed on pages and pages in this thread. I just feel that a product that causes so much financial distress in America (and always has) should be done away with. The average home buyer would do whatever it takes to get them in the home of their dreams. If that banker says " Why dont we try this for a year and see how it works?" Joe Homeowner is going to jump all over it. Homeowners for the most part never think about worse case scenarios, hense the arm's and all the foreclosers.

JMO

Dont mean to get on a soapbox here, this just happens to be my kinda topic.:)
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people not making payments is the number one reason for foreclosures in America. ARMS were created to fill a need, as any new financial product that doesn't dies a very quick death. Market demand drove the product, not the bankers. Hell, the vast majority of the mortgages out there are sitting in CDO's held by the huge insurance co's and investment funds, not the banks.
 
#45
#45
How funny is it that a certain frontrunner in the Presidential campaign is one of the Keating 5 and is now weighing in on what to do to keep financial institutions solvent?
 
#46
#46
GAVol said:
How funny is it that a certain frontrunner in the Presidential campaign is one of the Keating 5 and is now weighing in on what to do to keep financial institutions solvent?
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I'm surprised it doesn't hurt him more or that anyone has even given John Glenn the time of day since then.

I'm afraid the financial mess is going to absolutely doom any R in the race, if the Bush team hasn't already done so. It's hard to measure the size of the anybody but Hillary vote, but the pending financial disaster won't help.
 
#47
#47
BigPapaVol said:
people not making payments is the number one reason for foreclosures in America. ARMS were created to fill a need, as any new financial product that doesn't dies a very quick death. Market demand drove the product, not the bankers. Hell, the vast majority of the mortgages out there are sitting in CDO's held by the huge insurance co's and investment funds, not the banks.
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Dont oversimplify, yes these people should be making their payments. They made a bad decision and are paying a hefty toll. Alot of smart, and not so smart people are caught up in this.
 
#48
#48
**ORANGEBLOOD** said:
Dont oversimplify, yes these people should be making their payments. They made a bad decision and are paying a hefty toll. Alot of smart, and not so smart people are caught up in this.
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how did I oversimplify? blaming the cigarette company for smokers getting cancer is effectively what you're arguing here. the smoker's bad decision was the problem. the borrower's bad decision caused the problem, not the financial product.

In fact, to imply that the vast majority of these borrowers were unaware is just intellectually dishonest. They knew, but their need to impress everyone else with their bigger, better house drove their decision making.
 
#49
#49
BigPapaVol said:
how did I oversimplify? blaming the cigarette company for smokers getting cancer is effectively what you're arguing here. the smoker's bad decision was the problem. the borrower's bad decision caused the problem, not the financial product.

In fact, to imply that the vast majority of these borrowers were unaware is just intellectually dishonest. They knew, but their need to impress everyone else with their bigger, better house drove their decision making.
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I agree with most of that. I do feel like a part of these borrowers are never given a worse case projection. Which helps tremendously in their decision making.
 
#50
#50
Listen, when i was 17 i knew not to get involved in any kind of loan that wasn't constant every month. Umbrella, balloon, etc loans are bull.
 
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