(Closed) When do you guys think the housing market will return?

posted 9 years ago in Home
Post # 31
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2312 posts
Buzzing bee
  • Wedding: August 2011

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@PutABirdOnIt: 

Because in a short sell the bank can come after you for years to recoup what THEY lost on the short sell. It’s an option you take if you have no other options. We pay the mortgage even though it is inconvenient because it’s a contract that we signed and we’re not willing to risk our credit or worry for the next 20 years about the bank coming after us for the money they lost when we short sold the house. 

Post # 32
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2017 posts
Buzzing bee
  • Wedding: December 2010

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@ohheavenlyday: You can get them to release you of ALL future liability-we made them sign an agreement to that effect or we wouldn’t have gone through with the sale.  And even better, you won’t get taxed on the difference either.  Say you are $40,000 underwater, you used to have to pay tax on that amount even though you never saw a penny of “profit”.

Everything has changed recently.  Also, I researched the credit issue-it’s not that bad.  You do take a hit with a short sale but you can repair it within a year or so, providing you pay all your other bills on time. And it’s a myth that you can’t get loans or credit, even a house loan if you want it.  You will pay more interest of course, but you can still get credit if you want it. I’ve gotten so many credit card offers in the mail recently and my name wasn’t even on the loan:)

Really, it’s not as much of a headache as you might think. 

Post # 33
Member
605 posts
Busy bee
  • Wedding: August 2012

@ohheavenlyday: That’s if your state is a deficiency state…

Post # 34
Member
2546 posts
Sugar bee
  • Wedding: October 2011

Ok just to interrupt what is going on here for a second…

Can someone please explain to me, Wouldn’t it be better to buy now, since the market is so low? Better mortgage payments, interest, ect…. ?

Post # 35
Member
605 posts
Busy bee
  • Wedding: August 2012

@2ndtimeacharm: My realtor just told me about that: credit repairing in a yr, if bills are paid on time after a short sale.

I’m big on my credit score…even though I sometimes feel it doesn’t mean a thing

Post # 36
Member
4544 posts
Honey bee
  • Wedding: September 2010

It’s tough becaue I know even when DH and I went to get qualified for a loan, we were offered WAY more than we would be comfortable spending. Sure, we COULD do it, but that doesn’t mean that we SHOULD do it! I think a lot of first time home buyers get overwhelemed and feel like just because they qualified for XX, they should get a house that costs XX. We would have had no trouble getting financing for a house that cost double what ours costs. But down the road, we might have trouble making the payments. We decided to get a house based on what we were paying in rent because we knew we could pay it. We also didn’t want a house that was too big for us to take care of. As first time home-buyers we were overwhelemed enough without having to worry about taking care of a huge house. People need to educate themselves and not take out huge mortages that they can’t realistically afford to pay for. It like a credit card limit. Just because you might have a $20,000 limit, doesn’t mean you HAVE to spend $20,000 every month, or that you should.

As for when the market will bounce back, who knows if it will ever return to where it was. I asked our agent when we were looking for houses and she said she thought in the next two or three years or so it might start to look up. Right now, there’s just SO much supply aka so many houses on the market that there’s not enough demand for them all.

Post # 37
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515 posts
Busy bee
  • Wedding: September 2011 - Clark Gardens

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@Treasure43: We did the same thing as you guys 🙂

Post # 38
Member
605 posts
Busy bee
  • Wedding: August 2012

@Cash000: Some say that it’s a great time to buy with the rates so low, as well as prices. But, who’s to say that the value of homes won’t continue to drop? With more forclosures and short sales destined to happen more than likely they will.

The good news for homeowners that want to move…chances are with all of these foreclosures and short sales ppl are going to be forced to rent until their credit clears. Eventually it’s going to become a renters market so you may be able to buy something and rent your current home. But as we all know, renting is a gamble.

Post # 39
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2312 posts
Buzzing bee
  • Wedding: August 2011

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@Cash000: 

For some, it is a great time to buy. But it’s a little harder to get approved for a mortgage right now, and you have to have a downpayment in most cases, as opposed to how it was in the bubble, when you could get a mortgage with no downpayment and no proof that you could even really AFFORD the mortgage. It’s a good time to buy if you can get approved and have a downpayment and don’t think you’ll need to resell anytime soon. It’s just a bad time to be the seller.

Post # 40
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1927 posts
Buzzing bee

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@Mrs.KMM: 
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@coffeegal85:  Thank God for you two… I was starting to get a little scared that I was the only one who had the sense to be shocked by those comments…

I find it interesting that

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@PutABirdOnIt: hasn’t responded to either of you…

I’m sorry but it is NOT the banks fault that people aren’t responsible enough to calculate their payments and be sure they can afford to buy the house they are buying!!  It makes me CRAZY when people refuse to take responsibility for their own financial failures.  You can’t blame all your troubles on the big bad bank.

Post # 41
Member
2017 posts
Buzzing bee
  • Wedding: December 2010

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@HueysLuda:My husband was freaking out about that too until I talked him off the roof. lol  It can be repaired in no time.  If you think you want to buy a car or take out on some line of credit, do it before you list.  And then hopefully by the time you need a loan or credit again, you will be out of the woods. 

By The Way, I used to have a 750 credit score and I was very proud and protective of it too.  Now, it’s like, meh, I can fix it:)

Post # 42
Member
605 posts
Busy bee
  • Wedding: August 2012

@ohheavenlyday: Amen to that. I remember when every tom, dick, and harry was buying homes…big ones too, lol! One should def. make sure they go with what they can afford, based on all factors (i.e. bills, emergencies, etc.). Oh, and don’t let greedy realtors push you into something that isn’t in your budget. I’ve seen that too…

Post # 43
Member
1927 posts
Buzzing bee

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@Cash000:  You’re right… it is a great time to buy.  As long as you are planning to stay in the house for a decent amount of time (at least 5-10 years) and you have the ability to wait out the market.  If you want to buy a “starter” home and only be there for a few years… then now is a risky time to buy because no one really knows how long it will be before the market bounces back and you may be in trouble if you turn around the sell quickly.

 

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@ohheavenlyday: is absolutely correct when she says it is harder to get approved.  But honestly… you really shouldn’t be buying a house unless you have a significant down payment and steady income that more than supports your mortgage payment.  And it should be that way not matter what the market is doing.

Post # 44
Member
542 posts
Busy bee
  • Wedding: October 2011

To answer the OP, the market won’t rebound until these greedy people who bought houses they could not afford and lack personal responsibility (and integrity since they signed their name to a contract they are not honoring) do their damage. And, as more people walk away from homes because they believe they are the victims and should look out for #1, unfortunately this mentality spreads and others do the same.

I understand bad things happen, and I am in no way referring to those faced with long term unemployment, major illnesses or other unforeseen circumstances, but many of these people are just inconvenienced, and for that I have no sympathy.

Post # 44
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2394 posts
Buzzing bee
  • Wedding: April 2010

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@Mrs.KMM:  It may not be the fault of mortgage lenders that individuals bit off more than they could chew, but I do blame them for continuing a practice that they knew would eventually be harmful to the economy as a whole because it made them money.  Banks have an obligation not to, for want of a better term, pour napalm on the national financial system.  Just because you can offer a “liar loan” to a guy with no income, package his mortgage and sell it to Justice of the Peace Morgan doesn’t mean you should.  Personal responsibility goes both ways.

And some of those mortgage lenders did willfully deceive borrowers regarding the terms of their mortgages and the repayment obligations.  IndyMac, for example, lied to both borrowers and appraisers in order to generate as many mortgages as possible, which it then promptly securitized and sold for a profit.

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