Foreclosure Alley - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

Hemi-Cuda · 10-03-2008, 06:30 PM

putting the economic crisis into images

pretty depressing stuff. it's like you can literally see the American Dream being thrown into the dumpster

missdpuck · 10-03-2008, 06:40 PM

I couldn't watch it all..it's too sad. It's toobad they can't find a way to make better use of what's left behind. that doesn't make sense at all.

MarchHare · 10-03-2008, 06:40 PM

The saddest part of the subprime mess is that even honest middle-class Americans were screwed by it. Many who weren't bad credit risks and continued to make their mortgage payments every month lost (or are losing) tens or hundreds of thousands because the home they purchased is now worth a fraction of what they paid for it.

I don't feel an ounce of sympathy for the greedy lenders who took such foolish risks. I don't feel an ounce of sympathy for the greedy borrowers who took out a mortgage that was way beyond their means. But I do feel a great amount of sympathy for people who, through absolutely no fault of their own, saw the value of their homes plummet because of the housing bubble created by the first two groups.

Hemi-Cuda · 10-03-2008, 06:47 PM

Quote:

Originally Posted by MarchHare

The saddest part of the subprime mess is that even honest middle-class Americans were screwed by it. Many who weren't bad credit risks and continued to make their mortgage payments every month lost (or are losing) tens or hundreds of thousands because the home they purchased is now worth a fraction of what they paid for it.

I don't feel an ounce of sympathy for the greedy lenders who took such foolish risks. I don't feel an ounce of sympathy for the greedy borrowers who took out a mortgage that was way beyond their means. But I do feel a great amount of sympathy for people who, through absolutely no fault of their own, saw the value of their homes plummet because of the housing bubble created by the first two groups.

like that one guy in the video with the big goatee. bought his house for $400,000 and now it's worth less than $200,000, and all from advice from his accountant to get tax breaks. that area is like the exact opposite of what happened in Calgary in the last few years, couldn't imagine living there and watching everything plummet around you

Phanuthier · 10-03-2008, 06:51 PM

I wonder if these guys are hiring?

missdpuck · 10-03-2008, 06:56 PM

In a way I have to agree with you about the borrowers, MarchHare. The real estate situation here in SoFl is much like the one in Cal....overrun by Mcmansions that were purchased by people who could barely afford them. But oh those Mcmansions are sooo"impressive". People thought I was nuts for buying my little house back in those days of easy credit. But I paid cash for mine...so who's sorry now? I hate seeing it happen to anyone though. Yes we must take responsibility for our actions but I still remember all those ads from the mortgage companies-they were on constantly. And in say 2005 if you saw some real estate you liked around here you pretty much had to put an offer in immediately because it would very likely be gone the next day,or the price would be pushed up higher by those fighting over it. And the mortgage companies knew how to play into this by offering approvals much more quickly than the banks,which led people to make oversights in their panic to get a house before the price went up even further. It was absolutely nuts. So yeah I am vry aggravated that my house is worth less than what I paid for it,but thank God I paid for it!!

Displaced Flames fan · 10-03-2008, 07:07 PM

I guess we got lucky.

We live in an area with low housing costs. Now, after the bubble, we are in one of the few areas in the country where home values have risen over the past few years.

We took out an ARM...but we were smart about it. It was a 5 year ARM with a 1% annual max adjustment that was fixed to the prime rate (through a slightly more complex formula). Our initial interest rate was 3.75%. Worst case scenario, we maxed the adjustment each year until the rate set at 8.75%. At the time we took out the loan, 2003, that wasn't a bad interest rate to end up with. As it turns out, we are locked in at 5.125% for the rest of the mortgage. Our interest rate actually went down 1% in the final adjustment period.

We made out pretty good. Now if only real estate prices in the Flathead would drop enough to make it affordable to move back home.

DementedReality · 10-03-2008, 07:16 PM

Quote:

Originally Posted by missdpuck

....but thank God I paid for it!!

why are you happy about that? your capital has taken a huge hit, wouldnt you be better off right now if you had rented and put your cash in the bank?

same cash now would buy you a nicee house, still paid for too.

no?

Displaced Flames fan · 10-03-2008, 07:26 PM

Quote:

Originally Posted by DementedReality

why are you happy about that? your capital has taken a huge hit, wouldnt you be better off right now if you had rented and put your cash in the bank?

same cash now would buy you a nicee house, still paid for too.

no?

If it's a long term investment, she'll likely make out just fine.

DementedReality · 10-03-2008, 07:38 PM

Quote:

Originally Posted by Displaced Flames fan

If it's a long term investment, she'll likely make out just fine.

sure ... doesnt mean i would be happy to have seen my actual 200k in cash or so worth 40% less.

maybe i see it differently.

missdpuck · 10-03-2008, 07:38 PM

Quote:

Originally Posted by DementedReality

why are you happy about that? your capital has taken a huge hit, wouldnt you be better off right now if you had rented and put your cash in the bank?

same cash now would buy you a nicee house, still paid for too.

no?

Well none of us were psychic ya know. All we saw were prices going up like there was no end. You know what they say about hindsight? In any case I haven't lost 200,000 or something. "Only" about 50,000. I live in an historic district in that all the houses are Old Florida houses --the newest houses that arent Mcmansions (those are 2 blocks away on the Intracoastal waterway) are late 60s houses. so actually I cant complain too much except for the fact that I would've liked to have left here this year but I wont because I just don't like losing money!!!

missdpuck · 10-03-2008, 07:46 PM

BTW the seller shaved a decent chunk off the asking price becuase I had cash and she ,well, just wanted outta here. Apparently the deal before mine fell through. My house is about 950 sq.ft. She hightailed it back to LaPorte,IN -her hometown- and bought a 2500 sq.ft. house for $165,000....a heckuvalot less than what I paid for my little bungalow (which I do actually love BTW)

DementedReality · 10-03-2008, 07:49 PM

ok ... glad it worked out for you ...

ken0042 · 10-03-2008, 07:52 PM

Thanks for posting that link, Hemi. Good to put some things into perspective.

V · 10-03-2008, 07:54 PM

Quote:

Originally Posted by DementedReality

sure ... doesnt mean i would be happy to have seen my actual 200k in cash or so worth 40% less.

maybe i see it differently.

I think that I'd be happy in that position. When everyone around you have gone bankrupt, I'd be more than happy owning a house when I don't have to worry about the bank coming knocking. Sure, I coulda done better, but I coulda done far, far worse.

It's a matter of perspective, I figure.

missdpuck · 10-03-2008, 07:55 PM

Quote:

Originally Posted by DementedReality

ok ... glad it worked out for you ...

Thanks. Can you imagine seeing your house's value go down 40%? Wow. I've looked at some of the houses around here that are for sale in this neighborhood now and I still think I got a prety good deal. The house was completely remodeled by the previous owner..impact windows and all. It's my little "fort".

Bend it like Bourgeois · 10-03-2008, 08:01 PM

Man thats nasty

missdpuck · 10-03-2008, 08:08 PM

Quote:

Originally Posted by ken0042

Thanks for posting that link, Hemi. Good to put some things into perspective.

Right poolboy! Be thankful for what you've got, and just keep going.

The Yen Man · 10-03-2008, 08:23 PM

Quote:

Originally Posted by V

I think that I'd be happy in that position. When everyone around you have gone bankrupt, I'd be more than happy owning a house when I don't have to worry about the bank coming knocking. Sure, I coulda done better, but I coulda done far, far worse.

It's a matter of perspective, I figure.

Right. If I were in her shoes, I'd be happy that I was able to dodge a bullet and not fall for the temptation of owning something that I couldn't afford.

Vulcan · 10-03-2008, 08:43 PM

Quote:

Originally Posted by Hemi-Cuda

like that one guy in the video with the big goatee. bought his house for $400,000 and now it's worth less than $200,000, and all from advice from his accountant to get tax breaks. that area is like the exact opposite of what happened in Calgary in the last few years, couldn't imagine living there and watching everything plummet around you

It happened to me in Calgary in the 80s. Construction stopped dead, I barely held on, lots just got up and moved back to wherever they came from. You could take over a mortgage for a dollar.