Bye Bye Banks and Wall Street

[Morrigoon]

Originally Posted by €uroMeinke

I just want to have the opportunity to help the crisis out by buying back my mortgage for pennies on the dollar

Wouldn't THAT be nice!

[Ghoulish Delight]

Originally Posted by Tenigma

One issue people are running into now is that it's apparently much more difficult to get a mortgage loan.

Or the other way to look at it - you actually have to be able to afford a loan to get it.

[Morrigoon]

Originally Posted by BarTopDancer

I'm just hoping the market goes low enough I can afford to buy a house.

Where are you looking? Properties in my neighborhood have taken a major hit in value, but I don't know if Lake Forest is too far south for you. Consider buying between Thanksgiving and New Years for the best prices and negotiating ability.

[Alex]

Originally Posted by Ghoulish Delight

Or the other way to look at it - you actually have to be able to afford a loan to get it.

No, that isn't necessarily the other way to look at it. If the credit markets seize up sufficiently then it could easily get to the point that regardless of whether you can afford the mortgage there won't be anybody looking to lend. Or rather, the house will get cheaper but the debt servicing will get more expensive.

I don't know how far we'll go down that path and a lot depends on the nature and success of whatever bailout plan is eventually passed, but ultimately that is what they are seeking to avoid. Not so much individual corporate failures. That is the collateral damage.

[Ghoulish Delight]

Originally Posted by Alex

No, that isn't necessarily the other way to look at it. If the credit markets seize up sufficiently then it could easily get to the point that regardless of whether you can afford the mortgage there won't be anybody looking to lend. Or rather, the house will get cheaper but the debt servicing will get more expensive.

I don't know how far we'll go down that path and a lot depends on the nature and success of whatever bailout plan is eventually passed, but ultimately that is what they are seeking to avoid. Not so much individual corporate failures. That is the collateral damage.

Again, I agree that that needs to be avoided. But Morigoon is talking about people having a harder time now, which to me simply means they've stopped writing the blatantly bad loans for people who can't afford them.

[innerSpaceman]

Originally Posted by Ghoulish Delight

I just hope the dollar holds through the weekend so I can still afford the bottle of scotch whiskey my friend is going to courier to me from Scotland.

I hope it holds through the new year, so I can afford a pastrami sandwich in 2009.

[Alex]

Originally Posted by Ghoulish Delight

Again, I agree that that needs to be avoided. But Morigoon is talking about people having a harder time now, which to me simply means they've stopped writing the blatantly bad loans for people who can't afford them.

Yes, a lot of the questionable underwriting is flushing out of the system, but it is also true that solid borrowers are already finding it difficult (which generally just means more expensive) to get access to credit, in all kinds of areas not directly related to mortgages.

[Gemini Cricket]

Well, if we've learned anything from the movie Hope and Glory, bad times can be fun!

[BarTopDancer]

Originally Posted by Tenigma

One issue people are running into now is that it's apparently much more difficult to get a mortgage loan.

Yup. A minimum of 20% down and stellar credit to start with. It's even harder in SoCal since our market went so high.

Originally Posted by Morrigoon

Where are you looking? Properties in my neighborhood have taken a major hit in value, but I don't know if Lake Forest is too far south for you. Consider buying between Thanksgiving and New Years for the best prices and negotiating ability.

It's not done falling yet. I will be moving back to HB or FV but I won't be considering anything until next year winter which is when our company thinks it will be at the bottom, or close to. I work in the industry and have my friends and co-workers keeping an eye on the values of what I am looking for.

[Morrigoon]

Yeah, winter is good. And 20% does seem to be the minimum these days.