Did they really say this?

[Karl]

The real danger I see developing is the growing trend where even people who are current on thier mortgage are walking away from the house because they have negative equity that probably will not get back above water for years.

I recently listened to a presentation fron an economist from Japan talking about thier real estate bubble/crisis in the 90s, and he said as bad as it was, they did not have that problem because if you walk away from the house the bank can still come after you for what you owe.

Not so in the good 'ol USA! I didn't know this until you mentioned it on the forum a few months ago.

If that starts to happen in really significant numbers, then just about all the major banks will be insolvent and the govt will own all of them.

You are ready for Shady Pines!
You have forgotten that I made a post saying that in Port St Lucie, Florida some people are walking away from house they bought as the same model was down the street cheaper.

House that were sold for over $350,000 are now out there for $140,000 - $120,000 and persons with no hang-ups about leaving the keys on the dinning table are first purchasing the similar house at the lower price and then leaving the keys and those non-recourse higher loans behind.

Sure credit gets shot afterwards but...????

[Karl]

Karl you brave. After you same one claim there would be no drastic decline in Real Estate prices couple year ago.

You are another one for Shady Pines!

I would not have said that as I am on the frontlines and saw the market drying up. Besides I have been through real estate busts and booms before.

I for at least 4 years questioned how long the buying frenzy could last. Sure I never expected the sudden screeching halt! ...but just as the market shall return to a buoyant state one day...it shall be followed by another crash. The question is, "when"!

*Truth is I have never seen such a bust of this magnitude...but you must have forgotten about the "Resolution Trust" and "Savings and Loan Banks bust". I saw it and sold property in New York to investors that the Resolution Trust had in its portfolio.

I remember one property sold and renamed "Glenwood East Condominium" in Canarsie, Brooklyn that was bought for $200,000 and sold for over $1,000,000 by some Jewish boys within a matter of 12 months. They remodeled and sold the individual condos over that time. Using sod condos to service the initial loan and eventual pay-off pocketing their profits...leveraging gains into every increasing buying and rehabs.

When last I spoke with one of them (since I came to Florida) besides New York theey had spread to New Jersey and Florida.

[Islandman]

From my original post:

I didn't know this until you mentioned it on the forum a few months ago.

Thats the post I was referring to. Unfortunately the practice seems to be gaining momemtum as more people find themselves under water by tens of thousands of dollars.

[Willi]

3 magic words... produce the note!

[Karl]

From my original post:



Thats the post I was referring to. Unfortunately the practice seems to be gaining momemtum as more people find themselves under water by tens of thousands of dollars.

Re: That's the post
Accept apologies!, boss.
Still would not mind the company in Shady Pines!

Think about it! It makes financial sense! Even in some cases taking a larger or more comfortable property at today's market price and then leaving the current property may make financial sense.

[Karl]

3 magic words... produce the note!

Some people trying that track!
I do not know if it will work. I saw a lady on a TV chanel last night saying she is going down that road. Would love to hear the outcome of her story?

[Me]

Shady Pines? You same one in 2006 said there might be a slow down, but real estate value does not go down, it might stop and then start again.

[Karl]

Shady Pines? You same one in 2006 said there might be a slow down, but real estate value does not go down, it might stop and then start again.

Ohhh...sorry!
...but you took that out of context. It was a general comment on real estate including the truism that "there is a finite amount of real estate". It never 'grows'. Did I go on to say it then rebounds at a level higher level than its past level?
Yup! I did!

All real estate slumps are temporary. The graph shows an undulating line...with the peaks ever higher!

Totally different discussion that this thread.