5 States Causing Most Of the Housing Problems?

[Kathianne]

Same will get most of the relief, while the rest of us pay for it?

http://www.nypost.com/seven/02212009/postopinion/opedcolumnists/the_foreclosure_five_156287.htm?&page=1


THE FORECLOSURE FIVE
By ALAN REYNOLDS

February 21, 2009 --
When President Obama discusses his $275 billion mortgage bailout, he talks as if it was a national problem, caused by a national decline in home prices. "We must stem the spread of foreclosures and falling home values for all Americans," he says. But there is no national market for homes and no national price for homes. Instead, most of the United States will pay for the folly of few.

The beneficiaries of taxpayer charity will be highly concentrated in just five states - California, Nevada, Arizona, Florida and Michigan. That is not because the subsidized homeowners are poor (Californians with $700,000 mortgages are not poor), but because they took on too much debt, often by refinancing in risky ways to "cash out" thousands more than the original loan. Nearly all subprime loans were for refinancing, not buying a home.

It turns out that the five states with by far the highest foreclosure rates have some things in common with each other, but very little in common with most other states...

[theHawk]

Arizona's real estate got so overpriced, I wanted to move back but it was way too expensive. I don't feel sorry for anyone who paid too much for any of those homes. I was smart enough to understand they were over-valued, why should my tax money go to help out those who weren't smart enough to figure out the obvious?

[crin63]

People here in California were going nuts over houses during the peak. You could not buy a house at the appraised value, the starting bids were $10-$20k over that. People were buying houses like it was get one now or never. The Chinese folks were buying with briefcases of cash from what I am told and would pay whatever was necessary to get a house they wanted. It was just crazy around here. For sale signs would go up and houses would sell within hours.

The home I just bought, sold for $215k more 2 years ago plus another $60k into remodeling it. I got it for 50% of what it had into it 2 years ago. There are many more stories like that in my area. The former owner wanted to stay until Obama became President hoping for a bailout.

Why should anyone else have to bail these people out. I don't blame the lenders I blame the people for being irresponsible.

[Kathianne]

People here in California were going nuts over houses during the peak. You could not buy a house at the appraised value, the starting bids were $10-$20k over that. People were buying houses like it was get one now or never. The Chinese folks were buying with briefcases of cash from what I am told and would pay whatever was necessary to get a house they wanted. It was just crazy around here. For sale signs would go up and houses would sell within hours.

The home I just bought, sold for $215k more 2 years ago plus another $60k into remodeling it. I got it for 50% of what it had into it 2 years ago. There are many more stories like that in my area. The former owner wanted to stay until Obama became President hoping for a bailout.

Why should anyone else have to bail these people out. I don't blame the lenders I blame the people for being irresponsible.

Exactly. The leftists are trying to say it's 'poor people being blamed', well it's not. I'm not saying there weren't folks that couldn't afford even a starter home, but most of the problem was people wanting an upper class lifestyle, with a middle or upper middle class income. They borrowed, with mortgages, sometimes 4 of them, betting against appraised value, no collateral. That was a bubble.

Look around your own area, where are the houses that are sitting on the market? The modest ones? Not here. It's the McMansions. My townhome area is still selling for the most part in a month or less. Why? Those that are lucky enough to sell their 'big home', want something affordable and sellable to wait out this mess.

It seems that many conservatives have reached a point where they feel they have no recourse but to act. It's being noticed more and more. Do we really think the administration will fail to pick up on the media's growing awareness? The real question is what will they do to counter it?

Columbia Conservative Examiner: Taxpayer revolt spreads as tea party goes national (http://www.examiner.com/x-3704-Columbia-Conservative-Examiner~y2009m2d22-Taxpayer-revolt-spreads-as-tea-party-goes-national)


Taxpayer revolt spreads as tea party goes national

February 22, 12:37 AM
by Anthony G. Martin, Columbia Conservative Examiner

The taxpayer revolt that began in Seattle as a protest against Barack Obama and his 1.2 trillion dollar pork package called a 'stimulus plan' has gone national. Now known as 'Tea Party U.S.A.,' the protests are now scheduled for dozens of cities across America, and YOU could plan one right here in Columbia, or anywhere else in South Carolina for that matter.

But first, let's get an update from Michelle Malkin, who has been following this grassroots movement since its beginning:

I’m happy to report on several new protest events now on the docket.

My friend Michael Patrick Leahy of Top Conservatives on Twitter and his crew are spearheading “simultaneous local tea parties around the country, beginning in Chicago, and including Washington DC, Fayetteville NC, San Diego CA, Omaha Nebraska, and dozens of other locations” for next Friday.

Be sure to click on Michelle's link for the full information.

More good news has surfaced as Adam Bitely at Net Right Nation has put together a 10-step 'how to' on organizing a 'Tea Party' in your area...even if you have never done anything like this before.

...

And the wonderful thing about Adam Bitely's primer on organizing tea parties is that he is offering full promotion of the event, including providing full press coverage, for any tea party held in the country. The good folk at Net Right Nation are doing this because they believe in the cause.

...

Rick Santelli Rant: The Chicago Tea Party Gains a Member - Capital Commerce (usnews.com) (http://www.usnews.com/blogs/capital-commerce/2009/02/21/rick-santelli-rant-the-chicago-tea-party.html)

Seems lots of folk don't want to bail out 'rich neighbors' that just couldn't settle for the bounty they had, but borrowed against THEIR futures.


Rick Santelli Rant: The Chicago Tea Party Gains a Member
February 21, 2009 07:00 PM ET | James Pethokoukis | Permanent Link | Print
Reader Pam Spears emails me:


Rick Santelli simply vented the frustration of millions of Americans who are working, continue to pay their bills and are very angry at being forced to reward the "Bad boys"(Wall street greed and homeowner greed) or the world comes to an end. Perhaps the focus should be on rewarding the prudent. The economy has slowed to a trickle because prudent people can't tell who's honest and who's isn't. That is as true of the bankers as it is of ordinary Americans. Everyday there's a new scandal in the news and so far the only accounting has been from the same senators and government entities that ignored the red flags in the past. Hardly a positive step forward.

In our household we stopped all discretionary purchases last September when Lehman failed. Our house value has tanked, and so have our 401k's. Those values are part of the larger issue out of our control and affecting the whole world. Our day to day household spending however, continues to be completely within our control.

Are we all poorer, absolutely! But it's time for the government to focus on calming and rewarding the people who continue to work to pay their credit cards and mortgages on time. Those are the customers that GM and Macy's and GE etc need to get the economy going. The paradox of thrift and velocity of money are real and needed to get the economy moving. However continuing to force banks to again loan to deadbeat borrowers and creating a huge stimulus that does not give every American an equal $$ amount only increases the angst and sends the economy deeper into the tank.

Thank you again Rick Santelli, I finally think the world heard what I've been feeling.

PS. This note applies to the rest of the world's governments also, reward good behavior.

Me: Remember the phrase "Work hard and play by the rules"?

A bit of a warning, as in, 'Be careful what you wish for': www.dcexaminer.com >> Tapscott's Copy Desk - Here's the real story behind the Tea Party Protests (http://www.dcexaminer.com/opinion/blogs/TapscottsCopyDesk/Heres-the-real-story-behind-the-Tea-Party-Protests-40049397.html)


...Did you know, for example, that the pre-arranged signal for the boarding of the three tea ships in Boston harbor was Samuel Adams announcing at a protest meeting in Fanueil Hall that "this meeting can do no more to save the country," and that planning for the event had been going on for weeks prior to that gathering?
And did you know that the price of tea would actually decrease under the parliamentary act that sparked the Boston Tea Party? Clarendon notes the significance of this key fact that is likely little known to American students today:


"At the same time, Parliament imposed a new tax on tea, but one that would be paid in London as a surcharge. The Americans would actually see lower prices on tea, but the tea they purchased would already come pre-taxed. Historian Benson Bobrick says it 'remains a noble feature of the whole confrontation that immediate economic interest did not determine [the colonists'] response.'

"And Americans didn't take the bribe of lower tea in exchange for accepting a revenue tax. In Philadelphia, ships bearing tea couldn't find anyone willing to lead the ships into harbor. In Charleston, South Carolina, the tea was off-loaded, but was stored in moldy warehouses where the product quickly rotted and became useless. In New York City, storms prevented the tea-laden ships from docking."

Would that such integrity and consistency of principle were routinely displayed by those in Congress who today claim to be friends of liberty.

[crin63]

Exactly. The leftists are trying to say it's 'poor people being blamed', well it's not. I'm not saying there weren't folks that couldn't afford even a starter home, but most of the problem was people wanting an upper class lifestyle, with a middle or upper middle class income. They borrowed, with mortgages, sometimes 4 of them, betting against appraised value, no collateral. That was a bubble.

Look around your own area, where are the houses that are sitting on the market? The modest ones? Not here. It's the McMansions. My townhome area is still selling for the most part in a month or less. Why? Those that are lucky enough to sell their 'big home', want something affordable and sellable to wait out this mess.

It seems that many conservatives have reached a point where they feel they have no recourse but to act. It's being noticed more and more. Do we really think the administration will fail to pick up on the media's growing awareness? The real question is what will they do to counter it?


I live in a Los Angeles suburb. We are considered a midrange area for Los Angeles. The home I bought is a 30 year old townhouse. Actual single family houses were going for much more. A 3 bedroom house in my city was in the $650K range at the peak. The big homes in the nicest part of town started at a million dollars. People were gambling that their home value would go up, they could re-fi or cut a fat hog 2 years later.

[Kathianne]

I live in a Los Angeles suburb. We are considered a midrange area for Los Angeles. The home I bought is a 30 year old townhouse. Actual single family houses were going for much more. A 3 bedroom house in my city was in the $650K range at the peak. The big homes in the nicest part of town started at a million dollars. People were gambling that their home value would go up, they could re-fi or cut a fat hog 2 years later.

Worse were those that bought 600k-1m homes, with little or no $ down. After a year or so, borrowed against appraised value, to add that $65k improvements or take a vacation. So when values went down? Walk away, no equity.

[crin63]

Worse were those that bought 600k-1m homes, with little or no $ down. After a year or so, borrowed against appraised value, to add that $65k improvements or take a vacation. So when values went down? Walk away, no equity.

I actually planned to rent the rest of my life because I couldn't afford a home at those prices. What good would it have done me to have bought a home and then struggle feed the family, keep them in clothes and pay the utilities. Call me old fashioned but I just live within my means.

Until I financed our vehicles 2 years ago I was debt free and treated worse than an illegal alien by banks because I had no credit. I financed the vehicles just to build credit because of how I was treated without it. I just got my first credit card in 25 years back a year ago. I only use it to build my credit so I can be treated like a citizen.

[Kathianne]

I actually planned to rent the rest of my life because I couldn't afford a home at those prices. What good would it have done me to have bought a home and then struggle feed the family, keep them in clothes and pay the utilities. Call me old fashioned but I just live within my means.

Until I financed our vehicles 2 years ago I was debt free and treated worse than an illegal alien by banks because I had no credit. I financed the vehicles just to build credit because of how I was treated without it. I just got my first credit card in 25 years back a year ago. I only use it to build my credit so I can be treated like a citizen.

Good job! Now you get to take care of the irresponsible and the poor. Kinda sucks.

[April15]

Worse were those that bought 600k-1m homes, with little or no $ down. After a year or so, borrowed against appraised value, to add that $65k improvements or take a vacation. So when values went down? Walk away, no equity.I can tell you that I was offered a no money down house with a $100,000 cash in my pocket deal. The cash was because the value appreciated so fast they were just doing me a equity payout in advance!
I didn't take it but it sure was hard to say no.

[Kathianne]

I can tell you that I was offered a no money down house with a $100,000 cash in my pocket deal. The cash was because the value appreciated so fast they were just doing me a equity payout in advance!
I didn't take it but it sure was hard to say no.

I understand. Good for you for realizing wasn't smart, though perhaps if you had 100k, you could have done it, no problem.

The problem was the skyrocketing values, were based on air. I've said before, I bought my townhome which is nice, but utilitarian for $130k in 1995. Put 30k down. After 8 years, was appraised at $289k. Does that sound right to you? Anyways, took out $15k equity line to paint and make repairs. Mostly paid off now. 2 years ago my unit was selling for $328k. Today it's selling in about 3 weeks for $189k-215k. Seems more than fair.

[Psychoblues]

I don't see the point of your argument, Kat. Are you thinking that those 5 states need to succeed or not?!?!?!?!?!??!?!?!

How 'bout a java?!?!?!?!????!?!?!?!???!

:beer::cheers2::beer:

Psychoblues

[Trigg]

Housing prices around here have not decreased that much only a few percentage points. But we didn't have the problem with the housing bubble and questionable mortgage practices like they had in Cali and the bigger cities.

My husband had a friend who was going to move out of Chicago because of the unreasonable prices on houses, it's nice to know they've become affordable once again.

[Yurt]

I actually planned to rent the rest of my life because I couldn't afford a home at those prices. What good would it have done me to have bought a home and then struggle feed the family, keep them in clothes and pay the utilities. Call me old fashioned but I just live within my means.

Until I financed our vehicles 2 years ago I was debt free and treated worse than an illegal alien by banks because I had no credit. I financed the vehicles just to build credit because of how I was treated without it. I just got my first credit card in 25 years back a year ago. I only use it to build my credit so I can be treated like a citizen.

how unpatriotic of you, how dare you live within your means and not expect the government to bail you out, how dare you think that you should not willingly give your hard earned money to others for their stupid mistakes, you don't know how to spend or save money, obama will take your money and do a better job than you with your money. :poke:

hail obama!

http://patdollard.com/wp-content/uploads/obama-nazi.jpg

[Kathianne]

I don't see the point of your argument, Kat. Are you thinking that those 5 states need to succeed or not?!?!?!?!?!??!?!?!

How 'bout a java?!?!?!?!????!?!?!?!???!

:beer::cheers2::beer:

Psychoblues

Somehow PB, I don't think those states have any intention of seceding, they obviously are not succeeding.