Real Estate: What happens after the subprime meltdown?
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I am not that old or knowledgable about this. My hometown has always ahd real estate go up in value. At least so far.... SO these are my guesses or ideas
But usually this will bring the market down. Some people will get foreclosed forcing fire sales. Some banks will repossess and dump them. And subprime is getting harder to finance so less buyers....
Less Demand equals lower prices. This is bad for owners, good for buyers. But usually people want to sell and buy at the same time.
For mortgage companies it is not clear to me what this will do. It might help companies that do all prime mortages as their portfolio looks cleaner, easier to sell, and they might get more borrowers who wait a bit to get better credit or get a cosigner.
Any real estate or mortgage people want to chime in?
But usually this will bring the market down. Some people will get foreclosed forcing fire sales. Some banks will repossess and dump them. And subprime is getting harder to finance so less buyers....
Less Demand equals lower prices. This is bad for owners, good for buyers. But usually people want to sell and buy at the same time.
For mortgage companies it is not clear to me what this will do. It might help companies that do all prime mortages as their portfolio looks cleaner, easier to sell, and they might get more borrowers who wait a bit to get better credit or get a cosigner.
Any real estate or mortgage people want to chime in?
real estate seems pretty stable, just save your cash now. I heard the markets going to be down for a couple years, so save cash up and buy.
The big problem right now is that we are seeing inflation along with a slowing US economy, which makes it difficult for the fed to just drop interest rates. As for subprime, it appears mostly contained. Some companies are being forced to buy back bad loans. Others with big exposure, such as the two Bear Stearns funds, go under.
The other issue is the government's reactions. It appears they may be adding more restrictions on to borrowers, making it difficult for even some people with good or ok credit to get a mortgage. Residential real estate sales are down across the US and inventory is building up. The downturn is already here it just has not hit everyone equally, and some segments of the market may never even see it.
The other issue is the government's reactions. It appears they may be adding more restrictions on to borrowers, making it difficult for even some people with good or ok credit to get a mortgage. Residential real estate sales are down across the US and inventory is building up. The downturn is already here it just has not hit everyone equally, and some segments of the market may never even see it.
Another big problem are a lot of ARMs are adjusting in October, the largest ever. These people that were suckered in with low initial rates are going to get butt fucked soon. I'm almost all cash now, will probably look into some investments in a yr or two. Remember though, real estate is a local thing.
Jump....
Yeah what is this some kind of mortgage broker forum or what? I had a Subprime sandwhich for lunch, yuuuuummmmmmmm.......swiss cheese melt down baby
Yeah what is this some kind of mortgage broker forum or what? I had a Subprime sandwhich for lunch, yuuuuummmmmmmm.......swiss cheese melt down baby
If you have milions of dollars lying around no need to worry about mortages. and shit,. Just write a check for the amount of the house and you're set.
Yeah tie up all your liquid assets into real estate that is depreciating faster than ever in history. Watch your million turn to $750,000 in one year. :error:
Sorry guys I couldn't help myself. I'm trying to learn restraint............but it just eats at me to whore when we talk about mortgages and shit.
Sorry guys I couldn't help myself. I'm trying to learn restraint............but it just eats at me to whore when we talk about mortgages and shit.
Don't feed the troll, BYA. This is the same guy that has been banned over and over and over.
Youp don't know what you're talking about. Historically, real estate has been on of the most solid investment vehicles. Just look at the home prices in the bay area and New York to get an idea. Fortunes are made in real estate not by flipping like those infomerical dummies advocate but by holding on to property (especially coastal property) for a long time.
Property in midland america is declining so rapidly in the past few years cause there is too much space and not enough scarcity, especially in Arizona. Al these refab-prefab houses built between 2003-05 aren't worth shit anymore cause no much supply and not enough demand. Coastal, and suburban property is the most valuable.
Come on guys... just buy a house and/or move to a better country.... add this to all the other shit.... how many more reasons do ya need? 
Seriously... if you are looking to invest in property, the US seems to be about the worst place to do it at the mo.
Surprised property is depreciating there.. here although it's slowed down prices are still increasing (still above inflation as far at I'm aware).
Seriously... if you are looking to invest in property, the US seems to be about the worst place to do it at the mo.
Surprised property is depreciating there.. here although it's slowed down prices are still increasing (still above inflation as far at I'm aware).
Stanley, I wanted to address your original question since I am a whore and I am n this business. Yes, it will have a huge ripple affect. Not really with the prime lending guidelines but with the over all industry as a whole.
Most all the banks like Countrywide, Chase, Washington Mutuall, all at one time had subprime lending divisions and so now all of these loan are on their books. They are accountable for them and they will pay dearly over the next couple of years.
Now we are seeing ALT-A products go by the way side. Which are a step below prime and above subprime. These borrowers makes up a sinificant chuck of originated loans.
Soon all we will have is Prime and FHA for subprime. No more 2/28 and 3.27 loans. All fixed, no ARM's etc.
When you're taking 50 loan apps and no one qualifies and they are on their way to BK or foreclosure. ALL OF THEM! I would say we have a problem here.
50 x's $500,000 properties = 25 million just last week in my branch. Mutiply that across the country. They will take hits in to the tune of billions of dollars.
Most all the banks like Countrywide, Chase, Washington Mutuall, all at one time had subprime lending divisions and so now all of these loan are on their books. They are accountable for them and they will pay dearly over the next couple of years.
Now we are seeing ALT-A products go by the way side. Which are a step below prime and above subprime. These borrowers makes up a sinificant chuck of originated loans.
Soon all we will have is Prime and FHA for subprime. No more 2/28 and 3.27 loans. All fixed, no ARM's etc.
When you're taking 50 loan apps and no one qualifies and they are on their way to BK or foreclosure. ALL OF THEM! I would say we have a problem here.
50 x's $500,000 properties = 25 million just last week in my branch. Mutiply that across the country. They will take hits in to the tune of billions of dollars.
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Come on guys... just buy a house and/or move to a better country.... add this to all the other shit.... how many more reasons do ya need?
But doesnt the food suck in england? Thats what ive always heard. I heard that you guys eat bangers and mash all day.
and you call soccer, football. Thats just rediculous
But doesnt the food suck in england? Thats what ive always heard. I heard that you guys eat bangers and mash all day.
and you call soccer, football. Thats just rediculous
Yeah, compared to France, Italy, well most of Europe, Asia and South America yeah its sucks... but compared to the US....
Actually to be honest, I don't think I've tried any food natively from America... like everything else doesn't your food just rip off other cultures? (But bigger portions obviously
)As for football.. well, basketball uses baskets, baseball has bases, you use your hands in handball, so what would be the logical name for a game that mostly involves your feet? WTF does "soccer" mean anyway?
WTF does "soccer" mean anyway?
You use your socks. As in those girly little athletic socks soccer players pull up to complement their tiny little shorts. Hahaha.
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