Both of us bloggers here at Eyeonmiami have been featured links on Patrick.net, a popular National internet site on the U.S. Housing Crash. The Nation is looking at Miami!
We believe that the massive foreclosures that Oscar Pedro Musibay reported in the Daily Business Review (linked here - see June 6th post) is just the tip of the iceberg, since we have 54,400 condo units still under construction.
Keep up with this issue or you may soon be asked to subsidize the “liar loans” of unqualified neighbors who had no business buying homes. We all stand to lose from mortgage scams, oops, I mean overly generous mortgage policies.
Do you have an example, you can briefly describe in the comments section, of friends or relatives that have bought in the last few years, that are in trouble now? Let’s see if any of you can top the story of my 85 year old aunt as outlined in my post Mortgage Lender Scum.
7 comments:
Don't want to top your story, but EVERYONE I know who has purchased in the last few years is unhappy and trying to figure out what the hell to do. And these are people with good jobs and good paychecks.
I'm still waiting it out: till prices are fair again or we're able to nap a good deal on a foreclosure, whichever comes first.
Count on it: the "figuring out what the hell to do" is going to result in an avalanche of homes on the market. Buyers in recent years who purchased on the premise that the value would go up (and cannot afford to carry mortgages if the value falls) comprise a very heavy percentage of the home owner markets.
The smarter home owners are wondering: do I sell now, or, do I hold until the markets bounce back.
What more and more people are realizing, is that the happy talk in the mainstream media is not going to bring the markets back.
Consumer confidence is sluggish, at best. The bears may not be out, yet. But you can hear them crashing through the underbrush, not far away!
The smart home owners, who cannot afford a falling market, are getting out now.
I'm glad you found Patrick.net, but also don't forget Ben's blog:
http://thehousingbubbleblog.com/.
Ben and the Folks at Patricks (surferX and HARM rock!)have kept me sane for the past several years.
Prior to that I thought there must be something terribly wrong with me-noone believed that there was a problem with the cost of housing.
It does make it a little hard to have any sympathy for the people that flipped me off when I tried to tell them not to buy those overpriced POS's or refinance and use their house as an ATM.
People compare this boom with the '29 land rush, but it will be different this time. WORSE. MUCH WORSE.
The difference with '29 is that people who gambled and lost will look to the government to bail them out.
Everyone's screaming about property taxes, but not a peep about buying a $500,000 home that used to go for less than half as much just 4 years ago.
When flaky mortgage schemes like interest only loans went from being on the margins of the real estate business to nearly a quarter of all new home loans, the handwriting was on the wall.
Agreed.
This housing bubble is such a tangled web of corruption.
Consisting of Appraisal fraud,Mortgage fraud, Realtor lies and building supply overpricing as well as developer price issues.
Of course having the President claim that every American should own a home was the crowning blow for me.
Hum, do ya think his Ameriquest campaign contributions had anything to do with that?
Oh yeah, and I forgot Alan Greenspam. What a dolt.
Wrapping all that up, if houses were priced according to actual fundamentals and reverted back to being shelter not investments, there would be no insurance issues etc.
Love the post but I question the "54,400 condo units." Isn't that number more like 22,000? Many if the proposed towers never broke ground so....
NOPE NOT CHANGING THE NUMBERS YET....
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