Tue 22 May 2007
“We’re not going to be able to help everybody.”
Categories: Housing Bubble , New Jersey Real Estate , Risky LendingFrom the Courier Post Online:
Home loan help stalls in N.J. Senate
An effort to have the state provide up to $500 million in loans to homeowners struggling to pay high-interest rate mortgages stalled Monday as proponents considered how to help the neediest borrowers.
Sen. Ronald L. Rice, D-Newark, tabled his own bill that would have authorized the loans. He said he wanted to reach an agreement with Gov. Jon S. Corzine’s administration on how the loans might be offered before voting on it in the Senate Community and Urban Affairs Committee.
The action came after Phyllis Salowe-Kaye, executive director for the consumer advocacy group New Jersey Citizen Action, testified that she feared Rice’s program could fail to help many borrowers in trouble. If the state officials consider credit scores before awarding loans, the neediest won’t be helped, she said.
Salowe-Kaye said many borrowers with weak credit have already missed mortgage payments and their credit ratings are already too low to refinance with banks or mortgage companies. Without a new home loan, they will face foreclosure and be out in the street, she said.
She said a $30 million “rescue” loan program already begun by the state Housing and Mortgage Finance Agency may assist mostly those who have a good chance of refinancing into a new loan anyway, she said.
“Who is this program going to help?” Salowe-Kaye asked. “I need help for people who are losing their homes now. A lot of these people can’t get a mortgage because of their credit. You have to help.”
…
Susan Bass Levin, commissioner of the state Department of Community Affairs, which oversees the foreclosure rescue program, said in an interview that any state-issued home loans must be given to credit-worthy borrowers so that investors will buy the bonds that finance those home loans.“This is a loan, and a loan has to be paid back,” Levin said. “We’re not going to be able to help everybody.”
Susan Bin Laden is hitting the nail on the head, but I don’t think she knows the full scope of this thing when the ARMs reset this year there will be a flood of foreclosures.
the whole bail out process reminds me of my daughters t-ball league where they give ALL the kids a trophy for playing. Everybody gets a house for trying
the skill level is also comparable. the kids don’t know the rules of the game so the Government is intervening and in t-ball the coach helps. at least in t-ball the kids eventually learn the game.
Only in NJ the original welfare state, and
it get worse. The taxpayer will get screwed again.
Why not just borrow the half a billion from the pensions? I’m sure those guys are salivating for sub-prime yields.
jb
“Salowe-Kaye said many borrowers…will…be out in the street.”
Is that NJ-speak for “be renters?”
What does she have against renting?
Foreclosed homeowners do have real problems trying to find rentals, as credit checks are usually required.
KL
I don’t understand the lack of focus on:
1) Getting these folks into jobs that provide a salary that can support a mortgage.
2) Getting them into housing they can afford (rental or purchase).
We are attempting to treat the symptoms while completely ignoring the cause.
jb
any state-issued home loans must be given to credit-worthy borrowers so that investors will buy the bonds that finance those home loans
The politicians have yet to learn anything about mortgage lending. Nobody is going to give these loans out to the people that most need them. It just doesn’t make business sense. If they were credit worthy, they wouldn’t be needing these loans.
Expect this thing to die on the planning table
Or are they just trying to buy votes?
jb
x,
What? You wouldn’t be interested in investing in ultra high risk debt at a lower than market rate yield?
My guess is that these would need to be backed by the full faith and credit of the New Jersey State Government in order to be marketable. What does that mean? Taxpayers on the hook..
jb
From yesterday’s article: In New Jersey, out of a total of about 5,000 homes per month that are currently counted in the foreclosure process, only 200 a month are actually being foreclosed on.
Did he mean 5000 every month getting added on or have total 5000 at present?
In the first case, the Inventory would go through roof in 1 year.
Or are they just trying to buy votes?
Back from my lobbying days in Washington, “Everything in Politics is about Vote Bank”.
I am sure all Large Lenders are after Immigration reform.
The only way any company would be interested in touching these loans would be if they had an ultra high yield plus a guarantee from the state. The high yield part will be the political third rail. Sure we can get these do-gooder politicians talking it up like they’re doing something about it but I’m sure the list of banks or finance companies lining up to get involved with this is very short. It’s total suicide and can only end badly. The govmint is just merely stalling the inevitable process of these people losing their current homes because they should have never been in them in the first place
These loans would be a new mortgage category - sub - sub prime. It doesn’t exist today and shouldn’t
I think the state should just provide a website to be like a match-making service for these people that can’t afford their current homes. They can take two separate homeowners and put them in one home where each pay half as much.
I will continue to maintain my position that these loans are a bailout for the lending industry, and not the borrower.
Why?
Because anyone facing foreclosure is going to take this option, whether or not they can actually afford it. There is no way these things can both carry a high enough yield to attract investors as well as be a bail-out option. These two attributes are mutually incompatible. These loans will most likely have rates higher than the loans being foreclosed.
Like I mentioned above, anyone facing foreclosure is going to take this loan. When they do, the original lender gets their balance paid in full, they get let off the hook completely.
The state, however, now becomes responsible for this lender. Irresponsible lender is off the hook, walks away scot-free, with principal in full. The state is now tasked with bearing the risk of this sub-subprime loan.
What happens when they begin to default on these new loans? A bailout of the bailout?
jb
I think the majority of the voting public realizes that these loans weren’t made to victims, just a small group of people with bad credit, no income, and not a lot of common sense. Spending millions to help them would actually hurt politicians because it would be perceived as a huge waste of money, on top of what’s already going on with the state finances.
JB,
#16
Excellent point. Your last two sentences should be sent to Corzine, et al.
look, these are the votes that corzine
paid for with his loans. blacks,and hispanics. it’s only fair that the
nj taxpayers bail them out. have you no
compassion.
The state will end up with a large stock of public housing. They’ll probably need to hire some new people to administer said housing. So it’s a win-win!
many of the loans will be to NJ’s gateway
cities. trenton,camden,elizabeth,N.Bruns.,Englewood,
jersey city, west ny, and more.
these are the future of NJ.
I’m reposting from yesterday’s thread, to see if anybody has any input. Does anybody have any feedback on Fanwood/Scotch Plains? The schools are good according to the NJMonthly, and I’ve noticed that houses there are 10% less expensive (cheap, my ass!) than Fair Lawn, which is the other place I’ve been considering. How would the commute be to lower Manhattan? Thanks.
pesche (21)-
You are the future of the white supremacy movement.
Does this guy make anyone else here want to puke?
“This is a loan, and a loan has to be paid back,” Levin said. “We’re not going to be able to help everybody.”
Sounds nice, but what you are really asking is for New Jersey taxpayers to take on a level credit risk that private industry won’t touch at all or won’t touch without big risk premiums.
The politicians have yet to learn anything about mortgage lending. Nobody is going to give these loans out to the people that most need them. It just doesn’t make business sense. If they were credit worthy, they wouldn’t be needing these loans.
These will be state bonds. Taxpayers will backed by the full faith and credit of NJ’s overburdened taxpayers. These bonds will ultimately be indistinguishable from any other state issued bond. As such, they will not offer a yield any higher than any other state bond. Of course, the way things are going in NJ, it won’t be long before state issued debt is subprime.
JB at 16 hits the nail on the head.
Bailouts are always about the industry and not the individual. By association, of course, the bailouts also help to maintain the artificially high price of housing keeping market forces from acting as they should and lowering the cost of housing as supply and demand equilibrium are set artificially.
Hey Renting, I meant to comment on you post yesterday about the in-law’s house but was real busy at work. Let me throw this out there..You don’t need to do it as a purchase at all. Have you and your wife added to the deed. Afterwards, you can do a cash-out refi and pay your parents off for the $300k. You will have the option of leaving the in-laws on as owners of the property or not. It’s totally legit. You would have to talk to a tax guy about the ramifications of each option
From an economist with 25+ yrs experience:
http://www.aei.org/publications/filter.all,pubID.26220/pub_detail.asp
Clotpoll, #23:
I always figured pesche is one of those crazy homeless guys from NYC who somehow managed to get access to a computer.
Most people in the subprime group put zero to five percent down on a house and got a teaser loan that resets in 1-5 years. These people have ZERO percent equity in their houses as these houses have fallen over five percent. Even worse many of these people took out home equities after putting nothing down so they had negative equity even when the housing market was hot. The holders of the mortgage papers are going to take the bath if defaults happen. Keeping these deadbeats in their houses justs protects the holders of the mortgage bonds that these deadbeats mortgages were securitized into. Out in AZ, there were plenty of deadbeats who bought condos in the desert with zero down and never paid a single mortgage payment on a no doc loan cause they knew it would take two years to get them out in the foreclosure process, are we to “save’ these people too. Remember in 1992 the government bailed out the S&Ls through the resolution trust company, but remember they helped the banks unload the foreclosed properties at auction, they never helped the deadbeats with neg am loans and zero down stay in their 200K coops that were now worth 100K.
Re: #27
Apologies, he is a banker, not an economist.
clot:
pesche is a neo-nazi racist, and he make me wonder how evolution left him to remain in such a crude state.
Orion/27, great link…
“I believe that in an ideal mortgage finance system, the loan originator should always maintain a significant credit risk poisition in the loand, which creates a superior alignment of incentives.”
Clotpoll - “Does this guy make anyone else here want to puke?”
You make me want to puke, does that count?
Clotpoll - “Does this guy make anyone else here want to puke?”
Clot,
You make me puke. I’m a REA but I’m not like them. I add value when I take your 6%..
I have a bunch of morons looking to buy your house…bla bla bla you make me sick…
You’re just like all the rest of REA…out to make a buck without having a real job.
The politicians are not the problem, it’s YOU the voters who vote this scum in!
Babytalk on Subprime Meltdown
http://www.paperdinero.com/BNN.aspx?id=142
Humorous babytalk segment on the subprime meltdown. Possibly the best indicator of why the U.S. housing market got into this predicament in the first place. Goo Goo Gaa Gaa!
Originally aired on: 4/10/2007 on CNN
Running Time: 6 minutes 26 seconds
Remember for a while there, it was easier to get a mortgage than rent. A friend of mine couldn’t get a rental because of his credit, but was able to get a mortgage to buy a place. He is still current on his payments.
JB #16,
If you run for office you have my vote.
Comedian Jokes about Subprime!
http://www.paperdinero.com/BNN.aspx?id=123
Comedian Jokes about Subprime!
Comedian Kathleen Madigan argues that lenders should not be bailed out by the government. The subprime slime may not have fully spilled over into the economy as of yet but it certainly has infected popular media.
Originally aired on: 3/27/2007 on CNN
Running Time: 1 minutes 33 seconds
=>Comedian Jokes about Subprime!
http://www.paperdinero.com/BNN.aspx?id=123
Comedian Jokes about Subprime!
Comedian Kathleen Madigan argues that lenders should not be bailed out by the government. The subprime slime may not have fully spilled over into the economy as of yet but it certainly has infected popular media.
Originally aired on: 3/27/2007 on CNN
Running Time: 1 minutes 33 seconds
Marito Says:
May 22nd, 2007 at 8:36 am
I’m reposting from yesterday’s thread, to see if anybody has any input. Does anybody have any feedback on Fanwood/Scotch Plains?
*****
Scotch Plains/Fanwood are decent towns. Commute to mid-town by NJ transit is about 55 minutes, with a change at Newark Penn. You could switch to the Path there for lower Manhattan. Maybe 20 minutes more?
The schools are acceptable, but probably shy of first-rate. At the high-school level you have the option of a magnet school, primarily for those interested in more concentration on math/science.
You can get more house for your money in these towns, although as you noted they aren’t at bargain levels. A diligent buyer might find a good buy. They have a good stock of Capes and Ranches if you like that style. Also expanded same, and their share of teardowns/new construction, which are dreadful.
Also, in Scotch Plains you don’t want to be too close to RT 22 or the western border with Plainfield.
Worth looking into if you’re interested.
I’m glad the state is coming to the rescue of subprime “owners” in trouble. Is there a program in the works to help prime buyers like me buy a house?
To number [22] Marito
I live in Scotch Plains. The area is beautiful and the schools are good. I rent there though. I am waiting to buy. Regardless, i take the freaking Garden State Parkway to Hackensack which is murder if i leave after 7am. I only have a 28 mile commute but i would assume yours is little more. My recommendation? If living in SP Leave EARLY or live in Fairlawn. You’ll at least save on gas, especially if you take the train. Although i would drive to Metropark or Fanwood from Scotch Plains and take the train into the city. Would save you wear and tear on the car and is cheaper than a months gas.
make money Says:
May 22nd, 2007 at 9:39 am
“…out to make a buck without having a real job…”
Make: I thought this was the title of your autobiography?
don’t forget you got to be the right
mix to get the rescue. and live in the
right town..
#42 twice: No you should be glad you do nto need this help, and be grateful for what you have. Do you deny these poor hapless victims the help they so desperately need.
So big deal you save and live within your means, not everybody can be like you, would not the world be such an incredibly dull and boring place?
Please do not begrudge these well deserving people who were duped into utilizing a bad loan, please do not let their American dream trurn into a nigtnmare
How can we do anything less? They can do it, we can help. (BARF)
chicagofinance,
Make: I thought this was the title of your autobiography?
I invest. I put my money where my mouth is. REA use other people’s credit and their hard earned money to make a commission. It’s not even close to being the same thing.
ChiFI, why do you feel a need to always defend Clot?
financial and insurance markets are finding the middle man useless and soon RE will wake up and structure a system to eliminate the middle man. Travel industries lead the way.
Unles you have a bachelors in RE, with a minor is economics you should not get 25K per transaction to be HOUSE TOUR GUIDE.
“This is the kitchen and to the right we have a the dining room. It’s a great time to buy. I have a contact that’s gonna get you approve for the mortgage. There are a bunch of offers so you should really offer around the asking price. Congrats you are now a homeowner.”
25K for this. And it’s not useless. Please.
you people are so shallow..no it’s not about buying votes or bailing out the kids who don’t know the game. it’s about saving the state.
what happens when credit is squeezed?
fremont gets bought…stock jumps 40%
http://www.msnbc.msn.com/id/18800010/
make doh,
let’s put things in perspective.
6% - 5% commission although ‘pukable’ is nothing close to what pesche is saying. Pesche makes me want to pull his guts out.
and I don’t always agree with what clot has to say.
marcopolo #50
I’m taking a wild guess here but I’m quessing that when credit gets squeezed, people will actually have to save money, build credit and wait before they purchase.
Bogota Savings offers a 30 year fixed rate mth for 6%, 5.875 if you have the payment taking out of a checking /savings account. Max LTV 80%,just who is putting down 20% today.
rent , yu have got the balls.
make money Says:
May 22nd, 2007 at 10:30 am
ChiFI, why do you feel a need to always defend Clot?
Printing-press: You cannot see the forest for the trees. I rail against hypocrisy. Think about that one. It just so happens that some people present their views in a consistent and logical manner, while others resort to opportunistic cheap shots.
#54 3B,
Mostly folks that have built equity on a first house and are buying a second. Don’t know many first time buyers with 20%.
These people need to be “helped” into an apartment — they can’t afford a house.
#58unrealtor: So you plan is to destroy their dream of home onership? Are we that cruel? (BARF)
I’ve got a rental property that I rented through rentalmania.com and I noticed that I was able to increase the rent by 5% between tenants with no difficulty in renting. They say that the rental market is also soft, but I don’t buy it. I had the property on the market for 3 days and it was re-rented!
Hey don’t make funny of realtors otherwise what would doctors/stockbroker wives do for a “living”. They have to say something at the country club.
Maybe I can be a “car broker”, you know when you put your used car in the paper I can show up and say now here are the wheels and here is the engine and it is a lovely shade of blue and when it sells you give me 6%, all I need are some good used mercedes and porsches!!!
Actually, when I buy houses I love bad brokers, like the one that I bought my house from who worked flat fee at 10K commission. She convinced the guy to take and offer 30 minutes into the open house as she was getting 10k and the quicker the sale the better!!! But of course he had her “expert’ opinion that was the best price!!!
gary -
i wasn’t asking what people “will have to do”.
i’m taking a wild guess here but if people just did what they were supposed to, we wouldn’t be where we are anyway
amazing article on car financing from WSJ:
When a $38,000 Car Costs $44,000
Repayment Periods on Auto Loans Are Getting Longer,
Leading Buyers to Pay More Than They Think; the Upside-Down Factor
By JONATHAN WELSH
With high gasoline prices drawing so much attention lately, the often harsher overall cost of auto financing is being ignored by consumers who are stretching loans on new cars to as long as nine years.
*********
Last year, about 29% of car buyers who traded in a vehicle to buy a new one owed more on their car loans than their cars were worth, compared with 20% five years earlier.
The problem has become more vexing as consumers increasingly view life’s expenses, from mobile-phone and cable-television bills to car payments and mortgages, in terms of monthly payments rather than total cost. Researchers say few car buyers, for example, know the actual full cost of their vehicles or stop to consider how much more expensive it is to take on a longer-term loan.
***********
The pattern among consumers to trade in their cars after about three years hasn’t changed for decades. But three-year car loans were the norm 30 years ago, when people began looking for a new car as soon as they paid off their current vehicle. Today, many people begin to think about new cars just halfway through the loan term.
*****************
“It’s the way people in the middle class live their lives,” says Julie Midkiff, a production director in Atlanta who three weeks ago bought a Honda CR-V using a five-year loan. “I hate the idea of having a loan for that long, but that’s what it took to fit my monthly budget.”
***************
Do not count on the American consumer to act rationally in the face of abundant credit
marcopolo #62,
I got ya. My response was sort of matter-of-fact, I apologize if it translated other than that. :)
Dead Real Estate Pool
I’m sure most of you are familiar with the Dirty Harry movie “The Dead Pool”, right? Why don’t we do something similar but with MLS listings? RE listings can be considered ‘dead’ after a certain amount of days on the market (counting re-listings). Another way would be by percentage of total price reductions. Just thinking out loud here :)
from the same article:
“The average transaction price keeps climbing at a faster rate than inflation as people covet expensive cars and purchase more extra-cost options. In 2006, the average price paid for a vehicle was $29,316, compared with $28,942 a year earlier and $19,773 in 1996, according to CNW Marketing Research in Bandon, Ore.”
*************
so an “average” car purchase is close to $30k (up close to 50% in 10 yrs!), and the average person trades in for a new one after 3 years. this is shocking to me
Q: How do they do it?
A: They don’t.
WSJ
When a $38,000 Car Costs $44,000
Repayment Periods on Auto Loans Are Getting Longer,
Leading Buyers to Pay More Than They Think; the Upside-Down Factor
By JONATHAN WELSH
With high gasoline prices drawing so much attention lately, the often harsher overall cost of auto financing is being ignored by consumers who are stretching loans on new cars to as long as nine years.
Low monthly payments and no-money-down deals have long been used to shore up car sales in a slumping market. But auto buyers who opt for longer loan terms are more likely to wind up owing more on their car loans than their cars are worth. Car dealers and banks say people in this position have negative equity, but the popular expression is that they are “upside down.” Last year, about 29% of car buyers who traded in a vehicle to buy a new one owed more on their car loans than their cars were worth, compared with 20% five years earlier.
The problem has become more vexing as consumers increasingly view life’s expenses, from mobile-phone and cable-television bills to car payments and mortgages, in terms of monthly payments rather than total cost. Researchers say few car buyers, for example, know the actual full cost of their vehicles or stop to consider how much more expensive it is to take on a longer-term loan.
Extending the average car loan to five years from three years costs the buyer more than $2,000 in interest, yet loan terms continue to grow. Average maturity of a car loan today is about 70 months, up from 62 last year. Driving the average higher are loans that stretch to seven, eight and even nine years. Longer-term loans typically bring with them higher interest rates, adding to the total cost of financing.
But as autos continue to depreciate rapidly and the length of the average car loan flirts with the six-year mark, more motorists are not only paying more for their vehicles, but are often winding up trading them in before they are paid off.
The pattern among consumers to trade in their cars after about three years hasn’t changed for decades. But three-year car loans were the norm 30 years ago, when people began looking for a new car as soon as they paid off their current vehicle. Today, many people begin to think about new cars just halfway through the loan term.
The trend reflects the development of consumer habits in a wide range of financial practices from credit- and debit-card use to home buying and investing. People are increasingly likely to buy expensive goods and services even when they can’t comfortably afford them, and use long-term loans or credit cards to reduce the size of payments while spreading them over longer periods.
[edit]
skep: I guess the same thing caught our eye concurrently
skep-tic,
Recently went to the car dealer. I need a family car now, the truck won’t do anymore. It was a casual visit, just looked at what was out there with no intention to buy right away.
First, the dealer asked how much I planned to put down. I said “seven”, without batting an eye, he writes down $700. I said “no, $7,000” & I’ll pay the taxes in cash. He looked surprised.
When we started talking prices, it was like we were speaking different languages. All he wanted to do was talk about monthly payments. When I told him I don’t care, I would rather talk about the total price, he seemed shocked. He didn’t know what to say. My wife jokingly said, we don’t want to pay over $250/month. No problem he said (we can put you in a 72 month loan).
No surprisingly, the couple next to us was negotiating a deal “(buyer) I can go $550 per month…(seller) best we can do it $600” etc.
Marito May 22nd, 2007 at 8:36 am -
Scotch Plains/Fanwood is nice. I have friends that live there. Their kids go to Catholic school but she’s thinking of sending them to public school shortly since they have more resources available. Scotch Plains HS rates very high. I know there’s some sketchy areas so be careful where you look, but overall I think it’s a very nice area. As for the commute, I think the best way to go is the bus - I don’t think the train goes direct. I would estimate the bus ride is about 45 minutes in the morning and a little more on the way back, since there’s more traffic in the evenings. Or you could drive to Jersey City and take the PATH. It’s worth checking out.
in the car business that ’s all they talk
about,(the monthly payment), that’s
what they are trained on. they make
more money on the finance , than on the car.
they know the iron is priced to high.
what’s wrong with a 7 year payment plan?
Make, not to rub this in, but how can you throw stones when you’re the guy who took his father’s money that was supposed to pay off your college loans (stole it?) and gambled it? Remember, you did not “invest” it. You gambled it.
For those who want a great deal, take a
ride on rt.46 in little ferry.
Car capital, they even have buy here pay here., for those who pay weekly.
perhaps the most amazing thing is how badly Americans are willing to goose themselves to drive new cars, and yet the Big 3 still can’t make a profit
Do not count on the American consumer to act rationally in the face of abundant credit
Just like with housing, the car buying situation is unsustainable as well. How many times can you trade in a car after 3 years, add the balance to the new loan and then make the new loan a longer term to keep the payments affordable? Either credit has to keep loosening (i.e. lower rates & longer terms) or you eventually need to “drive your way right side-up”. Probably not a big deal with a 5-year loan, but with a 9-year loan you could easily be stuck with a non-performing asset.
If you think the big three are hurting today, wait until we see a credit crunch.
The media with the numerous stories of the elderly or some improvised person losing their house is because of the loose underwriting in the subprime market. You don’t see any mention of the executive (pick a field) who HAD to live in place they couldn’t afford. Maybe its because you don’t feel sorry for someone who is about to lose their 4br, 3ba, two car garage house. I digress. Seeing those articles being blasted all over the media has forced politicians to do something about it….bailout bill, more industry regulation, etc. The larger diversified lenders tact in response is….the subprime market is 15% - 20% of the market and a small (~5%) amount of that population is in trouble. Its not really a big portion of the home owners out there. There are a lot of subprime borrowers who actually make their payments. Lenders are also tightening up their guidelines and getting rid of those products. In actuality, its entirely in response to the current mess but because investor’s stopped purchasing those risky products and the lenders were no longer making money.
Bottom line….any type of bailout is a feel good, I need some goodwill to get votes in the future plan….IMHO
Make, not to rub this in, but how can you throw stones when you’re the guy who took his father’s money that was supposed to pay off your college loans (stole it?) and gambled it? Remember, you did not “invest” it. You gambled it.
elaborate! since when is taking a chance with calculated risk and thorough understanding of the markets their futures and current conditions, supply and demand etc gambling.
Gambling is playing the odds, investing in a four floor building on Madison Ave when market conditions where all pointing to higher RE prices in the future. No capital gains, low interest rates, inflated stock markets, etc is NOT gambling.
I never thought that the ROI would have been that high, but that’s the whole pint of taking a chance unlimited income opportunity.
I’m not throwing stones at anyone in who is not throwing them first.
Interesting article on payday loans, buy here pay here car loans, etc…at 20%+ interest rates
Business Week Article …. The Proverty Business
http://www.businessweek.com/mediacenter/podcasts/cover_stories/covercast_05_10_07.htm
My brother got a S550 for $1200 a month lease from one of those websites that specialize in this and I went over to Ray and got one for 10K out of pocket and 1550 a month. I’m still furious about this.
for those of you who like to lease try assuming a lease first. It’s much cheaper.
Over the weekend I was looking at some houses in a neighboring subdivisions. One subdivision houses were built in the early 80s - large lots (on about .4 acre lots). There are no comparable comps on this subdiv because it’s relatively small.. less than 40houses in it. In the last 5 years there have been only 3 sales.
There are two on sale now (identical floor plans). Asking $570 each. One of them is FSBO (yea, same price). FSBO owner bought in 1988 for 310K (very high). The other house bought in 2000 for 500k (very high too).
The FSBO house has been on market for a year (both fisbo and w/ realtor, and planning to go with realtor soon). The other house owner has moved out and it’s been on the market for 6 months.
Nobody seems to be interested, and these are decent houses with upgrades.
There are some McMansions built in the early 90s just in the neighborhood - with similar sq.footage (but smaller lots) - tall ceilings, large bathrooms. These McMansions are actually selling at a decent pace in this tough market (avg DOM less than 3 months).
Are older model houses (smaller bathrooms/ low ceilings) out of style? I find them appealing (along with lower taxes and more energy efficient structure), but they are just not selling.
I may have success with a low ball in the older subdivision, but 10 yrs down the line if I have to sell (even if I loose on the dollar) will I be able to?
What’s appealing to me doesn’t seem to appeal to the other buyers :(
POST 78
Great Pod CAST!!!
Went to the fully-licensed hairstylist the other day, and kept hearing about cars that cost $500.
After a few times, it registered that this person thought about cars exclusively in terms of the monthly loan payment, and not purchase price.
RE: BusinessWeek article
With idiots perpetually renting furniture and televisions, they will forever remain in poverty:
http://www.rentacenter.com
“So you plan is to destroy their dream of home onership? Are we that cruel? (BARF)”
There’s a reason it is called the DREAM of home ownership rather than the goal of home ownership - because at some point in time they are going to have to wake up and smell the coffee.
RentL0rd #80:
I’ve been wondering the same thing. I also happen to like smaller, older homes that don’t seem to appeal to today’s buyer. Any chance if you are able to lowball one of these in this subdivision, given that the lot is generous, might it retain future value as a teardown?
You said there are already McMs in the area that are selling.
I’ve contemplated lowballing an older home that needs updating, doing the minimum I can get away with, and just live in the thing, if the lot and location are decent.
Have you thought about this?
not sure if this is the case any longer, but rent-to-own places like rent-a-center used to commonly employ dragnet clauses in their contracts so that everything you ever rented from them, even if you fully paid it off, would be cross-collateralized with whatever new item you rented. You had people getting entire homes of furniture that they had bought and paid for (well over market value) repossed because they missed a couple of payments on their latest rental.
Not sure how such a business survives now that everyone can get credit cards and purchase furniture with unsecured debt
#84 lisoosh I agree, I was being sarcastic. Those that have been prudent are being penalized, while those who have not are bing coddled.
Kind of like the prodical son story in the bible;I always had a problem with that one.
scotch plains/fanwood high school is ranked 64. i guess that’s good if you’re comparing to plainfield.
twice #85,
I’m talking about Central NJ, and these older houses actually are fully updated (except the bath rooms) - new tiles, new roof, new kitchen.
But I’m afraid that if I don’t change my taste to suite the mass appeal, I won’t be able to sell later. Tear down is not an option - they are nice houses with good construction. But I can’t change the lower ceilings and smaller bathrooms.
>>ChiFI, why do you feel a need to always defend Clot?
because it’s a clique. most of this board is.
>>I rail against hypocrisy
conflicted?
and talking to the FSBO owner of the older house - he bought for 310k in 1988 (when he could have bought a McM for less), I could sense buyer remorse.
He regrets not having bought a McM which have doubled in price while he is having a tough sell.
My brother got a S550 for $1200 a month lease from one of those websites that specialize in this and I went over to Ray and got one for 10K out of pocket and 1550 a month. I’m still furious about this.
for those of you who like to lease try assuming a lease first. It’s much cheaper.
Why furious? If you’re talking a car over $70k, the lease payments (vs. financing) are much cheaper, plus no down payment required.
If you plan on keeping the car more then 3 years (average lease) then you are better off financing. If you buy the car at the end of the lease, you may end up paying more interest then if you financed it. But then again, if you hated the car, you can just hand back the keys and walk away.
-Richie
>>My brother got a S550 for $1200 a month lease from one of those websites that specialize in this and I went over to Ray and got one for 10K out of pocket and 1550 a month. I’m still furious about this.
wrong socioeconomic spectrum.
Marito # 22
SP/FW have some very nice areas and homes. It can be a bit of a schlep to get someplace if you are trying to travel North or South of town as the Turnpike and Parkway require some driving to get to.
I think its an ideal spot for someone who needs to head E or W on 22 or 78, not as ideal if you are a NYC commuter.
Someone above mentioned you could drive to Metropark or Jersey City first and take trains/PATH from there. If you are up for that, then you have a much higher threshold for commuting pain than most. I would advise looking at homes near Route 22 if you need to get to Midtown because you can walk out to a bus and I advise checking into the parking situation at the Fanwood NJT train station if you want to work downtown (as you mentioned) because you can take the Raritan line into Newark Penn and switch to the PATH.
Generally a good community and good schools. I would like to move there myself but have ruled it out due to the difficulty of getting to midtown East (I am not a bus person and don’t like the housing stock near Route 22, tiny lots asking 500-600k). If I drove to work, I would move to SP in a minute.
The longer term loans means paying higher interest on a depreciating asset. Talk about a net worth killer.
The chances of being upside down are significantly higher the longer the loan term. If you want to buy another car before paying off the car, it means rolling the old loan into a new loan at the dealership. Dealers love this, since it means a bigger loan amount for them, and they can engineer the monthly payment based on your ‘maximum monthly outlay’. You can bet your a$$ they will lowball you for your trade-in. If you were not upside down, you can easily sell your car to a private party for much more.
It sure is fun to drive a nice car, but it should not be at price of its payments being more than 5-7% monthly income. Besides, what’s this strange fascination with impressing a stranger at a traffic light in your latest car, knowing that’s the last time you’ll ever see him or her?
The Mortgage Bankers Association (MBA) announced its Chairman, discussed the critical need to protect the availability of
subprime mortgage options in the U.S., especially for consumers with no credit — or those with a poor credit history. Such subprime loans have enabled millions of Americans to purchase homes, many of whom are the first in their family to be able to realize that dream… The almost 81 percent of subprime borrowers who are making timely payments are building a sound credit rating and helping strengthen the
communities in which they buy homes.
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/05-22-2007/0004593882&EDATE=
make money Says:
May 22nd, 2007 at 12:26 pm
calculated risk and thorough understanding of the markets their futures and current conditions, supply and demand etc gambling
Printing press: when you breach someone good faith and lie hoping not to get caught - sounds like a um…..what do you call it? oh yeah - a gamble.
Calculated risk? Do you even know how to calculate risk?
Richard Says:
May 22nd, 2007 at 1:53 pm
>>I rail against hypocrisy
conflicted?
Reech: I think you are a whimsical troll. How could I be conflicted? Also, you have a persecution complex, although you should. Please, don’t forget to pay your property taxes this quarter. Have a nice Memorial Day.
Not my words….
What is the only state with average gas prices below $3 a gallon? New Jersey. Ironically, it is the only state in the nation that requires full service at every gas pump. Yep. It’s a law. Some folks say it is just a way of boosting employment. Others say you need a properly trained technician to pump gas. Either way it is cheap gas (well, relatively cheaper, let’s say), and full service (well, my guys never check the oil or wash the windows, but it is still called full service). You can point to the proximity of all the refineries in New Jersey for an explanation. But that can’t explain all of it. You can probably take it as a sign that there are more shenanigans in gas pricing than the industry lets on.
One couple mapped out their retirement, but the plan hinged on being able to flip Florida real estate. Oops…time for Plan B.
http://money.cnn.com/2007/05/22/magazines/moneymag/retirement_interrupted.moneymag/index.htm?postversion=2007052212
My brother in Indiana called to tell me that gas went up 30 cents today. The cheap discount gas sells for $3.60 / gal. He tells me that there are gas lines with fights breaking out.
WOW one bright side to NJ Cheap gas. I’d rather pay more for gas than property taxes. Remember to vote out the trash on June 5th.
2008 Buyer Says:
May 22nd, 2007 at 2:43 pm
You can point to the proximity of all the refineries in New Jersey for an explanation. But that can’t explain all of it. You can probably take it as a sign that there are more shenanigans in gas pricing than the industry lets on.
2008: NJ has fewer and smaller gas taxes, which is stupid, but it explains the difference in price.
“NJ has fewer and smaller gas taxes, which is stupid”
Why is this so stupid? Do you feel that we need to pay more in taxes?
Rentlord,
If your concern is for the future, maybe with time the McMansions will be out of favor. Who knows?
What matters in terms of a re-sale - location and land.
There are so many of the same McM’s and center hall colonials all over NJ I think that some point, people will just get tired of them.
Where my relatives live, there’s an “old” part of town with houses that are so small they’re referred to as “bungalows.” I always assumed that in those days, houses were small because people didn’t have central heating.
But then I read something interesting online - that around the turn of the century, there was a popular revolt against the big Victorians, led by the Ladies’ Home Journal and other women’s magazines. Too much work to maintain them. The bungalow trend was part of that.
I’ve been tied up in meetings all day..
What is with the 10Y and the HB’ers?
jb
#85 I think MC M’s appeala re waning now, and I do not think peopel will be looking bad fondly on the McM era as a period of great archoteure etc.
To each his own, but me personally , I think McM’s and Hummers are jokish.
“wrong socioeconomic spectrum.”
Maybe not your spectrum, but again, you feel better assuming everyone here is poor as dirt. So please, continue to placate yourself in such a manner.
they should have around 2$ gas tax on every gallon. Thats the best thing that can happen to this state and for global warming. It will choke off all leisure driving and people may even get health benefits walking around. It will fix gov.s budget.
to buy a car, I did extensive research for a month, travelling from PA to Long Island. Finally found something on CList. A day after finalizing the deal, found a distress sale for 4000$ Corolla with just 57k miles. Bought as asking, having a great time now, not having to worry about gas prices(priceless), I can drive this car for another 100k ~ 6 years.
Thanks for all your thoughts on McM vs older homes.
The older homes I was talking about are almost all occupied by original owners, now mostly in their retirement days. In fact one realtor who owns a house in the subdivision said there was only one other family that has small kids (she said it with a very positive spin).
On the other hand, the McMs have kids playing around whenever you drive by, giving it a very lively feel.
I do think that most of these older homes will need to come to the market due to the natural attrition in life. It will be interesting to see how (other)buyers would behave in the future.
It’s also interesting that folks in the older homes seem to move less (stay put, raise families and retire) as opposed to the McMs where they appear to move at a constant pace (~ avg 5 - 10yrs anecdotally).
Post 388. “It will fix gov.s budget.”
Better yet how about cutting some of the FAT and reducing the overlap in government services. How about some real tax reform.
Typical NJ resident , just keep raising taxes.
Remember to vote on June 5th and get the slobs out of office
I wouldn’t mind a higher gas tax if the additional tax revenues were used to improve public transportation. I’m not talking about nicer buses, but alternatives that would make public transportation a feasable alternative to driving for those who live and work in-state.
If you don’t work in NYC, public transportation is barely an alternative. I’d wager a guess and say that for most state residents, public transporation isn’t even an option.
jb
From CNN/Money:
Speed of subprime bust surprises lenders
The subprime mortgage meltdown has been a shock to industry insiders, but now they say it’s hitting harder and faster than expected - even to those who predicted the crisis in the first place.
That was the message Monday from a panel of leading industry executives on the state of the mortgage lending industry at the Mortgage Bankers Association’s National Secondary Market Conference & Expo in New York.
…
Michael Marriott, a panelist and managing director for Credit Suisse, said, “Last October, I predicted the subprime market would collapse and many issuers would go out of business. But the violence and speed of the market sell-off surprised people.”
David Lowman, a panelist and chief executive of JPMorgan Chase & Co.’s global mortgage business, said, “35 percent of what once could be done, can no longer be done,” referring to mortgage loan products that have effectively been taken off the shelves.
And speaking separately from his Atlanta office, Duane LeGate, president of House Buyer Network, a specialist in short sales and foreclosure prevention, said one of the real estate agents he works with had six deals blow up within four days because, “The loan originator told him, ‘We’re not offering [these products] anymore.’”
…
Allen Hardester, director of business development for mortgage broker Guaranteed Rate, said many once-common subprime loans products are now almost impossible to find.
“Anything that smacks of no-income and no-documentation is history,” he said. “Anything above 85 percent to 90 percent loan-to-value, anything non-owner occupied, anything ludicrous as to value - like someone stepping up from a $1,000 a month payment to a $6,000 a month - is history.”
Jb or anyone,
I’ve seen the charts of all the subprime loans set to reset ARM in 2007 and Nov is the largets volume.
Can someone re-post that chart. Also from the trillion dollars that are scheduled to reset how many loans does this amount to.
Does anyone have a chart? For example:
from 250K-350K 10,000 homes
from 350-450 ????
I’m looking to see how many high end homes with a million+ mortgage are scheduled to reset?
Can anyone help?
JB I agree that we need better public transit, but please no more taxes.
Shares of Homebuilders Jump After Treasury Secretary Says Housing Slump Mostly Over
http://biz.yahoo.com/ap/070522/sector_glance_homebuilders.html?.v=2
The housing slump is over? So, there you have it kids, $450,000 gets you a starter home with $8,000 in taxes if you want to live in NJ. I guess you better buy now because they’ll only appreciate from here on out.
The mortgage market should begin to correct from its current situation by the middle of 2008, according to Angelo Mozilo, chairman and CEO of Countrywide Financial…“Probably by the middle of ’08, I doubt we’ll see a light at the end of the tunnel, but I think we’ll be hearing a whistle by then,” Mozilo said. “We have to [get through] this year and the first quarter of ’08, and I think it will settle down a bit.”
http://www.mortgagebankers.org/mbanewslink/issues/2007/05/22.asp#spot1
“Steve” (#60)
Do me a favor and use some other name for your spam- that one is taken.
(Of course, I’m sure I’m likely speaking to a bot, but just out of principle…)
#117 njbear: So Mr. Paulson says the housing slump is over, just like that.
Well thats good to know Hank, cause from where I and a lot of other people are sitting its just getting started.
Did Goldman call in a favor?
jb
>>Maybe not your spectrum
certainly not yours, i’ve seen your drivel.
they should have around 2$ gas tax on every gallon. Thats the best thing that can happen to this state and for global warming.
_____
MJ (#109),
That’s one way to do it. However, I’d rather see enforcement of substantive increases in CAFE standards.
Somehow, I think if the car industry was told, come h*ll or high water, they’d have to produce significant increases in fuel economy within a short timeframe, you’d see those ol’ R&D areas suddenly become pretty innovative.
Rentlord -
Count me in to the like older homes crowd.
I REALLY love 200 year olds, but they tend to require a lot of work.
However the ’70’s/’80’s houses you find around here are really nice, I like the more managable and homey size, the construction is pretty good and the developments tend to be mature - with full size shade trees. And they frequently have small shops nearby.
The McMansions are flimsy, the trees like sticks and they cost a fortune to heat and cool.
Definitely would choose an ’80’s in a nice comfy neighbourhood over a McM. in the middle of a field dotted with others any day.
>>Well thats good to know Hank, cause from where I and a lot of other people are sitting its just getting started.
sure i’ll listen to you over paulson who’s accomplishments read like a laundry list. he’s phenomenally sharp. i’ve met him a couple of times when i worked for bob hurst on a non-profit venture who was co-chairman of goldman at the time. the top floor of 85 broad is quite the place. oh but i digress i forgot i’m just a dumb troll.
“oh but i digress i forgot i’m just a dumb troll.”
Try to be positive you are not all that dumb.
they should have around 2$ gas tax on every gallon. Thats the best thing that can happen to this state and for global warming.
Please…no more of this NJ as the liberal martyr going it alone trying to save the world at the expense of its own economy & citizens. A $2 gas tax in NJ will just be another nail in this states coffin. It won’t help global warming and won’t reduce aggregate demand for gasoline. I can see the gas lines now…people getting their last $5 per gallon fill-ups as they hop on the Turnpike South on their way to resettling in North Carolina.
If you want a national gas tax, I might be willing to listen. This would reduce global warming & push down demand for gas, which all are good objectives.
We just can’t keep putting NJ at a competitive disadvantage to its neighbors.
“certainly not yours, i’ve seen your drivel.”
Spoken like one who has demonstrated here that he certainly knows drivel.
Reechard, face it - you come here to troll because your beliefs about the people here make you feel better. That’s just a fact. If you’re so happy in your life and your decisions, I just don’t see why you still bother to come here, since you think everyone here is stupid (and poor to boot).
http://www.politicsnj.com/governor-corzine-names-susan-bass-levin-deputy-director-port-authority-new-york-and-new-jersey-8647
#126 Ah Richard Buddy, the 22nd floor on 85 Broad is where the managing partners were domiciled, the 30th floor consisted of the executive dining room and a meeting room.
I should know, I worked there.
And as for Paulson, all the Goldman alumni know that he was and is no Rubin,Friedman, Corzine, Weinberg, or Whitehead.
He came out of Chicago, and his fame was slash and burn, something the real Goldman partners were loathe to do.
Anyhow the opinion of one man who says the housing slump is over, means absolutley nothing. He makes that statement based on what? His gut? Something you should know Ricahrd, anybody that makes a decesion based on what one man says is quite foolish to say the least, even if he was from GS&CO.
Even GS&CO made some very bad decesions over the years.
There are far more knowledgeable people out there that are actually in the real estate businesss that I would give far more credence to than Paulson. (Maybe it is over in Westfield, once the 200 plus listings are gone).
Perhaps he can ask the Chinese to stop sending us poisoned food and tooth paste; his time would be better spent in that endeavor
So Paulson says its over and Richard believes him, can we talk about Abbey Cohen, ah never mind.
Cheapest gas in the nation - full service
Why New Jersey, which requires all its service stations to be full service, is also the only state in the nation with gas prices under $3 a gallon.
http://money.cnn.com/2007/05/22/news/economy/full_service/index.htm?cnn=yes
JB or anyone,
I’ve seen the charts of all the subprime loans set to reset ARM in 2007 and Nov is the largets volume.
Can someone re-post that chart. Also from the trillion dollars that are scheduled to reset how many loans does this amount to.
Does anyone have a chart? For example:
from 250K-350K 10,000 homes
from 350-450 ????
I’m looking to see how many high end homes with a million+ mortgage are scheduled to reset?
Can anyone help?
Of course the housing bust is over…. he can’t say anything else.
what do Paulson & co. know about what affordability crisis first-time buyers are facing? Nothing…zilch. They have no concept of reality.
Talk up the dollar, talk up the RE bust…. eventually, the truth will be out.
#129 NJ Gal Richard comes here to troll, because he bought at the top of the market (and knows it)
He comes here, because as much as he likes to deny it, he knows that for the most part the informaion and feedback provided here is excellent;and it kills him that others refuse/d to drink the Kool-Aid.
Here is the CSFB arm reset graph:
http://njrereport.com/images/armresets.gif
Not only clueless but “waffler” as well.
Hell, just before you bought your home you were agreeing with Booyaa Bob.
Anonymous Says:
June 23rd, 2006 at 3:28 pm
The new motto from realtors: “MOTIVATED SELLERS, PRESENT ALL OFFERS.”
What a SHAM!
This is after they Piled on a 5-10% price increasde from PEAK 2005 House prices!
Tell’em NOOOTTING!
Starving realtors will be feuding with grubbing sellers.
Watch
BOOOOOOOOOOOOYAAAAAAAAA
Bob
Richard Says:
June 23rd, 2006 at 3:49 pm
“This is after they Piled on a 5-10% price increasde from PEAK 2005 House prices!
bob you’re absolutely right. i’m seeing this all over and it’s laughable. a few agents have been telling me they can’t even get anyone to look at the houses because the prices are so laughable when in reality the sellers will accept far less than original ask. sellers are stupid. they think i’ll ask real high so i can negotiate down the buyer will think they’re getting a great deal off list. doesn’t work on ‘retail price’ clothing it won’t work here + the comps show otherwise.
ames Bednar Says:
May 22nd, 2007 at 4:09 pm
I wouldn’t mind a higher gas tax if the additional tax revenues were used to improve public transportation. I’m not talking about nicer buses, but alternatives that would make public transportation a feasable alternative to driving for those who live and work in-state.
If you don’t work in NYC, public transportation is barely an alternative. I’d wager a guess and say that for most state residents, public transporation isn’t even an option……..
Jim just about every NJ County has it’s own transportation system which usually uses small buses. The problem is they do not go out of the counties so there is no overlap. I knew someone who lived in Bloomfield and wanted to commute into Morris County it took him over 1.5 hours where in a car it would be 40 minutes. In your case you are much like the rest of the people in the region where job centers have dispersed somewhat, forcing people to use a car because transit is just not an option. Clifton is served by NJ Transit and I would wager that so is your work place but I would think the convenience of having a car if you have to work late or if you just want to not burn up time with transfers and the like.
good grief. After a long day of stamping out disease and attempting to make the world a better place… I come here looking for a laugh (or atleast some good financial information) and maybe some education
Is *everyone* pissed off today????
sl
Jim,
That graph is telling but scary. I was under the impression that the total for resets was 1.3 Trillion this year. I saw the number bandied about last year, maybe it was due to bad data?
Instead of Buying a 200 year old house, buy a yacht and then light it on fire — same effect on your wallet.
There weren’t any building standards 200 years ago, so you’ll sometimes find a foundation consisting of logs sitting on dirt, electrical wiring that will keep you up at night, and not a hint of insulation anywhere in the building.
About 1930 or so, construction in the US was very quality-driven, and building standards began to fall into place. The same for 1940s homes, and later.
Once you hit the late 1950s, things go down hill. Today’s construction is the worst, but is often well-insulated, which is nice until the house starts to fall apart in 10-15 years.
.
“Somehow, I think if the car industry was told, come h*ll or high water”
there are already very fuel efficient cars in the market. However, the american consumer wouldnt buy them until forced to do so. I dont care about the lines people will have to wait in to fill the gas..they should do it on a 110F day, and get some taste of global warming.
That graph is telling but scary. I was under the impression that the total for resets was 1.3 Trillion this year
Keep in mind the graph is only “first time” resets, not subsequent resets.
jb
From Bloomberg:
New York Subpoenas First American Appraisal Unit
New York Attorney General Andrew Cuomo issued a subpoena to the real estate appraisal unit of First American Corp. in his investigation of whether mortgage brokers pressured appraisers to inflate property values.
First American’s eAppraiseIT LLC, which values up to 15,000 homes a year in New York, was asked for information about appraisals performed throughout the state, President Anthony Merlo Jr., said in an interview today.
Cuomo, who took office in January, is investigating New York real estate practices after focusing on the $85 billion student- loan industry. The attorney general has issued subpoenas to appraiser Mitchell, Maxwell & Jackson Inc. and broker Manhattan Mortgage Co., the companies said on May 18.
…
In a study last year by Richfield, Ohio-based October Research Corp., 90 percent of appraisers said they felt influenced to write bogus appraisals. Four years ago, that number was 55 percent. Seventy-one percent said mortgage brokers asked them to do it.
Hey, I was out for most of the day. Big thanks to twiceshy, joeycasz, Don Mattingly and Seneca who gave me feedback re: my post.
From MarketWatch:
Stiglitz tells Congress to cool it on China
Congress should resist the urge to slap protectionist measures on China because it will only make life more difficult for the domestic economy, Nobel Prize-winning economist Joseph Stiglitz of Columbia University said Tuesday.
…
Stiglitz said the U.S. and China are joined at the hip, protectionism would hurt both countries, and may hurt the U.S. more that China.
“We are in a mutual hostage situation, and China may hold the better cards,” Stiglitz said.
At the moment, China is using to money it receives from the sale of its products in the United States to make large purchases of Treasury bonds, holding down U.S. interest rates.
If Congress were to pass measures cutting off Chinese exports to the U.S., China could quickly reduce these purchases.
China could keep a high growth rate, but the U.S. “would have a very much of a problem financing our deficit,” Stiglitz said.
Stiglitz said the U.S. would be able to finance its deficit, but at higher interest rates.
“We could face a change in asset prices and a very big disturbance to the global economy,” Stiglitz said.
Watch interest rates being set by China and a fall in the price of houses as a result. May you live in interesting times.
US Hears Blunt Trade Warning From China
Chinese Official Warns U.S. Against Making Trade Disputes Political
http://biz.yahoo.com/ap/070522/us_china_trade.html?.v=17
“We should not easily blame the other side for our own domestic problems,” Wu said, speaking through an interpreter. “Confrontation does no good at all to problem-solving.”
Paulson is bullish on US dollar and housing LOL
http://www.google.com/search?hl=en&q=paulson+strong+dollar&btnG=Google+Search
“they should do it on a 110F day, and get some taste of global warming.”
Now your true colors are showing. Global warming prove it.
sl..O.K., babe, here. [I bought your mapping spiel hook, line and sinker and made an appt...that thing better not take more than an hour and 15 minutes.]
Topic: Embarrassing moment.
Category: Career
Big client meeting, suits. Dual language company. Signs dual language. After a long drive and big coffee, halfway into the first meeting, I need a break. Hit the ladies’ room, heels clicking.
Go into the stall. Relief.
Half-way through, I see size 12 wingtips walk past and out the door. Another pair come right in. I stop mid-stream and lift up my shoes. Scheisse. Do I finish? Flush. I panic and don’t finish. The receptionist sees me run out the door, and I say, “Wow, that was close, I almost went in there!”
Back in the meeting, one of the execs says, “Can you believe people who don’t wash their hands after they go to the bathroom?”
#141.
Love that post. Vindicates my caving to the wife’s love of homes with “charecter”.
“character”…
To paraphrase Jerry: Pat was sloppy
Chifi,Pat
Nice to know someone here has a sense of humor today. Also nice to find another Seinfeld fan.
” I told them ya did’nt and I laughed and I laughed.” (Elaine)
KL
Pat, #152
:-) thanks!! I needed that!
sl
homeowned (33)-
Please puke in your sleep (a la Hendrix).
make (34)-
Thanks for the affirmation. To be viewed with disdain by you is a confirmation I’m on the right track.
How’s that apartment building coming? Talk to your Dad today?
New Today! Paulson Now Sees “Major Housing Correction”
http://www.paperdinero.com/BNN.aspx?id=194
Excerpt features Treasury Secretary Henry Paulson discussing his assessment of the housing decline and his outlook for the future. Paulson suggests that the US has experienced a “major” housing correction that was inevitable after years of historic gains. “That correction has now been significant, we think it is near the bottom, it will take a while to work its way through the system.” Unfortunately, Paulson only reiterates the same guidance he offered last year prior to the housing market taking another major leg down.
Originally aired on: 5/21/2007 on New Hour
Running Time: 1 minutes 29 seconds
Skep, (63) . . .overall cost of auto financing is being ignored by consumers who are stretching loans on new cars to as long as nine years.
A 9-year car loan???? That is unreal. I wonder what a $25k honda accord would cost a person financing it for 9 years? Not only would you probably spend enough to have purchased a lexus, what happens to these people if the car gets totaled in year 7? Nothing from the insurance company and then you still owe on the car? Sounds great.
. . . The pattern among consumers to trade in their cars after about three years hasn’t changed for decades.
I guess this goes back to the difference between needs versus wants which has become blurry for a lot of people in recent years. Suze Orman once said it best, “if I can drive and keep a car for 10 years, so can you.” Personally, I like this approach. Pay off the car in a couple of years then keep it for another 8 and be car-payment free for that time. I’ve never understood leasing for this reason—you always have a payment. Though I can see that it allows people to drive expensive cars that they otherwise would not be able to afford.
unrealtor 141
A couple of years ago I looked in the crawl of a new construction, and for the first time saw particle board beams supporting the floors.
CARS
First of All NEVER buy a NEW or USED CAR from a DEALER - It is throwing Money down the toliet, Second Never Lease a car from a Dealer as you are throwing even more money down the toliet. Third NEVER TAKE A LOAN to buy a car. Instead set up auto monthly deduct in ING direct and make imaginary auto payments to yourself and keep the interest and when you get the total amount cash out and buy. If you want to lease do leasetrader or one of the web sites that let you assume someone elses lease at their lost. If you are buying pay someone $500 to take you to auction or look for a good private sale from a rich neighborhood where the car is garaged. If you want to flip cars you can get a car at auction for 3k to 6k off still under warranty and it will take 12-18 months to hit newspaper price and then flip it for same price and start over again. If you want the new car feel, buy a good quality used one and walk to the curb and throw 10K in the Sewer.
My friend buy a 18 month old car every 18 months and sells it at 36 when newspaper price hits his wholesale price and buys a new 18 month car. That way he is always under warranty is always driving a pretty new car and finally he is just rolling that first 20K he spent at auction again and again so for his entire life he will be in a pretty new car and never have to pay for a repair. By the way he is filthy rich and could buy new cars but that is why the rich stays rich.
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