Weekend Open Discussion – Part II

Posted on April 6, 2008 by grim

Now Open, Part II!

Prior weekend thread closed due to comment overflow.

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90 Responses to Weekend Open Discussion – Part II

  1. grim says:
    April 6, 2008 at 7:30 am

    From the AP:

    Drowning in debt, New Jersey struggles for economic answers

    Soaring property taxes. Mounting state debt. Mind-numbing deficits.

    That’s what New Jersey Gov. Jon S. Corzine’s fix-it list looked like when he took office two years ago , unwelcome housewarming gifts from past governors and lawmakers, Democratic and Republican alike.

    The Democratic governor can’t seem to make anyone happy as he tries to address these problems.

    He has increased property tax relief and is seeking major cuts in government spending, and still he can’t catch a break from residents still fuming over steep highway toll increases he pitched to get the state out of debt.
    …
    His annual budget address was met with dead silence from legislators, Democrats and Republicans alike, who aren’t happy with his moneysaving ideas. No legislator backed his toll increase plan and few have embraced his budget.

    Not that the governor is surprised by the cold reaction to his ideas.

    “I think we came into a situation where people are angry about government in general,” Corzine said. “We see an economy that, not just in New Jersey, but across the country, is very deeply troubled.”

    Most citizens don’t pretend to have a magic solution to the state’s financial mess. All they know is their cost of living is rising while the state and national economy is struggling.

    “The taxpayers of this state are screaming for help,” said Robert Karabinchak of Metuchen.

  2. grim says:
    April 6, 2008 at 7:31 am

    From the Star Ledger:

    Financial stress shows

    The burden of oversized mortgages and credit-card debt is proving to be overwhelming for an increasing number of consumers, as rising gas and food prices squeeze household incomes.

    That is showing up in bankruptcy filings that surged 22 percent for the first quarter of the year, as consumers crumbled under the financial strain of heavy debt, problem mortgages and rising prices for gasoline and food, according to figures released last week by the American Bankruptcy Institute.
    …
    Across the country, the number of consumers filing for bankruptcy rose to a staggering 228,335, surpassing the 187,361 filings during the same period last year. In New Jersey, there were 5,495 bankruptcies filed by individuals in the first three months of the year, up 17.5 percent, from 4,673 last year.

    In some cases, the situation is exacerbated by the loss of a job and the inability to borrow more money, according to bankruptcy attorneys. That could intensify as the job market worsens. The government reported Friday the economy lost 80,000 jobs in March.

    “Households are living on such thin budgets, there’s a vulnerability that middle-class families, in particular, are having to deal with more and more,” said Samuel Gerdano, executive director of the American Bankruptcy Institute. The institute relies on data collected by the National Bankruptcy Research Center.
    …
    Stuart Brecher, a bankruptcy attorney from Denville, said with banks clamping down on lending, businesses that have been struggling are likely to experience trouble as the economy worsens. “Especially for small- and medium-sized businesses, it’s going to be very, very tough,” he said.

    Some of the largest bankruptcy law firms in the state are bracing for the onslaught of filings. And they may be among the few businesses that stand to gain from a recession, often hiring more lawyers or acquiring smaller, specialized firms to help accommodate the surge of business.

    “The way the economy works, there’s a lag time. By the time, a business comes into our office, they’ve already been suffering,” said Steven Jurista, an attorney with Wasserman, Jurista & Stolz in Millburn. “We expect a significant increase in business during the next year.

  3. grim says:
    April 6, 2008 at 7:32 am

    From the Press of Atlantic City:

    Recession is here and now, regional statisticians say

    It’s official, as official as it’s going to get while it’s happening: The United States is in a recession, according to the Economic Cycle Research Institute.

    And southern New Jersey’s economic activity is receding, too, losing jobs and falling behind the rest of the state for the first time in years.

    ECRI, based in New York, made the recession call last week, based on its analysis of economic drivers such as housing, consumer and investor confidence, profits, inventory cycles and various aspects of money and credit.

    But didn’t Ben Bernanke, the Federal Reserve chairman, just say a few days ago that a recession was only possible?

    “Everybody and your mother knows it’s a recession, except for President Bush and Bernanke,” said Lakshman Achuthan, managing director of ECRI. “They know in private, but it’s their role to be cheerleaders for the economy.”
    …
    Atlantic and Cape May counties combined lost 200 nonfarm jobs in the past year, according to federal figures tracked by Richard Perniciaro, dean of administration at Atlantic Cape Community College and director of its Center for Regional and Business Research.

    That dropped the area behind the rest of the state, which managed 0.3 percent employment growth during the period despite losing lots of finance industry jobs, Perniciaro said.

    The region’s recession is clearer in the construction segment, he said, where building permits in the two-county market have fallen from 2,432 in 2005 to 1,070 last year, a level not seen since the last recession.

    The loss of jobs has been led by the area’s dominant casino industry, which shed 500 jobs in the past year, he said.

  4. Clotpoll says:
    April 6, 2008 at 7:34 am

    Mark (157, yesterday)-

    The deal Weichert offered you is a screw job. Incentivize the buyer side LESS…in a market starved of buyers?

    Yeah, that’s gonna work.

  5. grim says:
    April 6, 2008 at 7:34 am

    From the Star Ledger:

    What real estate slowdown

    Chain link fences are being stretched around cleared patches of land, and bright yellow construction vehicles rumble throughout town.

    After years of languishing, some of the long-anticipated building projects in Morristown are moving forward, spurred by recent hearing and approvals at municipal meetings.

    Near the train station, the long-planned transit village project, slated to bring more than 200 apartments near the train station, is well on its way.

    At the Green, work on the 250 units that help make up the town’s biggest redevelopment project, at the Epstein’s site, has progressed far enough that a local sales office is expected to open next month.

    And off South Street, developers have nearly completed the renovation of luxury condos at the Vail Mansion. All but four of 36 units have been sold.

    Despite the slow real estate market, developers are still interested in projects that would attract tenants.

    “Developers are recognizing it’s time to come back to the small cities with transportation,” said Morristown Mayor Donald Cresitello. “You are still having growth in New York, but it’s just a little cheaper to live here than there.”
    …
    Three other redevelopment projects are still inching toward construction. Developers for the Speedwell Avenue redevelopment continue to hold meetings with the redevelopment agency. The project, as envisioned, would bring an estimated 600 homes to Morristown.

    Plans for Spring Street, which will add 240 units to the town, are undergoing a revision to expand the redevelopment zone and lower the height of the proposed structures.

    A proposal for the mixed-used property for a firehouse and residential units on Lafayette Avenue, which would bring 100 units, are also undergoing review, with a new development company partnering with the original developer.

  6. Clotpoll says:
    April 6, 2008 at 7:37 am

    galgon (193, yesterday)-

    The owner did pick an offer to accept on that house, but the lender still has to approve the short sale. Also, the principals have yet to conclude attorney review. Until such time, the property is- at least technically- available.

  7. Clotpoll says:
    April 6, 2008 at 7:41 am

    Owe you a drink, Jayhawk.

    Glad I was at a charity event last night and didn’t have to watch the blow-by-blow. Painful.

  8. mark says:
    April 6, 2008 at 7:48 am

    clot:

    how about an offer?

    the 2 1/2/ each and 4 if the house sells it.
    and the 3 month listing?

  9. Clotpoll says:
    April 6, 2008 at 8:24 am

    mark (8)-

    That sounds a little more like it. However, I’d suggest giving the agent a 6-month listing, with an unconditional right to terminate the listing clause to protect you.

    Believe it or not, some agents see a 3-month listing, circle the date and wait for it to expire. They’d rather get the listing than try to sell it. An unconditional right to terminate clause is about as close as you can get to a guarantee of performance from an agent; a good, experienced agent should have no problem granting you one.

  10. Mikeinwaiting says:
    April 6, 2008 at 8:27 am

    Can anyone get info 2496545. I know this is a relist but as I remenber it was 199,000 a price increase now 249.

  11. stu says:
    April 6, 2008 at 8:27 am

    Clot,

    I picked Memphis in the finals of both of my March Madness pools. Whowah!

  13. Clotpoll says:
    April 6, 2008 at 8:34 am

    stu (11)-

    You…and my Mom.

    She sent me an e-mail @ 2 AM to rub it in some more.

    Memphis will go absolutely berserk if the Tigers win. Talk about a place where no team has ever won anything. My whole view of sports was tainted from an early age by seeing what Charlie Finley did when he came in and ran our ABA team into the ground. He’d just won the Series with the Oakland A’s, and he made the same “promise” to us…then, he proceeded to strip the team, sell off the talent and blame the fans when only 6,000 people would show up to watch five guys- who looked like Will Ferrell in that stupid basketball movie- get posterized on a nightly basis.

    Also, their yellow/green uni’s caused retinal damage if you looked directly at them.

  14. Clotpoll says:
    April 6, 2008 at 8:56 am

    Also no fun watching the current Grizzlies:

    1. Drive Jerry West out of his mind, then out of basketball.

    2. Follow successive 50-win seasons by getting swept out of the playoffs

    3. Hand the NBA title to the Lakers by giving them Gasol…in return for a couple of clipboards and some icy-hots.

    4. Actually entertain Christian Laettner as a potential owner. Of course, Laettner doesn’t have the money to pull it off. In Memphis, this kind of lack of capital is seen as a minor problem, as the new ownership group projects 21,000 people will show up every night to watch a 12-70 team.

  15. grim says:
    April 6, 2008 at 8:59 am

    Mike,

    Not a price increase, new seller. It was sold for $200k on 9/14/2007. Back on market on 3/10/2008.

  16. Frank says:
    April 6, 2008 at 8:59 am

    A lot of expired and new listings, but no sales this week. What a busy week for RE agents in NJ.

  17. jack says:
    April 6, 2008 at 9:11 am

    anybody been in the overpriced condo/townhomes in khov w.paterson.

    pricing really out of wack

  18. Mikeinwaiting says:
    April 6, 2008 at 9:12 am

    Grim My bad, when I saw it come off I thought it expired. They have got to be kidding.I have passed by didn’t see anything being fixed up.I didn’t move on it at 200.The inside needed alot of updating.I will check it out see if they did any work.
    Thanks.

  19. Steve says:
    April 6, 2008 at 9:33 am

    Mike,

    Alot of that going on. We saw an open house in Chatham at 146 Van Houten listed at 1.375 mil and another one at 20 Glenmere which was listed 1.349 and just reduced to 1.299. Both houses the owners paid less for. The Van Houten house the people did repaint the inside and put in recessed lighting in one room. The Glenmere house they put in a new kitchen from home depot with platic coated pressboard cabinets. Both realtors tried to tell my wife and I that home price in Chatham are continuing to increase due to the train line. I pointed out how many wall street jobs in chatham are being lost and she said this was the first she is hearing of this.

    Alot of Realtors are doing whatever they can to try and screw the current buyer. If you pay attention to a market you can see what is really going on. The current market in Chatham is horrible.

    There is a house on Edgehill which they are asking 1.099 for. It was sold for $729 several years back and the person relocated. Now the house sits vacant due to home owner relo. My realtor told me $600 to $700 K is fair market value. So we wait. By the way the 146 Van Houten is a reloaction as well ad the people have to be out by July the realtor told my wife.

  20. lookinforahouse says:
    April 6, 2008 at 9:50 am

    I have been looking for a good deal in West Freehold or West Jackson. Three times I have been outbid. it seems like any house in good condition on a cul de sac (which wer prefer) goes quickly. if any of you know of some please post them.

  21. BC Bob says:
    April 6, 2008 at 10:00 am

    Clot [13],

    What about Dunavant and the Showboats?

  22. BC Bob says:
    April 6, 2008 at 10:07 am

    Isn’t the whole charade another pets.com?

    “For many investors, the condo hotel may go down as the Pets.com of the real-estate bubble.”

    http://online.wsj.com/article/SB120735504829291471.html?mod=todays_us_money_and_investing

  24. njrebear says:
    April 6, 2008 at 10:15 am

    A number of members [Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates] of the Gulf Cooperation Council aim to introduce a single currency by 2010.

    http://www.marketwatch.com/news/story/some-gulf-council-members-aim/story.aspx?guid=%7B0ABE4020%2D83A7%2D463F%2D8C61%2D0A10B94E201E%7D&dist=hplatest

  26. scribe says:
    April 6, 2008 at 10:20 am

    Clot,

    I don’t get this one:

    Believe it or not, some agents see a 3-month listing, circle the date and wait for it to expire. They’d rather get the listing than try to sell it.

    ?????

  27. Diane says:
    April 6, 2008 at 11:08 am

    Can someone with MLS access, give me details on #2464666. Thank you.

  28. Shore Guy says:
    April 6, 2008 at 11:17 am

    # 24 Here is a plan that will work: save for a 20% or greater downpayment, don’t borrow more than 3x income, don’t have any other debt than one’s home (and if one has it, pay it off before buying a house), live within one’s means, have a 6-month to one-year emergency fund, don’t borrow using ARMs or mortgages that have balloon payments.

    That is MY plan.

  29. SS says:
    April 6, 2008 at 11:36 am

    Is it that they’d rather just get the listing or that they really don’t know how to sell it? How many agents jumped into the industry because of its relative ease to make a buck at the time? Personally I don’t think many agents even know how to sell…which is a solid argument for having an agent’s services optional to facilitate transactions. Buying/selling a house doesn’t need to be as difficult as what the industry has made it to be. It should be similar to buying a car or any other cap asset. For buyers – have an engineer come check the house for quality and make the decision to buy or not based on research. For sellers – pay for listing or post on a site like CL. For new construction – have a home “dealership”. I used the auto industry as an example here, understanding that business isn’t perfect, but I think their distribution and marketing methods work well.

    Not trying to offend the Realtors out there of course…just tired of the uneducated cheer leading out there (no references to anyone on this site – except for bi and re-101).

  30. BC Bob says:
    April 6, 2008 at 11:56 am

    Shore [27],

    I’m agree, with a twist. Borrow max 2X income.

  31. Sean says:
    April 6, 2008 at 12:12 pm

    re (24) tcm

    The Alt-A market totals $500 billion to $1 trillion and although default rates overall are still low, this stuff brought down Bear and Thornburg since nobody wants to hold the ALT-A paper. UBS just dumped 25 billion of it’s ALT-A portfolio, they sold it to PIMCO who is betting that it is worth something.

    So does this guy.

    http://www.nytimes.com/2008/03/29/business/yourmoney/29values.html?_r=1&scp=2&sq=alt-a&st=nyt&oref=login

    My opinion is once all the writedowns are finally taken or there is a government financed bailout we will finally have hit bottom, and the media will start to have good news instead of all bad news.

    Trying to time the bottom is a tough thing to do, but with the banks hands tied (few buyers of the junk paper) and in my humble opinion little chance for a bailout until February 2009, things are only going to continue to get worse with more write downs and foreclosures until then.

  35. John says:
    April 6, 2008 at 1:37 pm

    Condo hotel is for suckers. Back in the boom boom late 1980’s Gourneys Inn at on Montaulk point long island was the first high end property to do it. They were supposed to rent your coop out at full price to hotel guests and credit versus your maint. and the surplus would come flying your way. Well guess what they would rent it and not tell you and pocket the money well the owners when they got found paid a fine for fruad and declared bankruptcy to get out of paying everyone back then jacked the maint and came out of bankruptcy. The same owners/managers own the place and still have the nerve to this day sell timeshares that they will “rent out” for you. I never trusted the concept.

  36. Mikeinwaiting says:
    April 6, 2008 at 1:45 pm

    33 Going for that beach look, pretty scary.

  37. jmacdaddio says:
    April 6, 2008 at 2:00 pm

    A blow-by-blow description of Schering-Plough’s troubles this week:

    http://www.nj.com/starledger/stories/index.ssf?/base/news-13/1207460166225860.xml&coll=1&thispage=1

    It seems that every week now another pillar of American business bites the dust.

    My favorite bit from the article was about how innovation at big pharma is now about the business model and not the science. Very true.

  38. Richie says:
    April 6, 2008 at 2:04 pm

    Those countertops are stylish. Who needs granite?

    R

  39. galgon says:
    April 6, 2008 at 2:31 pm

    I am no fan of bailouts but our distinguished congressmen seem h3ll bent on making one. Here are my thoughts on a compromise bailout that may satisfy all sides.

    *The house must be owner occupied, no vacation or investment homes allowed.
    *The house is appraised by and independent party for current market value.
    *The homeowner then must qualify for a Full Doc. 30 mortgage at say the going market rate + .5 from Fannie or Freddie (Credit Score should have no weighting in this process since their credit is probably cr@p at this point).
    *If indeed the homeowner is able to qualify, the Loan is issued and the current mortgage holder takes the loss on the property. *The mortgage holder will be entitled to any gains up to their inflation increased loss (minus the appraised market value of any substantial home improvements) at the time of sale.
    *The sale price of the house must be approved by the lender at the time of sale. (To stop people from selling the house for $1 to a relative and allowing the relative to recognize those gains).
    *If the homeowner is unable to qualify for the Full Doc. loan there is nothing that the government can do.
    *The transaction would be booked like a short sale or foreclosure such that the homeowners credit would take the usual hit.
    *No other loans may be taken against the property unless the lender is able to be fully repaid for their losses.

    The above laid out plan would essentially allow homeowners to purchase the property from the lender in a short sale or foreclosure just like anyone else can. The loan would be like any other one that Fannie and Freddie are currently making so there is little additional downside risk for the government. This would save communities from having empty houses sitting around for months and would allow the lenders to potentially make back some of their losses if prices increase over the period of ownership.

    Would anyone else here agree to a plan similar to this one or is any help from the government a horrible thing?

  40. Fiddy Cents on the Dollar says:
    April 6, 2008 at 3:05 pm

    Gaigon :38

    I like your plan’s requirements for eligibility. Believe it or not it’s very similar to what Barney Frank is proposing. The Wall Street Journal had a nice summary of the situation last week.

    I think the one flaw in your plan is the requirement for Full Doc.

    That’s going to eliminate a lot of applicants.

  41. House Hunter says:
    April 6, 2008 at 3:50 pm

    this looks great http://www.drinkingisbelieving.com/
    I haven’t read through it yet, but the title is too funny!

  42. njrebear says:
    April 6, 2008 at 3:50 pm

    Fiddy,
    So give out option ARMs again?

  43. lostinny says:
    April 6, 2008 at 3:53 pm

    at say the going market rate + .5 from Fannie or Freddie

    I think this will also eliminate a lot of applications.

  44. 3b says:
    April 6, 2008 at 4:02 pm

    #38 gal: But what does this do to the value of real esate going forward?

    How could a potential buyer make any determination as to what the true, or fair market value of a house is going forward.

    It reeks of market distortion to me, and could have the effect of lowering prices even more than they normally should correct to.

  45. Fiddy Cents on the Dollar says:
    April 6, 2008 at 4:02 pm

    Quite the opposite.

    No Doc? No Loan.

    These are precisely the folks that are better off renting. These are the same folks who will tell you with a straight face, “We didn’t understand what we were signing!”

    “We didn’t know that choosing the minimum payment option would add money to our principle. Nobody ever explained it to us!”

  46. Mikeinwaiting says:
    April 6, 2008 at 4:39 pm

    3b 42 It reeks of market distortion to me, and could have the effect of lowering prices even more than they normally should correct to.
    I was thinking it might keep our crazy sellers heads up their a**.You know the gov is bailing all out so prices are ok where they are. I hope you are right because this bailout in some shape or form is coming.Later rather than sooner would be better.

  47. t c m says:
    April 6, 2008 at 5:02 pm

    i have a niece who will be looking for an apt. in hoboken.

    she could take a studio or 1br.

    does anyone have any advice on the best way to find one?

    are there more condo’s avail. to rent now, since they’ve built so many? should she go directly to the buildings themselves? or does anyone have a good realtor they like? or any particular website?

    also, what do you think the price range would be for a decent area?

  48. Village says:
    April 6, 2008 at 5:13 pm

    tcm 46- i’ve been looking the past couple of weeks in Hoboken. There is loads of availability …month free rent offered. Owners following up with calls and emails. It is a tennant’s market. Just go straight to the building or through Craigs list, no need to pay Brokers fee.

  49. grim says:
    April 6, 2008 at 5:27 pm

    Just put our 8 week old boxer puppy to sleep…

  50. Shore Guy says:
    April 6, 2008 at 5:40 pm

    Grim,

    That is a sad thing to have to do. Sorry to hear about it.

  51. lostinny says:
    April 6, 2008 at 5:47 pm

    Grim
    What happened? I’m so sorry. Email me if you need anything.

  52. t c m says:
    April 6, 2008 at 5:48 pm

    #47 – village

    thanks – good to hear

    with regard to going straight to the bldg., if she’s not in the area right now, but wants to contact them, is there any site that you know of that lists the apt. buildings/complexes?

  53. ronan says:
    April 6, 2008 at 5:49 pm

    “chicagofinance Says:
    June 2nd, 2006 at 4:39 pm
    JM or anyone:

    If anyone could provide me with HTB closes for 2006 after February 1st – unit and price. I will be eternally grateful!

    Seriously, I would offer some kind of barter!!!!”

    Chi,

    This one is from January 2008.

    1500 Washington St Apt 2L
    Hoboken NJ 07030
    $787,990

    In exchange, please comment on this price’s relationship to insider pricing Bob Toll offered to HTB renters.

  54. 3b says:
    April 6, 2008 at 5:50 pm

    #45 mike: I was thinking it might keep our crazy sellers heads up their a**.

    I hope not, but eeven if it does, it willnot stop me form bidding accordingly, taken into account the market distortion.

  55. 3b says:
    April 6, 2008 at 5:50 pm

    #48 grim; Sorry to hear that.

  56. chicagofinance says:
    April 6, 2008 at 6:03 pm

    Microsoft’s Letter to Yahoo
    April 5, 2008 2:30 p.m.
    Below, the letter Microsoft Corp. sent Saturday to the Yahoo Inc. Board of Directors.

    Board of Directors
    Yahoo! Inc.
    701 First Avenue
    Sunnyvale, CA 94089

    Dear Members of the Board:

    It has now been more than two months since we made our proposal to acquire Yahoo! at a 62% premium to its closing price on January 31, 2008, the day prior to our announcement. Our goal in making such a generous offer was to create the basis for a speedy and ultimately friendly transaction. Despite this, the pace of the last two months has been anything but speedy.

    While there has been some limited interaction between management of our two companies, there has been no meaningful negotiation to conclude an agreement. We understand that you have been meeting to consider and assess your alternatives, including alternative transactions with others in the industry, but we’ve seen no indication that you have authorized Yahoo! management to negotiate with Microsoft. This is despite the fact that our proposal is the only alternative put forward that offers your shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.

    During these two months of inactivity, the Internet has continued to march on, while the public equity markets and overall economic conditions have weakened considerably, both in general and for other Internet-focused companies in particular. At the same time, public indicators suggest that Yahoo!’s search and page view shares have declined. Finally, you have adopted new plans at the company that have made any change of control more costly.

    By any fair measure, the large premium we offered in January is even more significant today. We believe that the majority of your shareholders share this assessment, even after reviewing your public disclosures relating to your future prospects.

    Given these developments, we believe now is the time for our respective companies to authorize teams to sit down and negotiate a definitive agreement on a combination of our companies that will deliver superior value to our respective shareholders, creating a more efficient and competitive company that will provide greater value and service to our customers. If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo! board. The substantial premium reflected in our initial proposal anticipated a friendly transaction with you. If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal.

    It is unfortunate that by choosing not to enter into substantive negotiations with us, you have failed to give due consideration to a transaction that has tremendous benefits for Yahoo!’s shareholders and employees. We think it is critically important not to let this window of opportunity pass.

    Sincerely yours,

    Steven A. Ballmer
    Chief Executive Officer
    Microsoft Corporation

  57. njcoast says:
    April 6, 2008 at 6:08 pm

    Grim-sorry for your loss.

  58. galgon says:
    April 6, 2008 at 6:08 pm

    Fiddy and Lost:

    Of course the Full Doc and the market rate +.5 is going to disqualify a lot of people. That is the point. There are people who thought they were making the right decision to buy a house. They were told they could easily refinance in 2 years when their ARM reset and would have no problems. Now they cannot afford their house or refinance due to the credit crunch and price declines. They are in over their head but with a little help they should be OK.

    The other end is the people who knowingly bought way over their head assuming prices would continue to skyrocket and they would be seen as real estate geniuses. They would need an enormous amount of help for them to keep the house.

    Assuming we want to help some of these people to keep from having tons of empty housing sitting across the country, where do we draw the line. I am against any plan that does not require: full doc 30 year loans that borrowers are able to repay, close to market interest rates (preferably slightly above market), repayment of any future gains to lenders and a hit to the borrowers credit.

  59. John says:
    April 6, 2008 at 6:55 pm

    Good News for Bernanke From Bond Market Is Bad News for Rates

    By Daniel Kruger and Sandra Hernandez

    April 7 (Bloomberg) — For the first time since December, the bond market is closing the credibility gap with Ben S. Bernanke and signaling its agreement with the Federal Reserve chairman that an economic collapse has been averted and that interest rates are bottoming.

    Treasury yields rose 0.33 percentage point on average through April 4 from this year’s low of 2.49 percent on March 17, according to Merrill Lynch & Co. indexes. The increase is the first since December, when the Fed cut its target rate for overnight loans between banks and said lower borrowing costs “should help promote moderate growth.”

    tommorrows news today, article is from April 7th.

  60. Mikeinwaiting says:
    April 6, 2008 at 6:56 pm

    Grim, so sorry that’s a heartbreaker.

  61. lisoosh says:
    April 6, 2008 at 7:02 pm

    Grim – sorry to hear that. It’s a real heartbreak to have to do it.

  62. Wag says:
    April 6, 2008 at 7:46 pm

    “The bond with a true dog is as lasting as the ties of this earth will ever be.”
    Konrad Lorenz

    Grim – Our thoughts are with you.

  63. Pat says:
    April 6, 2008 at 7:48 pm

    http://search.petfinder.com/shelterSearch/shelterSearch.cgi?animal=&breed=&age=&size=&specialNeeds=&declawedPets=&children=&status=&id=&internal=&contact=&name=&shelterid=TN385&sort=&preview=1

    Seems like a good time for a plug for the place that helped my neighbors get their dog. He’s great. A whole team of drivers relayed him up.

    If I didn’t work, I’d go get Gunner.

  64. House Hunter says:
    April 6, 2008 at 7:52 pm

    Grim so sorry about your pup, that is just the hardest thing to do.

  65. All Hype says:
    April 6, 2008 at 7:57 pm

    Grim,

    That’s a tough thing to do. Sorry you had to go thru it.

  66. PeaceNow says:
    April 6, 2008 at 8:05 pm

    Grim—when you’re ready. My brother, the dog rescuer, has always had good experiences with this place, which is around (or in) bridgewater:

    http://www.sthuberts.org

    I go for cats myself…and if anyone needs a feline….

  67. WickedOrange says:
    April 6, 2008 at 8:33 pm

    The End of Suburbia: Oil Depletion and the Collapse of the American Dream

    Since World War II North Americans have invested much of their newfound wealth in suburbia. It has promised a sense of space, … all » affordability, family life and upward mobility. As the population of suburban sprawl has exploded in the past 50 years, so too has the suburban way of life become embedded in the American consciousness.

    Suburbia, and all it promises, has become the American Dream.

    But as we enter the 21st century, serious questions are beginning to emerge about the sustainability of this way of life. With brutal honesty and a touch of irony, The End of Suburbia explores the American Way of Life and its prospects as the planet approaches a critical era, as global demand for fossil fuels begins to outstrip supply. World Oil Peak and the inevitable decline of fossil fuels are upon us now, some scientists and policy makers argue in this documentary.

    The consequences of inaction in the face of this global crisis are enormous. What does Oil Peak mean for North America? As energy prices skyrocket in the coming years, how will the populations of suburbia react to the collapse of their dream? Are today’s suburbs destined to become the slums of tomorrow? And what can be done NOW, individually and collectively, to avoid The End of Suburbia?

    VIDEO
    http://tinyurl.com/62k68m

  68. Ann says:
    April 6, 2008 at 8:42 pm

    Grim,

    I’m so sorry on the loss of your puppy. Just a baby he was. So sad.

    Ann

  69. Ann says:
    April 6, 2008 at 8:45 pm

    32 gary

    Glad to see you’re back in the game! I have a theory that anything up there that looks like a remotely normal house starts at 800K. Is that a split? Perhaps of sugar maple variety? Perhaps it’s the attached garage on the side of the house, rather than under the house, that’s demanding that premium price.

  70. Frank says:
    April 6, 2008 at 9:05 pm

    Bear Stearns Employees Flood Wall Street Rivals With Resumes

    http://www.nytimes.com/reuters/business/business-bearstearns-bankers.html?_r=1&oref=slogin

    Any Bear employee willing to sell their Hoboken condo at 1998 prices, let me know.

  72. RentinginNJ says:
    April 6, 2008 at 9:39 pm

    JB,

    I’m very sorry for your loss.

  73. rhymingrealtor says:
    April 6, 2008 at 9:41 pm

    Grim,

    I am so sorry to hear about your puppy.

    KL

  74. Hard Place says:
    April 6, 2008 at 9:44 pm

    Would it be safe to say that for a town like Millburn/Short Hills, since the tax reassessment was done in 2007, if you are paying more than the assessment than there is a strong likelihood that you are overpaying?

  75. NJGator says:
    April 6, 2008 at 9:52 pm

    72 Hard- It was a reassessment and not a revaluation. The properties were not reinspected. From my cursory eye on the market in that area, I’d say if the house is sitting on a small lot there’s a fair chance that the house was underassessed. There’s a house that my husband and I were hoping to buy privately in the South Mountain area that sold for $100k more than the new assessment.

  76. Hard Place says:
    April 6, 2008 at 10:24 pm

    Grim –

    Sorry to hear about the pup. I had my pup stolen when he was six years old. Just like kids they always are your little babies…

  77. Everything's Hobroken says:
    April 6, 2008 at 10:35 pm

    I am very sorry to hear about the loss of your pet. I know how painful it can be.

  78. Everything's Hobroken says:
    April 6, 2008 at 10:37 pm

    LEESBURG, Virginia (Reuters) – Million-dollar fixer-upper for sale: five bedrooms, four baths, three-car garage, cavernous living room. Big holes above fireplace where flat-screen TV used to hang.

    The U.S. housing crisis has come to McMansion country.

    Just as the foreclosure crisis has hollowed out poorer neighborhoods, “for sale” signs are sprouting in upscale developments so new they don’t show up on GPS navigation screens.

  79. HEHEHE says:
    April 6, 2008 at 10:44 pm

    Grim,

    Sorry about your loss. I’ve only had my dog for a couple weeks but the thought of losing him would be hard to bear.

    Here’s the place in South Orange I got him from if you want to go that route in the future, they have a pretty broad selection:

    http://search.petfinder.com/shelterSearch/shelterSearch.cgi?animal=Dog&breed=&age=&size=&specialNeeds=&declawedPets=&children=&status=&id=&internal=&contact=&name=&shelterid=NJ84&sort=pet.Identifier&preview=1

    Somebody needs to adopt that Timothy dog as he was buddies with mine.

  80. jmacdaddio says:
    April 6, 2008 at 10:59 pm

    Today’s NYT had a front page story about the stresses of blogging:

    http://www.nytimes.com/2008/04/06/technology/06sweat.html?_r=1&scp=2&sq=blogging&st=nyt&oref=slogin

    Grim, please don’t become a statistic! Sorry to hear about your puppy.

    65 Wicked – Each time I watch that movie I get more alarmed. I’ve been meaning to check out the sequel, Escape from Suburbia.

  81. Shore Guy says:
    April 6, 2008 at 10:59 pm

    Has anyone looked at what is going on down by Wildwood? It looks like there is already “blood on the floor.” Perhaps it is because it is too far to commute to Philly?

  82. Shore Guy says:
    April 6, 2008 at 11:02 pm

    It is easy to envision many of the McMansions divided into apartments. It happened to enough city houses. BUT in the burbs, there is room for dozens of rusted/rusting cars on the lawn. I can easily see people of means opting to have a house in town and an escape tin the country, well outsise the burbs, thus leaving the distant burbs to fester.

  83. RentinginNJ says:
    April 6, 2008 at 11:35 pm

    Has anyone looked at what is going on down by Wildwood?

    I have a friend looking into a vacation condo there. I told him he should wait (this was 2 years ago). He did decide to wait.

    He went to look again just this past week and found a condo bought in 2005 for $500k. It was foreclosed, is now REO and the agent thinks the bank would accept and offer in the upper $200k’s

  84. d2b says:
    April 7, 2008 at 12:03 am

    RentinginNJ-
    I was offered a short sale in Wildwood yesterday. 2006 purchase price was $325k. My accountant told me that it’s mine for 200k. I turned the deal down. We bought our house in Wildwood because we own a business there. Purchased in the mid 90s. There are 16 homes on our street for sale right now.

  85. Jaywalk says:
    April 7, 2008 at 12:51 am

    Grim,

    So sorry about your puppy. Poor baby, so young.

    Jaywalk

  86. Johnny Jersey says:
    April 7, 2008 at 1:17 am

    Attended an open house last weekend. I will not say what town to protect the ” not so innocent”. The selling agent actually tried to sell me his own personal house in the next town over. Just thought I would mention it because it seems that people are a lot more desperate than I originally thought. The bottom is coming sooner than we think!!!!!!!!

  87. still_looking says:
    April 7, 2008 at 6:50 am

    Hi jb,

    I’m sorry about your puppy…it’s never an easy thing to do — our thoughts are with you.

    sl

  88. stockmarketadvantage says:
    April 7, 2008 at 8:59 am

    On Saturday I attended a foreclosure home auction run by the Real Estate Disposition Corp. (REDC). I stayed long enough to observe the disposition of 49 of the more than 100 properties auctioned off. The average sales price was $129,000. The average “previously valued to” number was $234,000. This was a 45% haircut.

    I didn’t inspect any of the properties, but afterwards drove by several higher priced condos in Clearwater Beach that had been auctioned off. They were very nicely situated with water views and the building was only 2 years old. If you drive up and down Gulf Blvd. you’ll find numerous condos still being constructed.

    It looks like we’ve only seen the beginnings of the price declines yet to come.

  89. Laurie says:
    April 7, 2008 at 10:57 am

    Ann
    RE 69.. I know that house and yes, it’s a sugar maple split…like every other house in that neighborhood. It’s older people selling it and if I’m correct they are original owners who had big smelly dogs for years and years….can you say stinky???Listen i love my dog and cats but hey…they can stink up a house…it’s 100k overpriced.

  90. chicondo says:
    April 7, 2008 at 4:45 pm

    Why isn’t the media or anyone else screaming about the prime borrowers who are getting loans that are at 35% debt to income ratios and higher. Whatever happed to 28% max for mortgage+property tax and 36% max for total debt?
    IMHO it is not the sub-prime loans that are a problem. Everyone always knew they were risky. But the prime borrowers with loans too large for their incomes that are the real reason for this real estate bubble.
    And no one has lifted a finger to get banks to stop that practice yet.
    I was offered a loan $150K more than my income would support by both the builders bank and my savings bank so the home could be sold at a higher price.

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