I just took a survey about subprime worrys. and 67% of the people feel that the worst is yet to come. How come I think that it has already passsed and we have little to worry about?
hmmm.....
2007-08-30 00:52:11 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Rico, I think you and I are optimists at heart! I've been in the business for almost 20 years and have seen nothing like this. For me it started 3 years ago this Sept. So obviously this has hit me financially hard like everyone else. I'm optimist that it is almost over, that the Fed will lower rates within a few weeks that will generate some folks to buy homes again. I started my appraisal business 3.5 years ago, not realizing that it's foundation was sub prime loans. So here I sit with no work. Let's us keep pray in our way and hope this is almost over.
2007-08-30 00:59:16 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The worry will come all of the ARM's the still have to set. People were in over there heads 3 to 5 years ago by way more home then they could afford by using intrest only loans and ARMS. There are about $1trillion in ARM's scheldualed to reset in the next 18months and alot of those folks are going to end up in foreclosure also the baloon payments on the no intrest loans are coming due and folks will not be able to come up with the cash. This will spill over to Conventional mortgages.
2007-08-30 01:35:39 · answer #2 · answered by Ron H. Appraiser 3 · 0⤊ 0⤋
I think there's a domino effect going on right now.
Private Equity is buying out all these companies. There isn't a single company that is going to be purchased by Private Equity Firms that's going to give workers a better deal than they have now. More than likely, their job is going to be shipped overseas somewhere, and they're going to be resigned to working at Big Box Mart.
As more people lose their high-paying jobs, they're not going to be able to keep up with the big mortgage payment that they're probably over-extended on already.
I'm not trying to sound alarmist, but I think we're seeing the tip of the iceberg. I think for a long time, real estate prices have been out of control, and I think that people who are paying more than one-third of their net income on a mortgage are on the brink of default.
I think banks and other mortgage lenders are going to wind up owning a lot of property.
Homebuilders need to stop building homes that require jumbo mortgages and start building AFFORDABLE housing so that more people can actually purchase a home that they'd want to live in.
2007-08-30 01:00:07 · answer #3 · answered by Scotty Doesnt Know 7 · 0⤊ 0⤋
Submarine prime will be drowning many folks and banks in next 3-5yrs.
bought my first house in late 70's fixed rate was 15% or more, Sq Ft was just 1330.
those numbers aren't around now thanks to
creative bankers, the best laws money can buy, forgetful and underinformed buyers with pie in eye syndrome.
most people are living pay check to pay check even high payed lawyers doctors. real blance sheet numbers.
many areas of country will have empty houses next few yrs. Own a good spacious car? keep it running it will be rentable as a living space.
major market correction is coming .
2007-08-30 03:53:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋
i dont see any light at th end of the tunnel yet. unfortunately it is what it is even if the fed lowered rates its not like we are going to see a flood of loans come in. Its more likely that the blame game will continue for a while and only when it starts hitting the pockets of the people in washington will se see any real progress.
sorry i call them like i see them. lets not forget new fed regulations im sure will be a result of all this. I think your gonna see more laws out of this no more builders owing mortgage companies and title companies.
no more realtors owning mortgage comapnies lots of fraud showing up in these types of companies not all mind you but enough to have the fed set up laws!
no real progress as long as mr B is in office
I dont think any real progress will be made until he's gone I dont think it will matter who replaces him just that he's gone
2007-08-30 01:06:49 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I cannot read minds. I don't know why you think the worst is over....... Maybe you live in a part of the country where it got real bad real early, so for you it could be over already. In San Antonio, it's just starting.
2007-08-30 17:30:55 · answer #6 · answered by teran_realtor 7 · 0⤊ 0⤋
Watch out for that light at the end of the tunnel, it may be a train comming.
2007-08-30 12:30:29 · answer #7 · answered by Leo F 4 · 0⤊ 0⤋
The default rate is still going up, and the derivatives are collapsing. I think it is going to get much, much worse.
2007-08-30 00:58:12 · answer #8 · answered by Computer Guy 7 · 0⤊ 0⤋