[T-325]

This Zillow report looks at Local Home Delinquency, Underwater Rates for homeowners.

The real estate values in The Villages have held up better than my hometown in the Boston area!

US Housing Crisis - Negative Equity Infographic - Zillow

Be down on November 12th for a Lifestyle vist...

[Bay Kid]

I have been in the real estate business on the Chesapeake Bay for 38 years. This has been the worst I have ever seen. So many bank owned properties. This hardly ever happened until 3-4 years ago. Why would banks loan money to people that they know couldn't pay? On the good side sales are up and prices are level.

[JP]

Originally Posted by Bay Kid

I have been in the real estate business on the Chesapeake Bay for 38 years. This has been the worst I have ever seen. So many bank owned properties. This hardly ever happened until 3-4 years ago. Why would banks loan money to people that they know couldn't pay? On the good side sales are up and prices are level.

It was all about our "friendly" government wanting everyone to own a house even if they couldn't afford it.

This whole economic collapse was because of this.

[Lark7]

Originally Posted by Bay Kid

I have been in the real estate business on the Chesapeake Bay for 38 years. This has been the worst I have ever seen. So many bank owned properties. This hardly ever happened until 3-4 years ago. Why would banks loan money to people that they know couldn't pay? On the good side sales are up and prices are level.

There was so much political pressure on FNMA and FHLMC to fund loans which an otherwise prudent lender would not have made to customers. Labeled the CRA program and other smaller programs, regulatory pressure on banking institutions was very intense.

Unfortunately, taxpayers have and will continue to fund the losses from these programs.

[downeaster]

There are plenty to blame for the crisis. The Fed's involvement has already been alluded to. There were also the banks wanting business, mortgage brokers wanting commissions,real estate brokers wanting sales and the buyer wanting to buy.

I know of numerous situations where the buyer had no business even thinking about supporting a mortgage. They borrowed privately to make a minimum down payment. They inflated their earnings and hid there debts. The real estate people, mortgage brokers, and banks chose to look too look the other way.

It was a run away train heading for disaster.

[Irishmen]

If anybody listened to a speech by Obama a few weeks back, sounds like the lending practices which led to the crisis a coming back again.

[graciegirl]

Originally Posted by Irishmen

If anybody listened to a speech by Obama a few weeks back, sounds like the lending practices which led to the crisis a coming back again.

That SCARES me. I am a moderate in most things but boy I am a fiscal conservative. Do without until you can afford it .

[Villageswimmer]

Originally Posted by graciegirl

That SCARES me. I am a moderate in most things but boy I am a fiscal conservative. Do without until you can afford it .

Couldn't agree more, GG.:agree

[gomoho]

All those others helped it along, but the bottom line was lack of PERSONAL RESPONSIBILITY.

[downeaster]

Originally Posted by gomoho

All those others helped it along, but the bottom line was lack of PERSONAL RESPONSIBILITY.

Absolutely!

[jblum315]

It had nothing to do with our government. It was the greedy banking system that did us in.

[gomoho]

Originally Posted by jblum315

It had nothing to do with our government. It was the greedy banking system that did us in.

Have to disagree - the government was providing incentives for the banks to make loans.

[perrjojo]

[QUOTE=gomoho;737519]Have to disagree - the government was providing incentives for the banks to make loans.[/QUOTE

I'm with you. In fact the government DEMANDED that these loans be made. Sorry bankers and mortgage companies hate foreclosures. No one makes money on a foreclosure unless it's a "flipper".

[Lark7]

Originally Posted by jblum315

It had nothing to do with our government. It was the greedy banking system that did us in.

Have to also respectfully disagree. The government created the guidelines and policies under their socially driven "everyone is entitled to own a home" programs. The banks and mortgage companies delivered loans to the secondary market through the FHLMC and FNMA conduits.

I have personally witnessed Federal examiners criticize banking institutions for not having made certain loans under the governmental policies. Safety and soundness were tossed in the wind so as to rationalize an otherwise poor loan.

And yes, it ultimately reflects an absence of personal responsibility.

[The Buckeyes]

Getting back to underwater...we sold a condo in Myrtle Beach in 2007. As I was surfing today I noticed that the condo we sold was up for sale. Upon looking at the pictures only the rug and flooring is original. The owner completely remodeled and refurnished the entire thing. Probably 15-20K in improvements and to my surprise it is listed at a price 100K below what we sold it for. I guess we got out at the right time.