August 09, 2007

Want to see housing panic in action? Check out "flippers in trouble". Ouch.

You wonder how many of these housing debacles were false appraisals, cash-back-at-close, mortgage-fraud-run-amok scams, and how many were just dumb buys.


GreedKills said...

Gotta love those Elk Grove beauties that have been on the market for close to 500 days now. I think that we'll see 50-60% off before they start moving.

Who would want to live in Elk Grove anyways?

Anonymous said...


Anonymous said...

And Wall St. giving Freddy Krueger and Jason jobs in creative finance as modern day alchemists & their penchant for doing harm.

borkafatty said...

So where do you fit in, on this here chart:

I am not one one of the normal one's..I actually have a 30 year fixed rate and put 20% down..Circa 1993...we are far far from the bottom.

Anonymous said...

It was also the stupid investors from the bay area using their no doc / liar loans with option payments.

Anonymous said...

"on the market for close to 500 days now"

I really wish each local market blog had it's own "Flippers in Trouble" section or link! Kudos to this genius!

Trust me, if they're sitting in Elk Grove, SAC etc. they're sitting (and reducing elsewhere). I love the way he let's the facts simply speak for themselves. No commentary needed.

Also I credit the author for taking the time to re-define the term "flipper". You don't have to be on a TV show and covered in paint to be a flipper.

A teaser loan rate, cutting the lawn ocassionally and waiting for your 2 year time frame tax free money SHOULD BE the accurate use of the word! Unlike the crowd whose manic and misdirected actions at least require "some" effort, real flippers simply let the passage of 24 months do all the work for them! Nowhere is this more clearly displayed than on "Flippers in Trouble"!


anonymous wimp said...

Home prices will NEVER go down by 20 or thirty percent. It's impossible.

Oh, wait, they already have and they're still not selling?

Never mind.

Jeff in Florida said...

"So where do you fit in, on this here chart:"

I decided to be "different" as well. I have 30 year fixed at 6%.

However, I do have a HELOC for $40K I took out last year before the home values started tanking. It currently has a 0 balance and I don't intend on touching it except for in a dire emergency (If I lose my job and can't sell my house).

Which brings me to another question, could/would the bank lower the credit limit on a HELOC based on the value of the home going down since the mortgage was originated?

I still have a cushion of equity because I put $35K down and peak was about $40K more than I paid but I was just curious. I paid $223K in 8/05, peak was $265K in 6/06 (June 06 was Jacksonville Florida's peak).

Anonymous said...

ummm...holy sh**!!

Anonymous said...

amazing and the homes are still over priced!

Anonymous said...

First of all this blog is addictive!

On this blog a lot of attention is on Cali or Az markets. I'm over here in South Florida which says is the epicenter of the housing mess. I would say south florida is competing with Phoenix, Az. I am in R.E. myself but I consider myself as a ethical person who in not full of greed! This area is full of scum bags and they are the root cause for sure! I am not in any desperate situation personally but so many people here are. There was a lot of manipulation of spanish speaking only people by there own people who put them into "bad situations" This area is all about money. Every day it looks like a car show with Bentleys, Ferraris,S class, 750is every and all day long! I love the word "Mc Mansions" Yet these people have no idea what is really going on at this time! WTF!!! In S. Fl. we have big problems with insurance and taxes by our corrupt pig headed state and local gov't which to me makes this area even worse. Everyone here is still trying to hold prices because they are in to deep!! The 30% appreciation per year drove up prices to high levels to the point where the only way people could afford to buy anything(not just amatuar investor or even 1st buyer) had to take out one of the option arms to be able to afford with taxes and insurance. My point is just about everyone is in a option ARM here from WPB to MIA. There are many condos buildings that have been built and closed for about a year or more and most are vacant or worse have never been lived in. I agree with some of the people on the blogs that this is happening in SLOW MOTION!! I am really worried personally about my future and the career i chose. I chose this field because I like doing what I do!! I am hesitant to ask but here it goes! Does anyone have any ideas for someone like me?!

HauspocalypseNow said...

Keep in mind the 'losses' on FIT are actually pension fund/hedge fund losses!!!!!

No borrower can or will pay back 300k of bad debt on upside down house.

Just wait till those end up as foreclosed and the banks get THIER turn to sit on them for 500 days before writing down the loss when it finally sells.


Galina said...

Casey, is that you?

TheUsher said...

It's funny. I hear in my head from that horrible flip this house show, "I stand to make a projected profit of $140,000"


This will never get tired.

Shakster said...

Kieth- If the Government ,or MSM,or NAR didn't say it then it must be all in our heads.LOL.
The whole Central Valley of California has been declining hard,and according to numerous witnesses is a big mess.But these witnesses are of course not to be believed.
Just Pass the Popcorn please.If this is just a Hollywood mystery thriller then it otta be good entertainment.Like Apocalypse NOW,First Blood,or my favorite Battlestar Gallactica when the Cylons Found Earth,and Appollo,and Boomer,and FaceMan tried to Warn Los Angeles.Ohmen-Dirk Benedict had to get another gig cuz his show was cancelled after LA was destroyed.

Linda BLair said...

Get out,Get out!

Anonymous said...

can we get this sight in L.A.?

Anonymous said...

Buh...buh...real estate never goes down and we are running out of land...and...and...and Bush and the DOPES guy said everything is rosy!

Anonymous said...

"I am in R.E. myself but I consider myself as a ethical person who in not full of greed! " ethical realthwhore who lives in Miami...bwahahahahaha...the funniest crap I've heard today! Man, this site is getting funnier by the day.

Anonymous said...

"Does anyone have any ideas for someone like me?!"

Sure buddy, we HPers are here to help our REIC friends. Here's an idea:

Get all your REIC friends and go for a duty tour in Iraq.

Max said...

Hey, Keith, thanks for the link. Saw my stats and I'm over 2000 hits for the day. That's about 1000% of normal.


turdly said...

Max needs a publicist. That site is a little dry, but every msm turd should be using it as an indicator.
It can't lie unless the MLS does, it's easy to read, and it has the details so you can double check if you think a number is off base. It doesn't even add for the paint and carpet and sod that you know everyone has lost CASH on. Maybe some smart local tv station will pick it up as a 'play of the day' sorta thing.