October 15, 2007

It's too bad so many sheeple listened to realtors on commission these past couple of years, and made the worst financial mistake of their lives


People around the country (and around the world) made some serious financial mistakes the past couple of years. Leverage is wonderful on the way up, but when prices fall soon after "buying", even a small decline can wipe you out with highly-leveraged real estate.

After a lifetime of working and saving, the simple mistake of buying a house at the peak (or even today) is enough to ruin everything. The risk was massive, the reward was questionable, and the warning signs were everywhere, yet the sheeple went ahead and did what they did, and now they're paying the price (or screaming for bailouts).

Millions of people around the world will be losing their houses during this downfall. Foreclosures will skyrocket. Inventory will build. Prices will crash. And it was all so predictable. Classic mania, classic crash. And classic opportunists, idiots and conmen herding the sheeple into the worst financial mistake of their lives.


Those who only bought within the last couple of years, however, face a different story. Since their homes may be worth less than what they paid, they can't sell for enough to pay off their mortgage and could face skyrocketing monthly payments when their loans reset to higher interest rates.

"The people who are in the most trouble are those who bought most recently, because they bought when it was going up and then it went right down," said Hans Johnson, associate director of the Public Policy Institute of California in San Francisco.

14 comments:

Frank@Scottsdale-Sucks.com said...

Those who only bought within the last couple of years, however, face a different story. Since their homes may be worth less than what they paid, they can't sell for enough to pay off their mortgage and could face skyrocketing monthly payments when their loans reset to higher interest rates.

Yeah but they still get to brag that they "own." Or at least that's still the mentality in white-trash Scottsdale.

Anonymous said...

Pride of homedebtorship.

Hahahahaha!

Just a peon bitter renter sleeping at ease right now......LOL!

ace said...

when all the out of work realtors and mortgage brokers are working as forecloser agents then we will be in the 7 th inning of an extra inning game..Gold will be at $1200 dollars

LauraVella said...

There are 94 homes here in Alameda now in forclosure. It went up by 36 in just the last couple of weeks. I wonder what the number will be at the end of the year?

Cow_tipping said...

I now believe real-eators are actively working on the side pushing it down. I listed mine with one - Had to, I moved 1000 miles away and had to have someone to show etc ... and he was seriouly advising me what to price it as and what to throw in for incentives, and he only lists those that meet his criteria (namely price for the area and type and size etc) else he is buyers agent only. As you see more and more buyers agents you know its the end of the road for the debtors.
Cool.
Cow_tipping.

Frank@Scottsdale-Sucks.com said...

LOL ... Scottsdale, Arizona is showing 913 foreclosures as of today ... a month ago it was around 450 ....

lisa d said...

I wouldnt just blame the realtors- remember if buyers thought of their homes as a place to live rather than a speculative investment then there wouldnt be so many people in trouble right now.

Anonymous said...

Yeah I bought a house for $189K and sold for $449K 4 years later. So so stupid. I should have listened to Keef and rented instead.

SEC said...

http://washingtondc.craigslist.org/nva/rfs/448385303.html

A perfect example of the homes for sale around Northern VA. This home was purchased for $987,055!!! Insanity!! I sold at the peak and then moved. I am currently renting and can't find anything to buy becasue everything for sale is just like the above-cookie cutter McMansions.

Anonymous said...

Hey fellow realthores,
How do you properly pronounce ramen? Is it ray-men or rahmen?

Anonymous said...

I live in an older california neighborhood. Alot of the homeowners have been in the same house since 1969. Practically no rentals. The houses are large 2000 to 2500 square feet, large lots, top of the line in 1969. Yet on the main street every house that was bought during the height 2 still have the owners, 7 are empty, 3 were purchased just this year, 1 went into probate, 2 are for sale (not in foreclosure) This is not a long street there are maybe 20-30 houses. This was a solid neighborhood until the housing boom. I know there are others on other streets around here. If it is this bad in this neighborhood, I can't imagine how bad it is in others. Every house on one street went into foreclosure on another street. This is a town of 100,000 people. If it can be like this here what is it like in biggers cities, like Los Angeles and the cities that surround it. I can not see how any banks can keep taking this beating and stay solvent. This is a mess and I was hoping to sell and go for a smaller house. Retirement plans on hold and I still have 7 years to go. With so much inventory that will available I don't think I could get anyone to look at my 2500sqft house when there is newer bigger and better out there. I will price to sell and still be okay but my goodness it looks gloomy out there.

Anonymous said...

Here in Southern Virginia, realtors deny a major downturn, although many are beginning to market themselves as "forclosure specialists" and "rental management professionals".

What a bunch of con artists! The least ethical group of people I've ever witnessed!

Anonymous said...

The insanity is starting to cool here in Vancouver. The NEWS reports about the meltdown in the US is frightening off some buyers.

Anonymous said...

Frankie, enough with the agenda laden digs on Scottsdale. You are a giant moron! You moved already, get over it. Your numbers arent even correct. Everything you post is wrong, stop making yourself look even more stupid than you already have.