Comments on: Seeing is Believing: Los Angeles is in Another Housing Dimension. Let us Look at the Numbers. http://www.doctorhousingbubble.com/seeing-is-believing-los-angeles-is-in-another-housing-dimension-let-us-look-at-the-numbers/ How I Learned to Love Southern California and Forget the Housing Bubble Sat, 22 Nov 2008 10:10:40 +0000 http://wordpress.org/?v=2.2.2 By: Anonymous http://www.doctorhousingbubble.com/seeing-is-believing-los-angeles-is-in-another-housing-dimension-let-us-look-at-the-numbers/#comment-1111 Anonymous Fri, 22 Jun 2007 21:47:00 +0000 http://www.doctorhousingbubble.com/seeing-is-believing-los-angeles-is-in-another-housing-dimension-let-us-look-at-the-numbers/#comment-1111 Hey other Anonymous: "I currently have a 4.5% interest loan (7/1 arm, not interest only)that won't reset until 2011. What me worry?"<br/><br/>So when interest rates jack up to 10 percent by 2011 to tame inflation, we'll still be seeing prices come down more and more as there are more people looking to get out. Hey other Anonymous: “I currently have a 4.5% interest loan (7/1 arm, not interest only)that won’t reset until 2011. What me worry?”

So when interest rates jack up to 10 percent by 2011 to tame inflation, we’ll still be seeing prices come down more and more as there are more people looking to get out.

]]> By: Mike http://www.doctorhousingbubble.com/seeing-is-believing-los-angeles-is-in-another-housing-dimension-let-us-look-at-the-numbers/#comment-1110 Mike Fri, 22 Jun 2007 21:36:00 +0000 http://www.doctorhousingbubble.com/seeing-is-believing-los-angeles-is-in-another-housing-dimension-let-us-look-at-the-numbers/#comment-1110 What happens when people walk away from their homes? Are they still responsible for payment? Simply letting people off the hook for $500K+ loans seems ridiculous, especially when the banks will be lucky to get half of that back.<br/><br/>I don't think ruined credit and bankruptcy would be enough punishment - in a few short years (8?) that bankruptcy would be wiped off the borrowers record. If borrowers maintain every other aspect of their creditworthiness during those 8 years, what's to stop them from taking out another oversized loan for another home and driving prices up again? Hmm... maybe that's part of the reason why these bubbles are so cyclical - people who foreclosed during the early 90s bust now have a second chance to make the same mistakes! What happens when people walk away from their homes? Are they still responsible for payment? Simply letting people off the hook for $500K+ loans seems ridiculous, especially when the banks will be lucky to get half of that back.

I don’t think ruined credit and bankruptcy would be enough punishment - in a few short years (8?) that bankruptcy would be wiped off the borrowers record. If borrowers maintain every other aspect of their creditworthiness during those 8 years, what’s to stop them from taking out another oversized loan for another home and driving prices up again? Hmm… maybe that’s part of the reason why these bubbles are so cyclical - people who foreclosed during the early 90s bust now have a second chance to make the same mistakes!

]]> By: Anonymous http://www.doctorhousingbubble.com/seeing-is-believing-los-angeles-is-in-another-housing-dimension-let-us-look-at-the-numbers/#comment-882 Anonymous Thu, 17 May 2007 05:23:00 +0000 http://www.doctorhousingbubble.com/seeing-is-believing-los-angeles-is-in-another-housing-dimension-let-us-look-at-the-numbers/#comment-882 6.75% for a 30 year fixed? what are you smoking? Go to bankrate.com and see that the current national avg. is currently more like 5.75%.<br/><br/>And $312 for a monthly home owners insurance policy? Nope. Not unless you live inside the Los Angeles River. Think more like 60-100 a month. <br/><br/>Granted, property tax can fluctuate with mello roos and bond assessments and what not.<br/><br/>I think your numbers are a little skewed to your point of view. <br/><br/>I currently have a 4.5% interest loan (7/1 arm, not interest only)that won't reset until 2011. What me worry? 6.75% for a 30 year fixed? what are you smoking? Go to bankrate.com and see that the current national avg. is currently more like 5.75%.

And $312 for a monthly home owners insurance policy? Nope. Not unless you live inside the Los Angeles River. Think more like 60-100 a month.

Granted, property tax can fluctuate with mello roos and bond assessments and what not.

I think your numbers are a little skewed to your point of view.

I currently have a 4.5% interest loan (7/1 arm, not interest only)that won’t reset until 2011. What me worry?

]]> By: Anonymous http://www.doctorhousingbubble.com/seeing-is-believing-los-angeles-is-in-another-housing-dimension-let-us-look-at-the-numbers/#comment-608 Anonymous Fri, 13 Apr 2007 00:46:00 +0000 http://www.doctorhousingbubble.com/seeing-is-believing-los-angeles-is-in-another-housing-dimension-let-us-look-at-the-numbers/#comment-608 --FWIW, the final scenes of Lethal Weapon II show the destruction of houses in a neighborhood: this scene was filmed in Lancaster, CA, after the film studio bought a tract of houses that were left unfinished by a developer after the last bubble burst.--<br/><br/>It was Lethal Weapon III :) –FWIW, the final scenes of Lethal Weapon II show the destruction of houses in a neighborhood: this scene was filmed in Lancaster, CA, after the film studio bought a tract of houses that were left unfinished by a developer after the last bubble burst.–

It was Lethal Weapon III :)

]]> By: Dr Housing Bubble http://www.doctorhousingbubble.com/seeing-is-believing-los-angeles-is-in-another-housing-dimension-let-us-look-at-the-numbers/#comment-606 Dr Housing Bubble Thu, 12 Apr 2007 23:51:00 +0000 http://www.doctorhousingbubble.com/seeing-is-believing-los-angeles-is-in-another-housing-dimension-let-us-look-at-the-numbers/#comment-606 irvinerenter,<br/><br/>I wish you were right. However I haven't seen any stats showing that folks in exotic mortgages are saving the difference in stocks, bonds, commodities, or anything else of value. What I am seeing is folks over extended and hanging by a thread. Chide away, these folks will get a strong dose of reset medicine. Sad but something they should have thought about before hand. <br/><br/>HomeDebtor,<br/><br/>Language is powerful. Patriot Act doesn't sound too bad does it? What about Operation Freedom? Sure sounds better than 150,000 troops in the middle east right? Or what about inflation? Ask 100 Americans to explain inflation to you and you'll get 10 people that understand it. Most will say prices ALWAYS go up. Hence this housing psychotic spree we are on is nothing atypical to what the mass public is used to.<br/><br/>Crazed,<br/><br/>Count your lucky stars. That is way overpriced. A good rule of thumb is a home fixed on a conventional mortgage will run about 1% a month of the total cost. Somehow I think you can rent for ALOT cheaper than that - I'm talking about the difference in the thousands per month.<br/><br/>@Spam ads:<br/><br/>I'll leave some of these on because I think they are a good case study of what is happening in the industry. Folks are actually trying to sell real estate on a housing bear site? Why not try to sell ice to Eskimos. irvinerenter,

I wish you were right. However I haven’t seen any stats showing that folks in exotic mortgages are saving the difference in stocks, bonds, commodities, or anything else of value. What I am seeing is folks over extended and hanging by a thread. Chide away, these folks will get a strong dose of reset medicine. Sad but something they should have thought about before hand.

HomeDebtor,

Language is powerful. Patriot Act doesn’t sound too bad does it? What about Operation Freedom? Sure sounds better than 150,000 troops in the middle east right? Or what about inflation? Ask 100 Americans to explain inflation to you and you’ll get 10 people that understand it. Most will say prices ALWAYS go up. Hence this housing psychotic spree we are on is nothing atypical to what the mass public is used to.

Crazed,

Count your lucky stars. That is way overpriced. A good rule of thumb is a home fixed on a conventional mortgage will run about 1% a month of the total cost. Somehow I think you can rent for ALOT cheaper than that - I’m talking about the difference in the thousands per month.

@Spam ads:

I’ll leave some of these on because I think they are a good case study of what is happening in the industry. Folks are actually trying to sell real estate on a housing bear site? Why not try to sell ice to Eskimos.

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