Bill wrote on June 26, 2009 11:44 AM: In my opinion, the government is not helping to solve the problem in any meaningful way, they are just delaying the inevitable and trying to convince a largly stupid electorate that govt. is the answer to all their problems. Remember that part of the reason we are in this mess is the prior "help" congress offered when it relaxed the standards for Fannie and Freddie to underwrite the govt. aka taxpayer guaranteed loans. Stupid buyers who believed they were going to get free money in the form of ever increasing home values with subsequent ATM refinance proceeds (tax free) were the other part of the problem. The other complicit parties were Wall street who was able to convince stupid pension fund investment managers (who run other peoples money and get compensated on performance)to buy crappy paper. Now the government is talking about how to make public pension funds whole on the backs of the taxpayer. Where is the government with regard to my decimated 401K?

The market will inevitably exert its influence on pricing until the cost of owning a home is somewhere close to the cost of renting one. Since job growth is negative, there will be plenty of good opportunities to purchase housing at reasonable prices. Try a lease with option to Buy if you think values have bottomed or they will go up anytime soon. If not, either walk or renegotiate. The people that play the system to stay in their homes for free have zero integrity and reflect the same mindset of our elected officials, Wall Street salesmen and self interested investment managers.

This is a sad period for our once great Country. Get ready to take care of yourself when the govt. saviour charade collapses in failure.

David wrote on June 23, 2009 02:01 PM: In response to Chuck and David's response about bidding wars with the bank. I was recently in contract on a condo in LLV. Soon after I put in my offer, my realtor advised there was another offer and the bank requested our "highest/best" offer within a few hours of the notice. Yes, within a few hours.
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I put in my highest offer based on what I thought the market should be(and is). Apparently, the other buyer pannicked and offered more than asking! That was 30k higher than my offer.
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In my opinion, that was a total rip off by the bank. While I'm sure they had a 400k mtg on the property that they lost. The manner that they handled this best/highest offer created a fear & panick and over bidding by someone. We had no opportunity for meaningful negotiation. This over inflated the price way above mkt value.
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So, I agree. Don't get into bidding wars or a highest/best situation. There is always another forclosure on the horizon to put a contract on.

Dave wrote on June 21, 2009 09:39 PM: I can't wait until my 5/1 ARM resets. Like many ARMs, it is tied to the LIBOR rate. My rate will dip from 5.25% to under 4%! LIBOR stands for London Interbank Offered Rate, and are not based on Treasuries (unlike the 30 year fixed mortgage).

Zippy wrote on June 19, 2009 05:40 PM: I am not wrong numbnuts, I have been doing foreclosures for 14 years. Yes, the lenders dont have to accept the mediation decision, but it still MUST go to mediation, which will back up very quickly. Once the owner decides to accept mediation, the foreclosure process stops, just as if they declare BK. V was right, it will get backed up quickly. Here is how it will play out within a year: Default records, mediation notice sent out. Owner decides to take mediation. Foreclosure stops (stalls) It takes 3 months or more to get a hearing. They decide there is nothing there, Lender gets the go-ahead to foreclose. Foreclosure begins again. Right before the sale, they declare BK. Foreclosure stalls again while Lender gets an order lifting stay to proceed. So lets figure this out:
Stop paying mortgage to default recording 4 months.
Wait for mediation hearing 3 months
continuation of foreclosure 3 months.
Declare BK, wait for lift (3 months average)That's on average 14 months without making a payment. Then they have to try and get these people out.
Most of them have saved up some money and they go buy another foreclosure house.

Green Dragon Regular wrote on June 19, 2009 06:18 AM: "Unless the Obama Administration does something to stop this..."

Stop what? Natural market forces? It's a dismaying and telling statement when even the business-minded want to rely on governement to "fix" everything. Before any new laws are passed, the next new law should be a 10 year moritorium on the words, "There oughta' be a law."

Our society has become big-government addicted.

juliemarty wrote on June 18, 2009 11:11 PM: This whole stimulus package is just part of the governments long term plan to take away the power of the people. Are we going to do something about it or be lazy and think someone else is going to do it for us? It is time for a revolution. We need to overthrow the government and take our power back. Before there is nothing we can do about it. you should check http://obamamortgage2009.blogspot.com/2009/03/obamas-mortgage-modification-do-you.html#comments

Alan wrote on June 18, 2009 07:03 PM: I strongly dis-agree with the comment that the banks are cooperating with Obama. I pay on time every month and have never been delinquent. I went to my bank for a loan modification with proper verification and they won't budge.

croaker wrote on June 18, 2009 01:58 PM: I have said time and time again that the escalated property values of years past were the result of bogus demand and manipulation by the real estate industry/professionals. We are seeeing that now first hand in how banks are marketing foreclosures. Smoke and mirrors indeed, unfortunately most people who bought in are now removed from buying due to the credit pinch. Without these buyers and ability to manipulate demand our property values go nowhere but down.

David wrote on June 18, 2009 01:34 PM: Yes,you are that dumb. What will happen is all the Wise and Smart Investors will soon realize after chasing a foresclosure deal that they have paid too much for the property. Never get in a bidding war, the(Banks win again) through smoke and mirrors along of course with the help of your local realtor!

chuck wrote on June 18, 2009 01:15 PM: the banks have figured to start holding back on the inventory to create a demand and bidding war on the homes currently available...
rather than sell for the deflated true value, they are inflating the price all over again... to get John Q. Public to fall for it.

It started in California last December and now it's happening here.

Are we that dumb?

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