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What do you think will happen to the housing market?
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LuckyStar
LIF Adult
Member since 7/14 7274 total posts
Name:
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What do you think will happen to the housing market?
Who are these theoretical people everyone on here talks about? Squatters? People who quit steady jobs to make $600 a week for 4 months? I have not encountered people like this, even in my neighborhood and I assure you, I do not live among the creme de la creme of society.
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Posted 4/3/20 11:44 AM  |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
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Re: What do you think will happen to the housing market?
Posted by LuckyStar
Who are these theoretical people everyone on here talks about? Squatters? People who quit steady jobs to make $600 a week for 4 months? I have not encountered people like this, even in my neighborhood and I assure you, I do not live among the creme de la creme of society.
The squatters were living across the street from me for about 9 years. So they do exist! 
But yeah, that's usually an exception not a rule.
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| Posted 4/3/20 11:54 AM |
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SecretlyTTC14
LIF Adult
Member since 12/13 1770 total posts
Name:
B
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Re: What do you think will happen to the housing market?
Posted by lululu
Posted by Mrs213
Posted by lululu
Posted by SecretlyTTC14
Posted by lululu
Posted by ave1024
Posted by oldtimerocknroll
Because most people do not want their credit completely destroyed. There are ramifications of staying in a house and defaulting on your mortgage. The biggest being that your credit is destroyed and it will make it nearly impossible to take out another mortgage or lease any type of rental.
The typical response to no longer being able to afford your mortgage is not to stay as long as possible in default.
A lot of people do this actually
Yes, people do it, but MOST people do not sit in the house after they can no longer afford their mortgage. Most people try to sell their house and move to a situation that they can afford. Of course there will be people that fall on hard times that have no choice and of course there will be many people who just want to scam the system, but the majority of people are afraid of a house foreclosing on them for many reasons. But to say, yeah I can't afford my house anymore so I will just stay and let it go into default is not typically what people will do.
Once the market goes down (like in 2008) A LOT of people end up underwater in their mortgage. What happens when you can't sell for what you owe? Short sale is possible if you can find someone to buy it, but I think a lot of people just don't know what to do, so they do nothing. They just wait and see. Once your home has gone into foreclosure, your credit is the lowest it could possibly be. There are no brownie points for vacating the home swiftly. Yeah, you can start rebuilding sooner... but I would think most people would realize that while they're in a crappy situation, the plus side is to live rent free for a few years. Theoretically, if you take what you'd be spending in rent and saved it until they kick you out (let's say 3 yrs on the low end) You could have 60k+. Honestly, with a decent enough down payment and a few years making payments on time, you could easily get a mortgage again.
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| Posted 4/3/20 11:54 AM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: What do you think will happen to the housing market?
Posted by SecretlyTTC14
Posted by lululu
Posted by Mrs213
Posted by lululu
Posted by SecretlyTTC14
Posted by lululu
Posted by ave1024
Posted by oldtimerocknroll
Because most people do not want their credit completely destroyed. There are ramifications of staying in a house and defaulting on your mortgage. The biggest being that your credit is destroyed and it will make it nearly impossible to take out another mortgage or lease any type of rental.
The typical response to no longer being able to afford your mortgage is not to stay as long as possible in default.
A lot of people do this actually
Yes, people do it, but MOST people do not sit in the house after they can no longer afford their mortgage. Most people try to sell their house and move to a situation that they can afford. Of course there will be people that fall on hard times that have no choice and of course there will be many people who just want to scam the system, but the majority of people are afraid of a house foreclosing on them for many reasons. But to say, yeah I can't afford my house anymore so I will just stay and let it go into default is not typically what people will do.
Once the market goes down (like in 2008) A LOT of people end up underwater in their mortgage. What happens when you can't sell for what you owe? Short sale is possible if you can find someone to buy it, but I think a lot of people just don't know what to do, so they do nothing. They just wait and see. Once your home has gone into foreclosure, your credit is the lowest it could possibly be. There are no brownie points for vacating the home swiftly. Yeah, you can start rebuilding sooner... but I would think most people would realize that while they're in a crappy situation, the plus side is to live rent free for a few years. Theoretically, if you take what you'd be spending in rent and saved it until they kick you out (let's say 3 yrs on the low end) You could have 60k+. Honestly, with a decent enough down payment and a few years making payments on time, you could easily get a mortgage again.
But this is the EXCEPTION, not the typical. the crash in 08 was an exception. The circumstances surrounding this market collapse will be the exception. I am just saying it not the norm. It is not the typical behavior and MOST people if they can will try to avoid it at all costs.... Also, being underwater on your mortgage is different than being in default or foreclosure. A bunch of things have to line up for that to happen. The reason the market crashed in 08 is because people were getting mortgages that they were not qualified to have, in addition to using features like low rates on ARMs that then expired, thereby making their new payment completely unaffordable. To say, yeah typically when someone can't afford their mortgage anymore they become squatters seems unrealistic.
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| Posted 4/3/20 12:13 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: What do you think will happen to the housing market?
Posted by NervousNell
Posted by LuckyStar
Who are these theoretical people everyone on here talks about? Squatters? People who quit steady jobs to make $600 a week for 4 months? I have not encountered people like this, even in my neighborhood and I assure you, I do not live among the creme de la creme of society.
The squatters were living across the street from me for about 9 years. So they do exist!
But yeah, that's usually an exception not a rule.
Thank you. I was starting to think I am living in a dream world where the majority of people do the right thing.... Not saying there aren't people that take advantage but I think most people are trying to do the right thing.
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| Posted 4/3/20 12:14 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: What do you think will happen to the housing market?
Posted by SecretlyTTC14
Once the market goes down (like in 2008) A LOT of people end up underwater in their mortgage. What happens when you can't sell for what you owe? Short sale is possible if you can find someone to buy it, but I think a lot of people just don't know what to do, so they do nothing. They just wait and see. Once your home has gone into foreclosure, your credit is the lowest it could possibly be. There are no brownie points for vacating the home swiftly. Yeah, you can start rebuilding sooner... but I would think most people would realize that while they're in a crappy situation, the plus side is to live rent free for a few years. Theoretically, if you take what you'd be spending in rent and saved it until they kick you out (let's say 3 yrs on the low end) You could have 60k+. Honestly, with a decent enough down payment and a few years making payments on time, you could easily get a mortgage again.
I also just want to point out that saving $60k while you are living "rent free" is essentially stealing from the bank that gave you the mortgage in the first place. How does anybody in good conscience think that's okay and justifiable?
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| Posted 4/3/20 12:16 PM |
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SecretlyTTC14
LIF Adult
Member since 12/13 1770 total posts
Name:
B
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Re: What do you think will happen to the housing market?
Posted by LuckyStar
Who are these theoretical people everyone on here talks about? Squatters? People who quit steady jobs to make $600 a week for 4 months? I have not encountered people like this, even in my neighborhood and I assure you, I do not live among the creme de la creme of society.
I think we tend to live in a bubble on LI. I don't think it's something anyone would consider unless they are in a ****** position to begin with. We live in a very nice neighborhood and even we had to modify our mortgage years ago. You just never know peoples financial troubles. If our modification was denied, we would have lost the house. Not one person IRL knows how close we came to losing everything. Now we're doing very well and thank god won't be in that situation again.
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| Posted 4/3/20 12:17 PM |
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SecretlyTTC14
LIF Adult
Member since 12/13 1770 total posts
Name:
B
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Re: What do you think will happen to the housing market?
Posted by lululu
Posted by SecretlyTTC14
Posted by lululu
Posted by Mrs213
Posted by lululu
Posted by SecretlyTTC14
Posted by lululu
Posted by ave1024
Posted by oldtimerocknroll
Because most people do not want their credit completely destroyed. There are ramifications of staying in a house and defaulting on your mortgage. The biggest being that your credit is destroyed and it will make it nearly impossible to take out another mortgage or lease any type of rental.
The typical response to no longer being able to afford your mortgage is not to stay as long as possible in default.
A lot of people do this actually
Yes, people do it, but MOST people do not sit in the house after they can no longer afford their mortgage. Most people try to sell their house and move to a situation that they can afford. Of course there will be people that fall on hard times that have no choice and of course there will be many people who just want to scam the system, but the majority of people are afraid of a house foreclosing on them for many reasons. But to say, yeah I can't afford my house anymore so I will just stay and let it go into default is not typically what people will do.
Once the market goes down (like in 2008) A LOT of people end up underwater in their mortgage. What happens when you can't sell for what you owe? Short sale is possible if you can find someone to buy it, but I think a lot of people just don't know what to do, so they do nothing. They just wait and see. Once your home has gone into foreclosure, your credit is the lowest it could possibly be. There are no brownie points for vacating the home swiftly. Yeah, you can start rebuilding sooner... but I would think most people would realize that while they're in a crappy situation, the plus side is to live rent free for a few years. Theoretically, if you take what you'd be spending in rent and saved it until they kick you out (let's say 3 yrs on the low end) You could have 60k+. Honestly, with a decent enough down payment and a few years making payments on time, you could easily get a mortgage again.
But this is the EXCEPTION, not the typical. the crash in 08 was an exception. The circumstances surrounding this market collapse will be the exception. I am just saying it not the norm. It is not the typical behavior and MOST people if they can will try to avoid it at all costs.... Also, being underwater on your mortgage is different than being in default or foreclosure. A bunch of things have to line up for that to happen. The reason the market crashed in 08 is because people were getting mortgages that they were not qualified to have, in addition to using features like low rates on ARMs that then expired, thereby making their new payment completely unaffordable. To say, yeah typically when someone can't afford their mortgage anymore they become squatters seems unrealistic.
When the market crashes, people lose their jobs and house prices go down. Resulting in people that can't pay their bills, and homes that are underwater. After 2008 it wasn't the exception. The entire country was in a bad place.
Message edited 4/3/2020 12:20:54 PM.
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| Posted 4/3/20 12:20 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
|
Re: What do you think will happen to the housing market?
Posted by lululu
Posted by SecretlyTTC14
Once the market goes down (like in 2008) A LOT of people end up underwater in their mortgage. What happens when you can't sell for what you owe? Short sale is possible if you can find someone to buy it, but I think a lot of people just don't know what to do, so they do nothing. They just wait and see. Once your home has gone into foreclosure, your credit is the lowest it could possibly be. There are no brownie points for vacating the home swiftly. Yeah, you can start rebuilding sooner... but I would think most people would realize that while they're in a crappy situation, the plus side is to live rent free for a few years. Theoretically, if you take what you'd be spending in rent and saved it until they kick you out (let's say 3 yrs on the low end) You could have 60k+. Honestly, with a decent enough down payment and a few years making payments on time, you could easily get a mortgage again.
I also just want to point out that saving $60k while you are living "rent free" is essentially stealing from the bank that gave you the mortgage in the first place. How does anybody in good conscience think that's okay and justifiable?
You are right. I would never do it. And DH ESPECIALLY would never do it. His moral compass is super strict!
But there are people that would in this society, that I know.
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| Posted 4/3/20 12:21 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: What do you think will happen to the housing market?
Posted by SecretlyTTC14
When the market crashes, people lose their jobs and house prices go down. Resulting in people that can't pay their bills, and homes that are underwater. After 2008 it wasn't the exception. The entire country was in a bad place.
I am saying a market crash like 2008 is an exception to normal market conditions. After 2008 the country was in a major recession. That is not typical in a normal economy.
I am sorry that you ended up in that position, it must have been terrifying.
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| Posted 4/3/20 12:23 PM |
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SecretlyTTC14
LIF Adult
Member since 12/13 1770 total posts
Name:
B
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Re: What do you think will happen to the housing market?
Posted by lululu
Posted by SecretlyTTC14
When the market crashes, people lose their jobs and house prices go down. Resulting in people that can't pay their bills, and homes that are underwater. After 2008 it wasn't the exception. The entire country was in a bad place.
I am saying a market crash like 2008 is an exception to normal market conditions. After 2008 the country was in a major recession. That is not typical in a normal economy.
I am sorry that you ended up in that position, it must have been terrifying.
Thank you but our situation wasn't that bad, there are people that lost everything. My point was - I doubt they think of the poor bank that's trying to take their home from them. Also, you'd be surprised what your morals will allow when you're in an impossible situation.
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| Posted 4/3/20 12:38 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: What do you think will happen to the housing market?
Posted by lululu
Posted by SecretlyTTC14
Once the market goes down (like in 2008) A LOT of people end up underwater in their mortgage. What happens when you can't sell for what you owe? Short sale is possible if you can find someone to buy it, but I think a lot of people just don't know what to do, so they do nothing. They just wait and see. Once your home has gone into foreclosure, your credit is the lowest it could possibly be. There are no brownie points for vacating the home swiftly. Yeah, you can start rebuilding sooner... but I would think most people would realize that while they're in a crappy situation, the plus side is to live rent free for a few years. Theoretically, if you take what you'd be spending in rent and saved it until they kick you out (let's say 3 yrs on the low end) You could have 60k+. Honestly, with a decent enough down payment and a few years making payments on time, you could easily get a mortgage again.
I also just want to point out that saving $60k while you are living "rent free" is essentially stealing from the bank that gave you the mortgage in the first place. How does anybody in good conscience think that's okay and justifiable?
Suze Ormon has actually told people to do this on her show. Shit happens and people can’t pay and she told someone it was better to do this so they can save...
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| Posted 4/3/20 1:12 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: What do you think will happen to the housing market?
Posted by Mrs213
Posted by lululu
Posted by SecretlyTTC14
Once the market goes down (like in 2008) A LOT of people end up underwater in their mortgage. What happens when you can't sell for what you owe? Short sale is possible if you can find someone to buy it, but I think a lot of people just don't know what to do, so they do nothing. They just wait and see. Once your home has gone into foreclosure, your credit is the lowest it could possibly be. There are no brownie points for vacating the home swiftly. Yeah, you can start rebuilding sooner... but I would think most people would realize that while they're in a crappy situation, the plus side is to live rent free for a few years. Theoretically, if you take what you'd be spending in rent and saved it until they kick you out (let's say 3 yrs on the low end) You could have 60k+. Honestly, with a decent enough down payment and a few years making payments on time, you could easily get a mortgage again.
I also just want to point out that saving $60k while you are living "rent free" is essentially stealing from the bank that gave you the mortgage in the first place. How does anybody in good conscience think that's okay and justifiable?
Suze Ormon has actually told people to do this on her show. Shit happens and people can’t pay and she told someone it was better to do this so they can save...
Actually I just found the article in which she says this however, she first says:
"I told the couple that the smart thing to do was let go of the house and find an affordable rental."
Then, because the couple didn't listen to her and the house was already in foreclosure, she told them they should take whatever would have gone to the mortgage and put it in savings for a security deposit on a rental. And in this particular case she said the bank bore some responsibility because they approved them for a loan knowing they did not qualify and could not afford the payments. I think her mentality is that the bank has already foreclosed on the property and there is no way you are getting it back so take what you can but I don't agree that that's the right thing to do from an ethical point of view.
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| Posted 4/3/20 1:46 PM |
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