Are Sellers Giving In To Bottom-Feeders In California?
The Record Searchlight reports from California. “August home sales in Shasta County were down 8.8 percent from a year ago. The number of homes sold in August was the fewest since August 1997, when 185 sales were recorded, DataQuick reported. Meanwhile, there continues to be a glut of home listings. Bill Parsons, who owns Parsons Realty in Redding, said it continues to be a frustrating time for sellers.”
“‘Sellers were concerned in the past that maybe it was something their agent wasn’t doing. Now they are beginning to realize it’s the market,’ Parsons said.”
The Mercury News.”Generally,appraisers perform their valuations for lenders to help determine whether the collateral is adequate. If it indicates they sold for less than the appraiser’s estimate of true market value, they are none the wiser. Nobody in the transaction has any incentive to break the bad news to them.”
“‘It certainly puts us (appraisers) in an uncomfortable position when we find that the selling price is below market value,’ says Karen J. Mann, a veteran appraiser in the Brentwood-Discovery Bay area east of San Francisco. ‘We wonder what’s going on out there - are sellers giving in to the bottom-feeders’ who are trolling for any hints of distress or urgency?’”
“Not all appraisers are surprised that appraisals are beginning to come in above contract prices. Gary Crabtree in Bakersfield, says bloated sales prices over the past five years, plus hidden concessions and fraud, ‘have distorted the data’ and the public records in some parts of the country.”
“‘When mortgage fraud and concessions get built into’ local recorded sales prices and tax assessments, he suggests, those inflated values ‘become the new comparables’ that appraisers use. In effect, hard-bargaining buyers today may be squeezing some of the cotton candy fluff out of prior sales.”
From KCRA 3. “The alleged mortgage fraud exposed by KCRA 3 is having a direct effect on property values in Elk Grove. All of the homes at the center of our investigation are now in foreclosure, and property values are plummeting.”
“Jim Martin and his business partners are accused of falsifying millions of dollars in loans. all those homes — more than $9 million in real estate — are now in foreclosure and having a negative effect on property values in those neighborhoods.”
From ABC 7 News. “There’s no greater evidence of the mortgage crisis than here in the San Ramon office of Diablo Funding Group, where President Bill Erb has had to lay off two-thirds of his 196 employees in just the past year.”
“‘These steps, the fed lowering the rate by half a percent is not going to make everything okay,’ said Bill Erb from Diablo Funding Group. ‘The fact that interest rates come down a little bit, whether you have an 11 percent loan or an 11 half percent loan, when you’re coming off a six and a half percent loan, probably isn’t going to help you much,’ said Erb.”
The Ventura County Star. “In an effort to entice buyers, Standard Pacific Homes is staging an aggressive campaign called ‘Mission: Possible’ to sell 200 homes across Southern California over a 10-day period, ending Sunday. A clear obstacle to moving those homes has been the depressed housing market. Sales have plunged over the past year in Ventura County and Southern California.”
“Alonso Escamilla, a property manager, owns two houses in Santa Barbara, but he’s looking for something more economical. Since the interest rate on his jumbo loan adjusted upward, his payment has become sizable. By selling one of his homes, he wants to be able to put 10 to 20 percent down on a $450,000 house.”
“‘I don’t want to leave Santa Barbara,’ he said. ‘But it’s either struggle, or move and live comfortably.’”
“This summer, JM Development permanently reduced prices by $80,000 at Henderson Cottages, a new 28-home community in east Ventura. There are 17 properties still available. ‘Realistically, would we do what Standard Pacific is doing? Come talk to us. We can give you a deal of the century,’ or mission possible.’ We can do the same thing.’”
The Acorn. “Home sales in Ventura County continue to drop, and home prices are just beginning to sag, but exactly how long the real estate market will stagnate and how low home price will go is still a question mark, according to a group of speakers at a recent Ventura County Real Estate and Economic Outlook Conference.”
“‘The number of foreclosures is surging and will soon reach unprecedented levels,’ said Mark Schniepp, director of California Economic Forecast, in a book produced for participants. Schneipp predicts Ventura County real estate will level out and experience a total price drop between 10 and 15 percent, he said. Not bad if predictions on other California real estate markets are expected to dip down 18 percent.”
“The current real estate slowdown shouldn’t be compared to the recession in the 1990’s, Schneipp said. At that time, the downturn carried on for 71 consecutive months, resulting in a 27 percent drop in prices. Schneipp said it seems ‘unreasonable and improbable’ that history would repeat itself in such a cycle.”
The Napa Valley Register. “The Napa City Council approved the conversion of the 38-unit apartment project to ownership housing Tuesday. Two-bedroom condos will sell for between $280,000 and $320,000, making them by far the cheapest entry-level housing in the city, said Randy Gularte, a Realtor advising the Cadillac Flats project.”
“Sue Dee Shenk, executive director of Napa Valley Community Housing, doubted that many of Cadillac Flats’ tenants, who now pay $1,000 a month, would be buying condos that carried mortgage, interest, taxes and fees of $1,800 a month. Buyers will pay condo dues of $260 a month, Gularte estimated.”
“Norbert Doran, who built Cadillac Flats 15 years ago, countered that $1,800 was a great deal. Buyers would have their own home, with values rising over time, he said.”
From NBC San Diego. “What was once the county’s fastest-growing city has suffered a financial setback. On Wednesday, Chula Vista had its credit rating lowered a notch by Wall Street. For a time, new homes and business generated millions of dollars in new taxes, but the financial tide has apparently turned.”
“Scott Barnett of TaxpayersAdvocate.org told NBC 7/39 the city should have known the cash flow would not remain unchanged. ‘This is not like cancer, or a plane crash, this is something that’s self-inflicted,’ Barnett said.”
“The new city manager David Garcia told NBC 7/39…the real estate bubble burst has hurt cities everywhere. ‘Chula Vista is at the heart of the sub-prime mortgage crisis right now. We have some of the top foreclosure rates in San Diego County. And San Diego County is the top 100 in the country.’”
The North County Times. “The recent surge in housing foreclosures is creating new headaches for Escondido’s code enforcement officers, who say they are struggling more than ever to contact homeowners who have broken windows, out-of-control shrubbery or scummy swimming pools.”
“‘Things really slow down when you start dealing with the banks, because they seem to be struggling with these situations just as much as we are,’ said Greg Smith, one of 13 code enforcement officers in Escondido.”
“Smith said the city boards the houses up to prevent homeless people from living in them, to prevent teens from partying inside and to avoid health and disease problems that could result from neglected pools or abandoned food left inside. Bank officials typically agree with the decision to board the homes up, he said.”
“The foreclosure epidemic, which officials blame on gimmick loans given to marginally qualified buyers, is not unique to Escondido.”
“About 200 Escondido homes are now in the midst of foreclosure proceedings, and banks and mortgage companies have become the official owners of more than half of them, according to data on foreclosureradar.com.”
“Smith said the foreclosed properties that have drawn complaints are spread throughout the city, adding that they also range widely in price. ‘I’ve seen everything from $900,000 homes down to $300,000,’ he said. ‘And it’s all over town.’”
“A mood of gloom has settled on California in the past few months, with foreclosures and tightening credit causing more residents to see bad times ahead than at any time since 2003.”
“Economic pessimism jumped by 20 percentage points since the beginning of the year, the poll found, with 59 percent of residents saying they expected bad economic times in the coming year. Among ‘likely voters,’ 62 percent were pessimists.”
“Worriers outnumbered optimists in every region of the state, every income bracket and among homeowners and renters alike. That is unlike typical responses during this stage of an economic downturn, said Mark Baldassare, PPIC president and the survey’s director.”
“‘The anxiety is coming from the insecurity created by housing and credit market turbulence and the impact that has on homeowners and would-be homeowners,’ Baldassare said.”
“In 2003, when PPIC reported the last steep dip in consumer confidence, the invasion of Iraq was on people’s minds. Yet homeowners dug into their equity lines and low interest rates made spending on credit easy, and the economy continued improving.”
“‘What has people a little bit worried now is not just what their homes are worth, but what it is going to mean to borrow,’ Baldassare said.”
“‘It certainly puts us (appraisers) in an uncomfortable position when we find that the selling price is below market value,’ says Karen J. Mann, a veteran appraiser in the Brentwood-Discovery Bay area east of San Francisco. ‘We wonder what’s going on out there - are sellers giving in to the bottom-feeders’ who are trolling for any hints of distress or urgency?’”
The take-away here is not that they’re calling “bargain hunters” bottom-feeders, but they’re actually saying that they dictate market value. “Oh, that’s selling below Market Value”. Sorry, sweet-cheeks, but every home that ever sells is, by definition, **at** market value. The market is valued by the sales, not the other way around. BACK TO APPRAISER’S SCHOOL WITH YOU!
“The current real estate slowdown shouldn’t be compared to the recession in the 1990’s, Schneipp said.
I whole-heartedly agree! The 1930’s or WORSE would be a more apt comparison…
Isn’t the selling price market value?
market value is a value arrived at by a market that’s well and widely informed with accurate, current and complete information.. Values can equal selling price in such an “efficient” market.
This doesn’t describe likely conditions in the real estate market.. so the chances of a selling price equalling market value are very slim.
What’s this “bottom feeders” crap?
I’ll bet half the sellers out there would WELCOME a bid, any bid, even from a “bottom feeder”.
And what is the “mystery” about appraisals being behind the curve in BOTH an ascending and descending market?
Appraisals HAVE TO lag the freak’n trend!
Idiots.
In a declining market BF (butt feders - A great tennis player) opposite of FB can be annoying since they want to rub salt in the wounds by insisting they want all light bulbs to be working.
“And what is the “mystery” about appraisals being behind the curve in BOTH an ascending and descending market?”
“Appraisals HAVE TO lag the freak’n trend! ”
This brings up a point that has always puzzled me. I’m not an appraiser, but at one point (early 90s) I help devise and implement some computerized mass appraisal algorithms (I was on a team with an expert in RE finance, don’t worry, we were researchers, not cheerleaders. Thank goodness). Appraisals (either pure comps, hedonic princing models or even Case-Shiller type models) have to look back, so they fall behind appreciation when the market is going up and fall behind the depreciation when it is going down. To get to the puzzle- this would imply that appraisals should put a brake on rapid appreciation unless either the appraisers are (1) using some sort of crystal ball that incorporates appreciation more recent then recent comps (2) being ignored or (3) are just muffing and putting down the selling price as the appraisal. This appraisal lag DOES seem to be slowing the depreciation. Does this mean fraud was almost universal in the run-up years?
I’m tempted to say you should delete the “almost” from your final line, but I guess it is warranted. Further, the fraud did not become essential until 100% loans were common.
Hi Akron:
During the boom, I don’t think sales prices were based on appraisals because buyers were irrationaly bidding against eachother. I also don’t think sales prices are being based on appraisals any more because sellers are competing with eachother for buyers, and only the lowest offer will win out.
It seems to me that appraisals are only really followed during times when prices are not rapidly changing.
This is off-topic but I MUST share it with everyone. There’s a web board on the Big Island of Hawaii, and this is a new thread:
Aloha to all,
If I could just ask a favor of all of my Kona Web friends.
We have a contract on a home in Kona that is going to fall thru if our mainland home doesn,t sell soon. Since I believe in the power of prayer, I am asking all of you to say a prayer for me, that my mainland home sells really soon. I have reduced the price by $60,000 and spent $50,000 in a total remodel so it,s like new. Sales are just really slow.
If you could just say a quick prayer, to God or Buddah or Pele or to whom ever you pray to. I truly believe in the power of all of your prayers to help me get my house sold so I can move to the BI. It has been 12 years of saving for me and now it’s sooo close. Mahalo to you all!
Response 1:
Good luck- I will be thinking positive thoughts. Having been through something like that, and paying mortgage on a house (waiting for it to sell in a slow market) while paying high rent for almost 18 months (the rent was actually a few hundred more then the mortgage), I know the stress it can put you under. Our income certainly was not enough to cover us — in fact, it qualified us for public assistance *without* the double mortgage/rent. That was over 4 years ago, and we are still in the hole BIG time.
Response 2:
Aloha Carol:
My prayers are to Godwith you . We too have a mainland home that we had up for sale in 2006. Escrow fell out at the last minute and for a year we have been paying two mortgages, utilities, gardener etc hoping that it would sell. When our financial hole got deeper, I traveled back to California and hired a property manager and our house is now rented..praise be to heaven’s intervention. I interviewed several managers before hiring this one and they seem to be worth their salt. We had remodeled as well and were hesitant to put our lovely and well loved home on the rental block. But there are many people mainland side who are now renting their homes that could not sell during this slump. Something to consider as it helps pay the mortgage. When this slump subsides, and it will as history has shown, values will climb back up and selling can be reconsidered. Or perhaps maybe we were meant to keep the home. Who knows what lies in the future.
Anyway, Good luck to you and we pray divine intervention in your case.
I was born on Kauai. My dad moved us back because when i went to kindergarten because he didn’t want me in public Hawaii schools (awful) and couldn’t afford private. Hawaiians, despite their complete disinterest in education, are awesome people.
Mainlanders who come to Hawaii, as evidenced by the above quotes, are not. Please, please, please, if you should move to the islands, don’t become these white hippie wannabe islander aholes.
Bright side: it sounds as though, like Notorious B.I.G., they’re “going, going, back, back, to Cali, Cali.”
Hmmm… I recall various things in the Bible that seemed to be against greed, screwing others, etc. I also recall an incident in the Temple involving Jesus and some money-lenders… Yeah, we’ll pray that God fixes the housing market, but you may not like the results if those who hunger and thirst for justice actually get their fill!
Actually, this gives me a great idea. We should all start a prayer circle asking God to speed up the foreclosures so that housing can be affordable again. We can come up with a secret symbol too. Instead of using a fish, we can use a circle underneath a line to represent the lowball. Then we can actually paint our symbols on the doors of overpriced houses to help God determine which houses on which to concentrate his almighty powers. Then, once housing hits bottom, we can praise heaven’s holy intervention and use our god-blessed money to buy houses at their new, meek prices, which will help us all get to heaven sooner.
she aint seen not bottom feeders yet?
In this environment shouldn’t a$$-raisers be leading the market to the bottom sooner as comps become available.
Why? Isn’t the purpose of the appraisal process to protect the lender? Why would an appraiser have any problem with this situation?
To say nothing of the fact that the whole process is pretty subjective and not much better than reading chicken entrails or throwing bones.
Auger’s description seems adequate, but a chicken-entrail or bone-throwing appraisal is good enough for a lender if the buyer has something at risk. When the buyer has nothing at risk, one would want an appraiser who would insist on appraising the cash-flow potential of the property…which obviously would’ve quashed 99% of the 2003-2006 sales.
you have to determine market value properly. if you base market value only on closed sales, you’re not doing your job. if listing prices and pending sales prices are lower than closed sales prices, market value could be said to be decreasing. which is happening in many if not most areas of southern calif now.
Notice that Crabtree refers to ‘it’ as contract price and sweet baby Mann as market value. Wonder how long she has been an appraiser? What’s a veteran appraiser these days? Two years, three, Four? No more I’ll bet.
Bottom-feeder, morlock, CHUD; I don’t care what you call me as long as it ain’t FB.
Why is there no derogatory term for the greedy sleazeballs who were trying to mark up as high as they could? Oh, that was just bidness, I guess.
I think of the bubble buyers as dupes, suckers, mopes, nimrods and snapperheads, so it averages out.
I too wonder why the greedy sellers were never bad mouthed.
Oh yea… that drove REIC commissions…
Nimrods gets my vote.
Got popcorn?
Neil
I’ll have to go to the ‘good book’ and read up on Nimrod. Help me out sports fans!
CHUD! Nice! I used to work with a guy that edited that movie, he still keeps it on his resume cuz people in their 30’s remember it fondly. hehe
yeah that movie was great when I was little
Call me anything….just don’t call me late for dinner…..or when you lower your price to 1998 level. 555-1212
“‘What has people a little bit worried now is not just what their homes are worth, but what it is going to mean to borrow,’ Baldassare said.”
Hint: If your home is worth less now than it was last year, and last year you were already HELOCked up to the eyeballs, then you don’t have much chance of further borrowing against your devalued home equity.
Dear Appraiser ,check mark declining values like you are suppose to on the appraisal .
“‘Sellers were concerned in the past that maybe it was something their agent wasn’t doing. Now they are beginning to realize it’s the market,’ Parsons said.”
No. IT’S. THE. PRICES.
They may have neglected to bury a statue of St. Joseph in the yard.
ROFLMAO.
Poor St. Joseph. Amen.
I usally pray to the Saints…Now I’m praying FOR Them!
Wasn’t it St. Jude who was the patron saint of lost causes? Perhaps they are praying to the wrong saint…
Trishyla said…”I think they just need to switch saints. Isn’t Saint Jude the patron saint of lost causes?”
Whoa! Sorry trishyla- I sent my reply before looking below… I guess great minds think alike…
Poor St. Joe. He might want to ask for overtime, as well as hazardous-duty pay.
Oh, no, his tour of duty is being extended.
Does the poor guy ever get a visit from the Red Cross? Why has their been no investigation into his work conditions?
Free St. Joseph!
Neil
I think they just need to switch saints. Isn’t Saint Jude the patron saint of lost causes?
Maybe Hank Paulson will let FBs rub his head for good luck.
Also Bernanke’s got a good noggin for rubbin’.
bernankes too busy bobbin on wall street noggin
Hey Saint Joe…
What you doin’ buried upside down, on another man’s land?
http://www.youtube.com/watch?v=m8Ebcx-mTns
Good one Alad……and if Jimi ain’t in heaven…..then I don’t wana go there…..just bury me here forever….. upside down….like my house is now.
Imagine……year 5007….no humans left on this earth…..a spaceship lands to check it out…..spaceguy says to the other spaceguy…. who is digging around looking for whatever….and pulls out this upside down statue and says “its the 100th one we found so far, just in this small area”…..other spaceguy says ” What the F***??”
hahahaha!!!! That is sooo funny
“‘Sellers were concerned in the past that maybe it was something their agent wasn’t doing. Now they are beginning to realize it’s the market,’ Parsons said.”
When do they realize agents never really DID anything?…
At best, they are just lock-box monkeys with lapel pins attached…
“‘The number of foreclosures is surging and will soon reach unprecedented levels,’ said Mark Schniepp, director of California Economic Forecast, in a book produced for participants. Schneipp predicts Ventura County real estate will level out and experience a total price drop between 10 and 15 percent, he said. Not bad if predictions on other California real estate markets are expected to dip down 18 percent.”
“The current real estate slowdown shouldn’t be compared to the recession in the 1990’s, Schneipp said. At that time, the downturn carried on for 71 consecutive months, resulting in a 27 percent drop in prices. Schneipp said it seems ‘unreasonable and improbable’ that history would repeat itself in such a cycle.”
And just what are you basing that on there Mark??? Did Moe and Curly say it seemed improbable? These spokespeople are hilarious…LOL
agreed.
a lot of people are born with their heads up their a443s.
Oh, I agree with Mark. The current real estate slowdown shouldn’t be compared to the recession in the 1990’s.
The 1930’s might be more accurate.
We haven’t even encountered the effects of job losses yet. Wait until unemployment reaches more “natural” numbers of 5.5% and up. Housing price drops will be the least of your worries.
No. Wait until the welfare rolls increase followed by budget crises (short falls) occur for city, county, state and national government agencies. People will become believers.
As a Californian the ‘accommodation’ that will be granted scares the heck out of me. How many companies will have to shut down or relocate due to the added tax burden?
My company is set to announce a relocation decision in December. This could be interesting…
Got popcorn?
Neil
“My company is set to announce a relocation decision in December. This could be interesting…”
That IS interesting, Neil. Please keep us posted. Any rumors yet as to where? It’s practically impossible to keep these things under wraps in a company. I’m surprised they even “announced” a December announcement.
Here in Maryland, our Dear Leader, governor O’Malley, has announced new tax hikes right before a recession. He even had the gall to refer to anyone who didn’t believe in their “social obligations” to pay higher taxes as “aberrate individuals with which he cannot communicate or understand.”
Nice! So, if you don’t like higher taxes, you’re an aberration!
In CA 6600 construction jobs lost in August. Gov hiring picked up the slack. Unemployment rate in CA 5.5 up from I think 4.9 a year ago.
PHOENIX - Arizona’s unemployment rate remains steady at 3.7 percent despite significant job losses in industries affected by the housing downturn.
The Department of Economic Security reports 2,600 construction jobs were lost in August and 1,900 more jobs were cut in the financial activities sector.
But the losses were more than offset by employment gains in other sectors, with significant additional hirings in such areas as local government, hospitality and various service industries.
Good think we can all rely on the Gubmint to take care of all our needs.
Is it so hard for a reporter to ask “Why exactly do you say that?” when someone declares it to be “unreasonable and unprobable” for something to happen without providing any justification?
If he said it would be “unpleasant and potentially embarassing” for prices to drop that far, he would have no need to do any math for me. But “unreasonable”? “Unprobable”? Let’s hear the reasons. Let’s look over the probabilities.
It would also be nice if the reporter would dig up what he predicted a year or two ago, to give us some perspective on his grasp of “reason” and “probability”.
If I say it would be unreasonable and improbable for the current downturn to be as tame as the one in the 1990’s, I bet nobody on this board will ask me why it shouldn’t be! But, as you suggest, if I were going to go really public with such a statement, I would have to explain with at least some charts.
More from the Acorn
“Dallas sees three possibilities for economic recovery. First, the subprime crisis may be overblown, he said. “It’s about people who are credit damaged,” he said. In geopolitical terms, the issue is minute. ”
Thats why the FED is panicking and dropping rates , because its minute. What a bone head.
In intergalactic terms, it is infintesmal.
That still means it is gonna suck for a number of people.
Didn’t these guys get the memo? Ben Bernanke just said yesterday that the subprime crisis is underblown.
I love reading the Acorn. It’s always provided wonderful REIC fun. Two weeks ago they had an “economist” stating that massive layoffs at Amgen and Countrywould would not impact the local economy because it is so diversified (i.e., there are 3 employers who provide 30,000 of the 80,000 jobs here and those are only the #2 and 3 biggest!).
I also love quotes like this:
‘The current real estate slowdown shouldn’t be compared to the recession in the 1990’s, Schneipp said. At that time, the downturn carried on for 71 consecutive months, resulting in a 27 percent drop in prices.’
Of course this should not be compared to the 1990-95 crash. NINJA loans were not a factor in 1990, appreciation was less absurd, and this crash will, in general, be much much bigger.
I guess because prices have dropped 25% in 12 mos (in some places less) instead of 71 months, this recession time isn’t as bad? Say what????
Schneipp said it seems ‘unreasonable and improbable’ that history would repeat itself in such a cycle.”
I love that quote. Why wouldn’t history repeat itself? Oh yeah, it’s different this time.
The lay-offs in Ventura County (Amgen & Countrywide- approx 12K-14K jobs,many here) will not effect the housing market one bit. Everybody works to get out of house around here anyway. This isn’t a ‘working class’ county. We’re all rich.
scarcasm off.
All old and prop 13 protected last time I was there
‘All old and prop 13 protected last time I was there ‘
That’s what it looked like when I first moved here in the mid 90s, since then I’ve seen many young families move in, stretching and using exotic mortgages to get here in recent years. I’ve worked at both Amgen and Countrywide, and hear from friends still there that layoffs are expected to be worse than what has been publicly announced. Ventura County housing is toast and there will be a significant property crime spike.
Doesn’t one always see WORSE, current, statistics compared to early debacles and conclude “it’s improbable” that today will be any worse?
Sounds “expert” to me.
“Bill Erb from Diablo Funding Group”
Even Satan himself is getting in on the action of overpriced California real estate! First we have Osama Bin Laden talking about the real estate bubble, now this!
Now that is a REIC name!
Forget wanting to only impoverish the next generation, they want their soles. I can respect it when they are honest (in their mission statement) about creating mayhem and chaos.
Got popcorn?
Neil
think Bill has horns?
think Bill has horns?
Oh yea… with nickel points (with razer blades).
Oh… souls… oops.
Neil
“Souls.”
What do they want with my soles? Some twisted form of cannibalism?
“The current real estate slowdown shouldn’t be compared to the recession in the 1990’s, Schneipp said. At that time, the downturn carried on for 71 consecutive months, resulting in a 27 percent drop in prices. Schneipp said it seems ‘unreasonable and improbable’ that history would repeat itself in such a cycle.”
OH Reeeeeeeeeeeally.
Well, technically, he may be correct. It’s happening a LOT faster this time Mr. Schneipp!
Ya just can’t make this stuff up.
Do they ask these spokespersons during the job interview process whether they are willing and able to tell bald-face lies?
Bear…do you agree that he *may* be telling the truth–the ship is sinking FAST. Dang.
Talking heads are a breed of their own. Sigh.
Leigh
Statisticians have a term for this type of thinking - Gambler’s Fallacy (i.e. I just rolled snake eyes, therefore it will be a while before I roll it again.)
GUESS WHAT? ………………….
_____ _____
| | | |
| O | | O |
|____| |____|
Argggggghh!
I hate it when things show up differently than what you type.
Tha was supposed to be a pair of dice with snake eyes!
test
_______ _______
| | | |
| o | | o |
|_____| |_____|
Yeah Stats, I can already tell it won’t come out right…
Besides, this is not a case of statitstics. Future economic events are not random, they are predictable based on current economic conditions. As long as one has knowledge about the system at work, then one can postulate the possible outcomes along with their probabilities.
“‘It certainly puts us (appraisers) in an uncomfortable position when we find that the selling price is below market value,’ says Karen J. Mann, a veteran appraiser in the Brentwood-Discovery Bay area east of San Francisco.”
Jeebus cripes! This is a veteran appraiser? Which word doesn’t she understand? Market? Value? Please answer the following question: What establishes market value? SELLING PRICE! Thanks for playing, Karen J. Mann.
I must say, you are all raising my spirits. I’m sitting here laughing with tears in my eyes, and the two cats and hubby are looking at me quite suspiciously.
Ya just can’t make this stuff up!!!
The “uncomfortable position” is probably coming from her dawning realization that her complicit behavior when appraising property well ABOVE market value in servitude to all parties involved and their insane commissions…..that particular position involves sitting in an attorney’s office and answering questions about appraisal fraud.
I wonder if some of these same appraisers would buy my gold for $2,000 an ounce? The selling price is the market value, or do comps only work when they benefit the appraisal?
My GG calls are screaming. Thanks Ben and the rest of the HBB community for giving me support when I stuck my toe in and bought WM puts. We should all be multi-millionaires by now if we had followed the HBBs comments about the lenders. Did make enough to take a european vacation on my AHM puts. Should have double downed.
Ms. Mann is a victim of the same Bay Area mentality that believes, truly believes, that prices can not fall there. That her appraisal was too high is simply not possible, and the fools that sold are just not karmaic enough.
“Not all appraisers are surprised that appraisals are beginning to come in above contract prices. Gary Crabtree in Bakersfield, says bloated sales prices over the past five years, plus hidden concessions and fraud, ‘have distorted the data’ and the public records in some parts of the country.”
Yeah, fraud from the likes of Mr. Crisp. We didn’t actually have a housing bubble, we have had and are having a FRAUD BUBBLE, which began with the 2000 election.
FRAUD BUBBLE, which began with the 2000 election….
This election?
Florida recount study: Bush still wins
WASHINGTON (CNN) — A comprehensive study of the 2000 presidential election in Florida suggests that if the U.S. Supreme Court had allowed a statewide vote recount to proceed, Republican candidate George W. Bush would still have been elected president.
The National Opinion Research Center (NORC) at the University of Chicago conducted the six-month study for a consortium of eight news media companies, including CNN.
NORC dispatched an army of trained investigators to examine closely every rejected ballot in all 67 Florida counties, including handwritten and punch-card ballots. The NORC team of coders were able to examine about 99 percent of them, but county officials were unable to deliver as many as 2,200 problem ballots to NORC investigators.
Suppose that Gore got what he originally wanted — a hand recount in heavily Democratic Broward, Palm Beach, Miami-Dade and Volusia counties. The study indicates that Gore would have picked up some additional support but still would have lost the election — by a 225-vote margin statewide.
The National Opinion Research Center at the University of Chicago study was commissioned by eight media companies — The Associated Press, The New York Times, The Wall Street Journal, CNN, the St. Petersburg Times, The Palm Beach Post, The Washington Post and the Tribune Co., which includes the Los Angeles Times, Chicago Tribune, the Orlando Sentinel and Baltimore Sun, as well as other papers.
http://www.cnn.com/SPECIALS/2001/florida.ballots/stories/main.html
Then again, what would one suspect as media like CNN and the NY Times have been witless supporters of Bush from day one…….
Let me pull an Alan Greenspan FEDspeakism here: I didn’t say the 2000 election was fraudulent. I merely said the fraud bubble was concurrent with the 2000 election.
Considering the fraud under Clinton (Tech Bubble, the “Paper Knight” Sir Alan Greenspam papering things over, missile secrets to China, etc.), I don’t think it is fair to pull a typical “blame Bush and the Republicans” for this one. The powers that be have been in place for far longer and have been working to achieve their goals regardless of who is in the White House.
Dear Pondering:
I clearly remember the Bush administration pulling funding for regulatory agencies all over America shortly after gaining office. I couldn’t even get the County of Contra Costa to enforce public health codes against my landlord after discovering that he was burying toxic trash (old cans, paint, mattresses, etc.) in my backyard, which sloped down to a creek. The lady came out and took a report, but the office was basically shut down a few weeks later when I tried to follow up. No one there to even answer the phone. I believe Bush’s reason was “tax cuts”.
no dude!
We all know it was a CREDIT UBBLE, with a side of fraud and housing bubble!
Got American-made?
BUBBLE!
It’s Crazy Credit!
I hereby propose the term “Frubble” for this fraud-laced bubble. You guys are right — a mere bubble only involves irrational exuberance. This one started with that, and then was juiced to the moon with enough fraud to make Pinnochio sprout a sequoia tree.
“Not all appraisers are surprised that appraisals are beginning to come in above contract prices. Gary Crabtree in Bakersfield, says bloated sales prices over the past five years, plus hidden concessions and fraud, ‘have distorted the data’ and the public records in some parts of the country.”
You mean like fraud on the part of folks like Crisp? Sorry if this turns out to be a double post, but we didn’t just have a housing bubble. The housing bubble was just part of a much larger bubble called the “FRAUD BUBBLE”, which started in 2000 and continues even now.
OK, well, I did double post. Got impatient with the realization that the overall bubble is the fraud bubble. So take heart, HBBers. Even when the housing bubble is fully deflated, Ben can change the blog name to the “Financial Fraud Bubble Blog”, or FFBB.
Do we call that a “frubble”? LOL
Frubble. Good one, Catherine. I also like Flubble. Because that’s what Bernanke’s Boner is creating, a Flubble.
well, then, it’s a “Floner”!
Boner Bubble Blog.
Most Posts Double Bubble Fog Blog,
not to make fun of any of us of course
I don’t think Bernie can keep it up, though.
So we might need to go with Bonehead Blunder Blog.
(sorry, Ben…it’s Friday)
“Bonehead Blunder Blog.”
That was the name of my post today in the Florida thread. My face is still a deep shade of red.
Weekend @ Bernanke’s…
Do you think some of these fraudsters will work for contracters in Iraq,to continue their fleecing of taxpayer’s money. They talk about an audit but the Pentagon says it is a few isolated incidents. They must be lying cause their lips are moving.
The Titanic is merely rocking a bit - nothing to worry about here, move along, move along….
Yes our ship was riding a little high in the water so we’ve decided to take on a little water to bring our ship to a more nuetral buoyancy. The water will be reused in the cooking quarters later in the day…move on, nothing to see here…
The band is still playing … nothing to see here …
Laughing so hard - trying to read as much as possible before sundown - one of those damn Jewish things - no electronics ’til sundown tomorrow. How much will prices adjust in that 24 hours and how many stupid hilarious quotes will I miss????
how the hell can you go 24hrs without logging on here?!
Happy Day of Atonement…or Yom Kippur
From ABC News (above)
There is also a move in congress to throw a lifeline to some borrowers, a bill that would raise federal housing administration loan limits from $417,000 dollars to as much as $729,000 dollars. It’s a measure strongly opposed by the Bush Administration.
This week’s actions by the Fed and Congress may not do much to help those already headed for foreclosure, but they may provide encouragement to those waiting to jump into the market.
“I think it’s a great time to buy. The rates may adjust downward in the next couple of weeks. We’ll have to wait and see, but it looks very favorable,” said Clark Anderson from Contra Costa Association of Realtors.
Then jump right on in and invest all your favorable dollars Clark Anderson…just think of how many investments you can make and rent on the open market. (sarcasm off).
The Democrats took over Congress and are trying to out-dumb Bush.
Home prices got too high, forcing buyers to take out risky loans. The government responds by trying to prop up home prices so that people can no longer afford to buy houses.
If they increase the limits I think I’ll crank out the limit with a reverse mtg. House free and clear. Will get about $6500/mo tax free. Then I can retire and day trade to keep my heart pumping. Kids can sell it when I become room temp.
The appraisal industry appears to be nothing but a bunch of guys who get paid to tell you that a similar house sold for so and so.
the fact that this appraiser doesn’t understand why home prices appreciated, what they are really worth, or why they are now depriciating.
Agreed. BUt just so you know, it wasn’t always that way. Back before there was licensing (with minimal requirements), you actually had to know what you were doing. But its just like most other professions - its been dumbed down over the past 10 to 20 years.
Examples:
bank tellers and officers (who know nothing about business, fractional reserve banking or credit)
department store clerks (who can’t make change)
supermarket clerks (who also can’t make change)
teachers (who don’t use proper English)
newscasters and sportscasters (who also routinely don’t use proper English)
real estate agents and other industry participants (who know nothing about r.e. cycles)
government workers (who are almost entirely illiterate and/or mostly use slang and Ebonics)
most college graduates (who are almost entirely illiterate and just about as learned as the average pre 1980 highschool grad)
The dumbing-down of our country continues…
Re: making change, I always get funny looks from fast-food and grocery clerks when I hand over, say, a buck and eight pennies for something that costs 87 cents.
Sometimes I see a little light go on in their IQ 87 heads when they punch in the number and the register goes “ching” and out pops a nice convenient quarter, instead of a handful of clutter-up-the-car-ashtray pennies, etc.
Thomas! You must reread your post. You are dumbing down the blog!
Oof. That’s the first time I’ve gotten a whole omelet on my face.
I meant, of course, 83 cents.
“In an effort to entice buyers, Standard Pacific Homes is staging an aggressive campaign called ‘Mission: Possible’ to sell 200 homes across Southern California over a 10-day period, ending Sunday.”
Perfect. Forget the sign spinners. Just drag a decomissioned aircraft carrier through the streets with a marching band on it and have a goon in a faux military Members Only flight jacket helicoptered in at the end of the event to declare “Mission Accomplished!”
P - Stop please - I can’t stop laughing. And have the sign spinners do a routine on the deck while Yun lands in flight suit with a sock stuffed crotch - He’de be the perfect on to make the “mission accomplished” declaration.
Mission Comp’d
Good one, lad.
They sent me a card about this sale with a black ballon stamped with Mission Possible on it .
Test.
OT for you folks that are considering buying, who can’t pay all cash, in the next 12-18 months (or sooner depending on lowball results).
If you were buying a 30-year home (or one that you expect you could stay in for a LONG time), but had access to a 7 year fixed at a 2% discount to the going rate, would you take it? I might end up in this predicament. I’ve always wanted a 30 year fixed, no questions asked, however the rate for the loan I’m talking about (employee perk where I work - NOT a retail bank) is 4.875% (for a jumbo). Hard to resist when I see the amount of $$ it saves on a monthly basis (about $1K on a $720K mortgage). No prepayment penalties, can refi at any time. It amortizes as if it were a 30-year loan, but it’s due in 7. The big negative is if you decide to quit/move you need to pay it back.
I used your numbers, and I must agree that it appears tempting, but unless you plan on paying it off in seven years (no one can guarantee a refi) then I’d say a resonding NO.
I wish you all the best with this decision.
Leigh
I’ll second that “no”. You have no business spending $720K or more on a house if you haven’t got $720K. Not in this market.
Is there a reason to think the house will be worth more in 2014?
you can refi a rate, if the rate goes down in the future, but you can’t refi a price.
If Barney Frank, et. al. have their way, you’ll be able to refi the price…
In addition to the others’ reasons, you also may want to just wait and see how things pan out first (in terms of only a moderate recession or a full-blown depression). You may want to be a bit mobile. IMHO
OC Stomp,
Depending on the “location” and your personal circumstances, it might not be a bad decision.
But have you considered the other opportunities that you might be missing in the future? The OC will have many foreclosures and there’s bound to be plenty of opportunities in the future.
Lip
check for that new bottom if you’re near a Hovnannian development - or any new builder soon
=wowowwowowo
We talked about that years ago on this blog that the builders pumped the prices up and they would lead in bringing the prices down .
The current real estate slowdown shouldn’t be compared to the recession in the 1990’s, Schneipp said. At that time, the downturn carried on for 71 consecutive months, resulting in a 27 percent drop in prices. Schneipp said it seems ‘unreasonable and improbable’ that history would repeat itself in such a cycle.”
I lived thru the 90’s slump and this is not history repeating itself. History has never seem a housing tsunami like this one.
Zillow.com says my place in Montana just dropped 27% in the last 30 days. Whazzup with that. Good think I’m not leveraged.
I’m short Montana.
But long Idaho?
I’m short any state that votes for Larry Craig.
Didn’t Larry Craig get caught a little short?
But his put(z) were covered!
Ooooh, good one, Catherine. Ding ding ding! We have a winner!
We have a winner!
you mean weiner
I think I have dyslexia today wtf
Wiener!
Craig doesn’t want to quit. He said he’d like to “stick it out in the Senate.”
Craig doesn’t want to quit. He said he’d like to ’stick it out in the Senate.”
Oooh, another good one, M.B.A. LMAO!
“He said he’d like to ’stick it out in the Senate.”
As long as he doesn’t go to the pages’ dorm looking for a little crack.
A “bottom feeder” probably struck at a home near you and killed your comps
Oh…WELL like I say, no problem! We’ll just hang out here for 20 years or so.
Isn’t there a huge shortage of land in Montana?
TAKE YOUR MEDICINE-LOWER PRICES!
“In 2003, when PPIC reported the last steep dip in consumer confidence, the invasion of Iraq was on people’s minds. Yet homeowners dug into their equity lines and low interest rates made spending on credit easy, and the economy continued improving.”
Note to armed forces: You fight, we’ll shop.
Don’t forget the patriotic tax cut. It’s perfectly normal to lower taxes while billions are spent daily on killing Iraqis.
I suppose it would have been better, during the 2001 recession, to raise taxes, no?
Then again, whether one raises tax rates or lowers them the REAL question is whether TOTAL tax revenue increases or decreases, no?
If you raise taxes during a recession (or don’t lower them) you are simply applying more “friction” to an engine that is slowing down. Does that makes sense?
From the standpoint of tax efficiency it could be possible that either raising tax rates OR lowering them during a war could be the best policy depending on how the TOTAL economy is doing, right?
So, yeah kthomas, it may be “normal” (given a recession) to lower taxes while killing Iraqi murderers like Saddam and Al Qaida murderers (who are continously murdering innocent Iraqis) who happen to ply their terrorism in Iraq.
One doesn’t necessarily have anything to do with the other.
In fairness, you left out the Blackwater killers.
And since most of the war is being financed off-balance sheet, we have no way of knowing what it is costing us. But your kids and grandkids will find out.
Can get some idea of what the rest of the world thinks it is costing us by going to the fxhistory website. I grant you a good deal of this has to do with our “make nothing but deals” economy, but the war is not helping.
We had a recession in 2001? I don’t remember that. I remember that the stock market was down and tech workers’ salaries dropped to more normal levels, but unemployment was low and the general economy was doing just fine.
What? I’m a catfish now?
Roidy
Not a bad idea. It could be the insignia for all those who refused to turn greedhead.
Reading the North County Times article about deserted homes in Escondido reminds us all of the pools in Sacramento. It’s only a matter of time until Escondido is the heart of the housing meltdown.
It would be better if this foreclosure wave could go towards the west and infect the coastal areas of Encinitas, Carlsbad and Del Mar.
Don’t forget the possibility that some of those homes could be fertile territory for pot growers, just like in Elk Grove.
“Alonso Escamilla, a property manager, owns two houses in Santa Barbara, but he’s looking for something more economical. Since the interest rate on his jumbo loan adjusted upward, his payment has become sizable. By selling one of his homes, he wants to be able to put 10 to 20 percent down on a $450,000 house.”
What idiot wrote this. A property manager owns two houses but wants something else because his jumbo is adjusting. If he owns two houses then they are free and clear, if not he is just renting them from some mortgage company. He owes on a jumbo but since he owns two houses then the jumbo must be on a third property. Nah, I don’t think so, just poor reporting skewing the picture.
Very funny. If he sells one of “his” houses, he may have $45K to $90K for a down payment on some place he can afford to keep. Anyone who doesn’t have $45K or $90K in liquid form is a fool to have title to any house or houses in Santa Barbara.
My parents saw the price of their condo in Santa Barbara fall 30% during the downturn in the 90’s. He might not have either place if a prediction of a 25% drop holds true in 3rd quarter 2008.
“Norbert Doran, who built Cadillac Flats 15 years ago, countered that $1,800 was a great deal. Buyers would have their own home, with values rising over time, he said.”
Cadillac Flats?????????????? I can hardly wait. Sing along with old Palmetto now: “All my friends know the Low Rider”. Help me out here, phillygal.
Are you all talkin’ ’bout Cadillac Kolstad and The Flats?
Awesome.
“Generally,appraisers perform their valuations for lenders to help determine whether the collateral is adequate. If it indicates they sold for less than the appraiser’s estimate of true market value, they are none the wiser.”
I love this appraisal business. Over the last couple of years everything from the inner city to 30 miles out has been selling on one thing, price per square fool. Now we are going to get back to location, location, location and quality, quality,quality. But surprise, all the new building has been poorly constructed track CLONE housing at elevated prices and it only takes ONE foreclosed property to set the new market valuation for a whole development. In the days of ole, a $300K and up house was different from everything else in the neighborhood and could command value different from its neighbor.
Over the last couple of years everything from the inner city to 30 miles out has been selling on one thing, price per square fool.
We have a great new unit of measurement!
“The alleged mortgage fraud exposed by KCRA 3 is having a direct effect on property values in Elk Grove.”
No way! Do the math! The fundamentals have been there all along. God bless the MSM and REIC.
That sounds an awful lot like Palladin’s leading the dumb lazy journalists to the story.
OT but speaking of “you can’t make this stuff up,” “I heard somebody say, Where’s Mandela?’ Well, Mandela’s dead because Saddam Hussein killed all the Mandelas,” Bush, who has a reputation for verbal faux pas, said in a press conference in Washington on Thursday.
OMG.
http://www.voanews.com/english/2007-09-21-voa23.cfm
Ya just can’t make this stuff up…LOL Crazy. And to all my fellow bloggers, today I laughed so hard until my inny popped out, eyes leaked, and toenails popped.
Thank you all so much for your humor and insights.
Smiles,
Leigh+
Oh please, be fair to Bush. He explains his thinking clearly. It’s his thinking that’s the problem.
Another SNL skit…Nelson Mandela is still alive.
Nelson Mandela is still alive
.. while any potential Iraqi Mandellas are long dead.. as are any Iranian Mandellas.. exterminated..
I get it and it needs no explanation, imo.. but Bush’s down-home logic and straight talking style isn’t for everyone.
I got it, too.
as are any Iranian Mandellas.. exterminated..
There really was an Iranian Mandela in the 1950’s. His name was Mohammed Mosaddeq. Someone got rid of him - but it wasn’t the Ayatollahs. Guess who?
Fortunately the changes in the housing market have not been quiet as dramatic here in the Midwest. Congratulations, on making the International Listings Top 100 Real Estate Blogs List. Keep up the great dialog!
What they don’t know is, this is the very best RE blog, whether it is the most frequented or not.
Posted this at least one other time but I like it too much to omit it today. November 2005 an acquaintance in Morro Bay told me I could have her 800 sqft house for $580K. In addition to the 800 sf it has a small deck and a one-car garage. No water view. Gee, I didn’t buy it. By Nov 2006 it was in the MLS for $460K. By maybe April 2007 it was in the MLS for $440K. Just this week or last, the MLS listing changed to $420K. Might rent out for $1200/mo.
Keep us updated and let us know when the foreclosure auction fails.
So for all you Charger fans, I will be cheering for my beloved Packers on Sunday as I head to Ashwaubenon for a donation to the Indian charities. As opposed to Chicago which has Rex Grossblunder, Favre might actually win. The Packer defense is good and will hurt the SD offense. I trust it to be an enjoyable game.
Great weekend all!
I seriously love Mr. Favre. Have fun!
Waving to Hoz from Eagle WI ~~~
Leigh
“‘It certainly puts us (appraisers) in an uncomfortable position when we find that the selling price is below market value,’ says Karen J. Mann, a veteran appraiser in the Brentwood-Discovery Bay area east of San Francisco.”
Now if everyone would get with the program and start offering 50 to 60% off list. We can be done with this bubble. Now that sellers are accepting less than market “snicker” value.
Fortunately, the housing slump in the mid west has not been as dramatic. Although I am listing a lot more lease options. Keep in’ positive! Congratulations, on the International Listing Top 100 Blogs List. Keep up the great dialog!
Fortunately, the sag in the housing market in the Midwest has been less dramatic. I’m keeping positive. Congratulations, on making the International Top 100 Real Estate Blogs List. Keep up the great dialog, its been fun!
“‘It certainly puts us (appraisers) in an uncomfortable position when we find that the selling price is below market value,’ says Karen J. Mann, a veteran appraiser in the Brentwood-Discovery Bay area east of San Francisco.”
..then either your appraisal methodology is wrong or the inputs are invalid…either way the correct value is being set by the market.
..as I have said before on this blogs..COMPs are a crappy way to assess value, unless the homes are very, very similar and the market is working efficiently
Pen, what gets me is that many of the “comps” were set by fraudulently inflated transactions during the bubble and people are having to suffer with tax assessments that in some areas may have been set by fraudulent “comps”. In fact, I’m really pretty pissed off about it. I would really like to know exactly how much fraud had to do with tax assessments in any given area, especially in Florida. It would be a good question for our friend dimedropped, I think, since he’s been looking into some of this.
What really has my blood boiling is that as a result of this, in Tallahassee, for example, politicians are trying to make political capital out of the bubble, with their phoney “Stupor Exemption” proposal. Yet I don’t hear anything about a special task force on mortgage fraud or a mandate for property appraisers in the various counties to get a handle on how much of the inflated value is fraud and back that out of assessments, NOW! The burden is on the citizens to prove their assessments are not accurate, by using comps or other data. I don’t think citizens should have to suffer with tax assessments due to fraudulently high comps nor should the burden be on them to prove those comps false. That’s a job for law enforcement.
“as I have said before on this blogs..COMPs are a crappy way to assess value, unless the homes are very, very similar and the market is working efficiently ”
Agreed. IMHO the Income Approach to Value is the most relevant.
“The recent surge in housing foreclosures is creating new headaches for Escondido’s code enforcement officers, who say they are struggling more than ever to contact homeowners who have broken windows, out-of-control shrubbery or scummy swimming pools.”
Glad to know our local officials are at least trying to stay on top of things!.Out-of-control shrubbery is not only a local but a national menace!
I got a haunted house behind my house. Some nutcase doctor owns it but hasn’t lived there for years. It looks just like Sleeping Beauty’s castle, all covered in ivy, thorns and weeds. The inside is filled with piles and piles of newspaper and junk. City of San Diego could care less about it.
An accidental fire just waiting to happen…
OT..warning PDF..
From MAREALTOR website..Annual Statewide Average Selling Price - Table 1968 through 2006
http://tinyurl.com/3crypq
Barney we need a law for Home builders to disclose incentives to allow appraisers to do their job. THIS TOO SHOULD BE CONSIDERED FRAUD.
“‘It certainly puts us (appraisers) in an uncomfortable position when we find that the selling price is below market value,’ says Karen J. Mann, a veteran appraiser
I’m honestly confused by this comment. If it makes her uncomfortable when the selling price is below her appraisal, does that mean she prefers it when the selling price is above her appraisal?
I thought the whole point, especially for a crooked or shall we say bubble-era appraiser, was for the appraisal to be high enough relative to the selling price? (And with zero down, high enough would have to mean higher than the selling price?) Isn’t that what “hit the number” means?
Anyone know what the Mandella house appraised for? I am talking about the mandella’s in Sadr City.
Well looks like winter is over the time has come for the bottom feeders to get some
Buy low sell in 91 days, 0ne will make you two
B.F all good men
One of the big questions about the foreclosure crisis is, why didn’t anyone see it coming?
We all saw it coming, for a few years now!
http://www.thesecret.tv/
This is a idea that positive thoughts attract wealth, health, whatever you choose to attract. negitive thoughts just the oppisite.
There is a person here in Phoenix who has been teaching “the Secert” hes a qualified teacher trained by the head wizard or whatever? So I hear a rumor that his wife is freaking because they bought a house ARM no money down and its now readjusted to 4K per month. Positive thoughts anyone??? hahahahaha
If think enough positive thoughts your mortgage will go down or you will be able to afford a house like Oprah’s in Montecito LOL.
I just got an email from my cousin who is an appraiser in OC. She says business has sucked for 18 months and she has to file BK and sell her home. She is spending lots of time working, but is getting nothing. Apparently she gets called to do preliminary pricing and when it comes in too low the sale is canceled and she gets squat. She said she is working harder than she ever has and making nothing do so. She said she has been depressed for 6 months and finally broke out of it far enough to realize she needs to get the monkey off her back.
She is a great person, but drank the kool aid. Now she is hosed and even the “bail outs” being bandied about in Congress will not help her because they require income. She has been living on her house ATM and unfortunately the chickens have come home to roost. Game over. I have been sending her my cartoons for some time with links to bubble blogs, but alas, the kool aid was too strong for too long.
I offered her a place to live if she needed sanctuary. That’s all I can do.
Question for any of the appraisers on the blog. Why is it that she is not being compensated for the time she puts in to determine if the property is priced right?
Gotta love the quote in this article…http://www.app.com/apps/pbcs.dll/article?AID=/20070919/BUSINESS/709190336/1003
““‘We have such a huge inventory of unsold homes,’ Rosen said. ‘It’s the bad loans and overbuilding and over-speculation that caused the problem, not interest rates.’” and what do you think caused the “bad loans and overbuilding and over-speculation”? Kinda like saying “Its the McDonalds and Pizza and fried foods that made us overweight, not the fat”
Laughable…lol