Blame game or possible solutions?

[Wry Catcher]

The question remains and answers are - well - limited.
Banks cannot be made to act with responsibility, and if they choose to foreclose they will need to eventually sell the distressed properties.
Is it likely banks will sell the to their wealthy customers, those able to purchase distressed homes with all cash? There is no risk if little or no property is mortagaged; and, the taxpayer will eat the loss of interest as more and more banks charge of losses from their income.
If that occurs, might we be faced with a new world, where home ownership is out of reach for the working middle class, and our kids and theirs will live in rental property?
The image of Soviet style apartments, owned by the Bank of America, Citi or Wells seems to be the future unless, unless what?
Or does no solution exist?

 

[Old Rocks]

Uh, wealth, or rather homeowership, was "redistributed" to people who did not have it, or those who could not afford homes.

They still can't afford them.

Unless you are giving yours away.

Boy, you do insist on being a stupid ass. Most of the homeowners in trouble have been unemployed for a long time. Most have been actively looking for work. If you watch any news at all, you will see a posting for a need of 10 to 15 workers for an industry, and there are several hundred showing up to try for the job.

Just as it was in the Dirty Thirties, it is today. Arrogant asses assume their luck is soley due to their superiority, and that the people that have been caught in this economic storm are their inferiors. And it is no more true today than it was then.

 

[Quantum Windbag]

I'd like this thread to be open to all who have ideas on solving the housing crisis. What will or might work, what will not?

The Problems:
Too many homes underwater;
Too few banks willing to work with homeowners in distress;
Too many homes in foreclosure;
Too many homes abandoned;
Too many neighborhoods in free fall.

More?

What can/should/might be done?

Is a strategic foreclosure unethical, or simply a business decision?
Should banks reduce interest rates to current levels to allow homeowners to remain in their home?
Is it healthy for the investor class to buy distressed homes, rent them cheaply, forgo repairs/maintainance, and receive a business tax deduction?

First, we have to stop thinking that the "housing crisis" is something we need to be concerned about. We do not face a housing crisis, we face a crisis that is the result of stupid policies in Congress that resulted in people being able to purchase houses that they could not afford for way more than they were worth. The best thing to do is finally get out of the way and let the market resolve itself.

 

[william the wie]

The question remains and answers are - well - limited.
Banks cannot be made to act with responsibility, and if they choose to foreclose they will need to eventually sell the distressed properties.
Is it likely banks will sell the to their wealthy customers, those able to purchase distressed homes with all cash? There is no risk if little or no property is mortagaged; and, the taxpayer will eat the loss of interest as more and more banks charge of losses from their income.
If that occurs, might we be faced with a new world, where home ownership is out of reach for the working middle class, and our kids and theirs will live in rental property?
The image of Soviet style apartments, owned by the Bank of America, Citi or Wells seems to be the future unless, unless what?
Or does no solution exist?

Too much housing out there for that scare tactic to work. The average house will decline in price until it is affordable to effectively anyone and there still won't be enough people to fill 'em up. When I first left FL in 1963 it still didn't take much searching even in the Keys to find houses built and then abandoned in 1926. I was however amazed to find out that my real estate professor had been doing appraisals on undeveloped lots of 1926 subdivisions as late as the early 80s in northern Dade county. So, forget about all rental properties.

States tax rentals at effectively double rates now and raising the homestead exemption and millage rate in tandem is always popular. Tacking on surcharges for out of state owners is also popular with voters. The states are so short of cash that their state employee pension funds are in danger of collapse, the same is true of the counties and municipalities. Most of the foreclosures will end up as section 8 HUD housing which are cheap, cheap, cheap and soon to be in oversupply.

 

[loosecannon]

The question remains and answers are - well - limited.
Banks cannot be made to act with responsibility, and if they choose to foreclose they will need to eventually sell the distressed properties.
Is it likely banks will sell the to their wealthy customers, those able to purchase distressed homes with all cash? There is no risk if little or no property is mortagaged; and, the taxpayer will eat the loss of interest as more and more banks charge of losses from their income.
If that occurs, might we be faced with a new world, where home ownership is out of reach for the working middle class, and our kids and theirs will live in rental property?
The image of Soviet style apartments, owned by the Bank of America, Citi or Wells seems to be the future unless, unless what?
Or does no solution exist?

It could be worse, in fact it could get worse. The foreclosed properties could all be bought by the Chinese.

 

[loosecannon]

The question remains and answers are - well - limited.
Banks cannot be made to act with responsibility, and if they choose to foreclose they will need to eventually sell the distressed properties.
Is it likely banks will sell the to their wealthy customers, those able to purchase distressed homes with all cash? There is no risk if little or no property is mortagaged; and, the taxpayer will eat the loss of interest as more and more banks charge of losses from their income.
If that occurs, might we be faced with a new world, where home ownership is out of reach for the working middle class, and our kids and theirs will live in rental property?
The image of Soviet style apartments, owned by the Bank of America, Citi or Wells seems to be the future unless, unless what?
Or does no solution exist?

Too much housing out there for that scare tactic to work. The average house will decline in price until it is affordable to effectively anyone and there still won't be enough people to fill 'em up. When I first left FL in 1963 it still didn't take much searching even in the Keys to find houses built and then abandoned in 1926. I was however amazed to find out that my real estate professor had been doing appraisals on undeveloped lots of 1926 subdivisions as late as the early 80s in northern Dade county. So, forget about all rental properties.

States tax rentals at effectively double rates now and raising the homestead exemption and millage rate in tandem is always popular. Tacking on surcharges for out of state owners is also popular with voters. The states are so short of cash that their state employee pension funds are in danger of collapse, the same is true of the counties and municipalities. Most of the foreclosures will end up as section 8 HUD housing which are cheap, cheap, cheap and soon to be in oversupply.

I can't tell if your post also mentioned that suburbia as a socioeconomic model may be on the brink of collapse.

In any case we can't afford to be a nation of McMansionites living 24.6 miles from our place of employment.

 

[loosecannon]

I'd like this thread to be open to all who have ideas on solving the housing crisis. What will or might work, what will not?

The Problems:
Too many homes underwater;
Too few banks willing to work with homeowners in distress;
Too many homes in foreclosure;
Too many homes abandoned;
Too many neighborhoods in free fall.

More?

What can/should/might be done?

Is a strategic foreclosure unethical, or simply a business decision?
Should banks reduce interest rates to current levels to allow homeowners to remain in their home?
Is it healthy for the investor class to buy distressed homes, rent them cheaply, forgo repairs/maintainance, and receive a business tax deduction?

First, we have to stop thinking that the "housing crisis" is something we need to be concerned about. We do not face a housing crisis, we face a crisis that is the result of stupid policies in Congress that resulted in people being able to purchase houses that they could not afford for way more than they were worth. The best thing to do is finally get out of the way and let the market resolve itself.

So you think we should eat the poor. BBQ or in stew? Cabobs?

 

[william the wie]

The question remains and answers are - well - limited.
Banks cannot be made to act with responsibility, and if they choose to foreclose they will need to eventually sell the distressed properties.
Is it likely banks will sell the to their wealthy customers, those able to purchase distressed homes with all cash? There is no risk if little or no property is mortagaged; and, the taxpayer will eat the loss of interest as more and more banks charge of losses from their income.
If that occurs, might we be faced with a new world, where home ownership is out of reach for the working middle class, and our kids and theirs will live in rental property?
The image of Soviet style apartments, owned by the Bank of America, Citi or Wells seems to be the future unless, unless what?
Or does no solution exist?

It could be worse, in fact it could get worse. The foreclosed properties could all be bought by the Chinese.

Well since the Chinese have stopped buying Australian apartments I kind of doubt that except as possibly a transition phase prior to China going into its own lost decades.

 

[william the wie]

The question remains and answers are - well - limited.
Banks cannot be made to act with responsibility, and if they choose to foreclose they will need to eventually sell the distressed properties.
Is it likely banks will sell the to their wealthy customers, those able to purchase distressed homes with all cash? There is no risk if little or no property is mortagaged; and, the taxpayer will eat the loss of interest as more and more banks charge of losses from their income.
If that occurs, might we be faced with a new world, where home ownership is out of reach for the working middle class, and our kids and theirs will live in rental property?
The image of Soviet style apartments, owned by the Bank of America, Citi or Wells seems to be the future unless, unless what?
Or does no solution exist?

Too much housing out there for that scare tactic to work. The average house will decline in price until it is affordable to effectively anyone and there still won't be enough people to fill 'em up. When I first left FL in 1963 it still didn't take much searching even in the Keys to find houses built and then abandoned in 1926. I was however amazed to find out that my real estate professor had been doing appraisals on undeveloped lots of 1926 subdivisions as late as the early 80s in northern Dade county. So, forget about all rental properties.

States tax rentals at effectively double rates now and raising the homestead exemption and millage rate in tandem is always popular. Tacking on surcharges for out of state owners is also popular with voters. The states are so short of cash that their state employee pension funds are in danger of collapse, the same is true of the counties and municipalities. Most of the foreclosures will end up as section 8 HUD housing which are cheap, cheap, cheap and soon to be in oversupply.

I can't tell if your post also mentioned that suburbia as a socioeconomic model may be on the brink of collapse.
In any case we can't afford to be a nation of McMansionites living 24.6 miles from our place of employment.

Cheap boarding houses are always needed in a recovery from a severe downturn.

 

[william the wie]

Baked babies for breakfast:

Just gut and bake at 350 degrees for 15 minutes per lb. baste frequently. For added flavor stuff the abdominal cavity with butter and fragrant veggies.

Much better than Bar-b-q.

 

[loosecannon]

Garlic. lots of garlic powder, paste and freshly diced cloves. Olive oil makes an exceptional basting base.

 

[william the wie]

Garlic. lots of garlic powder, paste and freshly diced cloves. Olive oil makes an exceptional basting base.

Good point, I stand corrected.

 

[Quantum Windbag]

I'd like this thread to be open to all who have ideas on solving the housing crisis. What will or might work, what will not?

The Problems:
Too many homes underwater;
Too few banks willing to work with homeowners in distress;
Too many homes in foreclosure;
Too many homes abandoned;
Too many neighborhoods in free fall.

More?

What can/should/might be done?

Is a strategic foreclosure unethical, or simply a business decision?
Should banks reduce interest rates to current levels to allow homeowners to remain in their home?
Is it healthy for the investor class to buy distressed homes, rent them cheaply, forgo repairs/maintainance, and receive a business tax deduction?

First, we have to stop thinking that the "housing crisis" is something we need to be concerned about. We do not face a housing crisis, we face a crisis that is the result of stupid policies in Congress that resulted in people being able to purchase houses that they could not afford for way more than they were worth. The best thing to do is finally get out of the way and let the market resolve itself.

So you think we should eat the poor. BBQ or in stew? Cabobs?

Stew.