Thread: Question re: Housing Market Crunch

This is just the begining of this housing bust. There was a story on TV the other night about Fannie Mae and how many millions of dollars they were going to be out. Or I should say we are going to be out. Yes this is going to make the S&L bailout look like pocket change. This ran on for years with no controls and it will be a major disaster.

Ironically, many illegals were drawn to come or stay here because of construction jobs during the housing boom. Then, as units became harder to sell, they started to be seen as possible customers and financing options were developed to target them. The subprime mortgage market is a much larger issue than just illegals, but they got sucked into it, as did many people who would, in former times, not be seen as candidates for home ownership. It is way big and crazy. For more info on how big, check out http://patrick.net/housing/crash.html. This guy was calling the crash even as others were still shouting boom. See also http://www.nytimes.com/2007/04/17/busin ... d=newsvine

Here is an article on the big picture of the housing boom and bust: overbuilding in the chase for rapid profits that seemed possible when prices were rising every month. As the heat was rising, builders were beating the bushes for more more and still more customers. As inventories rose, homes sat empty, and foreclosures began, they panicked even more and got crazier with financing options. Illegals were only one group that got sucked in to that machinery.

http://www.businessweek.com/magazine/co ... _top+story

Remember, by the time a house is foreclosed, the real estate agent, the mortgage broker, the builder, and everyone else, has already cashed their checks. Old motto: "if you don't know who the patsy is in the game, it's you."

Remember, by the time a house is foreclosed, the real estate agent, the mortgage broker, the builder, and everyone else, has already cashed their checks. Old motto: "if you don't know who the patsy is in the game, it's you."

In our area it is the builders and the banks that are taking the hit. We are so overbuilt with new houses - from modest to palatial - that incredible incentives are being offered to move them. In some instances in the lower priced houses the builders have actually resorted to renting them.

Building lots in subdivisions have rarely been offered on the public market. They were only available to builders who would buy them in multiples. Now the real estate listings are replete with them. It's time to pay the piper.

Overbuilding is continuing here too. In many cases, ground is being broken for new subdivisions while in the finished subdivision next door there are ample unsold and foreclosed units. Often these developments are built upon what was recently productive farm and ranchland. It's just insane.

Another question.......

After illegals have lived in these houses (even for a short time), what condition are they in? Have the values on the homes diminished? They are ruining "market value" of homes all over the country, just by living in neighborhoods.

In some cases, they are over-occupying homes, increasing wear and tear. In other cases, they are handymen or fancy themselves to be. I bought my house from Mexican nationals, who I believe were illegal, and there were a lot of amateur improvements made.

Originally Posted by NCByrd

Another question.......

After illegals have lived in these houses (even for a short time), what condition are they in? Have the values on the homes diminished? They are ruining "market value" of homes all over the country, just by living in neighborhoods.

My buddy bought a new home as an investment in Florida some years back. He left it with a company who leased it out and collected the rent for him, took their cut and sent him a check. When he finally went there to see the place, there were a clan of illegals living in the place, and the kitchen cabinet doors had been torn off and replaced with wire and they were raising chickens in the house.

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Overbuilding is continuing here too. In many cases, ground is being broken for new subdivisions while in the finished subdivision next door there are ample unsold and foreclosed units. Often these developments are built upon what was recently productive farm and ranchland. It's just insane.

That's what they are doing here......building and building, homes, strip malls....they're empty,... homes being forclosed on, rent and rent to own.....yet they keep building. What still stuns me is they are HUGE homes. 3 stories visible. I mean they are big. There aren't any jobs in the immediate area that pay enough to afford these places.......so it's the obvious commute. Which then leave the people here scrambling for affordable housing. Whether it's renting or buying. Heck ....my house would rent for over a thousand a month easy. You don't work for 7 bucks an hour and afford to do that. My home most likely would be one of those who goes to the federal rent aid group (section .....which means it would just deteriorate to the next slum. It's not special.....just a simple ranch with nothing special or unique. No deck, no pool, no hot-tub, no basement.....the people across the street rented theirs......35,000 worth of damage.....just from their first renters.....

I agree texlegal1. This is the beginning of this mess and we will be fighting a massive Government bail out of the foolish lenders who got into this mess as well as the crooks that want to destroy the United States by supporting illegal immigration. Americans keep paying and paying for all of this lawlessness, it makes me want to scream!

I use to go everyday to a housing bubble blog called "the housing bubble blog" They would put up related articles and people would comment on them, All the time one could read about mortgage fraud and housing scams and "poor victimized immigrant buyers". I would point out the connection I saw between illegal immigration and the realestate fraud, I thought it was a perspective that wasn't being reported on or discussed. The funny thing was that after a few posts my comments were not getting posted. I guess the blog publisher "Ben" was censuring my comments. I was so dissapointed that I stopped visiting the blog for almost a year.
Anyway Illegal alien and immigrint buyers are the few people who are buying right now in California. and your observations regarding illegal immigration and the housing bubble are dead on.