Vegas Free-for-All - Another Eulogy to Nevada's Housing Boom

Another Eulogy to Nevada's Housing Boom

jphelan

Mar 16, 2011
3:42am

Very sad indeed....

There are many folks to blame here --- from the people borrowing with 5% down on an interest only loan to the lenders who LET them borrow to the government who ENCOURAGED them to borrow to the investment firms who sold securities in credit swap defaults who PROFITED from this.

It seems as though it ain't our parent's America any more. In my parent's America a family would save for a good down payment and work their life to own a home that appreciated in value and you could use to fund your retirement.

I think the saving part was lost on the younger generation and it is always spend, spend, spend and borrow, borrow, borrow. Maybe they learned that from our political leaders? Or did they learn it from the baby boomers who they are now funding in retirement with entitlements that we can no longer afford?

drmilled

Mar 16, 2011
4:05am

Block User

Greed, greed, and more greed on the lenders part. Stupidity, stupidity, and more stupidity on the borrowers part. End result, aside from the finger pointing, is the financial crisis today in the United States.

MisterPicture

Mar 16, 2011
4:05am

Block User

Quote

Originally posted by: KayPea
...Usually the threat of foreclosure is enough to compel payment as the homeowner would loose the property and their equity in the property not to mention their credit worthiness for years. I guess banks never thought to add a clause to allow them to foreclose on the homeowner's kids and sell them into slavery to defer their costs.

There are no clauses to allow lenders to go after your income either. Do you know why? It's because recourse mortgage contracts are illegal in most of the United States. Although recourse mortgages are very common throughout the world, and in those countries, even if the property reverts to the bank, the lender can still go after income, pensions, and other property to recoup their losses.

I'm curious. Have you ever paid on that contract you walked away from? Have you ever tried to track down the original lender so you could make it good, including interest? Your contract was no doubt recourse, meaning you still do have an obligation to pay, right? Unlike defaulting homeowners, who in the U.S., have no such obligation.

Roulette Man

Mar 16, 2011
5:37am

Block User

Quote

Originally posted by: forkush

Quote
Originally posted by: KayPea
...Usually the threat of foreclosure is enough to compel payment as the homeowner would loose the property and their equity in the property not to mention their credit worthiness for years. I guess banks never thought to add a clause to allow them to foreclose on the homeowner's kids and sell them into slavery to defer their costs.

Not true. Your initial loan for a home is non-recourse, but if you refinance it (which many people have done), it is almost always a recourse loan.
Recourse loans

TylerH50

Mar 16, 2011
6:18am

Block User

I just read that the Husband and the Sister Wives moved to Vegas. He bought 3 houses to keep his wives and offspring in. So, all Clark County needs is another 1500 polygamists to do the same thing. Housing Problem Solved!

DRich2

Mar 16, 2011
6:48am

Block User

Quote

Originally posted by: bardolator2
Is anyone else out there old enough (or dumb enough) to have put down 40 percent on a house and then made double payments on the mortgage? We have spent much time recently in Cape Coral, which is about as bad as Las Vegas. What a world.

My parents live in Cape Coral and their home is now valued at 36% of what it was a few years ago. Sadly, I have them beat. My home in Las Vegas is currently valued at 31% of what it was a few years ago.

MisterPicture

Mar 16, 2011
7:49am

Block User

Quote

Originally posted by: Roulette Man

Quote
Originally posted by: forkush
Quote
Originally posted by: KayPea
...Usually the threat of foreclosure is enough to compel payment as the homeowner would loose the property and their equity in the property not to mention their credit worthiness for years. I guess banks never thought to add a clause to allow them to foreclose on the homeowner's kids and sell them into slavery to defer their costs.
There are no clauses to allow lenders to go after your income either. Do you know why? It's because recourse mortgage contracts are illegal in most of the United States. Although recourse mortgages are very common throughout the world, and in those countries, even if the property reverts to the bank, the lender can still go after income, pensions, and other property to recoup their losses.

I'm curious. Have you ever paid on that contract you walked away from? Have you ever tried to track down the original lender so you could make it good, including interest? Your contract was no doubt recourse, meaning you still do have an obligation to pay, right? Unlike defaulting homeowners, who in the U.S., have no such obligation.

Not true. Your initial loan for a home is non-recourse, but if you refinance it (which many people have done), it is almost always a recourse loan.
Recourse loans

You are right. I should have specified first mortgages.

KayPea

Mar 16, 2011
7:51am

Block User

Quote

Originally posted by: forkush
I'm curious. Have you ever paid on that contract you walked away from? Have you ever tried to track down the original lender so you could make it good, including interest? Your contract was no doubt recourse, meaning you still do have an obligation to pay, right? Unlike defaulting homeowners, who in the U.S., have no such obligation.

Was this directed at me? I have never walked away from a contract.

Don

Mar 16, 2011
9:20am

Block User

Quote

Originally posted by: bardolator2
. . . We have spent much time recently in Cape Coral, which is about as bad as Las Vegas.

DonDiego is quite familiar with Cape Coral. In fact, in his callow youth, . . . long before Cape Coral was even a community, . . . in the early 1970s young DonDiego purchased two "Florida homesites", . . . one on the East Coast and one on the West Coast just across the Caloosahatchee River from Cape Coral. He paid $59/month on the first and $39/month on the second for 8 years.

Then he waited patiently, . . . and nothing happened. Nothing happened. Nothing happened until the 1990s when prices began to rise. And then the 2000s when prices began to gallop. DonDiego sold the properties in 2004/2005 and pocketed a nice profit, . . . and then watched as prices nearly doubled over the next 18 months. Bummer!

Bummer, . . . until the crash. He doubts he could find a buyer at any price now.

Malibugolfer

Mar 16, 2011
9:53am

Block User

Forkush, while you're at it please don't overlook all the bond holders at GM who had their rightful place in line displaced by the union favoring federal government.

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