Excerpts from
http://moneycentral.msn.com/content/...ng/P148861.asp


....Nearly one in 10 households with a mortgage had zero or negative
equity in their homes as of September 2005.

....Of those who bought or refinanced homes in 2005, 29% had zero or
negative equity, and 15.2% were underwater by 10% or more.

....Interest rates on about a quarter of all mortgage loans
outstanding, or $2 trillion, are scheduled to reset this year and
next.

....Defaults and foreclosures are already on the rise. Nationally,
117,259 properties entered some stage of foreclosure in February, up
68% from February 2005.



--

The wages of sin are death,
but by the time taxes are taken out,
it's just sort of a tired feeling.

....Paula Poundstone

In article ,
says...
Excerpts from
http://moneycentral.msn.com/content/...ng/P148861.asp

...Nearly one in 10 households with a mortgage had zero or negative
equity in their homes as of September 2005.

...Of those who bought or refinanced homes in 2005, 29% had zero or
negative equity, and 15.2% were underwater by 10% or more.

...Interest rates on about a quarter of all mortgage loans
outstanding, or $2 trillion, are scheduled to reset this year and
next.

...Defaults and foreclosures are already on the rise. Nationally,
117,259 properties entered some stage of foreclosure in February, up
68% from February 2005.


This whole issue is about three simple words:

Poor Attention Span.

It is the sense of entitlement to buy as much as you can right
now, without thinking about the future risks stemming from
today's behaviour.

And also the sense of entitlement to say, "I've got this nice
situation (e.g. can afford this house), right now, which creates
a God-given right to continue to have it forever."


--
Get Credit Where Credit Is Due
http://www.cardreport.com/
Credit Tools, Reference, and Forum

On Fri, 21 Apr 2006 17:28:57 -0700, Antipodean Bucket Farmer wrote:

In article ,
says...
Excerpts from
http://moneycentral.msn.com/content/...ng/P148861.asp

...Nearly one in 10 households with a mortgage had zero or negative
equity in their homes as of September 2005.

...Of those who bought or refinanced homes in 2005, 29% had zero or
negative equity, and 15.2% were underwater by 10% or more.

...Interest rates on about a quarter of all mortgage loans
outstanding, or $2 trillion, are scheduled to reset this year and
next.

...Defaults and foreclosures are already on the rise. Nationally,
117,259 properties entered some stage of foreclosure in February, up
68% from February 2005.


This whole issue is about three simple words:

Poor Attention Span.

Perhaps, but you gotta live somewhere and get in the pool sometime...

It is the sense of entitlement to buy as much as you can right
now, without thinking about the future risks stemming from
today's behaviour.

When we bought our first house we were looking at 18% (or more) interest.
You do remember the Carter "misery index"? Fortunately it was down to a
more manageable 14.5% when we closed. Yes, we bought as much house as we
could afford and went through some major bumps (e.g. lost $50K in equity
in a year - moved and bought another house).

And also the sense of entitlement to say,
"I've got this nice situation
(e.g. can afford this house), right now, which creates a God-given right
to continue to have it forever."

There are no "dog given rights", but perhaps you think it's better to
rent forever? They really aren't printing more property.

--
Keith

In article , Keith says...

On Fri, 21 Apr 2006 17:28:57 -0700, Antipodean Bucket Farmer wrote:

In article ,
says...
Excerpts from
http://moneycentral.msn.com/content/...ng/P148861.asp

...Nearly one in 10 households with a mortgage had zero or negative
equity in their homes as of September 2005.

...Of those who bought or refinanced homes in 2005, 29% had zero or
negative equity, and 15.2% were underwater by 10% or more.

...Interest rates on about a quarter of all mortgage loans
outstanding, or $2 trillion, are scheduled to reset this year and
next.

...Defaults and foreclosures are already on the rise. Nationally,
117,259 properties entered some stage of foreclosure in February, up
68% from February 2005.


This whole issue is about three simple words:

Poor Attention Span.

Perhaps, but you gotta live somewhere and get in the pool sometime...

It is the sense of entitlement to buy as much as you can right
now, without thinking about the future risks stemming from
today's behaviour.

When we bought our first house we were looking at 18% (or more) interest.
You do remember the Carter "misery index"? Fortunately it was down to a
more manageable 14.5% when we closed. Yes, we bought as much house as we
could afford and went through some major bumps (e.g. lost $50K in equity
in a year - moved and bought another house).

And also the sense of entitlement to say,
"I've got this nice situation
(e.g. can afford this house), right now, which creates a God-given right
to continue to have it forever."

There are no "dog given rights", but perhaps you think it's better to
rent forever? They really aren't printing more property.


False dilemma. It's not rent vs. buy-beyond-means as the only two options.

One buys what one can afford, when one can afford it, after having followed a
plan to accumilate a decent down payment.

Which means some frugality for a few years and/or increasing income. Then
passing up the McMansions or even the McMinis for a modest home if that's what
the situation warrants. Then proceeding from there.

Banty (BTDT)


--

On Sat, 22 Apr 2006 08:42:12 -0700, Banty wrote:

In article , Keith says...

On Fri, 21 Apr 2006 17:28:57 -0700, Antipodean Bucket Farmer wrote:

In article ,
says...
Excerpts from
http://moneycentral.msn.com/content/...ng/P148861.asp

...Nearly one in 10 households with a mortgage had zero or negative
equity in their homes as of September 2005.

...Of those who bought or refinanced homes in 2005, 29% had zero or
negative equity, and 15.2% were underwater by 10% or more.

...Interest rates on about a quarter of all mortgage loans
outstanding, or $2 trillion, are scheduled to reset this year and
next.

...Defaults and foreclosures are already on the rise. Nationally,
117,259 properties entered some stage of foreclosure in February, up
68% from February 2005.


This whole issue is about three simple words:

Poor Attention Span.

Perhaps, but you gotta live somewhere and get in the pool sometime...

It is the sense of entitlement to buy as much as you can right
now, without thinking about the future risks stemming from
today's behaviour.

When we bought our first house we were looking at 18% (or more) interest.
You do remember the Carter "misery index"? Fortunately it was down to a
more manageable 14.5% when we closed. Yes, we bought as much house as we
could afford and went through some major bumps (e.g. lost $50K in equity
in a year - moved and bought another house).

And also the sense of entitlement to say,
"I've got this nice situation
(e.g. can afford this house), right now, which creates a God-given right
to continue to have it forever."

There are no "dog given rights", but perhaps you think it's better to
rent forever? They really aren't printing more property.


False dilemma. It's not rent vs. buy-beyond-means as the only two options.

One buys what one can afford, when one can afford it, after having followed a
plan to accumilate a decent down payment.

When housing is appreciating faster than a down can be put together,
sometimes it's better to bite the bullet. My first mortgage was 14.5% and
I had (close to) nothing down. I did have the ~10% of the purchase price
needed to close though. It was a very good descision.

Which means some frugality for a few years and/or increasing income.
Then passing up the McMansions or even the McMinis for a modest home if
that's what the situation warrants. Then proceeding from there.

I'm not a fan of the McMansions at all, but I am for buying as soon as
possible (i.e. some sucker will loan the money). One can chase real
estate for a lifetime.

--
Keith