Tough times in my business (mortgage)

[Spoonallard]

I made my first post without reading most of this. Then I started reading. Some of you guys see what is happening and know it only gets worse from here. And I as an appraiser almost went broke a year ago due to Katrina and not letting my values give way to these fly by night brokers.

I have been preaching this was to happen for five years and have seen some appraisers get in real trouble by letting brokers writting 120% loans dictate there morals.

In that time I have sold my home and got out of debt. I rented a larger home for 65% of what I was paying on my home. And I lost five grand on my home due to a declining market. Now I am putting back money and business is good. I plan to pay cash for my next home. Till then I will keep saving.

Now for those who want to know what is happening as we speak. I will post a link a bank sent me the other day but before I do In the last three days I have had 1 appraisal ordered for a new sale, 2 for refinance, 1 for a full out REO foreclosure and 7 count them SEVEN orders for pre foreclosure. One came in the last ten min.s. Now that's what happening in the market. Hold on to your money fellows it only gets worse from here.

http://ml-implode.com/

[jacksbuddy]

Years from now, college students will study the events that have occured in our industry over the last 12 months and the period leading up to it. I predict that the real estate industry lanscape and supporting cast will forever be changed.
I truely believe that this could be the thing that forces us in the "now" and "live on credit" society to change our ways.
Funny thing, I have done several loans for people on this board and it seems like the people that hunt and fish, appreciate the simple things in life have had the best credit and taken better care of themselves financially. Interesting!

I'm an appraiser and I have seen this coming for a while. You would think the S&L scandals of the 80's would have changed things for ever, but here we are again.
Spoon

That's because the ones who caused the fiasco in the 80's aren't in the business anymore. That batch of low lifes was run outta the business. This current bunch of low lifes (The unscrutable ones in this business) is a different bunch of low lifes. They will be run out of this business in time.

Remember, 'fly-by-night' operators will be shaken out by the market. (That's why they are called 'fly-by-night'.) The first unwritten rule of economics is that capitalism can be a cruel mistress. Unfortunately, some of the ignorant will be harmed by the greedy.

[Spoonallard]

Remember, 'fly-by-night' operators will be shaken out by the market. (That's why they are called 'fly-by-night'.) The first unwritten rule of economics is that capitalism can be a cruel mistress. Unfortunately, some of the ignorant will be harmed by the greedy.

Well said!

[Duckdawg10]

ONE single foreclosure in your hood ain't gonna bother your value any. As a matter of fact, from the sounds of things it can only get better.

The foreclosure is not hurting my value. The horrible landscape and non-kept yard is hurting my value!

[Dutch Dog]

That's what I'm saying....it will be taken better care of once the current tennants are gone.

[Katie Mae]

of all mortgages only 12% are subprime...which means nonprime...nonprime does not necessarily mean bad credit people...could be the average middle class american who has had some struggles who try to pay their bills, but have had misfortunes in their life...death, loss of job, etc.....could be the guy whose accountant worked a loss for him...great credit, but did not fit into the "prime" guidelines. Unless your daddy has helped you or can help you, then you are in the same boat the rest of us are....at some point these subprime investors are needed in someone's life.....economy would be much worse without them....if subprime goes away...then we can all go back to the finance co's who are charging 20-40%.

back to the numbers....12% of all mortgages are subprime...the current default rate is less than 3% of the 12%...not as bad as what is being reported.

[NUTMEG]

3% of the 12% all across the country add up quickly.

Katie Mae Non-prime is bad credit people. That does not mean they are bad people, just that either by choice or by bad luck their credit took a hit. The problem is alot of these people put themselves in the bad credit and they refinance to pay off credit cards and then run the credit cards back up. These are not bad people they just need to wait on a mortgage sometimes.

[Cappy_TX]

While it's true that the majortiy of sub-prime are under 620 FICO scores, I think that you folks are interchangeably using "Sub-Prime and Non-Conforming which is not correct.

One can be an 800+ FICO score borrower with strong deposit assets and still be a non-coforming borrower because of the nature of the property (Dome house or a bad ratio of land to buildings as examples), or simply be unable/unwilling to prove employment/income or otherwise not meet conforming loan standards.

[Katie Mae]

Subprime does not only cater to the bad credit people...many good to excellent credit people have "subprime" loans....as "subprime" guidelines tighten...conforming and gov guidelines will as well.

it is harder for the poor man to dig out of a hole than a rich man. poor get poorer and rich get richer. this is obviously a bigger argument than we all have time to discuss....but people have to be held accountable for there own actions.....good or bad!

[rustypjr]

E=mc2 x the square root of you are never paying this house off.