Mortgage industry is tanking

[MikeWaters]

I don't know how people do it in California.

My brother just moved to San Francisco and rents a two-bedroom place for 2k. I'm sure getting a house is far out-of-reach for him.

[Solon]

Originally Posted by MikeWaters

I don't know how people do it in California.

My brother just moved to San Francisco and rents a two-bedroom place for 2k. I'm sure getting a house is far out-of-reach for him.

Exactly. As MRD writes, people aren't as willing to put up with that little 1500 square foot starter home as they were 30 years ago. IMO, it's a combination of things - at least in the areas I"m familiar with - including the lack of new constructions that are moderately sized and priced. Decreased supply/increased demand has driven the price of smaller homes up, and some people - for "just a little more per month" jump to the McMansion neighborhoods.

California's situation pisses me off. My brother-in-law has an interest-only loan on a $400K house, pays a little extra on principal each month, and will have to re-fi in two years into a conventional loan. He's making it, but he's stretched pretty thin for that 1700 square foot ranch in Santa Maria. Meanwhile, programs for low-income families are putting a few lucky ones into 2500 square-foot new constructions for less than $1500/mo. - mortgage, not rent. The middle class is being strangled (granted, it's still better off than the really poor), but there's no chance of relief - esp. with California's enormously expensive taxes and programs.

[MikeWaters]

Originally Posted by Solon

Exactly. As MRD writes, people aren't as willing to put up with that little 1500 square foot starter home as they were 30 years ago. IMO, it's a combination of things - at least in the areas I"m familiar with - including the lack of new constructions that are moderately sized and priced. Decreased supply/increased demand has driven the price of smaller homes up, and some people - for "just a little more per month" jump to the McMansion neighborhoods.

California's situation pisses me off. My brother-in-law has an interest-only loan on a $400K house, pays a little extra on principal each month, and will have to re-fi in two years into a conventional loan. He's making it, but he's stretched pretty thin for that 1700 square foot ranch in Santa Maria. Meanwhile, programs for low-income families are putting a few lucky ones into 2500 square-foot new constructions for less than $1500/mo. - mortgage, not rent. The middle class is being strangled (granted, it's still better off than the really poor), but there's no chance of relief - esp. with California's enormously expensive taxes and programs.

I don't feel bad for your b-in-law. He made his bed, he sleeps in it.

He could move to the south and midwest if he wanted to, but he chooses not to.

[BYU71]

Originally Posted by MikeWaters

I don't feel bad for your b-in-law. He made his bed, he sleeps in it.

He could move to the south and midwest if he wanted to, but he chooses not to.

Are you serious Mike? All along I thought you were the guy who thought if people don't have what everyone else does, you find someone who has more and redistribute it. Now you are talking about someone making their bed and if they don't like it they are responsible to change it??

[MikeWaters]

Originally Posted by BYU71

Are you serious Mike? All along I thought you were the guy who thought if people don't have what everyone else does, you find someone who has more and redistribute it. Now you are talking about someone making their bed and if they don't like it they are responsible to change it??

I'm saying he chose to take out a 400k interest-only loan on a piss-poor small house. Good for him. I'm not losing sleep over it.

[BYU71]

Originally Posted by MikeWaters

I'm saying he chose to take out a 400k interest-only loan on a piss-poor small house. Good for him. I'm not losing sleep over it.

I know. I am just saying that you probably now understand why I don't lose sleep over your redistribution of wealth causes.

[Solon]

Originally Posted by MikeWaters

I don't feel bad for your b-in-law. He made his bed, he sleeps in it.

He could move to the south and midwest if he wanted to, but he chooses not to.

Agree. I don't feel bad for him either. In general, the market will straighten it out - but I just can't imagine living that way. What bothers me, though, is how housing subsidies are applied. I'm not a commie, neither do I believe in cutthroat capitalism, but California's government seems especially inept at both helping the poor and allowing for economic growth.

[MikeWaters]

Originally Posted by Solon

Agree. I don't feel bad for him either. In general, the market will straighten it out - but I just can't imagine living that way. What bothers me, though, is how housing subsidies are applied. I'm not a commie, neither do I believe in cutthroat capitalism, but California's government seems especially inept at both helping the poor and allowing for economic growth.

Ro bin was part of some federal program because his wife is a school teacher that he got a house in the hood for extremely cheap. of course he has seen mutliple murdered bodies in his neighborhood, so I don't consider it that great a deal.