Published: Thursday, April 17 2008 12:00 a.m. MDT
Don't believe this stuff, until our leaders in the state acknowledge this it's
true. I have read many stories that say our leaders say Utah is different than
the rest of the country and I trust them. When the governor says we may have
high foreclosures they it could be true, but until were told it don't listen to
this stuff.Just like with the recession looming, until I hear
President Bush say it's happening it's not true. If we just ignore
this stuff it won't happen, trust our leaders god be with them.
Well, it has all finally come home to roost. I have been warning about these
things coming for nearly two years. I had people tell me I was crazy. Numerous
articles were run quoting local economists saying that Utah was different for a
hundred different reasons.Utah isn't different, just late.Here we go.
I have a great and very safe job and I earn a great income (95K). I love to save
my money. I haven't bought a house yet because I feel that prices are too high.
I know I can afford one but why pay for something that will depreciate like a
car? I hope the housing bubble hits Utah hard. I know too many people that live
like they make a lot of money, and I know they don't. Utahns and Americans in
general need to learn how to save. The bursting housing bubble is a good thing.
The government needs to stay out and let the market fix itself and let grown
adults suffer the consiquences of their irresponsible spending habbits. I am a
responsible adult and I am paying the price right but not living a 95K
lifestyle. I will be rewarded for my thriftiness when I buy house at half the
current market value. Americans need to do learn to do the same.
Perhaps some type of federal regulation is needed to protect people from
mortgage brokers who stretch qualifications and fail to adequately inform their
clients of the negative potential of some of their loan vehicles.The
lack of oversight in this industry has created a mega problem for the nation.The cry of "Get the government off our backs and let business do the
business of business" is no longer heard as often and it is replaced with the
cry of "Some type of federal program is needed to bail out our economic
institutions."The effects of their own "laizze faire" policies have
come back to haunt them.
Thats only about 4 percent. If a couple of things happen in this years
legislature then I will be ready to leave this Lovely Rock for the mainland. You
have to buy within your means and even below it you house is vital and because
of Tax advantages you should buy instead of rent. I do not believe that people
went into adjustable rate loans with out knowing it and not thinking the rates
would adjust. I accepted (the buyer is the customer) a slightly higher fixed
rate just to avoid that. The Market can adjust do to supply and demand of both
buyer and the Banks willingness to loan. Thats why when I did buy I hired a
Shark (lady real estate agent) to represent me. She found me a nice house in a
less desirable area of the island. I live underneath an extent Volcano Cone. Its
been that way for millions of years and the people tell me, as long as the
Volcano on the Big Island continues to go off we are safe. When the Island came
out of the Sea, my part came out first. I think the problem was mostly Buyer
Buyer Greed and Bank willingness to loan to unqualified buyers. People wanting
more house then they can afford and adjustable rate mortgages. Being upside down
in a Car is okay and you kind of expect it, just hold on to the vehicle, pay it
off. Then Bank for 3 years what would be the Vehicle Payment. Then Pay Cash for
the next one, and from then on. Being upside down in a House is a vastly
different story. Some people are going to have to either double up, or move back
in with their parents. Back to the Silent Scream Days. I feel badly for them but
they made their choices. Some will pay for their homes with their Tithe Money,
which will open up a whole set of other problems. 2nd Jobs really kill families
and the 2nd job money almost always gets tied up in paying increased debt. When
the 1st dollar from job 2, gets spent on something other then what it was
planned for the 2nd job holder needs to quit. Its a fast and down hill slope.
More Education always equals a better job. You never get the close times that
are lost back.
This whole mess is a direct result of policies and attitudes started under
Reagan. The idea that all government is bad has caused the decline of
responsible oversight by our federal government. We see it in energy planning,
immigration, healthcare, and even foreign policy. Bush has exemplified this
irresponsible trend with this bungling of Katrina, Iraq etc., it is hard to lead
a federal system if you think that government is the problem.
But those consumers should have taken the time to read what they were signing.
I was always taught if it is too good to be true, it probably is. The same goes
for a person who is purchasing a $300K or more home with a monthly payment of
only $1000. It's impossible! The consumer should have done the math and
realized it wasn't true. Same thing as a car. People buy cars based on
payment. Some neglect to realized the payments are low because they are
stretched out over 7 years.They made their beds now they can sleep
in it. The government doesn't have to govern us in all aspects of our lives.
We should all be grown ups.
I am so happy for you, you've had the opportunity to save and jumped on it. You
are also holding out to buy a house, good for you.... However, you are pretty
dang rude to HOPE the housing bubble hits Utah hard. How sad. My guess is,
even though you make a good living you don't have many friends, with an attitude
like yours who would even want to be around you.What comes around goes
around, maybe your job isn't so safe buddy.
SINCE THE PROBLEM WAS CREATED BY THE MORTGAGE COMPANIES WHICH INVENTED THE
VARIABLE RATE PRODUCT, THEY SH9UD BE FORCED TO FIX THE PROBLEM BY ALLOWING THE
VARIABLE RATE TO BE CHANGED TO A FIXED RATE FREE OF ANY CHARGE. THIS WOULD ALLOW
PAYMENTS TO BE STEADY WITHOUT INCREASE. THE NEW RATE WOULD HAVE TO BE GOVERNED
BY AN INDEPENDENT, EQUITABLE JUDGE WHO IS WELL QUALIFIED TO MAKE THE
DECISION.I BELIEVE THAT THERE WAS AN ELEMENT OF GREED IN THE DEVEKLOPMENT
OF THIS PRODUCT AND THOSE WHO FOISTED IT ON THE GENERAL PUBLIC SHOUOLD PAY THE
Dave,I won't believe there is a problem with just Guv Huntsman saying
there really is a problem. I need Jeff Thredgold to say there is a problem. Only
then will I believe it.
dream on, a house at half the price? keep saving your money you will need it to
pay your ever increasing rental rates. these foreclosed properties can be
occupied by our increasing population they refer to it as immigration i have a
house down the street with about 7 immigration occupants in it. they can split
the rent, cheap housing.
There was already a mechanism in place, and it failed. We allowed the Federal
Reserve to take over our monetary system. They were supposed to control
inflation by regulating the flow of money. They supplied the cheap money that
caused this boom and its eventual bust. They alone are to blame. Get rid of
the Federal Reserve and quit using fiat money.Problem solved.
Prices have been dropping in St. George for over a year now. I'm still holding
out here because mortgage payments vs. income and mortgage payments vs. rent
ratios are still far above historic norms for St. George. Salt Lake's boom was
just a little bit later than ours, and it's bust will follow too.We've also been saving money and have a high household income and can afford a
house, but simply won't throw our money away on such a rapidly depreciating
asset. It's also unwise to leverage your money on something that won't
appreciate in value.
You'd better pray the job you now have and your nest eggs of savings are still
there when you need them.I have seen people in your situation: good
job, living wisely lose it all in a heartbeat...No fault of their own...Don't think you are beyond something catastrophic happening to you. I hope the housing situation wakes people up, but I don't hope they lose
their homes, that is cruel. I saw a bumber sticker yesterday that
said,LIVE SIMPLY SO OTHERS MAY SIMPLY LIVE!!!!!We all
need to do that!!!!!!!!!!!!!!!
Dave:What planet are you living on? Do you watch the markets? Have
you seen government statistics? Are you dreaming?It's about time the
market there corrected. Irrational borrowers and their liar loans should be
punished. Let the markets work. Why should I help subsidize the bailout of
people making poor decisions. Let the markets work. If you were smart and didn't
overpay, good for you. If you got in over your head, tough luck.
One of the things that's struck me in the several years I've been in Utah is the
importance of status. I've seen so many people buy houses far larger and
fancier than their needs: more importantly, too large for their budgets.
Combine that with the expensive cars in the carports, the boat and the vacation
cabin, it's not surprising that the chickens eventually come home to roost.I don't know why it's so important to be seen as rich, when personal
finances don't support it. I hate to see my own property value go down as a
result, but it's hard to feel sorry for people whose vanity got the better of
Most people mistakenly think the Great Depression just happened overnight.They also forget that is the time when millionaires were being made by
the sackful while the rest of us little people were either just getting by or
starving.Start telling your children and grandchildren that the best
things in life are free and that they really don't need that Lamborghini.
Don't blame the banks and don't blame the government.People were
greedy.If a deal seems to good to be true it probably isn't.All hogs end up at the slaughter house eventually.LIVE
WITHIN YOUR MEANSGET OUT OF DEBT
Those picking on "Holding Out" must have missed the part about him saving money.
He's right about getting a house for half off. And he nor I wants the economy to
crash. We just know that it will. A country's economy can't be floated on
massive debt forever.
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