Important addition to my discussion with Rick
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Consumer confidence is up substantially today. What will happen when economic fundamentals take over?
Very true Bob!
Them was crazy times and today is still crazy times!
These crazy times are a reflection of the demise of standards most people lived by 60-70 years ago, when your word was your bond and people did not, for the most part, game the system to live in a home that they couldn’t afford, then walk away when things went south. Living beyond one’s means with the attitude that if things don’t work out, one can just walk away from one’s responsibility is too prevalent these days. I well remember when my father’s business went bankrupt because those who owed him money failed to pay, he did not do the same. He made it a matter of honor to repay those he owed over time until the debts were satisfied, no matter how it impacted his lifestyle. At his funeral there were many of those he paid back over time who told me how much they appreciated his honor and how they missed doing business with him. We could use a bit more honor and morality these days.
I don’t know if this supports Al.
These people buying homes don’t care because they have none or very little skin in the game with 3% down payment on mortgages. Then they stop paying and live free for 3, 4, 5 years prior to foreclosure.
So true.
Hi, could you explain to me how someone stops paying and ‘lives free’ for a number of years prior to foreclosure? Surely its more like 3 months?
I believe that, certainly depending on the contract, it takes a long time to evict someone. I also believe that a house is relatively easy to save in a bankruptcy.
I don’t think the average american is as ignorant as fox news or cnbc would like them to be…where are these people who give such ridiculously high confidence numbers? I guarantee you they’re the ones who believe in the government’s ridiculously fudged numbers of 4-5% unemployment…because those nearly 100 million unemployed…including the 99+ week unemployed no longer count!
There are not 100 million who are unemployed in the U.S. unless you count school students, housewives, disabled persons and retired persons.
This was the best segment! Rick thank’s so much for answering the question I have been asking forever. I live in Seattle, in fact Bellevue. Real Estate is absolutely nuts here. I keep asking how do these people do it? Well you answered the question.
I am sitting this one out.
I remember the 2001 Tech crash. I was in Silicon Valley at the time.
I watched people buy Cisco all the way down from about 100 bucks to almost nothing.
I watched people re-mortgage to buy shares on the way down. They kept saying what a bargain every drop was.