Economy, Foreclosures & lack of jobs.
- Thread starter wizsmaster
- Start date
An adjustable ARM adjusting now shouldn't be all that bad ....unless it's adjusting from a low teaser rate, I know adjustable 2nd mortages based on prime have really been dropping if they are based on LIBOR instead they've moved down but not as fast. People who took a low low teaser and planned on flipping the house before the teaser ended are upside down and in serious trouble.
LauraCline
New member
If they got "fooled", I can honestly say it is because most of them pretended they were deaf, dumb, and blind when disclosures were explained and signed. Disclosures are explained and signed at the time of application and another final set in extreme detail at closing so there is no excuse for getting "fooled" into anything. When I was a broker, most of my subprime borrowers could care less when I tried explaining the ARM loans they could qualify were not good loans to be in long term. I offered many times to help them with their credit in order to qualify for a better mortgage but that takes a little time, or they may have needed to pay a down payment or not take a $20,000 cashout with no income verification. When somebody who only gets paid when you close a loan is telling you it is not a good loan and you go ahead anyway, you only have yourself to blame when things end up badly. I think it is a total load of crap that now as a taxpayer and homeowner, I will be paying for other people being irresponsible. I say let the market correct itself and too bad for the folks who borrowed above their means. My husband and I had the opportunity to do the same thing but instead we chose to buy a house for alot less than we qualified for because we wanted to be sure we could still pay the mortgage even if we only have one income. We also chose a low fixed rate and pay extra each month to pay it off sooner.
jdhuyvetter
SWFMAS Event Coordinator
Amen.....I did the same and only got what I could afford with a 15 year mortgage instead of a 30 or 40. When i refinanced to get some equity to upgrade/replace floors, windows, AC and kitchen, they wanted to give me another $30K. I was way under my 90% LTV. I am soooooooo happy I said no.
I am curious. In boring Central Illinois, a newly built 3 bedroom ranch-style home (nothing fancy) can run around $200-$300k. This would be a typical "newer" home in most subdivisions here:
http://gardner-whitworth.com/2020ap...age_size=1¤t_page=1&categoryID_list=1_8
Now, of course there are much higher-end homes around, but that is more the "average joe" house.
How does that compare to your area?
http://gardner-whitworth.com/2020ap...age_size=1¤t_page=1&categoryID_list=1_8
Now, of course there are much higher-end homes around, but that is more the "average joe" house.
How does that compare to your area?
david8956
New member
A question for you guys "in the business".....How is the market for rentals? It would seem with this many foreclosures a lot of people would be looking to rent.....they have to live somewhere, and if they went through a foreclosure their credit probably isn't good enough to buy anything else right now.
My girlfriend recently moved in with me a couple of months ago and her house in St. Pete is unoccupied right now. We can either 1) sell it now in a depressed market, 2) rent it out, or 3) do nothing with it other than continue to make payments on it until the market rebounds (the least likely choice as this could be years down the road and that area just wasn't appreciating that much anyway)
Is there a good market for "clean" rental units right now?
My girlfriend recently moved in with me a couple of months ago and her house in St. Pete is unoccupied right now. We can either 1) sell it now in a depressed market, 2) rent it out, or 3) do nothing with it other than continue to make payments on it until the market rebounds (the least likely choice as this could be years down the road and that area just wasn't appreciating that much anyway)
Is there a good market for "clean" rental units right now?
wizsmaster
Moved On
Down here rentals are empty .. there are soo many of them, and dirt cheap.
Lots of people here are loosing their rented houses though, as their landlords are not paying their mortgage ... they find out a few days before being evicted by the mortgage holder.
Lots of people here are loosing their rented houses though, as their landlords are not paying their mortgage ... they find out a few days before being evicted by the mortgage holder.
david8956
New member
I don't understand why rentals would be empty, unless as stated by someone earlier, a lot of the foreclosures were new construction that was unoccupied anyway. If that many people are actually losing the homes they were living in, they have to find some where else to live. At least that's the way I see it, where else would they live?
wizsmaster
Moved On
many are moving out of town ... up north ... where they have a better chance of finding jobs. out west ... up north ... middle of the country ...
I just spoke to someone down the street .. he's transferring to hawaii for fedex in the coming months ... another couple i spoke to is moving up to atlanta area as her husband has found a job there.
The biggest issue we have here in our area is lack of jobs. Many down here were self-employed, through real estate, construction, construction related (cleaning, design, architect, county/local government, surveyors, appraisers) .... concrete guys, framers, roofers, drywall guys ...
and since these guys are no longer employed, they are not out buying new trucks & cars, 4 wheelers & jet skies, motorcycles & big screen TVs or even go out to dinner 3x a week with friends & family... in turn the sales guy & owners of the ATV place/motorcycle shop ... the car dealerships, the waitresses, and the restaurant owners are not making it ... they don't go out shopping either ... it's a downhill battle.
Many of my previous subs are no longer in town .. i'd say a good 60% of the people/subs that used to do work for me are no longer in town ...
But you have to remember .. many of them came to fort Myers/Cape coral area when work really picked up here.
I just spoke to someone down the street .. he's transferring to hawaii for fedex in the coming months ... another couple i spoke to is moving up to atlanta area as her husband has found a job there.
The biggest issue we have here in our area is lack of jobs. Many down here were self-employed, through real estate, construction, construction related (cleaning, design, architect, county/local government, surveyors, appraisers) .... concrete guys, framers, roofers, drywall guys ...
and since these guys are no longer employed, they are not out buying new trucks & cars, 4 wheelers & jet skies, motorcycles & big screen TVs or even go out to dinner 3x a week with friends & family... in turn the sales guy & owners of the ATV place/motorcycle shop ... the car dealerships, the waitresses, and the restaurant owners are not making it ... they don't go out shopping either ... it's a downhill battle.
Many of my previous subs are no longer in town .. i'd say a good 60% of the people/subs that used to do work for me are no longer in town ...
But you have to remember .. many of them came to fort Myers/Cape coral area when work really picked up here.
plyle02
Active member
I am currently a GM of a restaurant in Kissimmee FL, and in a really good tourist location. Our company has tightened up as far as labor % to sales is concerned. We have gotten so aggressive that our employees hours have been cut dramatically. We also have applicants coming in herds for jobs, waiting 3 hours to speak to a manager for a dishwasher position. It's pretty sad to have to tell someone who has worked for our company for years that we simply do not have the hours for them. It is truly the toughest part of my job, laying off someone due to lack of hours or repositioning. Our restaurant is actually matching previous years sales, so it is pretty apparent that the europeans are taking advantage of our $ right now. Just my thoughts, if you have a job right now, treasure it, as many people are out of work and struggling to make ends meet......
That is amazing. It has probably been 20 years since I was in Florida, but I remember at the time how amazed I was at the wages being paid at fast food places. I remember passing signs with McDonalds offering 401k, health insurance, and other benefits to get people to sign up. How has the job market turned around so much? (If this can't be answered without getting political, pretend I didn't ask)
wizsmaster
Moved On
McD's down here isn't hiring (much) ... people are staying ... walmart is not hiring right now ... target has a waiting list, publix (groceries .. like krogers etc..) is not hiring ...
Imagine that .. fast food places have people sticking around .. same as walmart.
There are a few businesses that have picked up ... it's not all dark. Scott (keinreis) works for a sign shop ... they are slammed & at times backlogged.
Imagine that .. fast food places have people sticking around .. same as walmart.
There are a few businesses that have picked up ... it's not all dark. Scott (keinreis) works for a sign shop ... they are slammed & at times backlogged.
plyle02
Active member
As stated above with the realstate and mortgage industry, builders, contractors, etc, many of those laid off and out of work. I had a guy apply for a line cook position that was an out of work mortgage broker making over 60k per year looking for an hourly job at $11 per hour. This scenario played out on 2 other occasions. Not to mention, the closing of Bennigans and Steak and Ale certainly did not help. And this does not even include local privately owned restaurants closing. Fortunately for me, my company is re-positioning our brand and upgrading for our future growth. It is still scary though, nothing is certain right now. Not to be a naysayer, I always look at the positive side of things, just seeing lots of good people struggling. On a positive note, I purchased 93 octane gas today at $3.86 per gallon..... Hopefully the decling gas price trends might get a few more people out. Just have to wait and see.
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