Will the current housing "crisis" be better for us in the long run?

EMP's two poll threads about crime and economic status got me thinking; Will the housing and credit crunch make or neighborhoods better off in the long run?

Since loans have been given out to people who should not have them, I've noticed a lot of people in areas that they have no business being. I know, I know, some will ask how do I know where they belong and where they don't.... Well its rather simple;

People who move into homes well above what they can really afford tend to not be able to keep up with the home, it becomes run down etc., and they park their junky cars on the street and in driveways, ruining property values for everyone.

My neighborhood is one of those that is on the threshold of the haves and have nots; We range from modest to the McMansion, so we have had an interesting front seat view of all this.

For example, there is a home in the front of my neighborhood (the very first one you see when you pull into the hood :mad:) that always was really nice kept and a very nice home; until the 'billy's moved in. Now, there is always toys and junk in the front yard, lawn is horrible and there is junky trucks parked in the driveway and on the street; Oil and rust stains have ruined both. Their 'billyettes are always screaming and yelling and causing problems with the other kids. Because taxes are past due (havent been paid since they closed) I can only assume that the home will be taken back... leaving it in shambles.

So, I wonder... Will the mortgage give aways end, keeping people out of homes they can't afford or handle? Or will the "feel good" law makers cram more socialist garbage down our throats forcing us to be neighbors with people I'd rather not be?


Now I know some people are going to have a big problem with my stance on this, and thats OK. I can deal with that. Let your comments fly!
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I think over time it will improve. When I started out in the world it was hard to get credit started........and that is the way it should be. I couldn't agree with you more.........The dirt bags moved in because it so easy.......I built a home a few years back it a very nice neighbor hood........thinking of moving again just because so many houses have become rent property. Junk RVs, motorcycles and cars line my alley.

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Now I know some people are going to have a big problem with my stance on this, and thats OK. I can deal with that. Let your comments fly!

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I feel your pain, I have the same problem where I live.
We will be better off and so will they when they move into
a place where they have lower payments and can put
the money they have left to retirement or food.
There is something to be said for living inside your means

:congrats::congrats::congrats: I live in the country where homes are modest sizes but land is big. my next door neighbor could not handle the land or afford the equipment to make it manageable. He decided that because it took too long to mow the yard that he would start a "wild flower garden" aka not mowing and letting the weeds grow up:mad:. He was later approved for a home improvement loan and added a 2 story box to the back side of his ranch style one story house. needless to say i an glad there is 500 feet between my house and his. My family works hard to keep the 11 non wooded acres mowed and as weed free as possible. because the yard is soooo messed up the neighbors kids ride their go carts in the road. this is a big safety issue since the legal speed limit is 55 but most vehicles travel at speeds over 65. not every neighborhood fits every person. this guy needs to move on and i can only hope that someone knocks down the house after he leaves.

From my personal point of view, it is hurting the economy. What I mean is, that I would like to upgrade from my starter home. (My income has increased dramatically over the last several years) That would move money around and give some people some work.

I paid a bit over $100K for my house and owe $94K. The problem is that with 5 houses foreclosed on my street and selling for 25K, I doubt I could get more than 60-70K for my house currently.

Since I'm upgrading, losing 30K on this house isn't so bad if I can the save 90K on whatever I move into. The problem is, where do I come up with 30K just to get rid of my home, plus down payment etc for the next one? I've known too many people who have bought their next house first, then couldn't sell their first one and lost it to foreclosure. I'm not willing to try to buy until this one is gone, and nowadays, I don't think getting the loans to do that would be easy anyhow.

The neighborhood I want to move into has one extra house sitting vacant and poorly maintained because I can't move into it. On the other hand, I'm not that good about mowing the lawn anyway.

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Originally Posted by SIXTO

......My neighborhood is one of those that is on the threshold of the haves and have nots;
.......Will the mortgage give aways end, keeping people out of homes they can't afford or handle? Or will the "feel good" law makers cram more socialist garbage down our throats forcing us to be neighbors with people I'd rather not be?.....

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Sounds like you're bitter that you've got a "bad" neighbor. I would think it's safe to say that just about all of us have felt that way at one point or another. But I don't see how you can make the correlation that the Gov't is responsible for letting a bunch of slobs move in. The neighbors are simply slobs.

I remember when my neighborhood had a horrible problem with junked and unregistered vehicles littering the landscape. I circulated a neighborhood petition expressing my concerns (safety and aesthetics) about all the junk cars, and almost everyone signed it. I took said petition to Building Inspector and, much to his credit, he came in like a hurricane and cleaned out the cars. It was terrific to see the system work.

Perhaps there are municipal code violations at your neighbor's place; and I'm sure you know the right people to contact...............:image035:

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I do not think it will ever be what it was. I mean I believe the value of my house, what I paid for it 6 years ago will not be at that value again for a long time to come. Maybe not in my lifetime. If it is it will be only to inflation and not market demand.

My house is worth $60,000 less then what I paid for it. I now owe more money then what it is valued at. There are million dollar houses in my area sell for half that and still are not selling. This is just the beginning I am afraid to say. Good luck to us all.

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Originally Posted by SIXTO

So, I wonder... Will the mortgage give aways end, keeping people out of homes they can't afford or handle? Or will the "feel good" law makers cram more socialist garbage down our throats forcing us to be neighbors with people I'd rather not be?

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Uh, well, based on the polls for the last few months, I would have to go with the second one.

Better in the long run? Sure. Blowing bubbles almost always is. Some aspects will sting some, yes. It might even get very much worse, overall. But in the long run, the values will readjust to something a bit more sane.

But then, there are the other long-term issues not being dealt with very well: national deficit, crumbling infrastructure, bloating government (and the attendant costs), sieves for borders, continued evisceration and ignoring of the Constitution. With all this still intact, I hold little hope for the long run. IMO, it all needs to be addressed before things will dramatically improve. Housing, though? Bubbles don't last.

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Originally Posted by Chevy-SS

Sounds like you're bitter that you've got a "bad" neighbor. I would think it's safe to say that just about all of us have felt that way at one point or another. But I don't see how you can make the correlation that the Gov't is responsible for letting a bunch of slobs move in. The neighbors are simply slobs.

I remember when my neighborhood had a horrible problem with junked and unregistered vehicles littering the landscape. I circulated a neighborhood petition expressing my concerns (safety and aesthetics) about all the junk cars, and almost everyone signed it. I took said petition to Building Inspector and, much to his credit, he came in like a hurricane and cleaned out the cars. It was terrific to see the system work.

Perhaps there are municipal code violations at your neighbor's place; and I'm sure you know the right people to contact...............:image035:

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No, I'm not bitter about the 'billy's, I just used them as an example of people that are here that should not be. I drive past that house several times daily, so they were on mind when I wrote the first post. Its quite clear that they can't afford the home they are in, due to not paying bills and letting their home get run down. Because they are here, the entire neighbor pays in form of property value, and that is a little harder to swallow when we all have already taken a hit. There are a handful of others like them in the neighborhood, ours is a large one... I just assume that people stay in areas they can afford, all will be more comfortable.

So no, I'm not bitter at the 'billy's for being here, I am bitter about irresponsible people in general on both ends of the issue though... once again, I (we) have to pay for their moronic actions.

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Originally Posted by Cupcake

From my personal point of view, it is hurting the economy. What I mean is, that I would like to upgrade from my starter home. (My income has increased dramatically over the last several years) That would move money around and give some people some work.

I paid a bit over $100K for my house and owe $94K. The problem is that with 5 houses foreclosed on my street and selling for 25K, I doubt I could get more than 60-70K for my house currently.

Since I'm upgrading, losing 30K on this house isn't so bad if I can the save 90K on whatever I move into. The problem is, where do I come up with 30K just to get rid of my home, plus down payment etc for the next one? I've known too many people who have bought their next house first, then couldn't sell their first one and lost it to foreclosure. I'm not willing to try to buy until this one is gone, and nowadays, I don't think getting the loans to do that would be easy anyhow.

The neighborhood I want to move into has one extra house sitting vacant and poorly maintained because I can't move into it. On the other hand, I'm not that good about mowing the lawn anyway.

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I'm in the same boat, I'd like to upgrade too. Our income has tripled since we bought this house, and our family size has increased too. We had one small child who has since grown into an active kid, and added another child into the mix. We are ready to move on up... however the hit we would take would be huge, assuming we can sell at all right now. My down payment for the next home should have been in equity in my current home... but like everyone else, it just isnt there at the moment.

I think it will improve things in the long run. More realistic lending practices will insure that homes are sold to people prudent enough to have saved money for a significant down payment and have proven, from their credited ratings, that they can live within their means.

That type of person is more likely to keep their property in good shape, thereby helping the property values of those around them.

Unfortunately, in my neighborhood I'm looking at the short term results of this "crisis". A couple of empty foreclosed homes with dead lawns, and several other rental homes that the owners have apparently lowered their standards just so they can have somebody paying some rent.

I am hoping to retire and move out of this town in about two years, but the drop in local real estate values may well have an impact on where I can move to and what I can afford.

Ron

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Originally Posted by deadhawg

I think it will improve things in the long run. More realistic lending practices will insure that homes are sold to people prudent enough to have saved money for a significant down payment and have proven, from their credited ratings, that they can live within their means.

That type of person is more likely to keep their property in good shape, thereby helping the property values of those around them.

Unfortunately, in my neighborhood I'm looking at the short term results of this "crisis". A couple of empty foreclosed homes with dead lawns, and several other rental homes that the owners have apparently lowered their standards just so they can have somebody paying some rent.

I am hoping to retire and move out of this town in about two years, but the drop in local real estate values may well have an impact on where I can move to and what I can afford.

Ron

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This is exactly what I'm talking about... will it be a tough lesson learned for all? How long will it take to clear out the dead weight?