Southern California Housing Crash

ventureuk

Whilst the 'SoCal' crash has been ongoing for a couple of years this video is a telling reminder of the global crash.

Listen to the prices of the homes at 8mins and convert that to £, even with our crash we could live like kings over there.

http://andrewsullivan.theatlantic.com/the_daily_dish/2008/10/memories.html

Running_Horse

Oh goodie, another house price obsessive escaped from the correct forum.

ventureuk

Running_Horse wrote: »

Oh goodie, another house price obsessive escaped from the correct forum.

How terribly rude, this is my first post about house prices and is not connected to the UK other than by comparison. If people posting things on a web forum causes you so much upset could I suggest a long walk and a few deep breaths.

Running_Horse

How rude to ignore the wishes of the owner of this site.

http://forums.moneysavingexpert.com/showthread.html?t=836259

This forum is to help people buying, selling, and renting property.

GDB2222

Running_Horse wrote: »

How rude to ignore the wishes of the owner of this site.

http://forums.moneysavingexpert.com/showthread.html?t=836259

This forum is to help people buying, selling, and renting property.

You know that you sound rather pompous, don't you? It's certainly a very interesting video about how the house clearances work in the US.

baileysbattlebus

This has nothing to with buy and selling in the UK, but the video was interesting -

The repossession process in the US is totally different to here.

1. Short Sale - you sell the house for less than you owe - you will see ads that say "lender agreed" which means the lender has agreed to you selling the house for price advertised and generally you walk away free and clear.
"lender not agreed" the price needs to be agreed with the lender and if they agree you normally walk away free and clear.

Forclosure - there are 2 types, non judicial foreclosure - cheap for the lender and doesn't go through the courts - normally you are not pursued for any outstanding money - especially if it is the main mortgage on your house.
judicial forclosure - through the courts - expensive for the lender and you can, if the state you live in allows it - be pursued for the money you owe.(deficiency judgement) They don't often go down this route.

Some lenders are not foreclosing at all now - and the debt stays with the borrowere.

One thing that does happen over there is something called "buy and bail" - when you are in negative equity and you owe a lot more than the house is worth - assuming your credit is alright - you buy a new house for much less than you owe on the first one, on a new loan and ask the lender of the first house if you can rent it out - they will normally let you if you can cover 75% of the mortgage payments.
Then you move to your new house and dump the old house - house goes into foreclosure and generally you don't owe any money. Though Florida has just tightened up it's regulations- so you have to prove you can cover both mortgages - to stop this happening.

Not all states allow "deficiency judgements" that's where the lender can chase you for the debt.

So the majority of Americans going through repossession may have their credit rating stuffed but most of them don't have to pay any money outstanding. The bank has the house and that's it. They can in the majority of cases just, walk away.

If you "buy and bail" you still own your own house for probably half of what the previous one cost.

Running_Horse

GDB2222 wrote: »

You know that you sound rather pompous, don't you? It's certainly a very interesting video about how the house clearances work in the US.

Which has nothing to do with "house buying, renting & selling" in this country. But there is a forum for house price bores, created to stop the loons clogging up this one, so people can ask for genuine help.