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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: TheBusDriver who wrote (26712)	1/27/2003 7:06:08 AM
From: loantech	Read Replies (1) \| Respond to of 36161

Wayne, It got pretty bad in Texas and Denver our oil patch towns back then. It can happen again. But not Lajolla. Silicon valley though and here in the Portland area Silicon Forest and many other places. Since the 80's debt to income ratios that are acceptable have gone from 40% to 50% and even a tad bit higher. Acceptable credit standards have been lowered and a person back then could expect a 75-80% loan to value or cash out position where as 95 and 100% are now common place. As there are many cases of little or no equity many will walk away when they are upside down, IE owe more than the value. It is already happening but at a slowly increasing pace. Tom

To: TheBusDriver who wrote (26712)	1/27/2003 11:52:28 AM
From: Sharp_End_Of_Drill	Read Replies (1) \| Respond to of 36161

Wayne, don't think we'll see 20 to 40% for sale signs again in Houston, but I think things are going down fast. The builders have gone crazy here the last five years, and are still going full speed ahead. The overhang of Montrose townhomes is now several hundred units, and more than a year's supply. People who bought these for $300k recently will likely have to take less than $200 to sell. I'm watching and waiting for a good deal on a bigger house, prices are dropping but it's taking longer than I thought it would. Sharp