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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (220711)	9/15/2009 2:15:30 PM
From: patron_anejo_por_favor	Read Replies (3) \| Respond to of 306849

Touched the upper wedge line a bit ago, I stupidly bought some SDS at 40.75. Don't try this at home kids..... Tight stops on this one in case we get a "Hound"......

To: Think4Yourself who wrote (220711)	9/15/2009 2:37:37 PM
From: Elroy Jetson	Read Replies (3) \| Respond to of 306849

You may not be far wrong with that "last shopping spree before defaulting". We know a really large number of people who probably shouldn't, who have been taking expensive vacations around the world. These are people who are underwater on their mortgages and hold jobs like real estate agents who can't be doing well financially. One woman who didn't have the money for more than a week to replace the flat tire on her leased Jaguar (because they were maxed out on their credit cards), is now on vacation in Australia with her husband and son. I know for a fact that their Beverly Hills condo is worth less than their $950k mortgage. This is just one of perhaps 20 families we know taking one expensive vacation after another. Living better than before when they were actually doing better financially. It's amazing to watch, like thousands manically dancing St Vitus' dance from town to town during the plague years of the Middle Ages. One couple was just handed a miracle. Two months ago they finished building their dream home bordering a national forest with a Wells Fargo construction loan, with a guaranteed take-out commitment for a fixed-rate mortgage. Two months ago Wells Fargo said they reserved the right to change the terms so no mortgage was available. So this couple was stuck in the penalty phase of a construction loan about $250k more than the conforming loan limit. BofA had offered them a conforming loan with a personal loan for the $250k balance, secured by the house, at a double digit rate. Fortunately the recent wildfires burnt off the second story on their home, burnt-down their barn, and removed their landscaping. Now, whether they want to or not, they can use the insurance money to re-build something less grand which totals under the conforming loan limit so their problem is solved. Living in a hotel with their Mother, they don't realize what a gift they've been handed, but I'm sure they will in time. .