Ask tommy2 about Real Estate

[dp13368]

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I'm gonna go to hell for it, but this:

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As more ARMs adjust upward and housing prices begin to dip, many Americans like Britten can't refinance and are finding themselves trapped in too-high monthly payments. For those who can't make their payments, foreclosure — the legal process by which the lender reposseses the house because the owner has defaulted on payments — is the only way out.

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Makes me almost as happy as hearing there are going to be 10,000 people in this years WSOP Main Event.

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100% agreed. Just need to stay ready and be willing to find the good buying opportunities that are going to exist.

[lastsamurai]

Tommy. Real Estate Timing question. Is it a good time to buy right now or is the federal reserve going to raise interest rates again? Do you see prices dropping?

[disciple]

What's a JD? Sorry, I'm a newbie.

What would be your advice in getting into development in the real estate field? I have no experience except for a year of estimating/project manager for a sub-contracting firestopping/fireproofing/spray-on insulation company 2 years ago.

[Recliner]

I live in the Chicago suburbs. I've always found real estate interesting. Could you give me names of companies that you would want to work for in the Chicago area?

[Sherpa]

how about a region like Atlanta that wasn't as hot as others, and is predicted to be somewhat stable. Would you recommend waiting 6-18 months to purchase a house?

[scotchnrocks]

Why does the ARM loan coming to the end of its interest-only period seem to equal a doomsday scenario? Can't people just refinance and be housebroke for a while instead of selling for a $100k loss? Also, most arms have a 2% cap per year, is there something I'm missing here?

[Paluka]

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Why does the ARM loan coming to the end of its interest-only period seem to equal a doomsday scenario? Can't people just refinance and be housebroke for a while instead of selling for a $100k loss? Also, most arms have a 2% cap per year, is there something I'm missing here?

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I think he is referring to people who did interest only arms and can't even make the payments now at a higher rate and have no equity built up to borrow against.

[AmazingBlender]

The real estate market is on the verge of crashing , having freinds who sell loans they keep saying on how people cant afford to pay there loans and interest rates are goin through the roof. Also just take a trip around your town and notice how many homes are for sale(alot more than you would see a year ago). so i would wait just a tade bit more then buy.

[eastbay]

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Why does the ARM loan coming to the end of its interest-only period seem to equal a doomsday scenario? Can't people just refinance and be housebroke for a while instead of selling for a $100k loss? Also, most arms have a 2% cap per year, is there something I'm missing here?

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I think you are underestimating the number of people who were already maxed out with their original loan payments. Refi does you no good if rates have gone up enough that you can't reduce your payment, which is exactly what is happening to many.

I'm not sure it's a doomsday, scenario, though, but I do think we will see some noticeable fallout.

eastbay