Tuesday, April 10, 2007

Silent Pain

There seems to be a vacuum in the media coverage of the housing collapse here in Sacramento. I see reports every day from other areas, where the local media seem to show an interest. Here's some examples I found on other blogs in one minute:

Antelope Valley struggles with memories of '90s housing crash
New-home sales rise, prices fall Stockton
Local foreclosures on the rise, so far SLO
Condos Feel the Mortgage Crunch DC
Housing Boom Tied To Sham Mortgages DC

All of these articles have personal stories of how the bubble collapse has directly affected someones life. All of these reporters took the time to put a national story into a local context. Rarely does this happen in Sacramento.

So, I'm putting the call out. If anyone has a personal story to share about the housing bubble, shoot me an email, and I'll publish it here. If you wish to remain anonymous, that's fine too.

It's time to put a human face on this.


Perfect Storm said...

I'm sure one of the FIT's has a story to tell. God knows the Sac Bee will not publish anything.

Buying Time said...

The Wall Street Journal even has a Sacramento sob story in its "digging out of delinquency" article today.

Anonymous said...

I have a friend who suffers from "irrational exuberance" here in Sac. She makes approx. $80K, a single mom. She had a house in Elk Grove she bought for $300K, taking a second mortgage for an undisclosed amount. She wanted to move up and put it on the market for $400K, but it wouldn't sell. She bought a new house anyway. For $600K. With an option-ARM. She now carries almost $900,000 in debt. She has renters in Elk Grove home that are paying less than the mortgage per month. Her new home has HOA, mello roos, and taxes. Asked why she moved? The builders offered her a deal she couldn't refuse -- free granite counter tops and tile flooring. Her story has yet to realize its obvious end, but its coming. Sac will be the poster child of "irrational exuberance" in real estate, if not out right real estate crime.

Anonymous said...

I am currently in the process of forcloser. I bought a JMC house in the Roseville Crocker Ranch development. The puchase price was $662,000 and I put 10% down on a pay option arm. My loan was based on the MTA which at the time of purchase was at 2% and my margin was 1.9% giving me a pretty good 3.9% rate on $530,000 and a equtiy line of $60,000 with a 5.5% rate. The pay option arm rate is now up to 7% and the equity line is 8.5% plus some additional principle from a refinance (to hang on a little longer) resulting in a payment that i can no longer afford. The plan was to send my wife back to work. The only problem there is that my son has been diagnosed with autism and she needs to stay home to facilitate his treatment. So it looked like the only way out was to sell the house. Unfortunatly the builder is still selling some homes in my area and they are selling my model for $489,000 with a 10k incentive. Guess i cant sell or short sell for that matter. Thats my story.