Study Confirms Role of Home Flippers in NV Housing Price Collapse

iVillage Member
Registered: 05-03-2011
Study Confirms Role of Home Flippers in NV Housing Price Collapse
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Mon, 12-12-2011 - 8:55am

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iVillage Member
Registered: 08-30-2002

This is easy to believe. I was working customer service for a propane company. We live in a region about 45 minutes from Boomtown. Our economy is driven by tourism. At one point I opened 1,000 new accounts in less than 3 months mostly for "2nd home/rentals/flippers houses. The people buying them were all really excited about the really low interest, adjustible rate mortgages they were getting. For the most part they were not owner occupied. Presently I am surrounded by foreclosures and there are new ones every day on the drive to my dds school.

I also remember my SIL getting a job with a mortgage lender and telling me, "this is really scary. They are letting people get loans on house they have no business getting into. When their introductory rates change they are going to lose these homes. When I said something to my boss about it I was told to shut up. My job wasn't to care. My job was to push paper." I'm kind of glad she died before it all hit the fan. I do remember her saying before she died "The world is just a terrible place L. NOBOY CARES! NOBODY CARES!"



iVillage Member
Registered: 05-03-2011
DH and I bought our first home in a small gated community in 2003. The majority of the homes were bought by investors and rented out. As soon as the market started tanking, they just let the houses go, sending them into foreclosure. We bought our current home in 2007, right before the home prices really started to drop. Our home was brand new and the HOA mandated that people had to live in the homes for one year before they could be rented. As a consequence, we've had very few foreclosures in my neighborhood, and those that were foreclosed were a few families who lost jobs and/or had to move elsewhere and they couldn't sell the homes for what they owed.
iVillage Member
Registered: 03-18-2000
My DD & a couple of friends were renting a nice house in San Diego. The house was ideal until the sheriffs came one day & made them all leave. It was at the beginning of the month & they'd all paid their rent to the 'owner' which of course they never had returned. Needless to say yours truly had to fork out the $$$ for a new place.

There were several shows, on TV, encouraging people to flip & showing how much profit they could make. Woops!

 


Photobucket&nbs

iVillage Member
Registered: 02-05-2011
It's pretty settled that government policy caused the housing bubble, and it was bound to pop. The various actors involved were merely dancing to a tune set by our government.
iVillage Member
Registered: 05-03-2011
Oh, please, the government didn't have anything to do with banks offering ridiculous loans.
iVillage Member
Registered: 03-03-2009
Oh for pity's sake. That sounds exactly like "the devil made me do it".

Jabberwocka

iVillage Member
Registered: 05-03-2011
Where's all that "personal responsibility" that some people blather about? ;-)
iVillage Member
Registered: 03-18-2000
IMO You are partially correct that gov't policy contributed to the housing bubble & that it was inevitable but there are many more factors that contributed to the disaster.

 


Photobucket&nbs

iVillage Member
Registered: 02-05-2011
The government forced banks to make ridiculous loans. Banks looked for venues to offload the risk and found them. Later when the high risk loan situation was out of control, the system seized.

All started and ended by our government. If it didn't force banks to make high risk loans, we wouldn't have had the bubble or the bust.
iVillage Member
Registered: 02-05-2011
Information about the large involvement of our government in causing the housing bubble and bust, gets deleted after a while by the wonderful IV censors. It isn't worth posting yet again, as it will just get deleted. Some news isn't suitable for this left biased forum, stuff like how government forced banks to make high risk loans is a perfect example of stuff the moderators here do not want posted.

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