Many people had decent opportunities and career options in Florida. Thousands of people have been saying screw it and leaving that state over the last 12-18 months due to the bubble insanity. The low unemployment, and good career possibilities don’t mean a thing when everyone gets priced out due to RE insanity.

I was told Seattle was a smart town and I’ve always heard of its tendencies toward fairness and an equal playing field.

Unfortunately, it’s as big a load of crap as Florida being “paradise”, with great weather and a laid back life style.

I suppose every major city has some spin to it but you can expect anywhere with a bubble to be “piled” pretty high.

Two young co-workers that work in my department and their significant other’s have just decided to start packing it in. One couple is losing their apt. due to it being converted and the other couple feels like it’s not worth staying due to the costs they are seeing. I realize this is anecdotal but this is also the same kind of talk I heard 2 years ago in Florida for the same kinds of reasons….

Seattle’s different?

Dream on.

I just pulled the loans on a house that was being flipped down the road from me. It had sat empty for almost a year. It was purchased by someone out of California about a year ago with no money down ARMS. It was relisted for about 100K over the purchase price and put right back on the market. It recently sold to a young couple and the loan was just posted on the county website. I pulled the loan, or should I say loans. The financing consists of two piggy back adjustable rate mortgages with balloon riders and as usual, no money down. The starting interest rates are almost 8% and will adjust in three years. Then its tied to the libor plus almost 7%. This is a young couple who I have met and who have indicated that they would like to start a family.

The question I have is…. Should I call the state attorney general and turn this in as preditory lending?

I got curious and ran a number of other loans in my area. All are subprime loans. All are ARMS and interest only loans.

My God!
We are doomed!

With the exception of you folks on this blog and Ben’s blog, everyone I met in Seattle during my five week visit is a believer. Guess I’ll stay in Hawaii for another year or two, where prices are headed south and fast.

Monthly Costs buying converted condo for $250K (20% down)

$1000 – interest (avg, until 2013)
$ 208 – profit I forego with $50K in a measley 5% CD)
$ 250 – HOA dues
$ 200 – taxes
$ 100 – maintenance
——————-
$1708 – total monthly expense

Note: The above does not take into account principal payments.

So people see these $1000/month 1 br apartments saddled with 70% more monthly expense as condos, and they think, “Wow, I gotta be a homeowner before I get priced out!”

These yutzes deserve what they get when the bubble imlodes.

I’d imagine Seattle is at least at the national average. It would have been helpful if the Times reporter had included this stat.

And that quote….new “opportunities” for home ownership? Give me a break. How about “new opportunities for indentured servitude”? Because, honestly, that’s what is going on every time a market-rate apartment is converted to an overpriced condominium.

Write your city councilperson, and tell them that you want a moratorium on this insanity, before it’s too late!