Exactly. Easing the transition *down* to lower prices is the best thing we can do in this situation. It’s going to happen anyway, so it’s better to get it done with quickly and as painlessly as possible.

Here is something to think about. Several states(Florida is the best example) have already put in place emergency programs because the money they manage has been severely impacted by mortgage investments. King County has fessed up with some of their severe problems but the State of Washington has not. There are many pensions and investments that may have been destroyed in the last four months. Are they hiding the loses and hoping to be bailed out or have they truly dodged the bullet that is traveling across this great country and destroying everything in its way. King Co. mismanaged their funds and I have no information that the state did not. Who knows that will actually go on record and tell us? My feeble attempts have been shelved but since even money market funds that everyone thought were safe are now at risk, this would be a good next topic to discuss here next as it involves all of us in this state.
Who knows you might even expose some frauds and win a Pulitzer for investigative reporting.

The majority of people that got in over their heads are feckless idiots and I wouldn’t give them so much as a crumb of bread. The loan documents they signed could have been reviewed by an attorney and explained if there were questions. I believe these people should pay back every cent they borrowed even if it means working three jobs. It’s about time people take responsibility for their own actions. And BTW, I am not a neo-conservative, right-wing libertarian.

http://www.realtor.org/press_room/news_releases/2008/nar_campaign_relates_real_facts.html

( link found via Aubrey C. at the PI).

And to continue the soap box diatribe, I never understood the I want the value of my house to go up, the quality of public services I receive to increase, but not pay any more taxes?!?!?

You are right, there is no cooling offer period for cars in WA! There there is for some other types of purchases, and apparently cars are covered in other states. Good thing I’ve never needed it as I do not rush into large purchases. Anyway, the point still stands that you have plenty of time to go over a purchase of a home (or car) and if you make an unwise decision there is no reason to protect you.

… Maybe the government should step in and punish the tricksters and make THEM pay for tricking these gullible fools, but I refuse to believe the fools are ALL that gullible. I don’t think I should pay because some people were tricked.

real estate is obviously a different situation. though, i haven’t seriously investigated the details of purchasing, so i can’t say how it is different.

Who is J6P?

If people were lied to or misled, they can seek remedy by suing those folks and if they are able to win they can also convince a prosecutor or two to put the people in jail. The government stepping in to hand out checks only gives remedy to those who were somehow defrauded but unable to provide proof they were defrauded. I think that class of home buyers is likely so small that it is not worth the moral hazard of rewarding those who actually were bad actors with government dollars. If there is no proof, then there is no difference between “I was misled” and “I want my check” as far as home buyers in the last several years would be concerned. In car buying we have a 72 hour “cooling off” period, in home buying that similar period is weeks and sometimes months to close. And unlike that, you have plenty of time to consult with attorneys and verify contracts, etc. The current laws and remedies we have seemed to work fine in the pre-2004 world, the only thing that has changed is that people are losing money and sad about it.

Nobody is going to bail me out, nor have any pity for me, if I “buy” a brand new car and finance it over 7 years at 20% interest. People do this everyday!

I’m not sure how they adjusted when real estate crashed over there in 1987.

If they make it easier to build houses, more houses will be built and prices will fall even more.

Pick your poison. Fewer construction jobs or less equity for J6P.

You seem to be blaming ” the victim” on this, that homeowners who are going into foreclosure have created their own problems by not being aware enough and frittering away money they never had…I see that but unscrupulous lenders and real estate agents had a big part in putting people into homes they couldn’t afford.

IMO, the real victims of this are financially prudent middle income people who can no longer afford property in Seattle. None of your “victims” ever heeded common sense phrases like “There’s no such thing as a free lunch” or “If it sounds too good to be true, it probably is”.

Even though it would not do much for existing mortgage holders, not fighting a natural return to sane prices would be the best thing the state could do to “help people get into a home.”

I doubt the folks in Olympia grasp this. Everything I hear is about saving people that outspent their means or helping people buy a house, whether they have the means or not. The former is a nightmare from a taxation standpoint, the latter would be best served by just allowing the downward pressure do its thing without the government stepping in. And in fact, trying to save people in foreclosure will merely hinder efforts to help other people afford homes.

B&W Nikes – I too am very interested in how county assessment values will change. Has anyone ever seen assessment values go down?

In my opinion, the county has deliberately made it very difficult to obtain a building permit. Since Seattle is “special” people have been willing to put up with the red tape in order to live here.

But now that construction is slowing down and housing prices are falling, will King County & Company continue to make it difficult to build a house? Or will they streamline the process in order to encourage more construction spending?

In my opinion, the county has deliberately made it very difficult to obtain a building permit. Since Seattle is “special” people have been willing to put up with the red tape in order to live here.

But now that construction is slowing down and housing prices are falling, will King County & Company continue to make it difficult to build a house? Or will they streamline the process in order to encourage more construction spending?

It isn’t the government’s responsibility, but election time is approaching……

I say tighten the screws on the lenders and RE industry, but don’t bail out people that made poor financial decisions.