Resolution
That's it. I'm done even mentioning the housing market at work. I was at lunch with coworkers today (fellow teammates I work with every day who know my stance on the current market) and one of them mentions he's planning to buy a house this winter. As just another part of the conversation, I started to relate the issues I've heard about people failing to get financing without stellar credit and a large downpayment. I was literally cut off mid-sentence by a dismissing wave of the hand and glares that implied I was a nutjob spouting his housing market doom and gloom again.
There's nothing to be gained by trying to give my point to view to people don't want to hear it, so I'm done with it. I fear he's in for a sad realization, hopefully before he takes on a huge mortgage.
There's nothing to be gained by trying to give my point to view to people don't want to hear it, so I'm done with it. I fear he's in for a sad realization, hopefully before he takes on a huge mortgage.
Comments
Firstly, I recommend you just stop talking about it with these coworkers. It's obvious that they don't want to hear it. Wish them luck with their purchase, and talk about the weather. If you've gone over the topic before, then there isn't really much to be gained by going over it again. You're not responsible for these people or their actions.
Second, I'm quite sure that there is no lack of funds at all for those with stellar credit (>720), large down payments (20%+), income/asset documentation, *especially* if you're going after a conforming loan. Everything else is either priced at a higher interest rate, or just plain not available any more.
How many people have 20% down on the houses they'd want to buy? Very few, but that's another topic of conversation I suppose...
That's just it. There's absolutely no way he has 20%, or even 5% down. More than likely, he's talked to all his 0-down friends that bought several years ago (and which I suspect is why he wants to buy -- to own like his friends). I was basically trying to imply that he shouldn't expect to be able to buy with no money down, but I couldn't even get the sentence out without being dismissed. The denial/igorance of the current lending environment didn't surprise me. Dismissed as a nutcase did. I expect it online, not from close coworkers.
That's pretty much what they're saying, and if by now you still haven't learned that fact, you're on the slow side
The last time something like this happened I lost a couple of friends. It was in 2000 and I spent a lot of time trying to convince them to get out of the stock market (especially tech stocks). They had recently cashed out of an IPO and were worth tens of millions each. They had recently invested most of it in tech stocks based on the recommendations of their brokers. After our discussion (and I did a very good job explaining why the house of cards was about to come down and how far it was likely to fall) they were white faced and said they were going to go talk with their brokers that week. The next time I talked with them a few weeks later they said they were still fully invested. They said when they talked with their broker, he said to them, who are you going to trust, some guy you know or a financial professional? So they decided to stay invested. At that point I stopped talking with them and lost contact. I subsequently heard that they had stayed invested thorugh the 80% decline that many tech stocks suffered becuase every time it dropped a bunch they were convinced that it was finally at a bottom and due to rebound. I can't tell you how much money they lost. Funny thing is that I think they have bad feelings towards me because I remind them of their terrible decision and how it might have been different.
HAHAHAHAHAHAHAHAHAHA!
Good luck with that--that's what you can say, with just a hint of sarcasm so they think you're actually wishing them well.
Same deal with me a couple of years ago meeting with a guy who sold his nice house in Newport Hills to move his family to DETROIT to become a slumlord, because he went to a 'how to buy foreclosed property' seminar and guess what? Detroit was one of the top cities in the nation for foreclosures, even two years ago. I wonder how he's doing now. :?
Having lived in Flint, MI during college for a couple of years, I had a pretty good idea of what he was getting into. I wished him well. He had already sold the house and was packing everything up when I met him. I felt the most sorry for his wife and young kids. But then again, they'll have some pretty interesting stories to tell later on, I'm sure.