Thread regarding Qualcomm Inc. layoffs

I like that bitter landlord suggests the minimum wage worker got RIF'd

Fine, bloomberg is BS. Sure it's anecdotal, but that's the core of all bitter landlord's reasoning. http://www.bloomberg.com/news/articles/2015-09-08/liar-loans-redux-they-re-back-and-sneaking-into-aaa-rated-bonds

I know of people in SD who haven't paid their mortgage in years, but are still living in their underwater homes. Are there hard numbers on the extent of this problem?

Everybody in this thread is an idiot who knows nothing about real estate and have never owned their own home.

Anonymous163076... hahahahhaha..the bullshit shadowninventory argument. That's been proven to be bullshit, at least in socal..a bullshit opinion deduced from places like Detroit where there might be shadow inventory, but applied to places like San Diego county and socal in general by doomsayers and people.hoping it exists...when in reality it did not....why? Back in 2010, institutional buyers such as Blackrock were very active in the REO markets. And a lot of the inventory purchases at that time was purchased by such institutions. And when the REO inventory evaporated, they moved to the retail channel, and were in as many of the same retail bids as any other retail I'd short sales...if there really was shadow inventory, these REIT institutional buyers would have already bought and would not have been buying at the retail channel..they would have been unloading. I can't count how many times in many of these retail good details I ran into a REIT institutional buyer that was competing for the same homes that others trying to buy heavily discounted properties were. Yes, there were very active in San Diego county, primarily in the sfh tier 2 markets. Others can confirm this as well. There is no shadow inventory in socal or for that matter the bay area. If you still believe there is, I am sorry you are a conspiracy theorist.that will be sadly disappointed.

I think a lot of people don't realize what is actually going on in the housing market. There is a tremendous amount of inventory being withheld from the market by the banks.

The largest banks are constrained by the government from fully foreclosing on literally thousands of properties in San Diego.

In addition, private equity firms like Blackstone have billions of dollars in Southern California real estate that they are currently just renting out.

A massive correction in the housing market is definitely a real possibility.

Anonymous162879. That's bullshit. There isn't liar loans at the current moment

There are subprime FHA based loans that require very little down, but those loans are only applicable to properties that are FHA approved.

Which isn't going to be a $800k single family home in SD. If that were the case, sign me up for 4% FHA loan for $1million. That's not to say the banks won't bring back really sketchy loans in the future

They most likely will. But so far it hasn't happened yet. Frankly, I can't wait when they do. I'll be selling again during that time at that ridiculous peak price when stupid money overlevereged and overpay on easy credit (again) only to subsequently go into REO or short sales once they screw themselves again... But until that happens, I thank the idiots during this past crash that made it possible to buy things at the deal of the decade. Meanwhile, we will wait until easy loans are back. Until then, its just a wait and see game, while collecting rent from people that screwed themselves and can't qualify to own as a result the stupid decisions they made last time

Anonymous162883. I wouldn't know because it was apparently bitter renter's hope (dream) that north county would fall 30-50% from one layoff from one company and how there would be a hemorrhaging of inventory buildup as people would be desperately selling. Ain't happening. True there is a lot of activity. People are selling. But seems like the buyer pool is still fairly strong, I am guessing from other professionals that aren't Q engineers worried about layoffs.

What's this ridiculous obsession with north county? Why does bitter landlord assume we all want to live in his stucco nightmare. It's all old people up therr who like Jeb Bush, right? America's Blandest City

Liar loans are back. It was even on yahoo finance (bitter landlords favorite). People can still "buy" houses (with high leverage) they can't afford. The illusion of lending standards gives rise to the "that time was different" thinking. After 7 years of ZIRP, desperately chasing yield is bound to have some issues.

Anonymous162816. Not correct. You couldn't have borrowed ridiculously, post housing bust....Lending standards wouldn't have let you. ALT-A and interest only loans were nonexisting. And 30/15 year jumbo loans weren't available until maybe 3 years ago. And conforming plus in San Diego max is currently $562,350 (it was as high as $717k before), which is hardly borrowing to the max, considering SFH in north county is around $800-1millionish for SFH. The problem isn't with loans by themselves. The problem is

the ones with ridiculous borrowing terms that allows borrowers negatively amortize, just so the weak borrowers can buy .There is no loan product for the weak borrowers these days (yet)...15/30year loans don't have this problem, since the lending standard is pretty strict these days, and since the payment terms are pretty much fixed, they won't negatively amortize..In many cases during the past 6-7 years, payments on those fixed rate loans are actually lower than monthly rent costs in California now, even before tax benefits of writing off mortgage interest deductions.

@Anonymous162778, stop reading infowars. You conspiracy nuts probably blame Obama for solar flares

"Borrow to the max at insane interest rates, make minimum payments"....what do u think drives the housing "recovery". Oh yeah all that hot laundered money from china too. Fundamentals! Anyway, Why do bitter landlords keep posting to this forum? And why on earth would anybody want to live in North county. Even coastal. Just dull people flashing their stucco bling. Surfs up, brah

Blame some of this on Obama. Instead of funding states to fix basic necessities like infrastructure, schools, farmers, etc that SOB is spending billions on going to unnecessary wars and now he is spending billions to house the fleeing Syrians. I am all for helping but do we really need to spend that much? Also what about national security? Syria is filled with all kinds of terrorists and Obama is opening the front door. This president has already screwed up and freed terrorists to swap for a ex military loser and now he is doing it again. He should create a staging area and verify all any Syrian entering has a thorough back ground check. There are millions of peoimmigrants wanting to get into the US. Why is he making special accommodations for these refugees? I smell a conspiracy theory.

OP, Looks like Poway Unified manages its money as well as most people in this country! Borrow to the max at insane interest rates, make minimum payments (or in the case of Poway Unified, make no payments for 20 years), watch interest balance compound to insane levels, and then wonder why they can't afford to pay for basic necessities, and then file for bankruptcy.