Are you guys hunkering down money wise?

[riptides]

That commons sense has been marketed out of a lot of people. It took a while but debt is is marketed as a need.

You get bombarded with credit offers the moment you leave or are in high school.

You get blasted with student loans for college and post graduate work.

Car loans, farm equipment loans, real estate and start your business loans. It is endless.

No my friends, common sense is still there, it can be overwhelmed by the pressure of the now, and the need of this "marketed" credit.

 

[mikim]

I'm feeling totally stressed from the way the economy is tanking. My wife lost her job in July - which caused us to make the decision for me to retire the end of this year (vs next year as planned) --why? because we are finding ourselves "property poor". We own a total of 4 properties and they are fast losing ground -- they were our "security blanket" for retirement but they seem to be slipping away. We need to sell all but the one retirement place (as we planned) but we need to sell NOW vs taking our time. We can't afford to keep them, and we can't get what we were hoping to get for them ...They were suppose to provide us the money to build our retirement home .... now I don't know what we'll do. End up with something a WHOLE LOT smaller I expect. I'm also afraid of a total collapse of just about everything. This "bailout" is the stupidest idea I've ever heard of .....grease for the slide ....and I don't think either candidate for pres has what it takes to save us.

 

[EddieWalker]

Mike,

Sorry to hear about your land values. It's hit my parents pretty hard with their place in California too. I'm working with some realtors and they are having allot of delays in selling local real estate because their other properties are not selling. People are hesitant to buy right now because they feel the price will just keep dropping and they can get it for cheaper if they wait.

Good luck,
Eddie

 

[mikim]

Eddie -- I built a small el cheapo apartment in one end of our metal barn for weekends ... I'm sorry now I didn't do it better like you did .. . I went as cheap as I could including the cheapest paneling I could find ....gives you some idea..... anyway - If I had done it right more along the lines of what you have -- we could survive quite nicely in that. If the house in town stays on the market too long -- a redo of the barn might be one answer.

 

[SnowRidge]

I have a friend who likes to describe his wheeling and dealing as "buy high, sell low, and make up the difference in volume." Of course, he does just the opposite, but too many folk actually behave that way. Now is not the time to sell, it's the time to buy.

There was a story on the news last night about the housing market in Lee County, FL taking back off. Properties are selling like hotcakes. Why, because they are now off their highs by as much as 75%. People are seeing real value, and they are snapping them up. No zero down loans, but financing for well qualified buyer is available, and cash talks.

Florida was hit hard and early, and it is starting to come back. I saw waterfront homes down there almost a year ago that were absolute bargains. I'll bet most of them have now sold.

There may be a way to go yet for some markets, but it won't be long. If folks can hang on, they'll be a lot better off than selling at or near the bottom.

 

[L4400]

I'm also afraid of a total collapse of just about everything. This "bailout" is the stupidest idea I've ever heard of .....grease for the slide ....and I don't think either candidate for pres has what it takes to save us.

I've got to agree with all of that. Just found out the day after learning of our son's preschool closing, that my sister and brother-in-law's business is in danger. They have a precast concrete business that was doing very well. With this downturn, they haven't been getting paid from builders so they have been having to suppliment costs with their business line of credit. They've just been informed that the line is frozen and won't get released until it's payed off. They haven't missed a payment on this either. They have been having to dip into this to make payroll. It doesn't look good for them.

I couldn't agree more with "grease for the slide" term for the bailout. I really think 700 billion is a drop in the bucket for the whole economic mess we're in. Once that's put into place, and then it doesn't work, then what? Just another 700 billion in the hole I guess?

One other thing, I think that this $4-$5 gas/diesel is the straw that finally broke the camel's back. I think most people out there are living paycheck to paycheck, and they just couldn't sustain this. I feel very fortunate NOW, in that we've been very financially responsible. I have a house that's paid for, along with both of our cars, and no credit cards. I do have a second home I'm making payments on, but that and my Kubota, that's it. However, I've seen some very well-to-do people in my area struggle mightly lately and I'm not to arrogant to think that it won't happen to me. I really believe that this mess is going to be here for a while. I told my wife the other day, that between my two jobs and her job, I wouldn't be suprised if we lost one of them by the time this mess is over with. Funny, I had been thinking about giving up my job on the weekends so I would have some free time. I think I appreciate having a job now more than ever.

 

[MossRoad]

I have a friend who likes to describe his wheeling and dealing as "buy high, sell low, and make up the difference in volume." Of course, he does just the opposite, but too many folk actually behave that way. Now is not the time to sell, it's the time to buy.

There was a story on the news last night about the housing market in Lee County, FL taking back off. Properties are selling like hotcakes. Why, because they are now off their highs by as much as 75%. People are seeing real value, and they are snapping them up. No zero down loans, but financing for well qualified buyer is available, and cash talks.

Florida was hit hard and early, and it is starting to come back. I saw waterfront homes down there almost a year ago that were absolute bargains. I'll bet most of them have now sold.

There may be a way to go yet for some markets, but it won't be long. If folks can hang on, they'll be a lot better off than selling at or near the bottom.

Florida houses are selling because in Florida, you cannot have your house taken away when you declare bankruptcy.

 

[riptides]

Florida houses are selling because in Florida, you cannot have your house taken away when you declare bankruptcy.

Explain this a little. Are you saying your house is not an asset in bankrupcy? So you can go belly up on everything but your house.

My brain hurts.

 

[SnowRidge]

Florida houses are selling because in Florida, you cannot have your house taken away when you declare bankruptcy.

That has long been the case, and that is why so many truly wealthy people live down there. But that's not the reason for the new sales. It wasn't even mentioned in the news story. Prices have fallen to the point that they are just plain cheap. A year ago nothing was selling. Now properties are selling, at least in parts of the state, even in the face of relatively high property taxes and truly high insurance premiums.

It's a good omen, in my opinion.

 

[SnowRidge]

Explain this a little. Are you saying your house is not an asset in bankruptcy? So you can go belly up on everything but your house.

My brain hurts.

Houses are generally default proof in Florida, which includes judgements in lawsuits. That doesn't mean a lender can't foreclose if there is a mortgage on the property. The secret is to own your home outright. Then, it is pretty much safe from everybody but the taxman, who will get it if you are delinquent long enough.