2nd bail out plan will pass, bad for America, great for inspectors.

[Nick Gromicko]

With a year's housing inventory on one side (sellers)...

and a prices back down where they should be and millions of new households being formed (buyers)...

all we need now is 700 billion put in the hands of companies that have no purpose other than to lend it back out (credit).

[nwagner]

[lkrausz]

Better come soon

[ldapkus]

Hurry, my local competition needs work.

[Emmanuel J. Scanlan]

Originally Posted by gromicko

all we need now is 700 billion put in the hands of companies that have no purpose other than to lend it back out (credit).

And a requirement that all home purchases require an inspection so that the underwriters are not financing more than the home is potentially worth.

[Joseph Burkeson, CMI]

Originally Posted by escanlan

And a requirement that all home purchases require an inspection so that the underwriters are not financing more than the home is potentially worth.

From my recloection... Ain't that the appraisers job?

[Emmanuel J. Scanlan]

Joe,

Does an appraiser remove heating unit covers and check for internal condition of a heater?

Does an appraiser remove heat shields on a hot water heater and check for scaling and other issues in the burner compartment? Do they check for rusting of flues and proper draft and combustion air issues?

Does an appraiser make a determination of the fitness of a homes foundation?

Does an appraiser crawl a raised foundation looking for damaged wood, etc.?

Etc., etc., etc.????

The answer to the above is NO! An appraiser only makes sure the home has an HVAC system and it can turn on and off. They oly make sure the home has hot water. They only make sure the home is still standing.

As a result of the lack of a Home Inspection, many lenders are financing death traps and piles of junk. What is the difference between that and the fancy loan packages that have caused the sub-prime problem? A problem home is just as much a financial time bomb as all of those special loans.

[Joseph Burkeson, CMI]

Originally Posted by escanlan

As a result of the lack of a Home Inspection, many lenders are financing death traps and piles of junk. What is the difference between that and the fancy loan packages that have caused the sub-prime problem? A problem home is just as much a financial time bomb as all of those special loans.

I understand what you are saying, I just don't know how someone would quantify a home inspection to its potential worth.

Housing prices didn't crash because people purchased junk homes riddled with unknown defects which tipped the balance of the total cost of ownership above the market price.

Housing prices crashed because of simple supply & demand that was twisted beyond all normal boundaries through loose lending practices, when the last flipper ran out of credit and could no longer sell his house to a greater fool the whole thing began to unravel.

Housing prices will continue to fall irregardless of government intervention until they reach a place where (a) people feel they are buying value, and (b) houses are priced no more than 3-times the average income of the people who live there who can also afford a to save a 20% down-payment. Until then expect home prices to continue to fall and fall even further before it is all over, nothing can be done to prevent this cycle from completing.

[David P. Valley]

What's really strange is...after yesterday's news of the bail-out rejection, I've booked 5 inspections since last evening.

Hmmmm....

[Randy D. Stufflebeem]

Originally Posted by dvalley

What's really strange is...after yesterday's news of the bail-out rejection, I've booked 5 inspections since last evening.

Hmmmm....

Great news David! I have slowed a bit but I see no reason to panic!......Just yet

[Emmanuel J. Scanlan]

Originally Posted by jburkeson1

I understand what you are saying, I just don't know how someone would quantify a home inspection to its potential worth.

Housing prices didn't crash because people purchased junk homes riddled with unknown defects which tipped the balance of the total cost of ownership above the market price.

I certainly never inferred this. Don't know how you read that into such a basic response.

Housing prices crashed because of simple supply & demand that was twisted beyond all normal boundaries through loose lending practices, when the last flipper ran out of credit and could no longer sell his house to a greater fool the whole thing began to unravel.

Housing prices will continue to fall irregardless of government intervention until they reach a place where (a) people feel they are buying value, and (b) houses are priced no more than 3-times the average income of the people who live there who can also afford a to save a 20% down-payment. Until then expect home prices to continue to fall and fall even further before it is all over, nothing can be done to prevent this cycle from completing.

Joe,

See one response above. As for the rest of your statement, it has nothing to do with my response.

[Nick Gromicko]

It will pass tonight, as I predicted.

[Michael Larson]

Originally Posted by gromicko

It will pass tonight, as I predicted.

Nick,

The House doesn't meet until tomorrow at noon.

The Senate is trying to pass a bill today.

I thought all revenue bills had to go through the House first.

This is a move by the Senate to calm the markets, Nothing more.

[Nick Gromicko]

It will be Law before the VP debate tomorrow.

[Michael Larson]

Originally Posted by gromicko

It will be Law before the VP debate tomorrow.

Perhaps, but not tonight.