Lol, so a person bought a house they couldn't afford,  couldn't make payments and got forclosed on? What does this have to do with a housing bubble? Simply because they couldn't make a killing in 6-8 months?

A bubble would mean a huge devalaution in home prices, that does not appear to be the case so far. Certainly home sales have flattened, and only a fool would buy in Bakersfield at current prices expecting a huge Windfall. Of course the people like myself who bought in 99, certainly will do quite nicely, even with a mild downturn.

I am soooooooo Pissed.  I lost another comment.  Why?  Because I can't tell if the stupid l is an L or and i  in the secret spam box.  Grrrr

 I was going to say, that I feel sorry for all of the people (poor dupes) who lost their houses.  It can't be easy to realize and lose the American Dream in the space of mere months.

The only winners in the boom were speculators, builders, mortgage companies, real estate brokers and their agents.  They didn't lose their profits or commisions on the cookie cutter clutter they put all over town.

Boy, I'm into alleration this morning.  Sorry. 

I was continually informed of the "rising value" of my home.  My neighbor of 22 years refinanced her home many times, in part to lower the interest rate, but also to take out "equity" for home improvements.  I never believed my house was worth the inflated value the real estate market and lenders placed on it.  I knew too much about the market to buy into it, and I remembered the "Bubble Burst" of 1986.  I agree with you Audrey, families are the big losers here.  They're watching their "American Dream" die, and with a foreclosure on their credit report, it will be a long time before they're able to purchase another home. 

My oldest son purchased a new home during this crazy time.  Something his father and I did much more than advise against.  We talked until we were hoarse.  He already owned a home and was afraid he'd loose his "equity" if he waited for the market to stabilize.  He went in with one of those "designer mortgages" and now he's sorry he didn't wait.  My youngest son on the other hand, has waited it out.  It was easier for him.  He already owns one house, but still lives at home.  He'll be one who benefits when the bubble bursts. 

On some levels, it feels wrong.  But, that's where brains and wit win over impulse and desire.  Just because they make it easy doesn't mean it's right.  I could have taken equity from my house and had my dream kitchen, but the cost was too high, even if the money was cheap.

Audrey:  tip 1:  They're *ALWAYS* capital letters.

Tip 2:  Type the Spam Code FIRST, then type your piece.  That way, if you accidentally send it, you can recall and edit it.

Random

Now I feel totally stupid.  I guess I'll get the L out of there.

I'm definitely an old-fashioned traditionalist on real estate.

I bought mine in 1989, when the price for a nice Southwest home was five digits.  While everyone who felt obligated to race the Joneses would refinance and whatnot, I actually had lenders get pissed because I wouldn't refinance.  I got hounded for refinancing offers by certified mail, if you can even believe that.

I still get refinancing offers to this day, a sign that their dossier on me is three years out of date. 

A house is a place to live and a yard to play in.  It's not meant to be a way to make easy money without doing any work for it.

Ender9000-

You think this is the end? I say this is only the beginning of the pain.

Homes sales have flattened? Please educate your self on the real numbers - there are many sources out there. Don't listen to those with a financial stake in your "personal well being".

Also - you say "6-8 months". They pruchased this home OVER a year ago and now it is being sold for LESS than what they paid! There are currently 10 NOD's filed daily in Bakersfield, granted not all will end in foreclosure but a large percentage will.