[quote=earlyretirement][quote=bearishgurl]To be clear, I never intended to imply that ER was “foolish” to pay off his MR. If he knows he will own the property more than ten years from the date he paid it off, then he got a BIG discount by doing so. He will save himself ~$6K for every year he owns it past 10 years, until the bonds are paid off (2033? not sure). So the payoff made sense for him and he was able to do it :=][/quote]
Yes BG. I think everyone has to look at their specific situation. It won’t make sense for everyone but in our case it does. We will be in our house for the foreseeable future, our house is completely paid off and we definitely will stick around.
One of the bonds actually wasn’t scheduled to be done until at least 2041. And it seems like there are a few cases where the bonds could possibly get extended out further.
That wasn’t appealing to me. Also, in reading some things online it seemed like the possibility to prepay could be denied in the future. So I wanted to take advantage of it while I could. In my case it will definitely be worth it.
I’m already well diversified in the stock market, real estate and other investments so the money was just sitting around not earning much interest at all.[/quote]
Can you please provide the link to where you read it online that the prepayment of Mello Roos could be denied in the near future?
[quote=12345R]I’ve been following this thread for a while and I wanted to share my experience since I found the previous posts to be very useful. My residence is in the Torrey Highlands subdivision (south of 56), corresponding to Poway CFD #10 and Poway CDF #10 Impv Area A. The combined annual tax amount is $5300 for both CFDs.
I called up Dolinka Group in Irvine and was quoted a ballpark payoff range of $60 to $70k. Next, I sent in $200 to Poway USD to process the prepayment calculations. After one month, I received an exact quote of $64.5k, pretty close the middle of the ballpark range. For those now looking into getting a ballpark quote, I was recently informed by an associate at Dolinka Group that they were instructed by Poway USD not to provide ballpark figures. If this happens to you, I would try to find out more information on this policy from the PUSD contact Kari Zipp.
Researching CFD #10 on the californiataxdata.us website shows the bond maturity date listed as 2038. The linked document Special Tax Bonds 2007 states “special taxes are payable until 25 years after the last bond series is issued but in no event later than Fiscal Year 2045-46.” I assume this is to cover underfunding due to MR delinquency or lower than projected home value assessments in the future. The effective interest rates for my two CFDs are 5.6% (CFD 10, over 33 years) and 7.2% (CFD 10 IA A, over 19 years), not taking into account the annual 2% max rate escalators.
While the MR payoff break-even period of 12 years is slightly longer than the 10-11 years I have seen in this thread, I’m pretty close to pulling the trigger and paying it off. My long term plan is for my two young kids to graduate from PUSD high school and (Activating Tiger Parent Mode) go to Stanford, haha.[/quote]
Interesting to hear that Dolinka Group has been instructed by PUSD not to give out ballpark figures for the MR payoff. To think about this, if everyone pre-payed their MR, the bondholders will not get good returns on their investments because we will be reducing the principle of the bonds to reduce the number of years/interest payouts to the investors. This will put the PUSD bonds under an unfavorable light to prospective investors…. Reduced or diminished returns to bondholders in combination with PUSD irresponsible behavior to use capital appreciation bond to borrow $105 million in 2011 that won’t begin to payoff the principle off until 2033. The cost to the taxpayers will be $982 million to pay off. Who is getting the bad end of the deal here? Who is looking out in the best interest of the taxpayers? This is a disaster in the making for PUSD if everyone prepaid our MR, they wouldn’t be able to get bondholders to invest in their bonds.
[quote=ocrenter][quote=DelSurBird]Yep $100K is the approximate amount I got via email from the Dolinka Group. Got the same letter to provide my info and pay $100 bucks to get the exact amount for the MR payoff…I agree the $100K payoff is really high compared to the other payoff amounts I am seeing here. No transparency to all of this is disturbing, which is why I came here checking around to compare the numbers and to find out if there’s a watchdog group tracking all of this… apparently not…. is there a possibility the Dolinka Group could be just throwing this number out so people wouldn’t be interested in a high $100K MR payoff to protect their special interests…?? Maybe need to rally community support to demand transparency. Think about what this could do to the bond markets…[/quote]
sorry guy, Dolinka was very straight up with us. the estimate and the actual numbers were identical. why would Dolinka purposely throw out a high number for Del Sur but not 4S/Santaluz/PQ/Stonebridge?
Del Sur MR have always been several steps higher than everyone elses. I think the $100k reflects reality, I’m afraid.
This is just like the latest jobs numbers. if the data that comes out is not your liking, it must have been a conspiracy by the power-to-be.[/quote]
Ha, conspiracy? Who do you think the Dolinka Group is looking out for, in the best interest of PUSD, bondholders or the taxpayers?
