Schizo, the deck is never stacked against you as long as you are proactive, don’t set yourself up for situations where you need the stars to align, just figure out what you can control and control it. Buy some Tony Robbins tapes on E-bay, get some power back.
Here’s what the lever pullers can’t do:
They can’t bring back wacky financing
They can’t stop the decline in prices or sales immediately
Here’s what they can and might do:
Lower the discount rate to lessen the blow to resets and helocs.
Try and keep the 30 yr as low as they can (although their power is limited) so some buyers can still buy and they can stop the bleeding or prevent a collapse.
You won’t get a house for 30 or 40 cents on the dollar, if that’s your only plan, get a new plan, if it happens great but don’t count on it. You will get 25-50% off peak depending on the market, you will need 20% down and you will need to qualify and you may need to be ready to take advantage of that in the next 6 to 36 months, if you need more time you may miss it. If long rates go up 1 or 2 points, prices will come down an equivalent amount, people buy on payments not prices, if it does, don’t pay any discount points and refi your smaller debt when the rates come down. If they stay the same, you will want to fix because they won’t stay that way forever, but either way it’s a win/win for you if you are prepared to take advantage of it.
Nothing is good for irresponsible borrowers, they always lose.
