[quote=new to SD]I will tell you my logic when I followed my loan contract and avoid the moral decision
My past mortgage was 6% fixed and I could not get a refinance because it was underwater.
Today with my bad credit I will pay 10% or 11%. This is 4% over my old loan. This will cost me an extra $20,000 to $25,000 a year but it is tax deductible.
After a 40% tax benefit that cost me $12,000 to $15,000 after tax more per year. It would take 8 -10 years to make up for the $120,000 negative equity
I feel I will be able to refinance in two years for another 6% mortgage.
I can get 11% today but hoping for 9% or 10%.[/quote]
new to SD, you stated your former SM home has already risen in value $80K in the 11 months (September 2012) since you claim you closed your “voluntary short sale.”
Why do you think it would take another 8-10 years to regain another $120K in value?
Either your former neighborhood is “booming” right now or you sold your former home at a huge (artificial) discount (far below build-cost since SEH is relatively new). This makes one wonder if your agent even marketed your home on the MLS over the mandatory one minute at midnight, while they printed out the listing for your lender to show that they “marketed it” and then subsequently slid a relative’s ultra-low offer through to your (out-of-state?) lender with fraudulent “recent sold comps” from a (lower-priced) adjacent area in order to get them to accept it.
I suspect a little of both has taken place here.
In the MEANTIME, you’ve apparently managed to save $175K – $300K? for a new downpayment for a home with a purchase price of up to $1M after a SS of just 11 months ago and expect to now find a lender who is willing to loan you a jumbo or jumbo-conforming mortgage.
new to SD, I’m just wondering here how much of your new downpayment was saved while you were “squatting” mortgage-free to “qualify” yourself for a “voluntary” deeply-discounted short sale … on the backs of your neighbor’s values, of course.
You state here you “strategically defaulted” because you could not refinance out of 6% mortgage because you were underwater. Now you have no problem with taking on a higher mortgage at 9-11% (if offered to you, likely with I/O and a balloon pymt, a hefty and lengthy prepayment penalty, 4-5 pts up front and a host of garbage charges). Let us examine why you now want to borrow MORE money than the amount you defaulted on in SM? Could it be because you think you now deserve to “upgrade” your lifestyle to a “better” community?
[quote=new to SD]We also have been waiting to buy and are new to SD. We are looking but there is not much available.
Are there any areas in Encinitas, Rancho sante fe or Carmel Valley that have 1 acre that you would recommend?[/quote]
