[quote=sdduuuude]But you just said that paying of the MR doesn’t increase the value of a particular home by as much as the amount you pay off. How is knowing that you can pay it off (and effectively lose money), any comfort at all ? ?
he point is – you put yourself in a no-win situation. Here I am, today, with no house.
OK. So I can choose to buy a house with MR or not.
If I choose an MR house, then I am choosing to buy either the right to make payments on a 9% loan or the right to make a lump-sum payment which will improve the value of my house by less than that lump-sum payment.
If you choose to put yourself in a position where your next move is a choice between two bad options, then it’s a bad choice.
Those MR should trade like the cash liabilities that they are and the only way is for buyers to start putting MR payoff requests in their offers.[/quote]
But it isn’t a no win situation. Had I completely ruled out all homes with MR, I would not be able to purchase my home at $260k discount from original asking.
Now I simply need to pay about 1/5 that discount to get rid of the MR.
The point here is there’s a lot of people like yourself that shy away from communities with MR. Which helps create more bargains in MR communities. And it just so happens these are communities that was hit hard, hence, more great opportunities. This often means excellent bargains even factoring in the yearly MR. With the ability to pay off the MR early at 1/3 the long term cost, it makes buying bargains in MR communities even more attractive.
