Buy before you foreclose

[ucodegen]

@pedrocon

If you take out a loan and use ‘tricks’ to prevent the lender from knowing about the other mortgage, you are guilty of fraud 18 USC 1014 — look it up.

penalty: fined not more than $1Mil, imprisoned not more than 30years.

If you enter into a new purchase while simultaneously intending to default on the old.. you may be guilty of conspiracy to commit fraud as well.

Now if you think that the ‘defaults’ will make it easier.. you are wrong. Watch what Fannie/Freddie are doing. The spread between Treasury rate and lending rate is increasing. This is known as risk premium. Because of people defaulting and pulling tricks like you support, the banks see increase risk in lending and will increase the risk premium put on all loans and mortgages. The result is that is really screws everyone.. no happily ever because mortgage rate will go sky high. Also, you need to remember where the bank is getting the money to lend.. it is from your pensions and savings. Remember: Banks operate with ‘other people’s money!’.

[gdcox]

It is not the choice of the banks in a free market to lend non-recourse. It is the law of California.

In most sane countries, mortgages are full recourse and that encourages more sensible borrowing and cuts the size of any house price boom.

It is insane that banks are forced to lend non-recourse on second homes for example : more communist than capitalist.

[gdcox]

It is not the choice of the banks in a free market to lend non-recourse. It is the law of California.

In most sane countries, mortgages are full recourse and that encourages more sensible borrowing and cuts the size of any house price boom.

It is insane that banks are forced to lend non-recourse on second homes for example : more communist than capitalist.

[gdcox]

It is not the choice of the banks in a free market to lend non-recourse. It is the law of California.

In most sane countries, mortgages are full recourse and that encourages more sensible borrowing and cuts the size of any house price boom.

It is insane that banks are forced to lend non-recourse on second homes for example : more communist than capitalist.

[gdcox]

It is not the choice of the banks in a free market to lend non-recourse. It is the law of California.

In most sane countries, mortgages are full recourse and that encourages more sensible borrowing and cuts the size of any house price boom.

It is insane that banks are forced to lend non-recourse on second homes for example : more communist than capitalist.

[gdcox]

It is not the choice of the banks in a free market to lend non-recourse. It is the law of California.

In most sane countries, mortgages are full recourse and that encourages more sensible borrowing and cuts the size of any house price boom.

It is insane that banks are forced to lend non-recourse on second homes for example : more communist than capitalist.

[MadeInTaiwan]

I spoke with a friend who runs a residential branch for Citi over dinner about this. I asked him why wouldn’t someone who is upside down now default on their current house and either move up or buy a similar house at a much lower cost. His response is that the new lender will not close the loan on the new house without you closing w/o short/foreclosure on your current house.

[MadeInTaiwan]

I spoke with a friend who runs a residential branch for Citi over dinner about this. I asked him why wouldn’t someone who is upside down now default on their current house and either move up or buy a similar house at a much lower cost. His response is that the new lender will not close the loan on the new house without you closing w/o short/foreclosure on your current house.

[MadeInTaiwan]

I spoke with a friend who runs a residential branch for Citi over dinner about this. I asked him why wouldn’t someone who is upside down now default on their current house and either move up or buy a similar house at a much lower cost. His response is that the new lender will not close the loan on the new house without you closing w/o short/foreclosure on your current house.

[MadeInTaiwan]

I spoke with a friend who runs a residential branch for Citi over dinner about this. I asked him why wouldn’t someone who is upside down now default on their current house and either move up or buy a similar house at a much lower cost. His response is that the new lender will not close the loan on the new house without you closing w/o short/foreclosure on your current house.

[MadeInTaiwan]

I spoke with a friend who runs a residential branch for Citi over dinner about this. I asked him why wouldn’t someone who is upside down now default on their current house and either move up or buy a similar house at a much lower cost. His response is that the new lender will not close the loan on the new house without you closing w/o short/foreclosure on your current house.

[pedrocon]

It is not insane to have a non-recourse loan. Again. I repeat in general a collateral loan for a home is normally a very safe investment for the bank, since historically the price of real estate goes up ( tracking inflation ). It is totally reasonable for the home to be sufficient collateral for a home loan. If the current lenders aren’t happy with the arrangement they should get out of the business. Believe me the vacuum will be filled quickly by new lenders. The current condition of the market is atypical.

About the risk premium comment (ucodegen) if interest rates continue to climb then this will force the price of real estate to drop further. With tightening lending standards, high interest rates, and weak income growth comes lower affordability which in the end will cause prices to drop further. Again if we let the market regulate itself in the long run it will probably work better than the gov trying to patch up a sinking ship.

If your are foreclosed on and the lender doesn’t want your business then you rent. If you have strong income (100000+) and sound fundamentals (good down payment)other than your foreclosure and you want to buy a $300000 instead of the $700000 house that you bought in 2005 I have a feeling that there will be lenders out there who will be interested in your business. MONEY TALKS PEOPLE!

[pedrocon]

It is not insane to have a non-recourse loan. Again. I repeat in general a collateral loan for a home is normally a very safe investment for the bank, since historically the price of real estate goes up ( tracking inflation ). It is totally reasonable for the home to be sufficient collateral for a home loan. If the current lenders aren’t happy with the arrangement they should get out of the business. Believe me the vacuum will be filled quickly by new lenders. The current condition of the market is atypical.

About the risk premium comment (ucodegen) if interest rates continue to climb then this will force the price of real estate to drop further. With tightening lending standards, high interest rates, and weak income growth comes lower affordability which in the end will cause prices to drop further. Again if we let the market regulate itself in the long run it will probably work better than the gov trying to patch up a sinking ship.

If your are foreclosed on and the lender doesn’t want your business then you rent. If you have strong income (100000+) and sound fundamentals (good down payment)other than your foreclosure and you want to buy a $300000 instead of the $700000 house that you bought in 2005 I have a feeling that there will be lenders out there who will be interested in your business. MONEY TALKS PEOPLE!

[pedrocon]

It is not insane to have a non-recourse loan. Again. I repeat in general a collateral loan for a home is normally a very safe investment for the bank, since historically the price of real estate goes up ( tracking inflation ). It is totally reasonable for the home to be sufficient collateral for a home loan. If the current lenders aren’t happy with the arrangement they should get out of the business. Believe me the vacuum will be filled quickly by new lenders. The current condition of the market is atypical.

About the risk premium comment (ucodegen) if interest rates continue to climb then this will force the price of real estate to drop further. With tightening lending standards, high interest rates, and weak income growth comes lower affordability which in the end will cause prices to drop further. Again if we let the market regulate itself in the long run it will probably work better than the gov trying to patch up a sinking ship.

If your are foreclosed on and the lender doesn’t want your business then you rent. If you have strong income (100000+) and sound fundamentals (good down payment)other than your foreclosure and you want to buy a $300000 instead of the $700000 house that you bought in 2005 I have a feeling that there will be lenders out there who will be interested in your business. MONEY TALKS PEOPLE!

[pedrocon]

It is not insane to have a non-recourse loan. Again. I repeat in general a collateral loan for a home is normally a very safe investment for the bank, since historically the price of real estate goes up ( tracking inflation ). It is totally reasonable for the home to be sufficient collateral for a home loan. If the current lenders aren’t happy with the arrangement they should get out of the business. Believe me the vacuum will be filled quickly by new lenders. The current condition of the market is atypical.

About the risk premium comment (ucodegen) if interest rates continue to climb then this will force the price of real estate to drop further. With tightening lending standards, high interest rates, and weak income growth comes lower affordability which in the end will cause prices to drop further. Again if we let the market regulate itself in the long run it will probably work better than the gov trying to patch up a sinking ship.

If your are foreclosed on and the lender doesn’t want your business then you rent. If you have strong income (100000+) and sound fundamentals (good down payment)other than your foreclosure and you want to buy a $300000 instead of the $700000 house that you bought in 2005 I have a feeling that there will be lenders out there who will be interested in your business. MONEY TALKS PEOPLE!

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