CA Shadow Inventory

[SD Realtor]

Analyst I think alot of us would agree 100% with your assessment. Everything is quite surreal and in fact the more intervention there is, the harder it is to make an assessment of the current market, and the longer term outlook a few years down the road because one has to account for a greater period of unwinding.

It is tough and I am not sure what to believe anymore. My analysis now is very much confined to very very short term goals. I feel that the forces pushing down on the market are very strong. These are strong default numbers, heavy demographic problems and other natural forces. Similarly the forces that are reinflating are quite strong as well and should NEVER be underestimated as we have all seen.

Nonetheless I still believe it will be our creditors that will force our hands and then things will adjust more naturally, albeit in a higher interest rate environment.

[CA renter]

[quote=AN]CA renter, you’re giving J6pk way too much credit. If they think that logically, we wouldn’t have the bubble we had.[/quote]

You’re right, in that J6 doesn’t think logically, but one thing that ALWAYS gets J6’s attention is **free money.** Look at what happened in Detroit last week. It’s amazing how ignorant so many Americans can be about finances and the world, but when there’s some obscure program offering financial aid or freebies, they are on it like flies on $h!t.

[CA renter]

[quote=AN]CA renter, you’re giving J6pk way too much credit. If they think that logically, we wouldn’t have the bubble we had.[/quote]

You’re right, in that J6 doesn’t think logically, but one thing that ALWAYS gets J6’s attention is **free money.** Look at what happened in Detroit last week. It’s amazing how ignorant so many Americans can be about finances and the world, but when there’s some obscure program offering financial aid or freebies, they are on it like flies on $h!t.

[CA renter]

[quote=AN]CA renter, you’re giving J6pk way too much credit. If they think that logically, we wouldn’t have the bubble we had.[/quote]

You’re right, in that J6 doesn’t think logically, but one thing that ALWAYS gets J6’s attention is **free money.** Look at what happened in Detroit last week. It’s amazing how ignorant so many Americans can be about finances and the world, but when there’s some obscure program offering financial aid or freebies, they are on it like flies on $h!t.

[CA renter]

[quote=AN]CA renter, you’re giving J6pk way too much credit. If they think that logically, we wouldn’t have the bubble we had.[/quote]

You’re right, in that J6 doesn’t think logically, but one thing that ALWAYS gets J6’s attention is **free money.** Look at what happened in Detroit last week. It’s amazing how ignorant so many Americans can be about finances and the world, but when there’s some obscure program offering financial aid or freebies, they are on it like flies on $h!t.

[CA renter]

[quote=AN]CA renter, you’re giving J6pk way too much credit. If they think that logically, we wouldn’t have the bubble we had.[/quote]

You’re right, in that J6 doesn’t think logically, but one thing that ALWAYS gets J6’s attention is **free money.** Look at what happened in Detroit last week. It’s amazing how ignorant so many Americans can be about finances and the world, but when there’s some obscure program offering financial aid or freebies, they are on it like flies on $h!t.

[sdrealtor]

I dont necessarily disagree witrh analyst either. I have no access to the loan docs and was not party to that transaction. Whatever happens to the balance is irrelevant in this conversation about shadow inventory because this one was ripped out of that category.

For him, the interest rate was lowered by a few % and the amount he was paying on was reduced by over 30%. HIs payment is less than 1/2 of what it was and will stay there indefinitely. For the owner, its an awesome home (a dream home if you will) that he gets to keep living in at a price well under rental value with a nice tatx deduction to boot. What renter would turn down a rent reduction and news that their rent was now tax deductible? Oh yeah, the rent you didnt pay last year….just forget about it.

My other comment was in reference to his definitive statements of what would happen “if” we only knew what the govt would do.

[sdrealtor]

I dont necessarily disagree witrh analyst either. I have no access to the loan docs and was not party to that transaction. Whatever happens to the balance is irrelevant in this conversation about shadow inventory because this one was ripped out of that category.

For him, the interest rate was lowered by a few % and the amount he was paying on was reduced by over 30%. HIs payment is less than 1/2 of what it was and will stay there indefinitely. For the owner, its an awesome home (a dream home if you will) that he gets to keep living in at a price well under rental value with a nice tatx deduction to boot. What renter would turn down a rent reduction and news that their rent was now tax deductible? Oh yeah, the rent you didnt pay last year….just forget about it.

My other comment was in reference to his definitive statements of what would happen “if” we only knew what the govt would do.

[sdrealtor]

I dont necessarily disagree witrh analyst either. I have no access to the loan docs and was not party to that transaction. Whatever happens to the balance is irrelevant in this conversation about shadow inventory because this one was ripped out of that category.

For him, the interest rate was lowered by a few % and the amount he was paying on was reduced by over 30%. HIs payment is less than 1/2 of what it was and will stay there indefinitely. For the owner, its an awesome home (a dream home if you will) that he gets to keep living in at a price well under rental value with a nice tatx deduction to boot. What renter would turn down a rent reduction and news that their rent was now tax deductible? Oh yeah, the rent you didnt pay last year….just forget about it.

My other comment was in reference to his definitive statements of what would happen “if” we only knew what the govt would do.

[sdrealtor]

I dont necessarily disagree witrh analyst either. I have no access to the loan docs and was not party to that transaction. Whatever happens to the balance is irrelevant in this conversation about shadow inventory because this one was ripped out of that category.

For him, the interest rate was lowered by a few % and the amount he was paying on was reduced by over 30%. HIs payment is less than 1/2 of what it was and will stay there indefinitely. For the owner, its an awesome home (a dream home if you will) that he gets to keep living in at a price well under rental value with a nice tatx deduction to boot. What renter would turn down a rent reduction and news that their rent was now tax deductible? Oh yeah, the rent you didnt pay last year….just forget about it.

My other comment was in reference to his definitive statements of what would happen “if” we only knew what the govt would do.

[sdrealtor]

I dont necessarily disagree witrh analyst either. I have no access to the loan docs and was not party to that transaction. Whatever happens to the balance is irrelevant in this conversation about shadow inventory because this one was ripped out of that category.

For him, the interest rate was lowered by a few % and the amount he was paying on was reduced by over 30%. HIs payment is less than 1/2 of what it was and will stay there indefinitely. For the owner, its an awesome home (a dream home if you will) that he gets to keep living in at a price well under rental value with a nice tatx deduction to boot. What renter would turn down a rent reduction and news that their rent was now tax deductible? Oh yeah, the rent you didnt pay last year….just forget about it.

My other comment was in reference to his definitive statements of what would happen “if” we only knew what the govt would do.

[LesBaer45]

[quote=sdrealtor]I dont necessarily disagree witrh analyst either. I have no access to the loan docs and was not party to that transaction. Whatever happens to the balance is irrelevant in this conversation about shadow inventory because this one was ripped out of that category.

For him, the interest rate was lowered by a few % and the amount he was paying on was reduced by over 30%. HIs payment is less than 1/2 of what it was and will stay there indefinitely. For the owner, its an awesome home (a dream home if you will) that he gets to keep living in at a price well under rental value with a nice tatx deduction to boot. What renter would turn down a rent reduction and news that their rent was now tax deductible? Oh yeah, the rent you didnt pay last year….just forget about it.

My other comment was in reference to his definitive statements of what would happen “if” we only knew what the govt would do.[/quote]

IANAL nor do I play one on the Internet. But it seems to me that such a loan mod if it doesn’t include the “hidden” language for the missing $250K to suddenly become real again at a sale or appreciation (things go back to full retard crazy) would trigger some sort of IRS action. Basically in my currently beer-ed state, that person was handed a $250K gift. It’s no different than a short sale in my misguided opinion. He might have dodged a foreclosure bullet but did he just step into the path of an IRS audit grenade?

[LesBaer45]

[quote=sdrealtor]I dont necessarily disagree witrh analyst either. I have no access to the loan docs and was not party to that transaction. Whatever happens to the balance is irrelevant in this conversation about shadow inventory because this one was ripped out of that category.

For him, the interest rate was lowered by a few % and the amount he was paying on was reduced by over 30%. HIs payment is less than 1/2 of what it was and will stay there indefinitely. For the owner, its an awesome home (a dream home if you will) that he gets to keep living in at a price well under rental value with a nice tatx deduction to boot. What renter would turn down a rent reduction and news that their rent was now tax deductible? Oh yeah, the rent you didnt pay last year….just forget about it.

My other comment was in reference to his definitive statements of what would happen “if” we only knew what the govt would do.[/quote]

IANAL nor do I play one on the Internet. But it seems to me that such a loan mod if it doesn’t include the “hidden” language for the missing $250K to suddenly become real again at a sale or appreciation (things go back to full retard crazy) would trigger some sort of IRS action. Basically in my currently beer-ed state, that person was handed a $250K gift. It’s no different than a short sale in my misguided opinion. He might have dodged a foreclosure bullet but did he just step into the path of an IRS audit grenade?

[LesBaer45]

[quote=sdrealtor]I dont necessarily disagree witrh analyst either. I have no access to the loan docs and was not party to that transaction. Whatever happens to the balance is irrelevant in this conversation about shadow inventory because this one was ripped out of that category.

For him, the interest rate was lowered by a few % and the amount he was paying on was reduced by over 30%. HIs payment is less than 1/2 of what it was and will stay there indefinitely. For the owner, its an awesome home (a dream home if you will) that he gets to keep living in at a price well under rental value with a nice tatx deduction to boot. What renter would turn down a rent reduction and news that their rent was now tax deductible? Oh yeah, the rent you didnt pay last year….just forget about it.

My other comment was in reference to his definitive statements of what would happen “if” we only knew what the govt would do.[/quote]

IANAL nor do I play one on the Internet. But it seems to me that such a loan mod if it doesn’t include the “hidden” language for the missing $250K to suddenly become real again at a sale or appreciation (things go back to full retard crazy) would trigger some sort of IRS action. Basically in my currently beer-ed state, that person was handed a $250K gift. It’s no different than a short sale in my misguided opinion. He might have dodged a foreclosure bullet but did he just step into the path of an IRS audit grenade?

[LesBaer45]

[quote=sdrealtor]I dont necessarily disagree witrh analyst either. I have no access to the loan docs and was not party to that transaction. Whatever happens to the balance is irrelevant in this conversation about shadow inventory because this one was ripped out of that category.

For him, the interest rate was lowered by a few % and the amount he was paying on was reduced by over 30%. HIs payment is less than 1/2 of what it was and will stay there indefinitely. For the owner, its an awesome home (a dream home if you will) that he gets to keep living in at a price well under rental value with a nice tatx deduction to boot. What renter would turn down a rent reduction and news that their rent was now tax deductible? Oh yeah, the rent you didnt pay last year….just forget about it.

My other comment was in reference to his definitive statements of what would happen “if” we only knew what the govt would do.[/quote]

IANAL nor do I play one on the Internet. But it seems to me that such a loan mod if it doesn’t include the “hidden” language for the missing $250K to suddenly become real again at a sale or appreciation (things go back to full retard crazy) would trigger some sort of IRS action. Basically in my currently beer-ed state, that person was handed a $250K gift. It’s no different than a short sale in my misguided opinion. He might have dodged a foreclosure bullet but did he just step into the path of an IRS audit grenade?

[Author]

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