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  • August 19, 2009 at 11:11 AM #447277
    DWCAP
    Participant

    Please dont forget that they are kinda cherry picking their numbers there.

    Step 1, 85% of median home price. This would make sense in a normal market with normal distribution, but (assuming they are talking about Q1 median) we had anything but a normal median. Janurary had what, 55% foreclosure sales? Feb wasnt far off. Even now it is ‘down’ to 35%. The only things selling are the low end, and these guys are gonna buy 15% below that? I thought CAR/NAR was always complaining how foreclosures are unfairly underpriced already.

    Step 3, interest rates. Umm, lowest in recient history and totally manipulated. Not really their fault, but not telling the whole story here either.

    August 19, 2009 at 11:52 AM #446513
    UCGal
    Participant

    To sum up what they are saying:

    – First time home buyers might be able to *buy* a house, but they can’t afford to *keep* the house. Especially if the ARM adjusts, there are taxes/HOAs not accounted for in the calcs, and they have an unexpected bill that puts the 40% threshold to close to the edge.

    .. Heaven forbid they have normal things happen, like unpaid maternity leave, a car break down, etc…

    August 19, 2009 at 11:52 AM #446706
    UCGal
    Participant

    To sum up what they are saying:

    – First time home buyers might be able to *buy* a house, but they can’t afford to *keep* the house. Especially if the ARM adjusts, there are taxes/HOAs not accounted for in the calcs, and they have an unexpected bill that puts the 40% threshold to close to the edge.

    .. Heaven forbid they have normal things happen, like unpaid maternity leave, a car break down, etc…

    August 19, 2009 at 11:52 AM #447044
    UCGal
    Participant

    To sum up what they are saying:

    – First time home buyers might be able to *buy* a house, but they can’t afford to *keep* the house. Especially if the ARM adjusts, there are taxes/HOAs not accounted for in the calcs, and they have an unexpected bill that puts the 40% threshold to close to the edge.

    .. Heaven forbid they have normal things happen, like unpaid maternity leave, a car break down, etc…

    August 19, 2009 at 11:52 AM #447116
    UCGal
    Participant

    To sum up what they are saying:

    – First time home buyers might be able to *buy* a house, but they can’t afford to *keep* the house. Especially if the ARM adjusts, there are taxes/HOAs not accounted for in the calcs, and they have an unexpected bill that puts the 40% threshold to close to the edge.

    .. Heaven forbid they have normal things happen, like unpaid maternity leave, a car break down, etc…

    August 19, 2009 at 11:52 AM #447297
    UCGal
    Participant

    To sum up what they are saying:

    – First time home buyers might be able to *buy* a house, but they can’t afford to *keep* the house. Especially if the ARM adjusts, there are taxes/HOAs not accounted for in the calcs, and they have an unexpected bill that puts the 40% threshold to close to the edge.

    .. Heaven forbid they have normal things happen, like unpaid maternity leave, a car break down, etc…

    August 19, 2009 at 12:51 PM #446578
    moneymaker
    Participant

    What is this household income thing suppose to be? Is that gross or net? My net is probably different than many in that I pay for some of my medical insurance (a requirement I might add) charitable contributions, 401K, taxes on my taxes(or so it seems), my take home is about 60% of my gross. Is this normal? It defintiely affects how much home I could afford. I think the only relevent number is net income.

    August 19, 2009 at 12:51 PM #446770
    moneymaker
    Participant

    What is this household income thing suppose to be? Is that gross or net? My net is probably different than many in that I pay for some of my medical insurance (a requirement I might add) charitable contributions, 401K, taxes on my taxes(or so it seems), my take home is about 60% of my gross. Is this normal? It defintiely affects how much home I could afford. I think the only relevent number is net income.

    August 19, 2009 at 12:51 PM #447109
    moneymaker
    Participant

    What is this household income thing suppose to be? Is that gross or net? My net is probably different than many in that I pay for some of my medical insurance (a requirement I might add) charitable contributions, 401K, taxes on my taxes(or so it seems), my take home is about 60% of my gross. Is this normal? It defintiely affects how much home I could afford. I think the only relevent number is net income.

    August 19, 2009 at 12:51 PM #447181
    moneymaker
    Participant

    What is this household income thing suppose to be? Is that gross or net? My net is probably different than many in that I pay for some of my medical insurance (a requirement I might add) charitable contributions, 401K, taxes on my taxes(or so it seems), my take home is about 60% of my gross. Is this normal? It defintiely affects how much home I could afford. I think the only relevent number is net income.

    August 19, 2009 at 12:51 PM #447362
    moneymaker
    Participant

    What is this household income thing suppose to be? Is that gross or net? My net is probably different than many in that I pay for some of my medical insurance (a requirement I might add) charitable contributions, 401K, taxes on my taxes(or so it seems), my take home is about 60% of my gross. Is this normal? It defintiely affects how much home I could afford. I think the only relevent number is net income.

    August 19, 2009 at 1:46 PM #446638
    jpinpb
    Participant

    AK – I’m using your post on SDL. Hope it’s ok.

    August 19, 2009 at 1:46 PM #446830
    jpinpb
    Participant

    AK – I’m using your post on SDL. Hope it’s ok.

    August 19, 2009 at 1:46 PM #447169
    jpinpb
    Participant

    AK – I’m using your post on SDL. Hope it’s ok.

    August 19, 2009 at 1:46 PM #447241
    jpinpb
    Participant

    AK – I’m using your post on SDL. Hope it’s ok.

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