- This topic has 315 replies, 29 voices, and was last updated 16 years, 2 months ago by
HLS.
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December 6, 2008 at 9:38 AM #312702December 6, 2008 at 9:56 AM #312233
jpinpb
ParticipantRustico – Yes. I know you get comps from market sales. My point was probably what you’re saying about transparency. The sales comps, IMO, will not be accurate b/c if the bank is reducing the principle on a house that 2 years ago sold for 700k and now the modified loan is for 500k, the 700k is hardly a true and accurate comp.
If I go buy the identical house as the one getting modified to 500k, I should not really be paying 700k for it b/c that was the last sale on the block, especially in light of a loan mod.
Maybe I’m not making myself clear and I’m sorry for the confusion. I just think loan mods are going to really throw a wrench in sales comps. I think going by sales comps to determine the value of a house is not going to be as accurate and that one would need to take into account any loan mods.
December 6, 2008 at 9:56 AM #312590jpinpb
ParticipantRustico – Yes. I know you get comps from market sales. My point was probably what you’re saying about transparency. The sales comps, IMO, will not be accurate b/c if the bank is reducing the principle on a house that 2 years ago sold for 700k and now the modified loan is for 500k, the 700k is hardly a true and accurate comp.
If I go buy the identical house as the one getting modified to 500k, I should not really be paying 700k for it b/c that was the last sale on the block, especially in light of a loan mod.
Maybe I’m not making myself clear and I’m sorry for the confusion. I just think loan mods are going to really throw a wrench in sales comps. I think going by sales comps to determine the value of a house is not going to be as accurate and that one would need to take into account any loan mods.
December 6, 2008 at 9:56 AM #312622jpinpb
ParticipantRustico – Yes. I know you get comps from market sales. My point was probably what you’re saying about transparency. The sales comps, IMO, will not be accurate b/c if the bank is reducing the principle on a house that 2 years ago sold for 700k and now the modified loan is for 500k, the 700k is hardly a true and accurate comp.
If I go buy the identical house as the one getting modified to 500k, I should not really be paying 700k for it b/c that was the last sale on the block, especially in light of a loan mod.
Maybe I’m not making myself clear and I’m sorry for the confusion. I just think loan mods are going to really throw a wrench in sales comps. I think going by sales comps to determine the value of a house is not going to be as accurate and that one would need to take into account any loan mods.
December 6, 2008 at 9:56 AM #312644jpinpb
ParticipantRustico – Yes. I know you get comps from market sales. My point was probably what you’re saying about transparency. The sales comps, IMO, will not be accurate b/c if the bank is reducing the principle on a house that 2 years ago sold for 700k and now the modified loan is for 500k, the 700k is hardly a true and accurate comp.
If I go buy the identical house as the one getting modified to 500k, I should not really be paying 700k for it b/c that was the last sale on the block, especially in light of a loan mod.
Maybe I’m not making myself clear and I’m sorry for the confusion. I just think loan mods are going to really throw a wrench in sales comps. I think going by sales comps to determine the value of a house is not going to be as accurate and that one would need to take into account any loan mods.
December 6, 2008 at 9:56 AM #312712jpinpb
ParticipantRustico – Yes. I know you get comps from market sales. My point was probably what you’re saying about transparency. The sales comps, IMO, will not be accurate b/c if the bank is reducing the principle on a house that 2 years ago sold for 700k and now the modified loan is for 500k, the 700k is hardly a true and accurate comp.
If I go buy the identical house as the one getting modified to 500k, I should not really be paying 700k for it b/c that was the last sale on the block, especially in light of a loan mod.
Maybe I’m not making myself clear and I’m sorry for the confusion. I just think loan mods are going to really throw a wrench in sales comps. I think going by sales comps to determine the value of a house is not going to be as accurate and that one would need to take into account any loan mods.
December 6, 2008 at 9:59 AM #312238NotCranky
ParticipantIt’s an interesting topic JP.
December 6, 2008 at 9:59 AM #312595NotCranky
ParticipantIt’s an interesting topic JP.
December 6, 2008 at 9:59 AM #312627NotCranky
ParticipantIt’s an interesting topic JP.
December 6, 2008 at 9:59 AM #312649NotCranky
ParticipantIt’s an interesting topic JP.
December 6, 2008 at 9:59 AM #312717NotCranky
ParticipantIt’s an interesting topic JP.
December 6, 2008 at 10:10 AM #312243HLS
ParticipantI predict riots and a revolution if there are loan balances cut for irresponsible homebuyers who lied about their income to buy a house that they cannot afford
BUT nothing gets done for those who played by the rules.Loan mods do not lower a loan balance. They keep a FB in la-la land thinking that they own a house.
Keeps the govt from admitting how big the problem is and dealing with another FC.
1) If you think this is going to actually happen, I think that you are dreaming.
2)It is against constitutional law to interfere in private contracts.
3) If it did happen, who in their right mind would ever want to buy mortgage backed securities knowing that the principal balance could be cut.
They will offer mods and forebearance to some, but I don’t see many cuts in loan balances coming.
It will take a foreclosure and a new transaction to have a lower loan balance on that property.
Maybe someone can come up with a name for the revolution…..
Right now we need C.R.A.P.
Citizens Revolting Against Paulson
HLSDecember 6, 2008 at 10:10 AM #312600HLS
ParticipantI predict riots and a revolution if there are loan balances cut for irresponsible homebuyers who lied about their income to buy a house that they cannot afford
BUT nothing gets done for those who played by the rules.Loan mods do not lower a loan balance. They keep a FB in la-la land thinking that they own a house.
Keeps the govt from admitting how big the problem is and dealing with another FC.
1) If you think this is going to actually happen, I think that you are dreaming.
2)It is against constitutional law to interfere in private contracts.
3) If it did happen, who in their right mind would ever want to buy mortgage backed securities knowing that the principal balance could be cut.
They will offer mods and forebearance to some, but I don’t see many cuts in loan balances coming.
It will take a foreclosure and a new transaction to have a lower loan balance on that property.
Maybe someone can come up with a name for the revolution…..
Right now we need C.R.A.P.
Citizens Revolting Against Paulson
HLSDecember 6, 2008 at 10:10 AM #312632HLS
ParticipantI predict riots and a revolution if there are loan balances cut for irresponsible homebuyers who lied about their income to buy a house that they cannot afford
BUT nothing gets done for those who played by the rules.Loan mods do not lower a loan balance. They keep a FB in la-la land thinking that they own a house.
Keeps the govt from admitting how big the problem is and dealing with another FC.
1) If you think this is going to actually happen, I think that you are dreaming.
2)It is against constitutional law to interfere in private contracts.
3) If it did happen, who in their right mind would ever want to buy mortgage backed securities knowing that the principal balance could be cut.
They will offer mods and forebearance to some, but I don’t see many cuts in loan balances coming.
It will take a foreclosure and a new transaction to have a lower loan balance on that property.
Maybe someone can come up with a name for the revolution…..
Right now we need C.R.A.P.
Citizens Revolting Against Paulson
HLSDecember 6, 2008 at 10:10 AM #312654HLS
ParticipantI predict riots and a revolution if there are loan balances cut for irresponsible homebuyers who lied about their income to buy a house that they cannot afford
BUT nothing gets done for those who played by the rules.Loan mods do not lower a loan balance. They keep a FB in la-la land thinking that they own a house.
Keeps the govt from admitting how big the problem is and dealing with another FC.
1) If you think this is going to actually happen, I think that you are dreaming.
2)It is against constitutional law to interfere in private contracts.
3) If it did happen, who in their right mind would ever want to buy mortgage backed securities knowing that the principal balance could be cut.
They will offer mods and forebearance to some, but I don’t see many cuts in loan balances coming.
It will take a foreclosure and a new transaction to have a lower loan balance on that property.
Maybe someone can come up with a name for the revolution…..
Right now we need C.R.A.P.
Citizens Revolting Against Paulson
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