gut feeling

[sdrealtor]

sreeb
That is a kicker but its alot longer than you think. Not sure exactly how the saying goes but something like Markets can stay irrational far longer than you can stay liquid.

BB just sent out a balloon to expect very low interest rates for at least another year or two.

[LuckyInOC]

[quote=davelj]So, how do the lenders go about “valuing” the collateral underlying this “investment”? Why, they just look at what other folks are willing to pay for similar collateral… potential cash flows be damned! Wouldn’t it be be smarter… maybe, just maybe… for the lender to take into account what the house would rent for in case, god forbid, the lender ends up taking back the house? Market rents aren’t that hard to find for most houses. (Ask yourself: How difficult is it for you to figure out roughly what you should be paying in rent for a typical 2,500 square foot house in X area of San Diego? With Craigslist and other free online services – which are pretty blunt instruments – it’s not that tough. And that’s for the non-professional. Appraisers have access to all sorts of rent and market data not available to the general public.)[/quote]

Davej, Don’t banks factor in income (i.e. Rents) when providing loans for commercial residential properties? Don’t banks factor in the rental income for a SFR rental property? I agree with you, they should factor in the affordability of the homes based on rents.

Lucky In OC

PS: I just realized the spell checker on this site does not understand ‘affordability’ – kind of ironic when most of the users do…

[LuckyInOC]

[quote=davelj]So, how do the lenders go about “valuing” the collateral underlying this “investment”? Why, they just look at what other folks are willing to pay for similar collateral… potential cash flows be damned! Wouldn’t it be be smarter… maybe, just maybe… for the lender to take into account what the house would rent for in case, god forbid, the lender ends up taking back the house? Market rents aren’t that hard to find for most houses. (Ask yourself: How difficult is it for you to figure out roughly what you should be paying in rent for a typical 2,500 square foot house in X area of San Diego? With Craigslist and other free online services – which are pretty blunt instruments – it’s not that tough. And that’s for the non-professional. Appraisers have access to all sorts of rent and market data not available to the general public.)[/quote]

Davej, Don’t banks factor in income (i.e. Rents) when providing loans for commercial residential properties? Don’t banks factor in the rental income for a SFR rental property? I agree with you, they should factor in the affordability of the homes based on rents.

Lucky In OC

PS: I just realized the spell checker on this site does not understand ‘affordability’ – kind of ironic when most of the users do…

[LuckyInOC]

[quote=davelj]So, how do the lenders go about “valuing” the collateral underlying this “investment”? Why, they just look at what other folks are willing to pay for similar collateral… potential cash flows be damned! Wouldn’t it be be smarter… maybe, just maybe… for the lender to take into account what the house would rent for in case, god forbid, the lender ends up taking back the house? Market rents aren’t that hard to find for most houses. (Ask yourself: How difficult is it for you to figure out roughly what you should be paying in rent for a typical 2,500 square foot house in X area of San Diego? With Craigslist and other free online services – which are pretty blunt instruments – it’s not that tough. And that’s for the non-professional. Appraisers have access to all sorts of rent and market data not available to the general public.)[/quote]

Davej, Don’t banks factor in income (i.e. Rents) when providing loans for commercial residential properties? Don’t banks factor in the rental income for a SFR rental property? I agree with you, they should factor in the affordability of the homes based on rents.

Lucky In OC

PS: I just realized the spell checker on this site does not understand ‘affordability’ – kind of ironic when most of the users do…

[LuckyInOC]

[quote=davelj]So, how do the lenders go about “valuing” the collateral underlying this “investment”? Why, they just look at what other folks are willing to pay for similar collateral… potential cash flows be damned! Wouldn’t it be be smarter… maybe, just maybe… for the lender to take into account what the house would rent for in case, god forbid, the lender ends up taking back the house? Market rents aren’t that hard to find for most houses. (Ask yourself: How difficult is it for you to figure out roughly what you should be paying in rent for a typical 2,500 square foot house in X area of San Diego? With Craigslist and other free online services – which are pretty blunt instruments – it’s not that tough. And that’s for the non-professional. Appraisers have access to all sorts of rent and market data not available to the general public.)[/quote]

Davej, Don’t banks factor in income (i.e. Rents) when providing loans for commercial residential properties? Don’t banks factor in the rental income for a SFR rental property? I agree with you, they should factor in the affordability of the homes based on rents.

Lucky In OC

PS: I just realized the spell checker on this site does not understand ‘affordability’ – kind of ironic when most of the users do…

[LuckyInOC]

[quote=davelj]So, how do the lenders go about “valuing” the collateral underlying this “investment”? Why, they just look at what other folks are willing to pay for similar collateral… potential cash flows be damned! Wouldn’t it be be smarter… maybe, just maybe… for the lender to take into account what the house would rent for in case, god forbid, the lender ends up taking back the house? Market rents aren’t that hard to find for most houses. (Ask yourself: How difficult is it for you to figure out roughly what you should be paying in rent for a typical 2,500 square foot house in X area of San Diego? With Craigslist and other free online services – which are pretty blunt instruments – it’s not that tough. And that’s for the non-professional. Appraisers have access to all sorts of rent and market data not available to the general public.)[/quote]

Davej, Don’t banks factor in income (i.e. Rents) when providing loans for commercial residential properties? Don’t banks factor in the rental income for a SFR rental property? I agree with you, they should factor in the affordability of the homes based on rents.

Lucky In OC

PS: I just realized the spell checker on this site does not understand ‘affordability’ – kind of ironic when most of the users do…

[bearishgurl]

[quote=LuckyInOC]PS: I just realized the spell checker on this site does not understand ‘affordability’ – kind of ironic when most of the users do…[/quote]

There’s a spell-checker on this site??

[bearishgurl]

[quote=LuckyInOC]PS: I just realized the spell checker on this site does not understand ‘affordability’ – kind of ironic when most of the users do…[/quote]

There’s a spell-checker on this site??

[bearishgurl]

[quote=LuckyInOC]PS: I just realized the spell checker on this site does not understand ‘affordability’ – kind of ironic when most of the users do…[/quote]

There’s a spell-checker on this site??

[bearishgurl]

[quote=LuckyInOC]PS: I just realized the spell checker on this site does not understand ‘affordability’ – kind of ironic when most of the users do…[/quote]

There’s a spell-checker on this site??

[bearishgurl]

[quote=LuckyInOC]PS: I just realized the spell checker on this site does not understand ‘affordability’ – kind of ironic when most of the users do…[/quote]

There’s a spell-checker on this site??

[Arraya]

It just doesn’t stop

http://www.businessweek.com/news/2010-06-10/u-s-home-foreclosures-climb-44-to-record-in-may-update1-.html?source=patrick.net

U.S. home foreclosures reached a record for the second consecutive month in May, with increases in every state, as lenders stepped up property seizures, according to RealtyTrac Inc.
Bank repossessions climbed 44 percent from May 2009 to 93,777, the Irvine, California-based data company said today in a statement. Foreclosure filings, including default and auction notices, rose about 1 percent to 322,920. One out of every 400 U.S. households received a filing.

[Arraya]

It just doesn’t stop

http://www.businessweek.com/news/2010-06-10/u-s-home-foreclosures-climb-44-to-record-in-may-update1-.html?source=patrick.net

U.S. home foreclosures reached a record for the second consecutive month in May, with increases in every state, as lenders stepped up property seizures, according to RealtyTrac Inc.
Bank repossessions climbed 44 percent from May 2009 to 93,777, the Irvine, California-based data company said today in a statement. Foreclosure filings, including default and auction notices, rose about 1 percent to 322,920. One out of every 400 U.S. households received a filing.

[Arraya]

It just doesn’t stop

http://www.businessweek.com/news/2010-06-10/u-s-home-foreclosures-climb-44-to-record-in-may-update1-.html?source=patrick.net

U.S. home foreclosures reached a record for the second consecutive month in May, with increases in every state, as lenders stepped up property seizures, according to RealtyTrac Inc.
Bank repossessions climbed 44 percent from May 2009 to 93,777, the Irvine, California-based data company said today in a statement. Foreclosure filings, including default and auction notices, rose about 1 percent to 322,920. One out of every 400 U.S. households received a filing.

[Arraya]

It just doesn’t stop

http://www.businessweek.com/news/2010-06-10/u-s-home-foreclosures-climb-44-to-record-in-may-update1-.html?source=patrick.net

U.S. home foreclosures reached a record for the second consecutive month in May, with increases in every state, as lenders stepped up property seizures, according to RealtyTrac Inc.
Bank repossessions climbed 44 percent from May 2009 to 93,777, the Irvine, California-based data company said today in a statement. Foreclosure filings, including default and auction notices, rose about 1 percent to 322,920. One out of every 400 U.S. households received a filing.

[Author]

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