Houses still used as ATM

[scaredyclassic]

[quote=CA renter]Why should anyone have learned a lesson? If anything, the “Financial Crisis” taught us that being a deadbeat borrower or reckless lender will make you a victim; often, a rich victim.

The deadbeats were allowed to squat for YEARS while us loser renters paid our rent dutifully every month. If we renters were to stop paying, nobody would have revolted or marched to protect our rights to stay in our rentals for free or significantly reduced rents. Nobody is crying for us when we can’t earn a low-risk interest rate over 1% for short term savings vehicles — losing money every year because of the inflation that was forced on us in order to save the aforementioned “victims.”

Yes, it’s easy to become disillusioned with our financial system and govt, but at least we should be able to sleep well at night. Hopefully, someday, those who’ve tried to be more conservative and responsible will be rewarded for their efforts…but don’t hold your breath.[/quote]

you will die of asphyxiation.

http://www.cnn.com/2014/06/19/opinion/waldman-cheney-iraq/index.html?hpt=hp_t2

exhibit 1. dick cheney blaming the fucked up situation in iraq on obama. look i ahve been dutifully praying the the dark Lord Satan every night for dick cheney to die some miserable horrible death, quickly, swiftly, adn to rot in hell for all eternity, but what does he gt? an oped page in the ny times …hilarious! the key is to be utterly shameless, utterly nonconservative, just completely batshit crazy, and the system will reward you. anyone else must be punished.

die dick cheney. please satan, have him suffer a stroke and be trapped consciously for years in his body.

[spdrun]

too complicated. scheduling, arrangements, etc. i can’t do it.

Downsize your home, get a job that’s more flexible. You’re thinking like an overworked American.

[spdrun]

If I get married to an older woman whose biological clock it ticking, she’ll probably want a house in the suburbs somewhere with a luxury SUV. A younger woman would want shopping sprees for handbags, shoes, etc…

Crunchy hippie girls who wear comfortable shoes for the win. She’d want a Prius and a bungalow in North-Park. I think you could live with such an arrangement, no?

Or just look in mid-40s. Past child bearing age, not quite at the Maude stage.

[ltsddd]

[quote=SDowner]
No one seems to have learnt any lesson and using their homes as ATM. [/quote]

You couldn’t be more wrong. These folks learned that there’s no real consequences to their fiscal irresponsibility. When the sh!t hits the fan simply file for bankruptcy, squat for a few years and then wait for a few more years for the bankruptcy record to go away and “buy” again….wash, rinse, repeat. Talking about OPM, these folks are taking it to the next level – no skin in the game, nothing to lose, so why not living it up?

The banks need to stop being an enabler in these situations.

[scaredyclassic]

[quote=ltsdd][quote=SDowner]
No one seems to have learnt any lesson and using their homes as ATM. [/quote]

You couldn’t be more wrong. These folks learned that there’s no real consequences to their fiscal irresponsibility. When the sh!t hits the fan simply file for bankruptcy, squat for a few years and then wait for a few more years for the bankruptcy record to go away and “buy” again….wash, rinse, repeat. Talking about OPM, these folks are taking it to the next level – no skin in the game, nothing to lose, so why not living it up?

The banks need to stop being an enabler in these situations.[/quote]

kind of. although im not sure it’s that healthy. i feel responsibility can be rewarded in some ways. you can relax.

[scaredyclassic]

[quote=spdrun]

too complicated. scheduling, arrangements, etc. i can’t do it.

Downsize your home, get a job that’s more flexible. You’re thinking like an overworked American.[/quote]

nope. im not realistically going to get a much lower mortgage payment ona place. i like my place. im happy in my house.

also, I hate to go places. i hate driving and flying.

i do like trains hwoever.

but.. i have a routine every day that incorporates the gym most days. travelling isn’t for me. i rambled around for 7 years when i was young and it’s all out my system. i ahve no desire to be anywhere else.

i like my yard. I have a hill i call “cactus hill”. I love to work on it. it was completely weeded and denuded of chaparal. i ahve carefully weeded it and the chaparral is coming back, plus all the cacti ive been bringing along there. lots of cacti. id rather be on cactus hill than say, the champs elysee

I like to sweep the floor.

[scaredyclassic]

[quote=spdrun]

too complicated. scheduling, arrangements, etc. i can’t do it.

Downsize your home, get a job that’s more flexible. You’re thinking like an overworked American.[/quote]

divorced coworker dropped out and took kids ona world tour. one kid balked a few months in and insisted onr eturn to boring hs with dad in boring suburb. in reality, the details of a boring life are what is so rich about it all.

this all become s clear in reading MY STRUGGLE by karl ove knaussgard …

there’s nothing out there…it’s all inside…

[scaredyclassic]

[quote=spdrun]

If I get married to an older woman whose biological clock it ticking, she’ll probably want a house in the suburbs somewhere with a luxury SUV. A younger woman would want shopping sprees for handbags, shoes, etc…

Crunchy hippie girls who wear comfortable shoes for the win. She’d want a Prius and a bungalow in North-Park. I think you could live with such an arrangement, no?

Or just look in mid-40s. Past child bearing age, not quite at the Maude stage.[/quote]

i ahve a crunchy hippie girl! try to get the yoga subspecies.

[NotCranky]

The smart ones did interest only cash out refi’s short sold to themselves and cashed out again when the market went up.

[Coronita]

[quote=SDowner]You verbalized the root reason for my post very well CA renter. That is exactly my frustration. I dont know if the financially responsible ones will come out the winners, just cause the govt and tax laws encourage a debt ridden society.[/quote]

I think a lot of us will. The ones that bought when the floor fell out, whether it’s a primary or rental or both..and/or the ones that are going to enjoy the next 15 or 30 years with an unheard of fixed rate mortgage…..and possible will sell at the top again in the future…

Rinse and repeat, over and over again….

As a wise person put it to me.. It’s not so much whether you’re going to win or lose… At this point, it’s a question of how much you’re going to win by… Which is an excellent point that I took for granted…

[spdrun]

The smart ones did interest only cash out refi’s short sold to themselves and cashed out again when the market went up.

How does one “short-sell to themselves” without a trusted middleman? AFAIK, short sales have to be arm’s length transactions.

[NotCranky]

[quote=spdrun]

The smart ones did interest only cash out refi’s short sold to themselves and cashed out again when the market went up.

How does one “short-sell to themselves” without a trusted middleman? AFAIK, short sales have to be arm’s length transactions.[/quote]

Trusted middle man/family/friend.

Other possible schemes.
Let the agent handle the whole thing and get a kickback from the agent and/or the buyer.

I don’t know how much this happened. But with properties going pending with little real marketing. It does make you wonder. I would say I had proof of at least some of it but then someone might want me to give specifics and short of being water boarded I am not going there.

If real estate office walls could talk , I think it would be very interesting.

[HLS]

I’m well aware of what goes on but I don’t see how it’s possible for anyone who had “a bankruptcy AND foreclosure” in the last 6 years to have bought another house since then AND have enough equity to do a cash out refi recently.

I don’t doubt that you have ‘personally heard’ about 4 different people doing this but do you happen to actually know any of them ?
I’m just curious. I’d like to speak to any one of the four and understand how they did it.

[ltsddd]

It’s conceivable for someone to buy a house, say in 2002 for $500K with 0% down. House value goes up to $1m in 2007. Refi with 125% cash out. Stash the roughly $700K that they cashed out somewhere. Filed for bankruptcy. Heck, they don’t even have to wait for the bk record to go away. That’s plenty of cash to perhaps scoop up a similar house during the downturn. Now, 7 years later, bk record went away – continue to step two (refi cash out)….

[NotCranky]

[quote=HLS]I’m well aware of what goes on but I don’t see how it’s possible for anyone who had “a bankruptcy AND foreclosure” in the last 6 years to have bought another house since then AND have enough equity to do a cash out refi recently.

I don’t doubt that you have ‘personally heard’ about 4 different people doing this but do you happen to actually know any of them ?
I’m just curious. I’d like to speak to any one of the four and understand how they did it.[/quote]

If you are responding to me bankruptcy , foreclosure and subsequent purchase that is not what I said happened. The things I mentioned did happen and I said I won’t remember if anyone wants to know who, so no names.
I am pretty sure most busy agents can tell you about at least a few cases of each of the examples I gave, if they wanted to. I wouldn’t be surprised they happened a lot…especially some kind of kickback for cooperating with a short sale being a pocket listing steered to preferred buyers.

If agents are or were steering short sales to preferred buyers…I don’t think anyone is going to catch or enforce that.

[Author]

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