is the new Smart Move to BUY a home for strategic default?

[CA renter]

[quote=flu][quote=andymajumder]I was thinking exactly along similar lines after reading Flu’s proposal 🙂

Think about it, this was quite easily doable during the bubble years when appraisal process was completely messed up….buy your friend’s house at a over inflated price, get a kickback and than default on the non-recourse loan.[/quote]

I really hope you folks don’t think I was serious…

AINT GONNA WORK….

It’s called “strict appraisals”… Though housing in bay area is still crazy, it’s not as crazy at those levels…

And no, I don’t want to be the guinea pig seller. Thanks, but no thanks. I’m pretty happen with the tenant right now…[/quote]

I used to believe there were “strict appraisals,” but have seen enough flips lately that negate that theory. I’ve seen flippers make $100K-$150K in a couple of months with maybe $20K in “improvements.” If appraisers are valuing the **same house** $100K+ more than the what it sold for just a few months ago, the whole system is broken.
—————

BTW, you absolutely CAN get zero-down financing right now. I’m helping a friend deal with a foreclosure/short sale situation right now, and they’ve had multiple offers on their SS. One of the offers was for well above asking price, 3.5% down, courtesy of taxpayers/FHA and “seller concessions” (don’t even get me started on this!) of 6%. We’re right back to people **being paid to buy a house with no skin in the game!!!** (can you sense my frustration?)

Quite frankly, with the way the govt has screwed over responsible buyers and savers, I think the idea of buying with the intent of strategically defaulting is brilliant and it’s giving the govt EXACTLY what it’s asking for.

More bailouts/stimulus = more fraud. Once the govt gets this, we might be able to find our way out of this mess.

[Arraya]

[quote=briansd1]Do you have a link on good credit practices, Arraya?

I’m sure that some would like to know.[/quote]

Actually a friend of mine did a strategic default back on 2007 and we did a little empirical test. He talked to a RE lawyer and credit councilor before hand. We tested his score before he missed a payment, like 7-8 months later and about 12 months after discharge. He started at 730 and dropped about 80 points then bounced back up almost all he lost 12 months later when we checked again..

I don’t remember all the specifics but increasing credit lines and NOT paying them off ever month were supposed to be the best practices while keeping a small balance on them.. Also, the longer you have credit lines the better.

[Arraya]

[quote=briansd1]Do you have a link on good credit practices, Arraya?

I’m sure that some would like to know.[/quote]

Actually a friend of mine did a strategic default back on 2007 and we did a little empirical test. He talked to a RE lawyer and credit councilor before hand. We tested his score before he missed a payment, like 7-8 months later and about 12 months after discharge. He started at 730 and dropped about 80 points then bounced back up almost all he lost 12 months later when we checked again..

I don’t remember all the specifics but increasing credit lines and NOT paying them off ever month were supposed to be the best practices while keeping a small balance on them.. Also, the longer you have credit lines the better.

[Arraya]

[quote=briansd1]Do you have a link on good credit practices, Arraya?

I’m sure that some would like to know.[/quote]

Actually a friend of mine did a strategic default back on 2007 and we did a little empirical test. He talked to a RE lawyer and credit councilor before hand. We tested his score before he missed a payment, like 7-8 months later and about 12 months after discharge. He started at 730 and dropped about 80 points then bounced back up almost all he lost 12 months later when we checked again..

I don’t remember all the specifics but increasing credit lines and NOT paying them off ever month were supposed to be the best practices while keeping a small balance on them.. Also, the longer you have credit lines the better.

[Arraya]

[quote=briansd1]Do you have a link on good credit practices, Arraya?

I’m sure that some would like to know.[/quote]

Actually a friend of mine did a strategic default back on 2007 and we did a little empirical test. He talked to a RE lawyer and credit councilor before hand. We tested his score before he missed a payment, like 7-8 months later and about 12 months after discharge. He started at 730 and dropped about 80 points then bounced back up almost all he lost 12 months later when we checked again..

I don’t remember all the specifics but increasing credit lines and NOT paying them off ever month were supposed to be the best practices while keeping a small balance on them.. Also, the longer you have credit lines the better.

[Arraya]

[quote=briansd1]Do you have a link on good credit practices, Arraya?

I’m sure that some would like to know.[/quote]

Actually a friend of mine did a strategic default back on 2007 and we did a little empirical test. He talked to a RE lawyer and credit councilor before hand. We tested his score before he missed a payment, like 7-8 months later and about 12 months after discharge. He started at 730 and dropped about 80 points then bounced back up almost all he lost 12 months later when we checked again..

I don’t remember all the specifics but increasing credit lines and NOT paying them off ever month were supposed to be the best practices while keeping a small balance on them.. Also, the longer you have credit lines the better.

[jpinpb]

[quote=CA renter]
More bailouts/stimulus = more fraud. Once the govt gets this, we might be able to find our way out of this mess.[/quote]

I fear the fraud is too deep-rooted.

[jpinpb]

[quote=CA renter]
More bailouts/stimulus = more fraud. Once the govt gets this, we might be able to find our way out of this mess.[/quote]

I fear the fraud is too deep-rooted.

[jpinpb]

[quote=CA renter]
More bailouts/stimulus = more fraud. Once the govt gets this, we might be able to find our way out of this mess.[/quote]

I fear the fraud is too deep-rooted.

[jpinpb]

[quote=CA renter]
More bailouts/stimulus = more fraud. Once the govt gets this, we might be able to find our way out of this mess.[/quote]

I fear the fraud is too deep-rooted.

[jpinpb]

[quote=CA renter]
More bailouts/stimulus = more fraud. Once the govt gets this, we might be able to find our way out of this mess.[/quote]

I fear the fraud is too deep-rooted.

[briansd1]

[quote=jpinpb][quote=CA renter]
More bailouts/stimulus = more fraud. Once the govt gets this, we might be able to find our way out of this mess.[/quote]

I fear the fraud is too deep-rooted.[/quote]

I agree.

But the fraud in real estate is only collateral damage in the war on deflation and the recession.

There will be more collateral damage.

[briansd1]

[quote=jpinpb][quote=CA renter]
More bailouts/stimulus = more fraud. Once the govt gets this, we might be able to find our way out of this mess.[/quote]

I fear the fraud is too deep-rooted.[/quote]

I agree.

But the fraud in real estate is only collateral damage in the war on deflation and the recession.

There will be more collateral damage.

[briansd1]

[quote=jpinpb][quote=CA renter]
More bailouts/stimulus = more fraud. Once the govt gets this, we might be able to find our way out of this mess.[/quote]

I fear the fraud is too deep-rooted.[/quote]

I agree.

But the fraud in real estate is only collateral damage in the war on deflation and the recession.

There will be more collateral damage.

[briansd1]

[quote=jpinpb][quote=CA renter]
More bailouts/stimulus = more fraud. Once the govt gets this, we might be able to find our way out of this mess.[/quote]

I fear the fraud is too deep-rooted.[/quote]

I agree.

But the fraud in real estate is only collateral damage in the war on deflation and the recession.

There will be more collateral damage.

[Author]

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