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Ricechex.
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June 24, 2010 at 2:11 PM #571790June 24, 2010 at 2:34 PM #570790
Scarlett
ParticipantThis smart move has occured to me, oh, about 6 months ago but my husband thought I was nuts. Hey, can’t beat them, join them!
He couldn’t believe that the credit scores can be repaired so much so quickly. We have 800 credit scores so see, it wouldnt’ have affected us that badly.
But let’s say it’s a 500K-500K house, downpayment 25K (an FHA loan, perhaps)- that you lose if you get evicted. Let’s say P&I per month is in the range $2500-3000 – so if you don’t pay mortgage from day 1 you save 25K-35K a year. (you may still wanna pay prop tax and HOA). After 1 year is still a wash. And in the future they may hurry up the foreclosure process enough (under 1 year) to get rid of the freeloaders. There is no guarantee it will take them 3-4 years to kick you out. But perhaps then they can offer u a principal reduction/loan mod…then it’s pretty good…
Otherwise…too much trouble for too little money… Hey, the process of finding, bidding and buying a house costs more in terms of time than 20K IMHO….at least to me, it’s so no worth it (beside the (un)ethical aspect of course).June 24, 2010 at 2:34 PM #570885ParticipantThis smart move has occured to me, oh, about 6 months ago but my husband thought I was nuts. Hey, can’t beat them, join them!
He couldn’t believe that the credit scores can be repaired so much so quickly. We have 800 credit scores so see, it wouldnt’ have affected us that badly.
But let’s say it’s a 500K-500K house, downpayment 25K (an FHA loan, perhaps)- that you lose if you get evicted. Let’s say P&I per month is in the range $2500-3000 – so if you don’t pay mortgage from day 1 you save 25K-35K a year. (you may still wanna pay prop tax and HOA). After 1 year is still a wash. And in the future they may hurry up the foreclosure process enough (under 1 year) to get rid of the freeloaders. There is no guarantee it will take them 3-4 years to kick you out. But perhaps then they can offer u a principal reduction/loan mod…then it’s pretty good…
Otherwise…too much trouble for too little money… Hey, the process of finding, bidding and buying a house costs more in terms of time than 20K IMHO….at least to me, it’s so no worth it (beside the (un)ethical aspect of course).June 24, 2010 at 2:34 PM #571402ParticipantThis smart move has occured to me, oh, about 6 months ago but my husband thought I was nuts. Hey, can’t beat them, join them!
He couldn’t believe that the credit scores can be repaired so much so quickly. We have 800 credit scores so see, it wouldnt’ have affected us that badly.
But let’s say it’s a 500K-500K house, downpayment 25K (an FHA loan, perhaps)- that you lose if you get evicted. Let’s say P&I per month is in the range $2500-3000 – so if you don’t pay mortgage from day 1 you save 25K-35K a year. (you may still wanna pay prop tax and HOA). After 1 year is still a wash. And in the future they may hurry up the foreclosure process enough (under 1 year) to get rid of the freeloaders. There is no guarantee it will take them 3-4 years to kick you out. But perhaps then they can offer u a principal reduction/loan mod…then it’s pretty good…
Otherwise…too much trouble for too little money… Hey, the process of finding, bidding and buying a house costs more in terms of time than 20K IMHO….at least to me, it’s so no worth it (beside the (un)ethical aspect of course).June 24, 2010 at 2:34 PM #571509ParticipantThis smart move has occured to me, oh, about 6 months ago but my husband thought I was nuts. Hey, can’t beat them, join them!
He couldn’t believe that the credit scores can be repaired so much so quickly. We have 800 credit scores so see, it wouldnt’ have affected us that badly.
But let’s say it’s a 500K-500K house, downpayment 25K (an FHA loan, perhaps)- that you lose if you get evicted. Let’s say P&I per month is in the range $2500-3000 – so if you don’t pay mortgage from day 1 you save 25K-35K a year. (you may still wanna pay prop tax and HOA). After 1 year is still a wash. And in the future they may hurry up the foreclosure process enough (under 1 year) to get rid of the freeloaders. There is no guarantee it will take them 3-4 years to kick you out. But perhaps then they can offer u a principal reduction/loan mod…then it’s pretty good…
Otherwise…too much trouble for too little money… Hey, the process of finding, bidding and buying a house costs more in terms of time than 20K IMHO….at least to me, it’s so no worth it (beside the (un)ethical aspect of course).June 24, 2010 at 2:34 PM #571800ParticipantThis smart move has occured to me, oh, about 6 months ago but my husband thought I was nuts. Hey, can’t beat them, join them!
He couldn’t believe that the credit scores can be repaired so much so quickly. We have 800 credit scores so see, it wouldnt’ have affected us that badly.
But let’s say it’s a 500K-500K house, downpayment 25K (an FHA loan, perhaps)- that you lose if you get evicted. Let’s say P&I per month is in the range $2500-3000 – so if you don’t pay mortgage from day 1 you save 25K-35K a year. (you may still wanna pay prop tax and HOA). After 1 year is still a wash. And in the future they may hurry up the foreclosure process enough (under 1 year) to get rid of the freeloaders. There is no guarantee it will take them 3-4 years to kick you out. But perhaps then they can offer u a principal reduction/loan mod…then it’s pretty good…
Otherwise…too much trouble for too little money… Hey, the process of finding, bidding and buying a house costs more in terms of time than 20K IMHO….at least to me, it’s so no worth it (beside the (un)ethical aspect of course).June 24, 2010 at 2:47 PM #570805sdrealtor
Participant[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]
Speaking of Guinea Pigs. ANyone want to buy one?
June 24, 2010 at 2:47 PM #570900Participant[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]
Speaking of Guinea Pigs. ANyone want to buy one?
June 24, 2010 at 2:47 PM #571417Participant[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]
Speaking of Guinea Pigs. ANyone want to buy one?
June 24, 2010 at 2:47 PM #571524Participant[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]
Speaking of Guinea Pigs. ANyone want to buy one?
June 24, 2010 at 2:47 PM #571815Participant[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]
Speaking of Guinea Pigs. ANyone want to buy one?
June 24, 2010 at 2:53 PM #570814ParticipantHow much your credit falls depends upon how long the default lasts. The late payments are what appear to hit your scores the hardest. If they foreclose quickly you will make out better on your credit. If the late payments pile up on your credit for a couple years its not so easy to repair it that quickly. Also, not matter what you scores are you have underwrting guidelines to deal with. Sure you will be able to buy a car and get credit cards but getting amortgage will not be possible for many years and good luck getting a business loan.
June 24, 2010 at 2:53 PM #570910ParticipantHow much your credit falls depends upon how long the default lasts. The late payments are what appear to hit your scores the hardest. If they foreclose quickly you will make out better on your credit. If the late payments pile up on your credit for a couple years its not so easy to repair it that quickly. Also, not matter what you scores are you have underwrting guidelines to deal with. Sure you will be able to buy a car and get credit cards but getting amortgage will not be possible for many years and good luck getting a business loan.
June 24, 2010 at 2:53 PM #571427ParticipantHow much your credit falls depends upon how long the default lasts. The late payments are what appear to hit your scores the hardest. If they foreclose quickly you will make out better on your credit. If the late payments pile up on your credit for a couple years its not so easy to repair it that quickly. Also, not matter what you scores are you have underwrting guidelines to deal with. Sure you will be able to buy a car and get credit cards but getting amortgage will not be possible for many years and good luck getting a business loan.
June 24, 2010 at 2:53 PM #571534ParticipantHow much your credit falls depends upon how long the default lasts. The late payments are what appear to hit your scores the hardest. If they foreclose quickly you will make out better on your credit. If the late payments pile up on your credit for a couple years its not so easy to repair it that quickly. Also, not matter what you scores are you have underwrting guidelines to deal with. Sure you will be able to buy a car and get credit cards but getting amortgage will not be possible for many years and good luck getting a business loan.
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