Mira Mesa…

[seattle-relo]

Sounds like you could use more information to get a true sense of what your payments could look like when they reset. There is a poster on here that is in the mortgage biz that might be willing to explain all the “fine print” to you. He goes by HLS, do a search for him and you can find his email. You also have the issue of your second coming due in 13 more years, I don’t have a clue what home values will be in 13-15 years, but there is a chance that even by then prices will not have returned to the peak of 2005…who knows??

I am sure that you know this, but just in case – right now since you haven’t refinanced your loans you are under non-recourse protection from the bank and the IRS, meaning they can not come after your other assets in case you do foreclose. Be very careful to preserve this protection when considering any kind of work-out with the bank. I am sure that you have read about the new bill in the Senate. If that actually does pass and could be an option for you, one of the stipulations is that this new “loan” is not “walk-away-able”, meaning there is no way out – that’s scary IMO.

Finally when thinking about what you might want to do and a potential time line, right now Fannie Mae has changed some of the rules regading people qualifying for new mortgages with a foreclosure on their record. I can’t find the link, but I believe it’s something like : you must wait 2 years to buy with a short sale on your credit report, 4 years if you have a deed in lieu, and 5 years if you have a foreclosure on your report. Of course that can always change. Just something to be aware of when timing things if you do plan on “sending in the keys”.

I wish you the best of luck.

[(former)FormerSanDiegan]

The index you list (3.5%) was probably the value of the index at the time you took the loan. You’ll need to know what index it refers to (e.g. LIBOR or Treasury). But regardless, a margin of 5.5% is fairly large. Consider most prime and Alt-A loans typically had margins of 2.25% to 2.5% above LIBOR or treasuries.

A 5.5% margin is not good. Your loan will likely reset at 8-10% or more. But make sure you know your terms in detail before doing anything.

seattle-relo gives good advice regarding recourse.
You are coreect that ultimately you are in a bind. Do not refinance if you think there is a possibility you will have to walk away (likely).

If I were you, I’d plan on living there until reset time, while keeping my eye on government bailout options. On the bright side, if in the unlikely event your income continues to grow at the same rate (10-20% per year) as it has the past 3 years, who knows, you may find yourself in a position to eat the higher payment and bail yourself out (depending on where prices settle).

[(former)FormerSanDiegan]

The index you list (3.5%) was probably the value of the index at the time you took the loan. You’ll need to know what index it refers to (e.g. LIBOR or Treasury). But regardless, a margin of 5.5% is fairly large. Consider most prime and Alt-A loans typically had margins of 2.25% to 2.5% above LIBOR or treasuries.

A 5.5% margin is not good. Your loan will likely reset at 8-10% or more. But make sure you know your terms in detail before doing anything.

seattle-relo gives good advice regarding recourse.
You are coreect that ultimately you are in a bind. Do not refinance if you think there is a possibility you will have to walk away (likely).

If I were you, I’d plan on living there until reset time, while keeping my eye on government bailout options. On the bright side, if in the unlikely event your income continues to grow at the same rate (10-20% per year) as it has the past 3 years, who knows, you may find yourself in a position to eat the higher payment and bail yourself out (depending on where prices settle).

[(former)FormerSanDiegan]

The index you list (3.5%) was probably the value of the index at the time you took the loan. You’ll need to know what index it refers to (e.g. LIBOR or Treasury). But regardless, a margin of 5.5% is fairly large. Consider most prime and Alt-A loans typically had margins of 2.25% to 2.5% above LIBOR or treasuries.

A 5.5% margin is not good. Your loan will likely reset at 8-10% or more. But make sure you know your terms in detail before doing anything.

seattle-relo gives good advice regarding recourse.
You are coreect that ultimately you are in a bind. Do not refinance if you think there is a possibility you will have to walk away (likely).

If I were you, I’d plan on living there until reset time, while keeping my eye on government bailout options. On the bright side, if in the unlikely event your income continues to grow at the same rate (10-20% per year) as it has the past 3 years, who knows, you may find yourself in a position to eat the higher payment and bail yourself out (depending on where prices settle).

[(former)FormerSanDiegan]

The index you list (3.5%) was probably the value of the index at the time you took the loan. You’ll need to know what index it refers to (e.g. LIBOR or Treasury). But regardless, a margin of 5.5% is fairly large. Consider most prime and Alt-A loans typically had margins of 2.25% to 2.5% above LIBOR or treasuries.

A 5.5% margin is not good. Your loan will likely reset at 8-10% or more. But make sure you know your terms in detail before doing anything.

seattle-relo gives good advice regarding recourse.
You are coreect that ultimately you are in a bind. Do not refinance if you think there is a possibility you will have to walk away (likely).

If I were you, I’d plan on living there until reset time, while keeping my eye on government bailout options. On the bright side, if in the unlikely event your income continues to grow at the same rate (10-20% per year) as it has the past 3 years, who knows, you may find yourself in a position to eat the higher payment and bail yourself out (depending on where prices settle).

[(former)FormerSanDiegan]

The index you list (3.5%) was probably the value of the index at the time you took the loan. You’ll need to know what index it refers to (e.g. LIBOR or Treasury). But regardless, a margin of 5.5% is fairly large. Consider most prime and Alt-A loans typically had margins of 2.25% to 2.5% above LIBOR or treasuries.

A 5.5% margin is not good. Your loan will likely reset at 8-10% or more. But make sure you know your terms in detail before doing anything.

seattle-relo gives good advice regarding recourse.
You are coreect that ultimately you are in a bind. Do not refinance if you think there is a possibility you will have to walk away (likely).

If I were you, I’d plan on living there until reset time, while keeping my eye on government bailout options. On the bright side, if in the unlikely event your income continues to grow at the same rate (10-20% per year) as it has the past 3 years, who knows, you may find yourself in a position to eat the higher payment and bail yourself out (depending on where prices settle).

[SD Realtor]

92126_guy we were more then likely neighbors when I lived down on Cheryl Ridge Court. DW summarized the specifics of your loan. It is unfortunate that none of that was explained to you when you signed your loan docs. Conversely you get the on line finger waggle for not reviewing it thoroughly on your own because you more then likely were blinded by the “appreciation will take care of everything” thoughts and that you would refinance out of the loan you are in.

So my first piece of advice would be to find out EXACTLY what your payments will be. You mentioned above what your margin and index were and if they are what they said, then yeah you are looking at a pretty harsh rate jump at your 5 year anniversary. So just to make sure you have a COMPLETE understanding of the situation, look at your statement and there should be a number for you to call to find out more information. Get the exact story and when you are talking to them have your loan docs in hand.

Once you know what your payments will reset to then you can start charting out what your monthly budget will be come reset time so that you can make informed decisions.

As for the depreciation off of Calle Cristobal homes, I do believe they will continue to ride down. Much of it will depend on employment and interest rates. There is a strong demand for these homes because they are the largest in Mira Mesa and they are close to the golden triangle. If they were in a different school district they would have an even stronger demand. (AN I am not banging MM schools but just giving you the perception that most people have of them)

Anyways hang in there, gather info and be informed.

[SD Realtor]

92126_guy we were more then likely neighbors when I lived down on Cheryl Ridge Court. DW summarized the specifics of your loan. It is unfortunate that none of that was explained to you when you signed your loan docs. Conversely you get the on line finger waggle for not reviewing it thoroughly on your own because you more then likely were blinded by the “appreciation will take care of everything” thoughts and that you would refinance out of the loan you are in.

So my first piece of advice would be to find out EXACTLY what your payments will be. You mentioned above what your margin and index were and if they are what they said, then yeah you are looking at a pretty harsh rate jump at your 5 year anniversary. So just to make sure you have a COMPLETE understanding of the situation, look at your statement and there should be a number for you to call to find out more information. Get the exact story and when you are talking to them have your loan docs in hand.

Once you know what your payments will reset to then you can start charting out what your monthly budget will be come reset time so that you can make informed decisions.

As for the depreciation off of Calle Cristobal homes, I do believe they will continue to ride down. Much of it will depend on employment and interest rates. There is a strong demand for these homes because they are the largest in Mira Mesa and they are close to the golden triangle. If they were in a different school district they would have an even stronger demand. (AN I am not banging MM schools but just giving you the perception that most people have of them)

Anyways hang in there, gather info and be informed.

[SD Realtor]

92126_guy we were more then likely neighbors when I lived down on Cheryl Ridge Court. DW summarized the specifics of your loan. It is unfortunate that none of that was explained to you when you signed your loan docs. Conversely you get the on line finger waggle for not reviewing it thoroughly on your own because you more then likely were blinded by the “appreciation will take care of everything” thoughts and that you would refinance out of the loan you are in.

So my first piece of advice would be to find out EXACTLY what your payments will be. You mentioned above what your margin and index were and if they are what they said, then yeah you are looking at a pretty harsh rate jump at your 5 year anniversary. So just to make sure you have a COMPLETE understanding of the situation, look at your statement and there should be a number for you to call to find out more information. Get the exact story and when you are talking to them have your loan docs in hand.

Once you know what your payments will reset to then you can start charting out what your monthly budget will be come reset time so that you can make informed decisions.

As for the depreciation off of Calle Cristobal homes, I do believe they will continue to ride down. Much of it will depend on employment and interest rates. There is a strong demand for these homes because they are the largest in Mira Mesa and they are close to the golden triangle. If they were in a different school district they would have an even stronger demand. (AN I am not banging MM schools but just giving you the perception that most people have of them)

Anyways hang in there, gather info and be informed.

[SD Realtor]

92126_guy we were more then likely neighbors when I lived down on Cheryl Ridge Court. DW summarized the specifics of your loan. It is unfortunate that none of that was explained to you when you signed your loan docs. Conversely you get the on line finger waggle for not reviewing it thoroughly on your own because you more then likely were blinded by the “appreciation will take care of everything” thoughts and that you would refinance out of the loan you are in.

So my first piece of advice would be to find out EXACTLY what your payments will be. You mentioned above what your margin and index were and if they are what they said, then yeah you are looking at a pretty harsh rate jump at your 5 year anniversary. So just to make sure you have a COMPLETE understanding of the situation, look at your statement and there should be a number for you to call to find out more information. Get the exact story and when you are talking to them have your loan docs in hand.

Once you know what your payments will reset to then you can start charting out what your monthly budget will be come reset time so that you can make informed decisions.

As for the depreciation off of Calle Cristobal homes, I do believe they will continue to ride down. Much of it will depend on employment and interest rates. There is a strong demand for these homes because they are the largest in Mira Mesa and they are close to the golden triangle. If they were in a different school district they would have an even stronger demand. (AN I am not banging MM schools but just giving you the perception that most people have of them)

Anyways hang in there, gather info and be informed.

[SD Realtor]

92126_guy we were more then likely neighbors when I lived down on Cheryl Ridge Court. DW summarized the specifics of your loan. It is unfortunate that none of that was explained to you when you signed your loan docs. Conversely you get the on line finger waggle for not reviewing it thoroughly on your own because you more then likely were blinded by the “appreciation will take care of everything” thoughts and that you would refinance out of the loan you are in.

So my first piece of advice would be to find out EXACTLY what your payments will be. You mentioned above what your margin and index were and if they are what they said, then yeah you are looking at a pretty harsh rate jump at your 5 year anniversary. So just to make sure you have a COMPLETE understanding of the situation, look at your statement and there should be a number for you to call to find out more information. Get the exact story and when you are talking to them have your loan docs in hand.

Once you know what your payments will reset to then you can start charting out what your monthly budget will be come reset time so that you can make informed decisions.

As for the depreciation off of Calle Cristobal homes, I do believe they will continue to ride down. Much of it will depend on employment and interest rates. There is a strong demand for these homes because they are the largest in Mira Mesa and they are close to the golden triangle. If they were in a different school district they would have an even stronger demand. (AN I am not banging MM schools but just giving you the perception that most people have of them)

Anyways hang in there, gather info and be informed.

[an]

SD Realtor, I could be wrong, but I don’t think 92126_guy live north of Calle Cristobal. I think he lives around the canyon north west of New Salem, west of Montongo, south of Calle Cristobal and east of Camino Santa Fe.

I know you’re not bagging on MM schools and I’m fine with the perception people have w/ MM schools. At least it’ll keep MM price more reasonable for me :-). It’s funny to me how kids living in Sorrento Valley also goes to MM schools, yet price there are so much more per sq-ft than MM.

[an]

SD Realtor, I could be wrong, but I don’t think 92126_guy live north of Calle Cristobal. I think he lives around the canyon north west of New Salem, west of Montongo, south of Calle Cristobal and east of Camino Santa Fe.

I know you’re not bagging on MM schools and I’m fine with the perception people have w/ MM schools. At least it’ll keep MM price more reasonable for me :-). It’s funny to me how kids living in Sorrento Valley also goes to MM schools, yet price there are so much more per sq-ft than MM.

[an]

SD Realtor, I could be wrong, but I don’t think 92126_guy live north of Calle Cristobal. I think he lives around the canyon north west of New Salem, west of Montongo, south of Calle Cristobal and east of Camino Santa Fe.

I know you’re not bagging on MM schools and I’m fine with the perception people have w/ MM schools. At least it’ll keep MM price more reasonable for me :-). It’s funny to me how kids living in Sorrento Valley also goes to MM schools, yet price there are so much more per sq-ft than MM.

[an]

SD Realtor, I could be wrong, but I don’t think 92126_guy live north of Calle Cristobal. I think he lives around the canyon north west of New Salem, west of Montongo, south of Calle Cristobal and east of Camino Santa Fe.

I know you’re not bagging on MM schools and I’m fine with the perception people have w/ MM schools. At least it’ll keep MM price more reasonable for me :-). It’s funny to me how kids living in Sorrento Valley also goes to MM schools, yet price there are so much more per sq-ft than MM.

[Author]

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