SEH Breakthrough Pricing

[tothjj]

Can someone check and see what the accepted offer is? My better half was drooling over this property. It is getting increasingly difficult to hold her back. Thanks.

[Bugs]

sdr,

I know what interest rates look like now. I also know what interest rates look like after the lenders and investors get hammered for a few years, ’cause I’ve seen it up close. How many good loans do you suppose a lender has to make in order to break even after a single $200k loss on a foreclosure?

By the time this thing is is over I think we’ll be lucky if the interest rates are below 7%. It’s not that hard to imagine an 8% mortgage interest rate. We’ve been past 10% before and based on my memory of what was going on at the time I’m seeing a lot of similarities between then and now.

[Bugs]

sdr,

I know what interest rates look like now. I also know what interest rates look like after the lenders and investors get hammered for a few years, ’cause I’ve seen it up close. How many good loans do you suppose a lender has to make in order to break even after a single $200k loss on a foreclosure?

By the time this thing is is over I think we’ll be lucky if the interest rates are below 7%. It’s not that hard to imagine an 8% mortgage interest rate. We’ve been past 10% before and based on my memory of what was going on at the time I’m seeing a lot of similarities between then and now.

[Bugs]

sdr,

I know what interest rates look like now. I also know what interest rates look like after the lenders and investors get hammered for a few years, ’cause I’ve seen it up close. How many good loans do you suppose a lender has to make in order to break even after a single $200k loss on a foreclosure?

By the time this thing is is over I think we’ll be lucky if the interest rates are below 7%. It’s not that hard to imagine an 8% mortgage interest rate. We’ve been past 10% before and based on my memory of what was going on at the time I’m seeing a lot of similarities between then and now.

[Bugs]

sdr,

I know what interest rates look like now. I also know what interest rates look like after the lenders and investors get hammered for a few years, ’cause I’ve seen it up close. How many good loans do you suppose a lender has to make in order to break even after a single $200k loss on a foreclosure?

By the time this thing is is over I think we’ll be lucky if the interest rates are below 7%. It’s not that hard to imagine an 8% mortgage interest rate. We’ve been past 10% before and based on my memory of what was going on at the time I’m seeing a lot of similarities between then and now.

[Bugs]

sdr,

I know what interest rates look like now. I also know what interest rates look like after the lenders and investors get hammered for a few years, ’cause I’ve seen it up close. How many good loans do you suppose a lender has to make in order to break even after a single $200k loss on a foreclosure?

By the time this thing is is over I think we’ll be lucky if the interest rates are below 7%. It’s not that hard to imagine an 8% mortgage interest rate. We’ve been past 10% before and based on my memory of what was going on at the time I’m seeing a lot of similarities between then and now.

[unbiasedobserver]

RE: I have several clients (recent grads with good jobs paying 50 to 100K that were too young to buy the last few years but lived with Mom&Dad while banking 50K to 100K in cash over the last 4 years. Not everyone was irresponsible. There are plenty of responsible folks like many of the Piggs that were raised right.

No doubt they are responsible, but it will be quite a shock to go from no house payment/utilities with a large cash hoard being able to afford ipods/iphones/etc to being broke debt slaves with $2000+/per month house payment and utilities. A single person making 50K clears only a little more than 3000/month after tax, taking on a 2000 payment is absurd. When I graduated and was making low 40’s, my realtor strongly recommended borrowing no more than 100K, of course he was old school and that was a different time and place when it was still in vogue to actually pay your debts. Even at that I regretted buying a house, MOBILITY is key when you’re young (and especially when you’re single, but that’s a different story)
Rant off

[unbiasedobserver]

RE: I have several clients (recent grads with good jobs paying 50 to 100K that were too young to buy the last few years but lived with Mom&Dad while banking 50K to 100K in cash over the last 4 years. Not everyone was irresponsible. There are plenty of responsible folks like many of the Piggs that were raised right.

No doubt they are responsible, but it will be quite a shock to go from no house payment/utilities with a large cash hoard being able to afford ipods/iphones/etc to being broke debt slaves with $2000+/per month house payment and utilities. A single person making 50K clears only a little more than 3000/month after tax, taking on a 2000 payment is absurd. When I graduated and was making low 40’s, my realtor strongly recommended borrowing no more than 100K, of course he was old school and that was a different time and place when it was still in vogue to actually pay your debts. Even at that I regretted buying a house, MOBILITY is key when you’re young (and especially when you’re single, but that’s a different story)
Rant off

[unbiasedobserver]

RE: I have several clients (recent grads with good jobs paying 50 to 100K that were too young to buy the last few years but lived with Mom&Dad while banking 50K to 100K in cash over the last 4 years. Not everyone was irresponsible. There are plenty of responsible folks like many of the Piggs that were raised right.

No doubt they are responsible, but it will be quite a shock to go from no house payment/utilities with a large cash hoard being able to afford ipods/iphones/etc to being broke debt slaves with $2000+/per month house payment and utilities. A single person making 50K clears only a little more than 3000/month after tax, taking on a 2000 payment is absurd. When I graduated and was making low 40’s, my realtor strongly recommended borrowing no more than 100K, of course he was old school and that was a different time and place when it was still in vogue to actually pay your debts. Even at that I regretted buying a house, MOBILITY is key when you’re young (and especially when you’re single, but that’s a different story)
Rant off

[unbiasedobserver]

RE: I have several clients (recent grads with good jobs paying 50 to 100K that were too young to buy the last few years but lived with Mom&Dad while banking 50K to 100K in cash over the last 4 years. Not everyone was irresponsible. There are plenty of responsible folks like many of the Piggs that were raised right.

No doubt they are responsible, but it will be quite a shock to go from no house payment/utilities with a large cash hoard being able to afford ipods/iphones/etc to being broke debt slaves with $2000+/per month house payment and utilities. A single person making 50K clears only a little more than 3000/month after tax, taking on a 2000 payment is absurd. When I graduated and was making low 40’s, my realtor strongly recommended borrowing no more than 100K, of course he was old school and that was a different time and place when it was still in vogue to actually pay your debts. Even at that I regretted buying a house, MOBILITY is key when you’re young (and especially when you’re single, but that’s a different story)
Rant off

[unbiasedobserver]

RE: I have several clients (recent grads with good jobs paying 50 to 100K that were too young to buy the last few years but lived with Mom&Dad while banking 50K to 100K in cash over the last 4 years. Not everyone was irresponsible. There are plenty of responsible folks like many of the Piggs that were raised right.

No doubt they are responsible, but it will be quite a shock to go from no house payment/utilities with a large cash hoard being able to afford ipods/iphones/etc to being broke debt slaves with $2000+/per month house payment and utilities. A single person making 50K clears only a little more than 3000/month after tax, taking on a 2000 payment is absurd. When I graduated and was making low 40’s, my realtor strongly recommended borrowing no more than 100K, of course he was old school and that was a different time and place when it was still in vogue to actually pay your debts. Even at that I regretted buying a house, MOBILITY is key when you’re young (and especially when you’re single, but that’s a different story)
Rant off

[sdrealtor]

unbiasedobserver,
The reason they have large cash hoards and high 700 fico’s is because they arent running around with ipod/iphones/ etc. They are driving old honda’s/toyotas and saving money to put into assets that may actually be good investments over time. Your realtors advice was good and similar to what I counsel people too. The only difference is that the income multiple has gone up a little as interest rates arent mid 8’s but rather mid 5’s right now so a 3 to 3.5 X multiple is OK rather than a 2.5X multiple.

[sdrealtor]

unbiasedobserver,
The reason they have large cash hoards and high 700 fico’s is because they arent running around with ipod/iphones/ etc. They are driving old honda’s/toyotas and saving money to put into assets that may actually be good investments over time. Your realtors advice was good and similar to what I counsel people too. The only difference is that the income multiple has gone up a little as interest rates arent mid 8’s but rather mid 5’s right now so a 3 to 3.5 X multiple is OK rather than a 2.5X multiple.

[sdrealtor]

unbiasedobserver,
The reason they have large cash hoards and high 700 fico’s is because they arent running around with ipod/iphones/ etc. They are driving old honda’s/toyotas and saving money to put into assets that may actually be good investments over time. Your realtors advice was good and similar to what I counsel people too. The only difference is that the income multiple has gone up a little as interest rates arent mid 8’s but rather mid 5’s right now so a 3 to 3.5 X multiple is OK rather than a 2.5X multiple.

[sdrealtor]

unbiasedobserver,
The reason they have large cash hoards and high 700 fico’s is because they arent running around with ipod/iphones/ etc. They are driving old honda’s/toyotas and saving money to put into assets that may actually be good investments over time. Your realtors advice was good and similar to what I counsel people too. The only difference is that the income multiple has gone up a little as interest rates arent mid 8’s but rather mid 5’s right now so a 3 to 3.5 X multiple is OK rather than a 2.5X multiple.

[Author]

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