Sharks that get eaten.

[arnie]

Sorry to quibble FLU but, strictly speaking, a primary residence is an asset. Any debt incurred to purchase that asset is a liability and any difference between them is equity. In accounting this is known as the balance sheet equation . . . assets = liability + ownership equity. I understand your point, though, that the asset is only worth what someone will pay for it. On a balance sheet the asset would usually appear at the purchase cost.

[SDEngineer]

JP: re the recourse/non-recourse state thing.

If they were like a lot of RE speculators, they may very well have done cash-out re-fi’s to cover carrying costs, pay for their standard of living, and provide seed money for further RE speculation. And, of course, these re-fi’s would have turned a non-recourse loan into a recourse loan. I suspect that they have enough recourse loans on the books to wipe them out.

[SDEngineer]

JP: re the recourse/non-recourse state thing.

If they were like a lot of RE speculators, they may very well have done cash-out re-fi’s to cover carrying costs, pay for their standard of living, and provide seed money for further RE speculation. And, of course, these re-fi’s would have turned a non-recourse loan into a recourse loan. I suspect that they have enough recourse loans on the books to wipe them out.

[SDEngineer]

JP: re the recourse/non-recourse state thing.

If they were like a lot of RE speculators, they may very well have done cash-out re-fi’s to cover carrying costs, pay for their standard of living, and provide seed money for further RE speculation. And, of course, these re-fi’s would have turned a non-recourse loan into a recourse loan. I suspect that they have enough recourse loans on the books to wipe them out.

[SDEngineer]

JP: re the recourse/non-recourse state thing.

If they were like a lot of RE speculators, they may very well have done cash-out re-fi’s to cover carrying costs, pay for their standard of living, and provide seed money for further RE speculation. And, of course, these re-fi’s would have turned a non-recourse loan into a recourse loan. I suspect that they have enough recourse loans on the books to wipe them out.

[SDEngineer]

JP: re the recourse/non-recourse state thing.

If they were like a lot of RE speculators, they may very well have done cash-out re-fi’s to cover carrying costs, pay for their standard of living, and provide seed money for further RE speculation. And, of course, these re-fi’s would have turned a non-recourse loan into a recourse loan. I suspect that they have enough recourse loans on the books to wipe them out.

[jpinpb]

SDE – That’s what I was thinking.

[jpinpb]

SDE – That’s what I was thinking.

[jpinpb]

SDE – That’s what I was thinking.

[jpinpb]

SDE – That’s what I was thinking.

[jpinpb]

SDE – That’s what I was thinking.

[NotCranky]

As far as the couple featured. i think one thing to point out..What really did the couple have to lose? You had a couple who’s future didn’t look promising to begin with, so desperate to ride a rollercoaster for $50k. So doing the RE thing that required little skills for quick buck would have been the best thing for them at the time. Yeah, so they will get a ding on their credit. Yeah, they might even have to file for bankruptcy…The only one who’s really getting hurt here are the banks and eventually the tax payers.

FLU That’s what I was thinking.

They may even squeeze out a little net worth compared to where they would have been. I am sure they have learned a lot of things that have potential to be useful now and in the future.

[NotCranky]

As far as the couple featured. i think one thing to point out..What really did the couple have to lose? You had a couple who’s future didn’t look promising to begin with, so desperate to ride a rollercoaster for $50k. So doing the RE thing that required little skills for quick buck would have been the best thing for them at the time. Yeah, so they will get a ding on their credit. Yeah, they might even have to file for bankruptcy…The only one who’s really getting hurt here are the banks and eventually the tax payers.

FLU That’s what I was thinking.

They may even squeeze out a little net worth compared to where they would have been. I am sure they have learned a lot of things that have potential to be useful now and in the future.

[NotCranky]

As far as the couple featured. i think one thing to point out..What really did the couple have to lose? You had a couple who’s future didn’t look promising to begin with, so desperate to ride a rollercoaster for $50k. So doing the RE thing that required little skills for quick buck would have been the best thing for them at the time. Yeah, so they will get a ding on their credit. Yeah, they might even have to file for bankruptcy…The only one who’s really getting hurt here are the banks and eventually the tax payers.

FLU That’s what I was thinking.

They may even squeeze out a little net worth compared to where they would have been. I am sure they have learned a lot of things that have potential to be useful now and in the future.

[NotCranky]

As far as the couple featured. i think one thing to point out..What really did the couple have to lose? You had a couple who’s future didn’t look promising to begin with, so desperate to ride a rollercoaster for $50k. So doing the RE thing that required little skills for quick buck would have been the best thing for them at the time. Yeah, so they will get a ding on their credit. Yeah, they might even have to file for bankruptcy…The only one who’s really getting hurt here are the banks and eventually the tax payers.

FLU That’s what I was thinking.

They may even squeeze out a little net worth compared to where they would have been. I am sure they have learned a lot of things that have potential to be useful now and in the future.

[Author]

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