The 5/1 Interest Only ARM Returns

[Arraya]

I spoke with a BK lawyer doings mods, a while back, and he said that he was doing rentals and cash flowing them depending in the circumstances. Basically, you would have to prove a “hardship” beyond just financial mismanagement, which is loosely defined.

It’s all irrelevant if further declines via deflation are in the cards and they get stuck with a recourse loan and possible loss of income. It could very well end up being a trap and do very little for maintaining price levels.

As an aside, they also did forensic mortgage audits(which the use as leverage in negotiating new terms) and found that over half of all documents had some sort of violation.

[patb]

[quote=FormerSanDiegan][quote=patb][quote=FormerSanDiegan]That’s why I suggest they might not fund these unless the LTV of 75% or better, likely 70%.
That way the lender has at least some additional protection against a declining market.

Seems to me to be a reasonable risk at today’s price levels.[/quote]

this product is just expensive rent with a nasty termination fee.[/quote]

This is true for those of us without the funds to completely pay off the loan at any time.

However, for those who can, it is a cheap source of capital.[/quote]

so you are interest rate arbitraging your house?
That just makes you a small hedge fund.

Why don’t you incorporate as Boldman-Sachs

[patb]

[quote=FormerSanDiegan][quote=patb][quote=FormerSanDiegan]That’s why I suggest they might not fund these unless the LTV of 75% or better, likely 70%.
That way the lender has at least some additional protection against a declining market.

Seems to me to be a reasonable risk at today’s price levels.[/quote]

this product is just expensive rent with a nasty termination fee.[/quote]

This is true for those of us without the funds to completely pay off the loan at any time.

However, for those who can, it is a cheap source of capital.[/quote]

so you are interest rate arbitraging your house?
That just makes you a small hedge fund.

Why don’t you incorporate as Boldman-Sachs

[patb]

[quote=FormerSanDiegan][quote=patb][quote=FormerSanDiegan]That’s why I suggest they might not fund these unless the LTV of 75% or better, likely 70%.
That way the lender has at least some additional protection against a declining market.

Seems to me to be a reasonable risk at today’s price levels.[/quote]

this product is just expensive rent with a nasty termination fee.[/quote]

This is true for those of us without the funds to completely pay off the loan at any time.

However, for those who can, it is a cheap source of capital.[/quote]

so you are interest rate arbitraging your house?
That just makes you a small hedge fund.

Why don’t you incorporate as Boldman-Sachs

[patb]

[quote=FormerSanDiegan][quote=patb][quote=FormerSanDiegan]That’s why I suggest they might not fund these unless the LTV of 75% or better, likely 70%.
That way the lender has at least some additional protection against a declining market.

Seems to me to be a reasonable risk at today’s price levels.[/quote]

this product is just expensive rent with a nasty termination fee.[/quote]

This is true for those of us without the funds to completely pay off the loan at any time.

However, for those who can, it is a cheap source of capital.[/quote]

so you are interest rate arbitraging your house?
That just makes you a small hedge fund.

Why don’t you incorporate as Boldman-Sachs

[patb]

[quote=FormerSanDiegan][quote=patb][quote=FormerSanDiegan]That’s why I suggest they might not fund these unless the LTV of 75% or better, likely 70%.
That way the lender has at least some additional protection against a declining market.

Seems to me to be a reasonable risk at today’s price levels.[/quote]

this product is just expensive rent with a nasty termination fee.[/quote]

This is true for those of us without the funds to completely pay off the loan at any time.

However, for those who can, it is a cheap source of capital.[/quote]

so you are interest rate arbitraging your house?
That just makes you a small hedge fund.

Why don’t you incorporate as Boldman-Sachs

[sdrealtor]

Yes I would be frustrated but I would and have found a way a way to win. The last few years have been tough in this business for most but I saw the short sales coming when just about everyone in my field said they were a waste and many still do. Some of the loudest voices on the Realtor blogs are constantly admitting they were and continue to be consistently wrong yet still hold themselves out as experts with very patchy track records.

I dont like the games as much as you but I’m a pragmatist. They are part of the game so you just have to do your best to work within the confines of them which is what i do. I win and I find ways for my clients to win.

The mods also dont bother me when they stabilize assets, the economy and families. If we need to subsidize a mortgage for a productive member of society I’m OK with that. I think its a better investment than alot of the public assistance that goes out in the name of welfare. I’m not opposed to welfare either just welfare as a career.

[sdrealtor]

Yes I would be frustrated but I would and have found a way a way to win. The last few years have been tough in this business for most but I saw the short sales coming when just about everyone in my field said they were a waste and many still do. Some of the loudest voices on the Realtor blogs are constantly admitting they were and continue to be consistently wrong yet still hold themselves out as experts with very patchy track records.

I dont like the games as much as you but I’m a pragmatist. They are part of the game so you just have to do your best to work within the confines of them which is what i do. I win and I find ways for my clients to win.

The mods also dont bother me when they stabilize assets, the economy and families. If we need to subsidize a mortgage for a productive member of society I’m OK with that. I think its a better investment than alot of the public assistance that goes out in the name of welfare. I’m not opposed to welfare either just welfare as a career.

[sdrealtor]

Yes I would be frustrated but I would and have found a way a way to win. The last few years have been tough in this business for most but I saw the short sales coming when just about everyone in my field said they were a waste and many still do. Some of the loudest voices on the Realtor blogs are constantly admitting they were and continue to be consistently wrong yet still hold themselves out as experts with very patchy track records.

I dont like the games as much as you but I’m a pragmatist. They are part of the game so you just have to do your best to work within the confines of them which is what i do. I win and I find ways for my clients to win.

The mods also dont bother me when they stabilize assets, the economy and families. If we need to subsidize a mortgage for a productive member of society I’m OK with that. I think its a better investment than alot of the public assistance that goes out in the name of welfare. I’m not opposed to welfare either just welfare as a career.

[sdrealtor]

Yes I would be frustrated but I would and have found a way a way to win. The last few years have been tough in this business for most but I saw the short sales coming when just about everyone in my field said they were a waste and many still do. Some of the loudest voices on the Realtor blogs are constantly admitting they were and continue to be consistently wrong yet still hold themselves out as experts with very patchy track records.

I dont like the games as much as you but I’m a pragmatist. They are part of the game so you just have to do your best to work within the confines of them which is what i do. I win and I find ways for my clients to win.

The mods also dont bother me when they stabilize assets, the economy and families. If we need to subsidize a mortgage for a productive member of society I’m OK with that. I think its a better investment than alot of the public assistance that goes out in the name of welfare. I’m not opposed to welfare either just welfare as a career.

[sdrealtor]

Yes I would be frustrated but I would and have found a way a way to win. The last few years have been tough in this business for most but I saw the short sales coming when just about everyone in my field said they were a waste and many still do. Some of the loudest voices on the Realtor blogs are constantly admitting they were and continue to be consistently wrong yet still hold themselves out as experts with very patchy track records.

I dont like the games as much as you but I’m a pragmatist. They are part of the game so you just have to do your best to work within the confines of them which is what i do. I win and I find ways for my clients to win.

The mods also dont bother me when they stabilize assets, the economy and families. If we need to subsidize a mortgage for a productive member of society I’m OK with that. I think its a better investment than alot of the public assistance that goes out in the name of welfare. I’m not opposed to welfare either just welfare as a career.

[sdrealtor]

All the clients I have with rental properties have had loan mods turned down because they were not owner occupied. Not saying they dont happen but I see most upside investment properties going short sale or REO.

[sdrealtor]

All the clients I have with rental properties have had loan mods turned down because they were not owner occupied. Not saying they dont happen but I see most upside investment properties going short sale or REO.

[sdrealtor]

All the clients I have with rental properties have had loan mods turned down because they were not owner occupied. Not saying they dont happen but I see most upside investment properties going short sale or REO.

[sdrealtor]

All the clients I have with rental properties have had loan mods turned down because they were not owner occupied. Not saying they dont happen but I see most upside investment properties going short sale or REO.

[Author]

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