Why not walk away?

[KIBU]

I would not be surprised if it was Marion’s ex husband, whose income was 300,000/year, who in fact had helped Mr. sandiego for that 750,000 loan to pay for the condo.

To sumarize, Mr. sandiego is a victim of that big loan and can only hope to walk away free. Marion is a victim of her husband and can only hope to walk away with alimoney money. Lastly, the poor husband is a victim of alimoney and can only hope to be left alone so he can find more loans for the other Mr. sandiego. Getting too many victims…

[an]

People are losing jobs and I’m sorry about that. However, I’m not going to support anything that will keep the current value of homes from crashing back down to ’96 (or before) prices. That’s where they should be.

Are you serious about this? ’96 price? Back then, a 1500 sq-ft house in Mira Mesa cost around $150k. Which would bring a 30 year fixed payment at today’s rate to be around $900. Do you seriously think a house that can rent for at least $1700 will sell for a price that would bring PITI well under rent? I’d love to see that too, but I highly doubt it’ll ever happen.

citydweller, a home is also the largest investment most of us will ever make, regardless if you see it as such or not. If things goes according to what some of us on here believe, then there’s really no reason not to walk. Walk today, 7 years later, buy back at a much lower price. It might not be morally fair or just, but that’s not what the OP is asking and guess what? Life’s not fair.

Supply and demand drives prices. If people had simply refused to buy at overinflated prices, the game would have been over a long time ago. Greed is a great motivator to go against what you know to be reasonable.
Greed is what make America and capitalism work so well. If human being don’t have greed, Communism would thrive with no corruption by now. Face it, greed is in everybody, whether they admit to it or not.

[an]

People are losing jobs and I’m sorry about that. However, I’m not going to support anything that will keep the current value of homes from crashing back down to ’96 (or before) prices. That’s where they should be.

Are you serious about this? ’96 price? Back then, a 1500 sq-ft house in Mira Mesa cost around $150k. Which would bring a 30 year fixed payment at today’s rate to be around $900. Do you seriously think a house that can rent for at least $1700 will sell for a price that would bring PITI well under rent? I’d love to see that too, but I highly doubt it’ll ever happen.

citydweller, a home is also the largest investment most of us will ever make, regardless if you see it as such or not. If things goes according to what some of us on here believe, then there’s really no reason not to walk. Walk today, 7 years later, buy back at a much lower price. It might not be morally fair or just, but that’s not what the OP is asking and guess what? Life’s not fair.

Supply and demand drives prices. If people had simply refused to buy at overinflated prices, the game would have been over a long time ago. Greed is a great motivator to go against what you know to be reasonable.
Greed is what make America and capitalism work so well. If human being don’t have greed, Communism would thrive with no corruption by now. Face it, greed is in everybody, whether they admit to it or not.

[an]

People are losing jobs and I’m sorry about that. However, I’m not going to support anything that will keep the current value of homes from crashing back down to ’96 (or before) prices. That’s where they should be.

Are you serious about this? ’96 price? Back then, a 1500 sq-ft house in Mira Mesa cost around $150k. Which would bring a 30 year fixed payment at today’s rate to be around $900. Do you seriously think a house that can rent for at least $1700 will sell for a price that would bring PITI well under rent? I’d love to see that too, but I highly doubt it’ll ever happen.

citydweller, a home is also the largest investment most of us will ever make, regardless if you see it as such or not. If things goes according to what some of us on here believe, then there’s really no reason not to walk. Walk today, 7 years later, buy back at a much lower price. It might not be morally fair or just, but that’s not what the OP is asking and guess what? Life’s not fair.

Supply and demand drives prices. If people had simply refused to buy at overinflated prices, the game would have been over a long time ago. Greed is a great motivator to go against what you know to be reasonable.
Greed is what make America and capitalism work so well. If human being don’t have greed, Communism would thrive with no corruption by now. Face it, greed is in everybody, whether they admit to it or not.

[an]

People are losing jobs and I’m sorry about that. However, I’m not going to support anything that will keep the current value of homes from crashing back down to ’96 (or before) prices. That’s where they should be.

Are you serious about this? ’96 price? Back then, a 1500 sq-ft house in Mira Mesa cost around $150k. Which would bring a 30 year fixed payment at today’s rate to be around $900. Do you seriously think a house that can rent for at least $1700 will sell for a price that would bring PITI well under rent? I’d love to see that too, but I highly doubt it’ll ever happen.

citydweller, a home is also the largest investment most of us will ever make, regardless if you see it as such or not. If things goes according to what some of us on here believe, then there’s really no reason not to walk. Walk today, 7 years later, buy back at a much lower price. It might not be morally fair or just, but that’s not what the OP is asking and guess what? Life’s not fair.

Supply and demand drives prices. If people had simply refused to buy at overinflated prices, the game would have been over a long time ago. Greed is a great motivator to go against what you know to be reasonable.
Greed is what make America and capitalism work so well. If human being don’t have greed, Communism would thrive with no corruption by now. Face it, greed is in everybody, whether they admit to it or not.

[an]

People are losing jobs and I’m sorry about that. However, I’m not going to support anything that will keep the current value of homes from crashing back down to ’96 (or before) prices. That’s where they should be.

Are you serious about this? ’96 price? Back then, a 1500 sq-ft house in Mira Mesa cost around $150k. Which would bring a 30 year fixed payment at today’s rate to be around $900. Do you seriously think a house that can rent for at least $1700 will sell for a price that would bring PITI well under rent? I’d love to see that too, but I highly doubt it’ll ever happen.

citydweller, a home is also the largest investment most of us will ever make, regardless if you see it as such or not. If things goes according to what some of us on here believe, then there’s really no reason not to walk. Walk today, 7 years later, buy back at a much lower price. It might not be morally fair or just, but that’s not what the OP is asking and guess what? Life’s not fair.

Supply and demand drives prices. If people had simply refused to buy at overinflated prices, the game would have been over a long time ago. Greed is a great motivator to go against what you know to be reasonable.
Greed is what make America and capitalism work so well. If human being don’t have greed, Communism would thrive with no corruption by now. Face it, greed is in everybody, whether they admit to it or not.

[temeculaguy]

Navydoc has the voice of reason on this one, unless you bought it purely based on appreciation with no ability or desire to stay, ride it out if you can afford it. Now if you bought somethig you couldn’t afford because you thought you’d make a killing, go with the free rent plan, one forclosure will not haunt you forever and if you save the sizable downpayment you plan, you’ll survive and be able to buy in a few years.

Like Navy, I rode out a past bubble purchase (1991) and it seemed like I shouldn’t but it worked out in the end, it’s a game of chicken and fortunately for me I could afford to stay but was trapped in a small house longer than I planned. It took exactly 7 years to break even and the following 7 years it tripled. I wish I had stayed with it longer rather than sell it the minute it came back to even.

How did you get upside down on a 2003 purchase? I thought downtown had retreated from 2005 or 2006 highs but I didn’t realize it had gone so far below that.

[temeculaguy]

Navydoc has the voice of reason on this one, unless you bought it purely based on appreciation with no ability or desire to stay, ride it out if you can afford it. Now if you bought somethig you couldn’t afford because you thought you’d make a killing, go with the free rent plan, one forclosure will not haunt you forever and if you save the sizable downpayment you plan, you’ll survive and be able to buy in a few years.

Like Navy, I rode out a past bubble purchase (1991) and it seemed like I shouldn’t but it worked out in the end, it’s a game of chicken and fortunately for me I could afford to stay but was trapped in a small house longer than I planned. It took exactly 7 years to break even and the following 7 years it tripled. I wish I had stayed with it longer rather than sell it the minute it came back to even.

How did you get upside down on a 2003 purchase? I thought downtown had retreated from 2005 or 2006 highs but I didn’t realize it had gone so far below that.

[temeculaguy]

Navydoc has the voice of reason on this one, unless you bought it purely based on appreciation with no ability or desire to stay, ride it out if you can afford it. Now if you bought somethig you couldn’t afford because you thought you’d make a killing, go with the free rent plan, one forclosure will not haunt you forever and if you save the sizable downpayment you plan, you’ll survive and be able to buy in a few years.

Like Navy, I rode out a past bubble purchase (1991) and it seemed like I shouldn’t but it worked out in the end, it’s a game of chicken and fortunately for me I could afford to stay but was trapped in a small house longer than I planned. It took exactly 7 years to break even and the following 7 years it tripled. I wish I had stayed with it longer rather than sell it the minute it came back to even.

How did you get upside down on a 2003 purchase? I thought downtown had retreated from 2005 or 2006 highs but I didn’t realize it had gone so far below that.

[temeculaguy]

Navydoc has the voice of reason on this one, unless you bought it purely based on appreciation with no ability or desire to stay, ride it out if you can afford it. Now if you bought somethig you couldn’t afford because you thought you’d make a killing, go with the free rent plan, one forclosure will not haunt you forever and if you save the sizable downpayment you plan, you’ll survive and be able to buy in a few years.

Like Navy, I rode out a past bubble purchase (1991) and it seemed like I shouldn’t but it worked out in the end, it’s a game of chicken and fortunately for me I could afford to stay but was trapped in a small house longer than I planned. It took exactly 7 years to break even and the following 7 years it tripled. I wish I had stayed with it longer rather than sell it the minute it came back to even.

How did you get upside down on a 2003 purchase? I thought downtown had retreated from 2005 or 2006 highs but I didn’t realize it had gone so far below that.

[temeculaguy]

Navydoc has the voice of reason on this one, unless you bought it purely based on appreciation with no ability or desire to stay, ride it out if you can afford it. Now if you bought somethig you couldn’t afford because you thought you’d make a killing, go with the free rent plan, one forclosure will not haunt you forever and if you save the sizable downpayment you plan, you’ll survive and be able to buy in a few years.

Like Navy, I rode out a past bubble purchase (1991) and it seemed like I shouldn’t but it worked out in the end, it’s a game of chicken and fortunately for me I could afford to stay but was trapped in a small house longer than I planned. It took exactly 7 years to break even and the following 7 years it tripled. I wish I had stayed with it longer rather than sell it the minute it came back to even.

How did you get upside down on a 2003 purchase? I thought downtown had retreated from 2005 or 2006 highs but I didn’t realize it had gone so far below that.

[patientrenter]

DaCounselor’s advice is crisp and correct, as usual, and is the right advice for you to act on, sandiego. The rest of the discussion in this thread is an opportunity for Piggingtonians to argue over the opportunities and morality of your type of situation. Don’t take it personally.

Asianautica’s comments make it clear that many people are indeed assuming, and pulling for, a government bailout, just as Marion says. Saying that walking now and buying for much less in 7 years time is a good idea assumes that this will be possible. Any purely self-interested investor would not lend money to such a deadbeat borrower in 7 years time unless the rate was very high, or the downpayment was huge. Would you loan everything in your bank accounts and money market funds at a low rate to sandiego in 7 years time, asianautica, if they put none of their own money down? Loosening those tight (high rate/downpayment) conditions can only be done via some government intervention favoring more leveraged buyers at the expense of people who’ve always kept their house purchases low compared to their savings.

For me, the biggest lesson of this upswing and downswing in the home market is not that it’s a good idea to limit your home purchase to what you can comfortably afford with low borrowings. Nope, the lesson is that it’s a good idea to take maximum advantage in non-recourse states of any stupid lender who’ll offer 100% loans at low teaser rates. Buy lots of properties when the market is heading up, and start cashing them out as the market continues to head up. When the market heads down, you only lose tiny amounts compared to your gains. What a racket!

Patient renter in OC

[patientrenter]

DaCounselor’s advice is crisp and correct, as usual, and is the right advice for you to act on, sandiego. The rest of the discussion in this thread is an opportunity for Piggingtonians to argue over the opportunities and morality of your type of situation. Don’t take it personally.

Asianautica’s comments make it clear that many people are indeed assuming, and pulling for, a government bailout, just as Marion says. Saying that walking now and buying for much less in 7 years time is a good idea assumes that this will be possible. Any purely self-interested investor would not lend money to such a deadbeat borrower in 7 years time unless the rate was very high, or the downpayment was huge. Would you loan everything in your bank accounts and money market funds at a low rate to sandiego in 7 years time, asianautica, if they put none of their own money down? Loosening those tight (high rate/downpayment) conditions can only be done via some government intervention favoring more leveraged buyers at the expense of people who’ve always kept their house purchases low compared to their savings.

For me, the biggest lesson of this upswing and downswing in the home market is not that it’s a good idea to limit your home purchase to what you can comfortably afford with low borrowings. Nope, the lesson is that it’s a good idea to take maximum advantage in non-recourse states of any stupid lender who’ll offer 100% loans at low teaser rates. Buy lots of properties when the market is heading up, and start cashing them out as the market continues to head up. When the market heads down, you only lose tiny amounts compared to your gains. What a racket!

Patient renter in OC

[patientrenter]

DaCounselor’s advice is crisp and correct, as usual, and is the right advice for you to act on, sandiego. The rest of the discussion in this thread is an opportunity for Piggingtonians to argue over the opportunities and morality of your type of situation. Don’t take it personally.

Asianautica’s comments make it clear that many people are indeed assuming, and pulling for, a government bailout, just as Marion says. Saying that walking now and buying for much less in 7 years time is a good idea assumes that this will be possible. Any purely self-interested investor would not lend money to such a deadbeat borrower in 7 years time unless the rate was very high, or the downpayment was huge. Would you loan everything in your bank accounts and money market funds at a low rate to sandiego in 7 years time, asianautica, if they put none of their own money down? Loosening those tight (high rate/downpayment) conditions can only be done via some government intervention favoring more leveraged buyers at the expense of people who’ve always kept their house purchases low compared to their savings.

For me, the biggest lesson of this upswing and downswing in the home market is not that it’s a good idea to limit your home purchase to what you can comfortably afford with low borrowings. Nope, the lesson is that it’s a good idea to take maximum advantage in non-recourse states of any stupid lender who’ll offer 100% loans at low teaser rates. Buy lots of properties when the market is heading up, and start cashing them out as the market continues to head up. When the market heads down, you only lose tiny amounts compared to your gains. What a racket!

Patient renter in OC

[patientrenter]

DaCounselor’s advice is crisp and correct, as usual, and is the right advice for you to act on, sandiego. The rest of the discussion in this thread is an opportunity for Piggingtonians to argue over the opportunities and morality of your type of situation. Don’t take it personally.

Asianautica’s comments make it clear that many people are indeed assuming, and pulling for, a government bailout, just as Marion says. Saying that walking now and buying for much less in 7 years time is a good idea assumes that this will be possible. Any purely self-interested investor would not lend money to such a deadbeat borrower in 7 years time unless the rate was very high, or the downpayment was huge. Would you loan everything in your bank accounts and money market funds at a low rate to sandiego in 7 years time, asianautica, if they put none of their own money down? Loosening those tight (high rate/downpayment) conditions can only be done via some government intervention favoring more leveraged buyers at the expense of people who’ve always kept their house purchases low compared to their savings.

For me, the biggest lesson of this upswing and downswing in the home market is not that it’s a good idea to limit your home purchase to what you can comfortably afford with low borrowings. Nope, the lesson is that it’s a good idea to take maximum advantage in non-recourse states of any stupid lender who’ll offer 100% loans at low teaser rates. Buy lots of properties when the market is heading up, and start cashing them out as the market continues to head up. When the market heads down, you only lose tiny amounts compared to your gains. What a racket!

Patient renter in OC

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