Why not walk away?

[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

[paramount]

I know people who buy a car, it gets repossessed and within a week they are driving a new car. That one gets repossessed and within a week they are driving a new car. And the cycle continues.

They stop paying rent, they stay in that house right up until they get kicked out. Then they move to another house – no problem. And the cycle continues.

[paramount]

I know people who buy a car, it gets repossessed and within a week they are driving a new car. That one gets repossessed and within a week they are driving a new car. And the cycle continues.

They stop paying rent, they stay in that house right up until they get kicked out. Then they move to another house – no problem. And the cycle continues.

[paramount]

I know people who buy a car, it gets repossessed and within a week they are driving a new car. That one gets repossessed and within a week they are driving a new car. And the cycle continues.

They stop paying rent, they stay in that house right up until they get kicked out. Then they move to another house – no problem. And the cycle continues.

[paramount]

I know people who buy a car, it gets repossessed and within a week they are driving a new car. That one gets repossessed and within a week they are driving a new car. And the cycle continues.

They stop paying rent, they stay in that house right up until they get kicked out. Then they move to another house – no problem. And the cycle continues.

[paramount]

I know people who buy a car, it gets repossessed and within a week they are driving a new car. That one gets repossessed and within a week they are driving a new car. And the cycle continues.

They stop paying rent, they stay in that house right up until they get kicked out. Then they move to another house – no problem. And the cycle continues.

[Anonymous]

“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.”

I don’t know about San Diego, maybe. However, I definitely see prices dropping to that level in Murrieta and Temecula. In 1997-98, my parents bought a 1867 sf house for $140k base price. I predict, by 2009 those will be the current prices here in this area.

No, greed ruins it all. Don’t justify greed. In a captitalism society people are always going want to profit, but when you get greedy, really greedy? the balance is upset.

I stood in a new home builder’s sales office back in 2000 (or around that). After coming back the second time, I marveled at how the prices had risen in only one week’s time. Upon inquiring why, the greedy realtor looked at me joyfully and said, “cuz they’re selling like hot cakes!” I thought in my mind, “you greedy b*tch”… Of course, I didn’t say that to her. Anyway, greed is often ugly. Sure everyone has greed, but the prudent person tempers that with reason above all-or faces the consequences.

Our opinions may differ, I’m a purist of sorts.

[Anonymous]

“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.”

I don’t know about San Diego, maybe. However, I definitely see prices dropping to that level in Murrieta and Temecula. In 1997-98, my parents bought a 1867 sf house for $140k base price. I predict, by 2009 those will be the current prices here in this area.

No, greed ruins it all. Don’t justify greed. In a captitalism society people are always going want to profit, but when you get greedy, really greedy? the balance is upset.

I stood in a new home builder’s sales office back in 2000 (or around that). After coming back the second time, I marveled at how the prices had risen in only one week’s time. Upon inquiring why, the greedy realtor looked at me joyfully and said, “cuz they’re selling like hot cakes!” I thought in my mind, “you greedy b*tch”… Of course, I didn’t say that to her. Anyway, greed is often ugly. Sure everyone has greed, but the prudent person tempers that with reason above all-or faces the consequences.

Our opinions may differ, I’m a purist of sorts.

[Anonymous]

“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.”

I don’t know about San Diego, maybe. However, I definitely see prices dropping to that level in Murrieta and Temecula. In 1997-98, my parents bought a 1867 sf house for $140k base price. I predict, by 2009 those will be the current prices here in this area.

No, greed ruins it all. Don’t justify greed. In a captitalism society people are always going want to profit, but when you get greedy, really greedy? the balance is upset.

I stood in a new home builder’s sales office back in 2000 (or around that). After coming back the second time, I marveled at how the prices had risen in only one week’s time. Upon inquiring why, the greedy realtor looked at me joyfully and said, “cuz they’re selling like hot cakes!” I thought in my mind, “you greedy b*tch”… Of course, I didn’t say that to her. Anyway, greed is often ugly. Sure everyone has greed, but the prudent person tempers that with reason above all-or faces the consequences.

Our opinions may differ, I’m a purist of sorts.

[Anonymous]

“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.”

I don’t know about San Diego, maybe. However, I definitely see prices dropping to that level in Murrieta and Temecula. In 1997-98, my parents bought a 1867 sf house for $140k base price. I predict, by 2009 those will be the current prices here in this area.

No, greed ruins it all. Don’t justify greed. In a captitalism society people are always going want to profit, but when you get greedy, really greedy? the balance is upset.

I stood in a new home builder’s sales office back in 2000 (or around that). After coming back the second time, I marveled at how the prices had risen in only one week’s time. Upon inquiring why, the greedy realtor looked at me joyfully and said, “cuz they’re selling like hot cakes!” I thought in my mind, “you greedy b*tch”… Of course, I didn’t say that to her. Anyway, greed is often ugly. Sure everyone has greed, but the prudent person tempers that with reason above all-or faces the consequences.

Our opinions may differ, I’m a purist of sorts.

[Anonymous]

“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.”

I don’t know about San Diego, maybe. However, I definitely see prices dropping to that level in Murrieta and Temecula. In 1997-98, my parents bought a 1867 sf house for $140k base price. I predict, by 2009 those will be the current prices here in this area.

No, greed ruins it all. Don’t justify greed. In a captitalism society people are always going want to profit, but when you get greedy, really greedy? the balance is upset.

I stood in a new home builder’s sales office back in 2000 (or around that). After coming back the second time, I marveled at how the prices had risen in only one week’s time. Upon inquiring why, the greedy realtor looked at me joyfully and said, “cuz they’re selling like hot cakes!” I thought in my mind, “you greedy b*tch”… Of course, I didn’t say that to her. Anyway, greed is often ugly. Sure everyone has greed, but the prudent person tempers that with reason above all-or faces the consequences.

Our opinions may differ, I’m a purist of sorts.

[an]

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?
No I wouldn’t, but banks probably would. Last I checked, bankruptcy stayed on your credit for only 7 years. But the OP did say he’ll be saving for the next 7 years, so he’ll have plenty $ to down, so we’re not talking about 0% down or anything. If his current loan is any indication, he’ll probably have 20% down. That’s usually good enough for the bank if he also have decent credit.

marion, I don’t see your logic. How can a seller/agent be greedy when there are buyers willing to pay that price? That’s just pure capitalism at its finest. They’re not asking for more than the market will bear, or else it wouldn’t have sold. Just like now, the market will bear much lower price than some of the sellers want, that’s why their place sit and collect dust. You may think you are the market, but you are not.

[an]

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?
No I wouldn’t, but banks probably would. Last I checked, bankruptcy stayed on your credit for only 7 years. But the OP did say he’ll be saving for the next 7 years, so he’ll have plenty $ to down, so we’re not talking about 0% down or anything. If his current loan is any indication, he’ll probably have 20% down. That’s usually good enough for the bank if he also have decent credit.

marion, I don’t see your logic. How can a seller/agent be greedy when there are buyers willing to pay that price? That’s just pure capitalism at its finest. They’re not asking for more than the market will bear, or else it wouldn’t have sold. Just like now, the market will bear much lower price than some of the sellers want, that’s why their place sit and collect dust. You may think you are the market, but you are not.

[an]

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?
No I wouldn’t, but banks probably would. Last I checked, bankruptcy stayed on your credit for only 7 years. But the OP did say he’ll be saving for the next 7 years, so he’ll have plenty $ to down, so we’re not talking about 0% down or anything. If his current loan is any indication, he’ll probably have 20% down. That’s usually good enough for the bank if he also have decent credit.

marion, I don’t see your logic. How can a seller/agent be greedy when there are buyers willing to pay that price? That’s just pure capitalism at its finest. They’re not asking for more than the market will bear, or else it wouldn’t have sold. Just like now, the market will bear much lower price than some of the sellers want, that’s why their place sit and collect dust. You may think you are the market, but you are not.

[an]

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?
No I wouldn’t, but banks probably would. Last I checked, bankruptcy stayed on your credit for only 7 years. But the OP did say he’ll be saving for the next 7 years, so he’ll have plenty $ to down, so we’re not talking about 0% down or anything. If his current loan is any indication, he’ll probably have 20% down. That’s usually good enough for the bank if he also have decent credit.

marion, I don’t see your logic. How can a seller/agent be greedy when there are buyers willing to pay that price? That’s just pure capitalism at its finest. They’re not asking for more than the market will bear, or else it wouldn’t have sold. Just like now, the market will bear much lower price than some of the sellers want, that’s why their place sit and collect dust. You may think you are the market, but you are not.

[Author]

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