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November 16, 2007 at 10:55 AM #10922November 16, 2007 at 11:05 AM #100157(former)FormerSanDieganParticipant
I can think of a few reasons off the top of my head …
1. If they refinanced the house, the refinance loan is recourse debt, meaning the lender could go after other assets.
2. They have sufficient other assets and want to buy in another town immediately and don;t want to ruin their credit.
3. They have other assets and want to move to the sidelines for 2 years and be ready with cash and a high FICO score to pounce when the time is ready and a bankruptcy would look bad.
4. They value their reputation more than their money.
5. San Diego has a lot of defense jobs. They may have job reasons why they don’t want to have a BK on their record, which might imperil their security clearance.
6. They’ve done the math and figured out that 50 or 100K today will shave 3% or more off their next loan in a couple years. In the long run they could potentially save money by eating a chunk today.
7. They are moving to another place for which they are buying on the cheap. They eat 100K on the sale, but are paying 200K less on their new place than they would have previously.
Remember, not everyone who purchased in the past 3-4 years has all their assets tied up in a personal residence.
November 16, 2007 at 11:05 AM #100236(former)FormerSanDieganParticipantI can think of a few reasons off the top of my head …
1. If they refinanced the house, the refinance loan is recourse debt, meaning the lender could go after other assets.
2. They have sufficient other assets and want to buy in another town immediately and don;t want to ruin their credit.
3. They have other assets and want to move to the sidelines for 2 years and be ready with cash and a high FICO score to pounce when the time is ready and a bankruptcy would look bad.
4. They value their reputation more than their money.
5. San Diego has a lot of defense jobs. They may have job reasons why they don’t want to have a BK on their record, which might imperil their security clearance.
6. They’ve done the math and figured out that 50 or 100K today will shave 3% or more off their next loan in a couple years. In the long run they could potentially save money by eating a chunk today.
7. They are moving to another place for which they are buying on the cheap. They eat 100K on the sale, but are paying 200K less on their new place than they would have previously.
Remember, not everyone who purchased in the past 3-4 years has all their assets tied up in a personal residence.
November 16, 2007 at 11:05 AM #100254(former)FormerSanDieganParticipantI can think of a few reasons off the top of my head …
1. If they refinanced the house, the refinance loan is recourse debt, meaning the lender could go after other assets.
2. They have sufficient other assets and want to buy in another town immediately and don;t want to ruin their credit.
3. They have other assets and want to move to the sidelines for 2 years and be ready with cash and a high FICO score to pounce when the time is ready and a bankruptcy would look bad.
4. They value their reputation more than their money.
5. San Diego has a lot of defense jobs. They may have job reasons why they don’t want to have a BK on their record, which might imperil their security clearance.
6. They’ve done the math and figured out that 50 or 100K today will shave 3% or more off their next loan in a couple years. In the long run they could potentially save money by eating a chunk today.
7. They are moving to another place for which they are buying on the cheap. They eat 100K on the sale, but are paying 200K less on their new place than they would have previously.
Remember, not everyone who purchased in the past 3-4 years has all their assets tied up in a personal residence.
November 16, 2007 at 11:05 AM #100266(former)FormerSanDieganParticipantI can think of a few reasons off the top of my head …
1. If they refinanced the house, the refinance loan is recourse debt, meaning the lender could go after other assets.
2. They have sufficient other assets and want to buy in another town immediately and don;t want to ruin their credit.
3. They have other assets and want to move to the sidelines for 2 years and be ready with cash and a high FICO score to pounce when the time is ready and a bankruptcy would look bad.
4. They value their reputation more than their money.
5. San Diego has a lot of defense jobs. They may have job reasons why they don’t want to have a BK on their record, which might imperil their security clearance.
6. They’ve done the math and figured out that 50 or 100K today will shave 3% or more off their next loan in a couple years. In the long run they could potentially save money by eating a chunk today.
7. They are moving to another place for which they are buying on the cheap. They eat 100K on the sale, but are paying 200K less on their new place than they would have previously.
Remember, not everyone who purchased in the past 3-4 years has all their assets tied up in a personal residence.
November 16, 2007 at 11:05 AM #100268(former)FormerSanDieganParticipantI can think of a few reasons off the top of my head …
1. If they refinanced the house, the refinance loan is recourse debt, meaning the lender could go after other assets.
2. They have sufficient other assets and want to buy in another town immediately and don;t want to ruin their credit.
3. They have other assets and want to move to the sidelines for 2 years and be ready with cash and a high FICO score to pounce when the time is ready and a bankruptcy would look bad.
4. They value their reputation more than their money.
5. San Diego has a lot of defense jobs. They may have job reasons why they don’t want to have a BK on their record, which might imperil their security clearance.
6. They’ve done the math and figured out that 50 or 100K today will shave 3% or more off their next loan in a couple years. In the long run they could potentially save money by eating a chunk today.
7. They are moving to another place for which they are buying on the cheap. They eat 100K on the sale, but are paying 200K less on their new place than they would have previously.
Remember, not everyone who purchased in the past 3-4 years has all their assets tied up in a personal residence.
November 16, 2007 at 12:16 PM #100298EugeneParticipantWhen someone buys a house for 600k with no money down and then sells for 500k, it’s called “short sale”. Basically the bank must agree to take 500k and forgive the rest of the debt. For the seller it’s better than foreclosure because his credit history does not suffer as badly. For the bank it’s better than foreclosure because the bank gets 500k cash instead of having to jump through hoops, pay lawyers, hold an auction and in all likelihood end up owning a decaying house that no one wants to buy.
November 16, 2007 at 12:16 PM #100314EugeneParticipantWhen someone buys a house for 600k with no money down and then sells for 500k, it’s called “short sale”. Basically the bank must agree to take 500k and forgive the rest of the debt. For the seller it’s better than foreclosure because his credit history does not suffer as badly. For the bank it’s better than foreclosure because the bank gets 500k cash instead of having to jump through hoops, pay lawyers, hold an auction and in all likelihood end up owning a decaying house that no one wants to buy.
November 16, 2007 at 12:16 PM #100312EugeneParticipantWhen someone buys a house for 600k with no money down and then sells for 500k, it’s called “short sale”. Basically the bank must agree to take 500k and forgive the rest of the debt. For the seller it’s better than foreclosure because his credit history does not suffer as badly. For the bank it’s better than foreclosure because the bank gets 500k cash instead of having to jump through hoops, pay lawyers, hold an auction and in all likelihood end up owning a decaying house that no one wants to buy.
November 16, 2007 at 12:16 PM #100280EugeneParticipantWhen someone buys a house for 600k with no money down and then sells for 500k, it’s called “short sale”. Basically the bank must agree to take 500k and forgive the rest of the debt. For the seller it’s better than foreclosure because his credit history does not suffer as badly. For the bank it’s better than foreclosure because the bank gets 500k cash instead of having to jump through hoops, pay lawyers, hold an auction and in all likelihood end up owning a decaying house that no one wants to buy.
November 16, 2007 at 12:16 PM #100202EugeneParticipantWhen someone buys a house for 600k with no money down and then sells for 500k, it’s called “short sale”. Basically the bank must agree to take 500k and forgive the rest of the debt. For the seller it’s better than foreclosure because his credit history does not suffer as badly. For the bank it’s better than foreclosure because the bank gets 500k cash instead of having to jump through hoops, pay lawyers, hold an auction and in all likelihood end up owning a decaying house that no one wants to buy.
November 16, 2007 at 1:19 PM #100310(former)FormerSanDieganParticipantWhen someone buys a house for 600k with no money down and then sells for 500k, it’s called “short sale”.
This is true if the lender agrees to take that loss. The lender may make the seller jump through hoops to do so, and typically only after the seller falls behind on their payments.
November 16, 2007 at 1:19 PM #100232(former)FormerSanDieganParticipantWhen someone buys a house for 600k with no money down and then sells for 500k, it’s called “short sale”.
This is true if the lender agrees to take that loss. The lender may make the seller jump through hoops to do so, and typically only after the seller falls behind on their payments.
November 16, 2007 at 1:19 PM #100328(former)FormerSanDieganParticipantWhen someone buys a house for 600k with no money down and then sells for 500k, it’s called “short sale”.
This is true if the lender agrees to take that loss. The lender may make the seller jump through hoops to do so, and typically only after the seller falls behind on their payments.
November 16, 2007 at 1:19 PM #100342(former)FormerSanDieganParticipantWhen someone buys a house for 600k with no money down and then sells for 500k, it’s called “short sale”.
This is true if the lender agrees to take that loss. The lender may make the seller jump through hoops to do so, and typically only after the seller falls behind on their payments.
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