Will honest people start doing dirty/crooked things to bail out of their houses

[Anonymous]

HLS, yes I am a Realtor. Are you a renter? You sound like the bitter renters I meet who think homeowners are idiots and get pissed off at your landlord because he has decided to sell and you have to move again.

And because I am a Realtor and a homeowner, as well as investor, I DO understand what a stretch it is to buy. Unfortunately, I wasn’t born rich so I had to scrape and save like other people should to buy a house and give up the idea of a new car and eating out to make a mortage payment. I have helped approximately 60 couples/individuals buy homes during the past 5 years an NONE of them have lost their homes. A few of them have pulled out cash and wish they didn’t. I never recommend flipping. I always ask people whether or not they can afford the home in the long run. You seem to think everyone in the real estate business is unethical. (I guess it’s similar to how I think people who rent for 20+ years aren’t very smart.)Yes, I’m a little old fashioned about the P&I but I want to retire without a mortgage, although I realize a lot of people don’t care.

I challenge you to find any unhappy homeowner who has lived in their home for more than 10 years and never pulled cash.

[blew_it]

HLS (or anyone else), are you sure that’s correct that you don’t take a debt relief hit from walking on a first mortgage? That is contrary to what I’ve been reading regarding the “double whammy” of foreclosure with the tax hit piled on.

[blew_it]

HLS (or anyone else), are you sure that’s correct that you don’t take a debt relief hit from walking on a first mortgage? That is contrary to what I’ve been reading regarding the “double whammy” of foreclosure with the tax hit piled on.

[HLS]

First mortgage isn’t the issue..
The issue is Recourse Debt or NON-Recourse debt.

Purchase Money loans are usually NON recourse debt.
(Refi Loans are RECOURSE debt)

Non-recourse loans: A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property being financed or used as collateral.That is, the lender cannot pursue you personally in case of default.

Forgiveness of a non-recourse loan resulting from a foreclosure does NOT result in cancellation of debt income.

Taxable cancellation of debt income.(Note: As stated above, cancellation of debt income is not taxable in the case of non-recourse loans.)

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

CONSULT A CPA for your personal situation.

[HLS]

First mortgage isn’t the issue..
The issue is Recourse Debt or NON-Recourse debt.

Purchase Money loans are usually NON recourse debt.
(Refi Loans are RECOURSE debt)

Non-recourse loans: A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property being financed or used as collateral.That is, the lender cannot pursue you personally in case of default.

Forgiveness of a non-recourse loan resulting from a foreclosure does NOT result in cancellation of debt income.

Taxable cancellation of debt income.(Note: As stated above, cancellation of debt income is not taxable in the case of non-recourse loans.)

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

CONSULT A CPA for your personal situation.

[JWM in SD]

“I challenge you to find any unhappy homeowner who has lived in their home for more than 10 years and never pulled cash.”

Shari, are freaking kidding me?? How long have you been reading this site? This is not about homeowners who bought 10 years ago with traditional financing and didn’t pull cash out. They are not going to drive the market so they are….IRRELEVANT.

Now go back to selling houses to suckers….

[JWM in SD]

“I challenge you to find any unhappy homeowner who has lived in their home for more than 10 years and never pulled cash.”

Shari, are freaking kidding me?? How long have you been reading this site? This is not about homeowners who bought 10 years ago with traditional financing and didn’t pull cash out. They are not going to drive the market so they are….IRRELEVANT.

Now go back to selling houses to suckers….

[Anonymous]

I haven’t been on this sight long but I thought it was about the current housing market, past cycles, historic trends, etc. I thought it was about how to look at what is happening today in a broader context.

But now I see the light…it sucks out there; the prices will never stop falling; the end is nowhere in sight; everyone who has lost any equity should bail now before it gets worse; you’ve got to be an idiot to even think about buying, etc.

Better?

[Anonymous]

I haven’t been on this sight long but I thought it was about the current housing market, past cycles, historic trends, etc. I thought it was about how to look at what is happening today in a broader context.

But now I see the light…it sucks out there; the prices will never stop falling; the end is nowhere in sight; everyone who has lost any equity should bail now before it gets worse; you’ve got to be an idiot to even think about buying, etc.

Better?

[JWM in SD]

No, it doesn’t suck one is smart enough to see through the lies and fraud perpetuated by the NAR and CAR. I have cash and I have time, declining prices are good for me and are bad for flippers and “investors”…welcome to the real world where there are cycles. If what you want is to perpetuate unaffordability, then you are a proponent of the continued economic damage to this country and worthy of my scorn.

[JWM in SD]

No, it doesn’t suck one is smart enough to see through the lies and fraud perpetuated by the NAR and CAR. I have cash and I have time, declining prices are good for me and are bad for flippers and “investors”…welcome to the real world where there are cycles. If what you want is to perpetuate unaffordability, then you are a proponent of the continued economic damage to this country and worthy of my scorn.

[Coronita]

HLS, yes I am a Realtor. Are you a renter? You sound like the bitter renters I meet who think homeowners are idiots and get pissed off at your landlord because he has decided to sell and you have to move again.

 

 

meow-ouch..Catfight…catfight…

I definitely wouldn't be buying right now. 1) mortgage interest rate is well above the low of 5% days that allowed one to buy a high six digit home, 2)home prices have not fallen enough to offset the rise in a mortgage interest rate. Buying now would be worse than buying in 2004 or 2005 imho, because you get a crappy interest rate and haven't seen a correction large enough to offset that additional interest amount.

 

 

Why do some Realtor's always like to throw in…"Renter" card? Wow being a renter is soo bad? The big bad loser renter. There are different reasons to rent and buy at any time. And who really "owns" that home with an outstanding mortgage? Bank? Gessh.. I feel like I just walked into a BMW or Mercedes dealer. IE: arrogant sales pitches stating it's a privilege to drive that POS bangle-butt inspired design BMW or chrysler quality like 1/2 assembled in outside germany mercedes. Worse, I love seeing all the Mercedes and BMW drivers who take out ridiculous 4-5 year leases thinking they "own" a BMW/Mer…That's pretty funny too.

No, I'm not bitter, no I'm not a renter, and no I'm not jealous of people that drive BMW and Mercedes. (Although a bit jealous of those that can afford to drive and maintain things like a 997, M5, R8,).

 

[Coronita]

HLS, yes I am a Realtor. Are you a renter? You sound like the bitter renters I meet who think homeowners are idiots and get pissed off at your landlord because he has decided to sell and you have to move again.

 

 

meow-ouch..Catfight…catfight…

I definitely wouldn't be buying right now. 1) mortgage interest rate is well above the low of 5% days that allowed one to buy a high six digit home, 2)home prices have not fallen enough to offset the rise in a mortgage interest rate. Buying now would be worse than buying in 2004 or 2005 imho, because you get a crappy interest rate and haven't seen a correction large enough to offset that additional interest amount.

 

 

Why do some Realtor's always like to throw in…"Renter" card? Wow being a renter is soo bad? The big bad loser renter. There are different reasons to rent and buy at any time. And who really "owns" that home with an outstanding mortgage? Bank? Gessh.. I feel like I just walked into a BMW or Mercedes dealer. IE: arrogant sales pitches stating it's a privilege to drive that POS bangle-butt inspired design BMW or chrysler quality like 1/2 assembled in outside germany mercedes. Worse, I love seeing all the Mercedes and BMW drivers who take out ridiculous 4-5 year leases thinking they "own" a BMW/Mer…That's pretty funny too.

No, I'm not bitter, no I'm not a renter, and no I'm not jealous of people that drive BMW and Mercedes. (Although a bit jealous of those that can afford to drive and maintain things like a 997, M5, R8,).

 

[Anonymous]

JWM–I’m in 1000% agreement that there are cycles–I never said there weren’t. I don’t think I have anything to do with economic damage to this country, except on a personal level I don’t own a flat screen TV, I don’t buy new cars, I don’t have credit card debt because I don’t buy that much “stuff” and our economy is dependent on people over extending themselves to buy “stuff” (including houses).

I recently met a young couple who bought their house in 2002 for $289,000. A year ago, they refied into a negative AM loan with $60,000 cash out to remodel the kitchen and buy a new car, plus got a line of credit pay off some credit cards. Now their house on the market as a short sale because they are overwhelmed by the payments. The first two weeks their house was on the market they went on a Hawaiian cruise. Is unaffordable housing their problem?? Is the blood-sucking Realtor who sold them the home to blame?? Is the scum bag mortgage broker who sold them a neg AM at fault?? Is the bank who gave them money to buy a new SUV the problem?? Sure some buyers were dupped into loans that they didn’t understand, so scorn the whole lot of us if you like but we are not the reason our economy nor the housing market is in its current state.

Fat_Lazy_Union–HLS just sounds like a lot of the renters I meet. They come into my open houses gloating about how smart they are that they haven’t bought a house. I’m not saying renters are bad people, although almost everyone on this board calls Realtors scum suckers. Just joshing, but I do believe in the long run, homeowners get ahead financially.

[Anonymous]

JWM–I’m in 1000% agreement that there are cycles–I never said there weren’t. I don’t think I have anything to do with economic damage to this country, except on a personal level I don’t own a flat screen TV, I don’t buy new cars, I don’t have credit card debt because I don’t buy that much “stuff” and our economy is dependent on people over extending themselves to buy “stuff” (including houses).

I recently met a young couple who bought their house in 2002 for $289,000. A year ago, they refied into a negative AM loan with $60,000 cash out to remodel the kitchen and buy a new car, plus got a line of credit pay off some credit cards. Now their house on the market as a short sale because they are overwhelmed by the payments. The first two weeks their house was on the market they went on a Hawaiian cruise. Is unaffordable housing their problem?? Is the blood-sucking Realtor who sold them the home to blame?? Is the scum bag mortgage broker who sold them a neg AM at fault?? Is the bank who gave them money to buy a new SUV the problem?? Sure some buyers were dupped into loans that they didn’t understand, so scorn the whole lot of us if you like but we are not the reason our economy nor the housing market is in its current state.

Fat_Lazy_Union–HLS just sounds like a lot of the renters I meet. They come into my open houses gloating about how smart they are that they haven’t bought a house. I’m not saying renters are bad people, although almost everyone on this board calls Realtors scum suckers. Just joshing, but I do believe in the long run, homeowners get ahead financially.

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