Um PS, no way did Poway only fall ten percent. I personally lived through that one. Someone is cooking the numbers. It was much worse than that. Even inflation adjusted. Poway was a total speculative boom/bust market in the late 80’s and early 90’s.
I have never seen a lease to owen/own where the option was refundable. Thats the catch. The owner is hoping that you’ll walk away from it, or more likely that he can sell you an overpriced house. These schemes become very popular in a declining market.
I could think of a scenario. If you were 80 years old, take out one of these loans. The odds that anyone would collect are just about nil. Dying broke isn’t a bad way to go.
Davelj, reversion to the mean, maybe a bit of overshoot is doom mongering? I think not. We always come back to that, just like, “who’s ox is being gored.”
Hey socalarm, I liked the idea of returning Texas to Mexico. I’m going to write my senators about that. Strangely though, nowhere in that manifesto was the forced confiscation of large SUV’s for economy cars! I guess the Democratic party has gone soft.
Kaycee, what part of the country are you in? Sorry to hear that both you and your sister-in-law are having such a hard time.
I find your comment about just wanting it to land fascinating. Simply because there is always a price at which your place will sell, you just have to find it. If we have a hard landing as alot of us predict its just alot further down than a soft one. So which type of landing would you prefer?
The problem is we don’t know why on the equity extraction. These people kept it together all through the madness till ’05 then went off the rails. It could have been a medical problem or job loss, we just don’t know. The only thing that is certain is that they were in for a penny, in for a pound.
Josh
