[bearishgurl]

flu, an individual with $110K just two years after a SS either recently won the lottery, recently inherited the money, or MUCH more likely, always had some of it, by putting it under a mattress while pleading poor to their lender-creditors so their SS would be approved and subsequently, their debt forgiven.

As a “worker-bee,” unless they landed at high-paying job immediately after their SS and had virtually zero living expenses since then, I don’t see how one could “save up” $110K whilst being “indigent enough” to show and tell their trust-deed holder(s) at the time of SS approval that they could neither pay their mortgage payment OR pay the difference of the short upon closing.

Of course, none of the Piggs are rocket scientists but neither did we fall off of an onion truck yesterday :=0

[bearishgurl]

I’m just curious how sd gal obtained $110K in two years since her SS yet she managed to stiff her lender by how much at closing?

Was she able to save up a good portion of this money while squatting?

If so, was she working all during her default and subsequent SS and thus it was a “strategic” SS?

And how did she get into this SS debacle in the first place? Was it due to “cashing out” her home “equity” and then deciding to stiff the lender when it came time to pay some or all of it back?

As you may surmise here, I have no sympathy for short sellers. I haven’t heard of ANYBODY being able to get a mortgage even three years after a SS! Perhaps other Piggs have but I question whether their recent purchase-money mtg was actually at a “competitive” rate with “competitive” terms and reasonable closing costs. A SS is technically the same as a foreclosure as far as FICO is concerned. Short sellers and foreclosure “victims” can’t have it both ways. Their debt (often massive) was “forgiven” and so now they’re going to be “damaged goods” for awhile and have to rent.

This is only fair to all those homeowners who lived within their means for the last decade-plus and played by the rules.

[bearishgurl]

[quote=Jazzman]First, apologies to OP for the hijack, and just to reiterate your instincts are right on target.

BG, please don’t take it personally, I do like CA and love the people. I just think homes are over-priced, as do many who live there. My home town London is a LOT worse.

Yes, you are right. We talked ourselves out of it, because we knew it was a losing battle some time ago. And you are right in that it is horses for courses. Maui is small, remote, and island fever sets in, which is why we will buy our main home near Paris. We’re in Honolulu (30 mins away) at the moment celebrating my birthday.[/quote]

Happy Birthday, Jazzman, and I guess you and your spouse don’t have to worry about being the “designated driver” today because you only need to take a cab or walk over to the nearest “puddle-jumper-port” and board one to get home!!

[bearishgurl]

[quote=Jazzman] . . . I really did my homework, and therein probably lies the problem. The more I became aware of the issues, the more skeptical I became. . .[/quote]

Jazzman, from your post above, it almost sounds as if you may have “overthought” several purchases and thus talked yourself out of competing for them. And most of the areas you were shopping in no doubt had a preponderance of all-cash buyers like yourself.

[quote=Jazzman]We did want to live in CA, but the poor choice of homes and asking prices was such a deterrent. If you are a cash buyer, it’s your money and you are much more reluctant to part with it than when using someone else’s. . . One thing I have noticed with Californians is a reluctance to acknowledge that there are alternatives. Until you have lived them you won’t know.[/quote]

I understand that you may have thought the prices of properties sellers were “holding fast” to were a deterrent for you, because you were comparing them to elsewhere (out-of-state/out-of-country??). Each micro-market has its own pricing nuances and attracts a particular subset of buyers over other types, thus a potential buyer should only compare it to itself or the properties within it to each other. You need to ask yourself why this is so. Most CA natives and long-time CA residents (ESP those approaching retirement) have traveled extensively throughout the country and many have traveled outside of the country, including myself. It doesn’t take attempting to live in a particular locale to determine if living there would be a better or worse lifestyle than the area one is already living in.

For example, I have personally visited two islands in HI (Oahu 4 times), but not Maui. I have heard of it from others who have visited Maui and have seen photos of it and will agree that it looks very beautiful and peaceful. However, I’m a person who likes to hit the open road periodically. Driving ’round and ’round a smallish “rock” on its 1-2 “highways” would give me “island fever” within a year. Yes, I would like to visit Maui someday but don’t think I would want to live there. So, for this reason, Maui might be a good choice for your retirement home but not mine. Different strokes for everyone but you must admit that Maui is NOT the Cont’l US and one must take a helicopter, light plane or boat in order to leave the island.

Congrats again, Jazzman, on your recent purchase of a retirement home on Maui, HI and I hope it offers you and your spouse much enjoyment!

[bearishgurl]

[quote=spdrun]The one exception with dorms/campus food being more expensive is if the student has a large financial aid/scholarship package. This can sometimes cover on-campus housing and food, but not apply to living costs off campus.[/quote]

As long as the financial aid pkg is a GRANT or scholarship and NOT a loan … yes it is worth it to take the “full ride” or reapply for it every year. If ever turned down midstream, though, and the student is already out-of-state after attending one or more years on the scholarship, they probably will need to come back to their home state to finish college.

Those out-of-state students accepted with scholarships or conditional scholarships with grants included for on campus dorms/meal tickets will NEVER be able to qualify for in-state tuition under those circumstances.

[bearishgurl]

[quote=bobby]Speaking from personal experience, if one chose a major carefully, it’s a very good idea to borrow for an education.[/quote]

Sure, up to $20K for an Accounting or other specialized business degree while under the age of 45 … preferably WELL under. NOT sure its worth it for an advanced degree as there is no guarantee anymore of a promotion when the student finally obtains it (excepting teachers, but that’s probably not happening as much anymore).

If the student is borrowing for a degree program which is glutted with unemployed majors, a program which is not occupational or for ANY degree program after the age of 45 (ESP in SD County, where THOUSANDS of GRATEFUL FT employees cross the int’l border every day to work), they are fools and will never see enough money from employment in this county to pay off that program in their lifetimes, IMHO.

“Legal” age discrimination is alive and well everywhere, although in some areas of the country it is much worse. SD County, CA is one of those areas.

[bearishgurl]

[quote=squat250]i have a new idea for enhancing college performance.

let kid get the “dorm” experience by living close by campus in student type rental housing and hang out with student roommates and work for a living for a year before going to college.

in this way, he can party his ass off, kind of hang out at the college he’s intereste din, sit in on some classes, meet people, but not ahve to do any academic work, accumulate no debt, but kinda clear his head or cloud it, depending on how things go.

i probably shoulda done that.[/quote]

scaredy, this is an excellent idea for a kid who is thinking of attending an out-of-state college with a CA HS Diploma. ESP if they have relatives in the area to look in on them and invite them in for a meal periodically so they can report back to the parents how they’re doing. I think doing this for a little more than a year might be a better plan (from June when they graduated HS to August of the following year when they enroll in college in the new locale) OR from May when they receive their Associate Degree at a(n) (inexpensive) CA community college until August of the following year when they check into the out-of-state campus. Of course, they will need to file at least ONE tax return in the new state (claiming themselves only), using W-2’s showing earnings received in that state. This is the way my brethren did it back in the day to avoid out-of-state tuition. A major caveat is that the prospective student should be continuously employed (full or part-time) and have a rental agreement or lease with their name on it showing intent to remain a resident and the CA-resident-parent will have to cease claiming them on their tax returns even if they’re helping with rent and bought them a vehicle. (Obviously, the out-of-state leaseholder can be a relative, preferably with a different last name than the prospective student).

In most states, out-of-state tuition is at least 275% of in-state tuition and should be avoided at all costs.

Again, working a year before college is an excellent idea for CA residents who won’t, by any stretch of the imagination, be able to be accepted into a CA university that they would want to attend (due to intense competition and VA preference) in the coming years. Even if accepted, it is and will be increasingly difficult to graduate in four years at UC/CSU (with CSU being more difficult) due to the systems cutting classes from their budget which are critically needed for degree programs. At CSU campuses, it often takes three semesters of waiting in line and crashing classes just to obtain a needed 300 or 400 level class to graduate in ANY degree program. Other, less-populous states don’t have this problem with their university system and so the student can easily finish in 4 years (or 2 yrs if they entered with an Assoc Degree). This “5-yr work-first-plan” is likely faster than if the CA HS/CC graduate were to enroll in a CA university and be unable to graduate in even six years due to critical class cuts.

I’m with CAR in that dorms EVERYWHERE are ridiculously expensive and small/lacking privacy when compared to 3-4 students living in a 2 bdrm apt, ESP in states with lower-cost rents. In addition, a ($350-$400 mo) campus meal ticket is a ripoff if the student is unavailable during the times the meals are served due to work/study commitments. And many student jobs offer an “employee menu” of free food so an expensive campus meal ticket is not necessary.

Graduating out-of-state college students always have the option of bringing their degrees back to CA to compete for jobs at “home” if they wish to return after college.

[bearishgurl]

It is unbelievable to me that a “boomer” would be delusional enough to do the following:

Borrow to get ANY degree for themselves after the age of 45;

-borrow more than $20K to get a degree for themselves while under the age of 45;

-co-sign for their kids a student loan;

-take out a student loan for their kid’s education;

-co-sign a mortgage for a personal residence for their kid and going on title with them;

-co-sign a auto loan for their kid; or

-co-sign a credit card for their kid.

I’ve seen a LOT … Persons a few years away from retirement have financially WRECKED themselves by doing the above. There is a such a thing as giving money to your kid for part or all of a downpayment on a principal residence as a gift, or;

-opening up and regularly feeding a college fund while your kid(s) are young;

-giving your kid a gift or graduation present of a vehicle or a downpayment for one, paid directly to the seller;

-providing your kid with vehicle insurance, cell phone and medical coverage while a full-time student;

-taking out a 2nd trust deed on your kid’s principal residence for part or all the downpayment you “loaned” them (although this is fraught with peril as well) …

-and, taking care of your grandchild(ren) while your kid (their parent) works.

************************

Even with a college degree under their belt, as an adult, your kid could very well:

Get into an auto accident with injury or death for which they are liable and are uninsured or underinsured;

-become severely injured themselves and unable to work;

-get a judgment against them for collections on consumer accounts and have their pay garnished;

-borrow too much to buy property they really can’t afford and become upside-down quickly;

-try to start a business with all their savings and lose it all;

-marry someone who gambles or turns into a drug addict;

-marry someone whom they have kids with who refuses to hold down a job for any length of time;

-have a child with birth defects;

-have multiple children and have to pay child support for all of them or be unable to collect child support for any of them;

-become a drug addict or alcoholic themselves and be unable to work;

-get addicted to gambling;

-get arrested and convicted of a felony and sent off to the Big House;

-file for divorce and their spouse turns vengeful, charging up, making claims against the “marital” property and taking everything they can;

****************************************

Don’t laugh, Piggs. I’ve seen ALL of this happen to college-educated young people who have/had FT jobs where their parent(s) “over-helped” them throughout life.

For YOU, as a parent, who is “retired” or “soon to retire,” all of the above (your kid’s) problems will become YOURS if you enmesh yourself with your adult child’s (age 18+) problems to the degree where you actually can’t afford to help anymore. YOU need to be able to pay for your OWN food, shelter and Medicare parts B & D until you die. YOU have NO CONTROL over how your kids conduct their lives when they are an adult. If YOUR kids can’t properly manage their OWN lives, how the h@ll are they going to be able to help YOU if you become indigent in your old age as a direct result from helping them … long past the age (for you and them) where you actually SHOULD have done so?

Thanks for posting, scaredy. It’s an eye opener and those affected seniors should be grateful that the GOV is only garnishing 15% of their SS checks. I foresee a lot of these seniors with a balance still owed to Sallie Mae, etc at the time of their deaths.

Piggs, PLEASE COACH your kids to REFRAIN from taking out student loans ENTIRELY!!!!!!

Like flu posted earlier today, tell them get a job at Costco for $20 an hr. They likely won’t make that kind of money fresh out of college with a(n expensive) “Bachelor Degree.” If your college student runs out of money midstream …. tell them to finish the quarter or semester and WITHDRAW and continue another day when they have more $$.

That’s what people in my generation and those before us did. It’s really okay to go to school at night after work when you are working in a FT job – 1-2 classes at a time. You know exactly what you want to do by then 🙂

College is getting to be a scam … ESP private “for profit” schools.

[end of rant]

[bearishgurl]

[quote=Wantoceanview]It came down to $825K. We went ahead and put an offer in but they are stuck at wanting $800K. Still too much, IMO.

We are still looking…[/quote]

Thanks for keeping the Piggs posted, Wantoceanview.

Yes, I agree, it’s still too much.

[bearishgurl]

[quote=briansd1]I recall jazzman saying that he bought in Maui. And he’s looking to buy a house in France. Good choices.[/quote]

I recall the Maui post. But I’m always curious as to the motivation of someone who can afford some of Cali’s best areas, shops in those areas (or did they really?), purportedly REALLY wanted to stay in Cali, but then ends up buying somewhere else.

I feel if one can’t buy some semblance (even a fixer in the “right” location) of their “dream” retirement home in CA (even when they are in the fortunate position of having the money and/or is otherwise qualified to buy) in the current favorable environment of a combination of lower prices and rock-bottom interest rates, then they will never be able to. We are currently experiencing this incredible window of opportunity and no one really knows how long it will last.

Perceived “lack of inventory” be damned …

[bearishgurl]

If I could have gotten “credit” for being a principal, I would have been a broker by 1990, lol …

[bearishgurl]

I actually have well over the required amount of experience as a salesperson. It’s just not consecutive ….

[bearishgurl]

[quote=spdrun]…How hard does DRE check?[/quote]

VERY hard. They have all the records from where every salesperson’s license is hung and with whom and for how long from day one.

A way around this requirement is for the Salesperson candidate to possess a CA CPA license or be a member of the CA State Bar. These candidates can pay for and sit for the CA RE Broker’s examination with no additional RE education above the salesperson requirement and no sales experience whatsoever (in anything)!

[bearishgurl]

Given all that our “esteemed” Legislature is dealing with at the present, I don’t think this will go anywhere. Small biz doesn’t need GOV oversight to manage a pension plan for its employees. It’s a waste of taxpayer $$ that we don’t have. There are PLENTY of firms in and out of state that will manage a small biz pension plan and even make it portable for the employees to take elsewhere!

In March 2014, when the next phase of the HCRA kicks in, ALL employees, regardless of health or who they work for, will have access to a *reasonably priced* health plan. This, combined with a “portable” retirement plan, will make a lot of small-biz employees virtually “free-agents.” Employees will then not be married to an employer they don’t want to work for anymore so this can only be good.

[bearishgurl]

[quote=Jazzman][quote=bearishgurl]
******************************************
I have a question for you Jazzman … Was LJ proper where you were looking for a SFR to buy before you got frustrated with the local market there and left SD? And if so, and you had been successful making an acceptable deal there, would it have been the first property you owned in a CA coastal county?[/quote]

I chose La Jolla because prices are at the stickier end of the spectrum. If you do the same analysis on many other places, coastal or otherwise, the price differential over the same period is an eye opener. Homes are over-priced. It’s a lot to pay for what you get, doesn’t matter what, so no justification in my view. I’m not swayed by arguments of affordability, or location.

To your question, we looked at La Jolla, Del Sur, Encinitas, Laguna Beach, Pasadena, Marin County, but decided the best of all places was Santa Barbara. We could afford a home in most of these places, but that wasn’t the issue here. I believe there is an innate sense of value for money (sadly being eroded by easy money). Many homes lacked aesthetic appeal, build quality, with tons of deferred maintenance. In a nutshell, pretty disappointing.

My experience with real estate is not confined to the last few years, nor just in the US, so my perspective is going to differ somewhat from yours.

Now I have a question for you? What is your interest in real estate?[/quote]

Jazzman, since those areas you mentioned are somewhat far apart, I take it you were looking for a CA retirement home? After all that searching, it REALLY sounds here like you wanted to retire in CA. Did you actually physically visit all those places and look at property/place offers?

Every single destination you listed here (except Del Sur) are well-established desirable CA communities and all are coastal except Del Sur and Pasadena (which is VERY desirable in its own right due to architecture and mature tree-lined streets in select areas). Aside from a stratospheric MR encumbrance, I don’t know much about Del Sur but know that homes within it probably wouldn’t have had deferred maintenance, due to being relatively new.

Correct me if I’m wrong here, but I take it from your posts that you could afford to purchase in all of these places but were unhappy with the size, location and/or condition of particular homes that were in your price range and/or that you were outbid when placing offers on properties of interest.

Had you thought of buying a fixer and fixing it up? After all, if you are retired or semi-retired, it stands to reason that you would have the time for DIY, no?

What happened with your favorite destination, Santa Barbara? If the houses you could buy were too small there, why didn’t you look in Solvang, Ojai or Santa Maria? Those towns are more fire-prone but very well-located (for traveling throughout the state) places to retire.

For someone who went thru all this house-shopping up and down this glorious state and could afford the prices, I don’t understand why you couldn’t have made a deal. If I REALLY wanted to retire in CA and found a property I REALLY liked (listed or not), I would have hammered it out on a napkin on the owner’s picnic table, asked them to sign it over a bottle of 2-buck chuck and came back to consummate it properly before giving up on Cali. But that’s just me.

I’ve been a CA RE licensee for three decades (Salesperson). My license is current but it has not been hung with a broker for about nine years. In addition, I am a licensed notary and paralegal (specialization: business lit) and possess all the requisite education for a CA RE Broker’s license but do not have the four years consecutive experience as a salesperson as required by DRE to qualify to take the Broker’s exam. Since I worked FT at a “day job” all during the time I was a “practicing” RE Salesperson (PT), I mainly had friends, co-workers, referrals and myself for principals and clients. I have owned several properties in SD County, both rental and personal residence, ALL in metro San Diego (south of I-8) and south county. A current homeowner, have been a SD County resident for over 35 years, a longtime daily runner in the dtn SD area and so am intimately familiar with several SD communities.

My lengthy primary work experience in the legal field includes criminal law, administrative law (tribunals), employment, labor law, collective bargaining, business formation and dissolution (SOS processing), RE Agency & other RE litigation and land use (All CA).

I’m from Alameda County but have many relatives in those “flyover states” whom I try to visit at least once a year.

[Author]

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