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August 6, 2011 at 12:11 PM in reply to: 4S Mello-Roos will take 30 more years (2040) to payoff #716244August 6, 2011 at 12:11 PM in reply to: 4S Mello-Roos will take 30 more years (2040) to payoff #716397
bearishgurl
Participant[quote=ahewitson]…I’d be interested to hear a compelling argument NOT to pay off your MR.[/quote]
ahewitson, your calcuations are based upon a few assumptions:
1. That persons who might be interested in making an offer of your home would factor in the MR into their monthly payment. Not all would. The reason so many of those properties with exorbitant MR originally and subsequently sold is because the buyer didn’t factor the cost of MR into their monthly budget. The MR is typically only paid twice per year with property taxes and every buyer doesn’t think like a “typical Pigg.”
2. That you will not be able to make MORE substantial interest (than the 2% the interest on the bonds) in the future on the huge amount you are considering throwing away on “advance MR payments.”
Even if your intention is to keep and even live in the property for 11+ years, I think that is a shortsighted view. Life brings all kinds of twists and turns and frankly, NO ONE knows where they will be in 11+ years or even if they’ll still be alive … not even those who own their principal residences free and clear! I think if you are still young or relatively young, with a mortgage, you should leave your options open and be prepared to get your property ready to sell at any time.
In addition, if your property or the one you’re considering purchasing (with the exorbitant MR encumbrance) is located within well-known CFD’s by the buying public, those buyers who want to avoid paying MR will not even look at it or consider visiting your area to shop in. Your comments in your listing may state that seller has paid off the bonds to a certain date or paid them off entirely, but will potential buyers see this if they know 99% of 92127 is located within one or more CFD’s and thus don’t even look in that area? And for the potential buyers who do see your comment, how much over the sales price of your neighbors (who still owe their MR) will they be willing to pay for your property (to “reimburse” you for your advance payment)? Do you think you can “recover” up to $60K, or even $30K or $10K of your advance payoff of the bonds upon sale??
I just don’t see an “advance payment” of MR working out financially for a property owner. Instead I see loss. Even if you put the $60K into upgrades, I see most of it lost in 4S, due to massive distress. I believe this area has a ways to go before it is out of the woods.
August 6, 2011 at 12:11 PM in reply to: 4S Mello-Roos will take 30 more years (2040) to payoff #716752Participant[quote=ahewitson]…I’d be interested to hear a compelling argument NOT to pay off your MR.[/quote]
ahewitson, your calcuations are based upon a few assumptions:
1. That persons who might be interested in making an offer of your home would factor in the MR into their monthly payment. Not all would. The reason so many of those properties with exorbitant MR originally and subsequently sold is because the buyer didn’t factor the cost of MR into their monthly budget. The MR is typically only paid twice per year with property taxes and every buyer doesn’t think like a “typical Pigg.”
2. That you will not be able to make MORE substantial interest (than the 2% the interest on the bonds) in the future on the huge amount you are considering throwing away on “advance MR payments.”
Even if your intention is to keep and even live in the property for 11+ years, I think that is a shortsighted view. Life brings all kinds of twists and turns and frankly, NO ONE knows where they will be in 11+ years or even if they’ll still be alive … not even those who own their principal residences free and clear! I think if you are still young or relatively young, with a mortgage, you should leave your options open and be prepared to get your property ready to sell at any time.
In addition, if your property or the one you’re considering purchasing (with the exorbitant MR encumbrance) is located within well-known CFD’s by the buying public, those buyers who want to avoid paying MR will not even look at it or consider visiting your area to shop in. Your comments in your listing may state that seller has paid off the bonds to a certain date or paid them off entirely, but will potential buyers see this if they know 99% of 92127 is located within one or more CFD’s and thus don’t even look in that area? And for the potential buyers who do see your comment, how much over the sales price of your neighbors (who still owe their MR) will they be willing to pay for your property (to “reimburse” you for your advance payment)? Do you think you can “recover” up to $60K, or even $30K or $10K of your advance payoff of the bonds upon sale??
I just don’t see an “advance payment” of MR working out financially for a property owner. Instead I see loss. Even if you put the $60K into upgrades, I see most of it lost in 4S, due to massive distress. I believe this area has a ways to go before it is out of the woods.
ParticipantLol…
Customers at the bar told reporters the “shitfaced” and disruptive Bernanke refused to pay for his drinks with U.S. currency, claiming it was “worthless.” Witnesses also confirmed that near the end of the evening, Bernanke put money into the jukebox and selected Dire Straits’ “Money For Nothing” to play five times in a row.
“This is what it’s all about,” said Bernanke, who reportedly danced alone in the middle of the dark tavern. “Fucking love this song.”
[img_assist|nid=15193|title=A drunken Bernanke attempts to find the Aerosmith song “Back In The Saddle” on the bar jukebox.|desc=|link=node|align=left|width=100|height=67]
ParticipantLol…
Customers at the bar told reporters the “shitfaced” and disruptive Bernanke refused to pay for his drinks with U.S. currency, claiming it was “worthless.” Witnesses also confirmed that near the end of the evening, Bernanke put money into the jukebox and selected Dire Straits’ “Money For Nothing” to play five times in a row.
“This is what it’s all about,” said Bernanke, who reportedly danced alone in the middle of the dark tavern. “Fucking love this song.”
[img_assist|nid=15193|title=A drunken Bernanke attempts to find the Aerosmith song “Back In The Saddle” on the bar jukebox.|desc=|link=node|align=left|width=100|height=67]
ParticipantLol…
Customers at the bar told reporters the “shitfaced” and disruptive Bernanke refused to pay for his drinks with U.S. currency, claiming it was “worthless.” Witnesses also confirmed that near the end of the evening, Bernanke put money into the jukebox and selected Dire Straits’ “Money For Nothing” to play five times in a row.
“This is what it’s all about,” said Bernanke, who reportedly danced alone in the middle of the dark tavern. “Fucking love this song.”
[img_assist|nid=15193|title=A drunken Bernanke attempts to find the Aerosmith song “Back In The Saddle” on the bar jukebox.|desc=|link=node|align=left|width=100|height=67]
ParticipantLol…
Customers at the bar told reporters the “shitfaced” and disruptive Bernanke refused to pay for his drinks with U.S. currency, claiming it was “worthless.” Witnesses also confirmed that near the end of the evening, Bernanke put money into the jukebox and selected Dire Straits’ “Money For Nothing” to play five times in a row.
“This is what it’s all about,” said Bernanke, who reportedly danced alone in the middle of the dark tavern. “Fucking love this song.”
[img_assist|nid=15193|title=A drunken Bernanke attempts to find the Aerosmith song “Back In The Saddle” on the bar jukebox.|desc=|link=node|align=left|width=100|height=67]
ParticipantLol…
Customers at the bar told reporters the “shitfaced” and disruptive Bernanke refused to pay for his drinks with U.S. currency, claiming it was “worthless.” Witnesses also confirmed that near the end of the evening, Bernanke put money into the jukebox and selected Dire Straits’ “Money For Nothing” to play five times in a row.
“This is what it’s all about,” said Bernanke, who reportedly danced alone in the middle of the dark tavern. “Fucking love this song.”
[img_assist|nid=15193|title=A drunken Bernanke attempts to find the Aerosmith song “Back In The Saddle” on the bar jukebox.|desc=|link=node|align=left|width=100|height=67]
Participant[img_assist|nid=15191|title=Bernanke and “friend” Miller|desc=|link=node|align=left|width=304|height=166]
Participant[img_assist|nid=15191|title=Bernanke and “friend” Miller|desc=|link=node|align=left|width=304|height=166]
Participant[img_assist|nid=15191|title=Bernanke and “friend” Miller|desc=|link=node|align=left|width=304|height=166]
Participant[img_assist|nid=15191|title=Bernanke and “friend” Miller|desc=|link=node|align=left|width=304|height=166]
Participant[img_assist|nid=15191|title=Bernanke and “friend” Miller|desc=|link=node|align=left|width=304|height=166]
ParticipantYeah, Arraya posted it yesterday. “Helicopter Ben” must have been confident that the security of his FRB “chairman appt” reigns supreme, lol.
[quote=Arraya (from the “deficit reduction” thread)]On a lighter note – sort of:
Drunken Ben Bernanke Tells Everyone At Neighborhood Bar How Screwed U.S. Economy Really Is
http://www.theonion.com/articles/drunken…“Look, they don’t want anyone except for the Washington, D.C. bigwigs to know how bad shit really is,” said Bernanke, slurring his words as he spoke. “Mounting debt exacerbated—and not relieved—by unchecked consumption, spiraling interest rates, and the grim realities of an inevitable worldwide energy crisis are projected to leave our entire economy in the shitter for, like, a generation, man, I’m telling you.”
[/quote]
ParticipantYeah, Arraya posted it yesterday. “Helicopter Ben” must have been confident that the security of his FRB “chairman appt” reigns supreme, lol.
[quote=Arraya (from the “deficit reduction” thread)]On a lighter note – sort of:
Drunken Ben Bernanke Tells Everyone At Neighborhood Bar How Screwed U.S. Economy Really Is
http://www.theonion.com/articles/drunken…“Look, they don’t want anyone except for the Washington, D.C. bigwigs to know how bad shit really is,” said Bernanke, slurring his words as he spoke. “Mounting debt exacerbated—and not relieved—by unchecked consumption, spiraling interest rates, and the grim realities of an inevitable worldwide energy crisis are projected to leave our entire economy in the shitter for, like, a generation, man, I’m telling you.”
[/quote]
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