[bob2007]

Hmmm… Psyc degree, hard to get a job….
I have a few friends in this same situation. Seems like a PHD is required for them to be considered for even the lowest level jobs. Sad but true.

[bob2007]

Hmmm… Psyc degree, hard to get a job….
I have a few friends in this same situation. Seems like a PHD is required for them to be considered for even the lowest level jobs. Sad but true.

[bob2007]

Hmmm… Psyc degree, hard to get a job….
I have a few friends in this same situation. Seems like a PHD is required for them to be considered for even the lowest level jobs. Sad but true.

[bob2007]

I am not an agent or related to RE in any way, other than owning a home.

The original post is very time sensitive. Sometimes it is good to buy, sometimes not. However, the agent can’t and should not make the buy or loan decisions for the buyer because nobody knows what may happen (except for those on this list that claim to know).

I think it is a very likely possibility that if an agent discouraged a family from buying because they really could not afford it, they would get reported, sued, called racists if the family was a minority, etc.

The agent is there to market and sell the home. The buyer is responsible for their finances. The lending institutions are in the same boat as realtors with respect to declining an application. They need to blindly apply the current corporate policy otherwise it is discrimination.

So I fault the lending institutions for bad practice, but in the end buyer beware. There really is no other way.

[bob2007]

I am not an agent or related to RE in any way, other than owning a home.

The original post is very time sensitive. Sometimes it is good to buy, sometimes not. However, the agent can’t and should not make the buy or loan decisions for the buyer because nobody knows what may happen (except for those on this list that claim to know).

I think it is a very likely possibility that if an agent discouraged a family from buying because they really could not afford it, they would get reported, sued, called racists if the family was a minority, etc.

The agent is there to market and sell the home. The buyer is responsible for their finances. The lending institutions are in the same boat as realtors with respect to declining an application. They need to blindly apply the current corporate policy otherwise it is discrimination.

So I fault the lending institutions for bad practice, but in the end buyer beware. There really is no other way.

[bob2007]

Two things I’m not clear on:

1. JWM: “This will launch a vicious cycle that feeds on it self. As comps get slaughtered, an incresing number of homeowners that might have otherwise weathered the storm will get dragged into this mess.”

Who are you referring to? If they are “weathering the storm”, the what difference do the comps make? It seems like the referral to these type of people on this board categorize them as having affordable mort. and want to live in their house long term.

2. patientlywaiting: “People aren’t going to buy unless they can see substantial appreciation in a 5 year time frame.”

I don’t think this is true. Someone has asked the question before about where the desire to move every 5 years came from. I don’t know, but I people in general don’t need to move every 5 years. Housing should not be a revenue generator, ideals will return to buying a house as a place to live.

[bob2007]

Two things I’m not clear on:

1. JWM: “This will launch a vicious cycle that feeds on it self. As comps get slaughtered, an incresing number of homeowners that might have otherwise weathered the storm will get dragged into this mess.”

Who are you referring to? If they are “weathering the storm”, the what difference do the comps make? It seems like the referral to these type of people on this board categorize them as having affordable mort. and want to live in their house long term.

2. patientlywaiting: “People aren’t going to buy unless they can see substantial appreciation in a 5 year time frame.”

I don’t think this is true. Someone has asked the question before about where the desire to move every 5 years came from. I don’t know, but I people in general don’t need to move every 5 years. Housing should not be a revenue generator, ideals will return to buying a house as a place to live.

[bob2007]

I’m not a lawyer, but I believe the specific types of business entities you listed (all are pass-throughs and do not hold any assets), as well as revocable trust accounts, don’t provide any protection on this whatsoever. Possibly some minor equity can be isolated with a C corp. The trust account issue was a major misconception on my part before I set one up – it only helps with taxes when you die, it does not provide any protection of assets. If someone on this list is an expert, please correct my statements.

[bob2007]

Cashman, I hear you and understand the frustration. I too think prices will come down, but every year that goes by moves the average opinion of this board out 2-3 years more when the drop does not meet expectations. The last round threw around 2012 quite a bit, and I’m sure that will be extended further in 2010. With that type of progress we will eventually be able to just skip the whole house thing and start looking at retirement homes.

That said, there was actually an interesting suggestion that you could up the rent paid now and start enjoying your money. If you spend 6k to 7k on rent you can probably get a pretty nice place for the next few years and see how things pan out in the market. With the cash you have I wonder if it might be a good idea to start looking for unique properties that might come one the market in the next year or two – ones that would be very desirable in any market to give you an edge if you want to sell it.

[bob2007]

It would warm my heart if you didn’t post the same article as jficquette.

[bob2007]

Even if you totally agree with him, there is a major problem. It is human nature to take control. Someone/people/country, etc. will always want to dominate. If any current power gives up control or becomes weak, those that have never been in the power position will see an opportunity.

[bob2007]

I would think that a prime borrower with a score of 800 would have put 20% down and had a non-toxic loan. On 600k to 400k they would be walking on 80k (plus sale commissions unless they sell it themselves). I could be wrong, but to me it seems like someone with 800 would be smarter than 100% financing.

[bob2007]

I would think that a prime borrower with a score of 800 would have put 20% down and had a non-toxic loan. On 600k to 400k they would be walking on 80k (plus sale commissions unless they sell it themselves). I could be wrong, but to me it seems like someone with 800 would be smarter than 100% financing.

[bob2007]

I would think that a prime borrower with a score of 800 would have put 20% down and had a non-toxic loan. On 600k to 400k they would be walking on 80k (plus sale commissions unless they sell it themselves). I could be wrong, but to me it seems like someone with 800 would be smarter than 100% financing.

[bob2007]

Looks like the CDs are combined with the other accounts. From the FDIC web site:
http://www.fdic.gov/deposit/deposits/insuringdeposits/

Single Accounts
These are deposit accounts owned by one person and titled in that person’s name only. All of your single accounts at the same insured bank are added together and the total is insured up to $100,000. For example, if you have a checking account and a CD at the same insured bank, and both accounts are in your name only, the two accounts are added together and the total is insured up to $100,000.

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