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CAwireman
ParticipantHi all,
I spoke with a Banc of America person (note the c, not the k). Banc of America is separate and apart from Bank of America, but most people on this Blog probably already know that.
This person said that B of A, (whichever institution is responsible for loaning money to builders) is indeed refusing to loan money on the vast majority RE requesters.
They don’t apparently want to throw good money after potentialy bad, at this time.When I spoke with this person (good open minded special services provider) the person wasn’t aware of the ARM adjustment deliema. I explained that a small percentage increase in an ARM adjustment could mean quite a large adjustment in the monthly payment.
After tapping it out on the calculator, the B of A rep, said, yeah, that could really be painful.
October 1, 2006 at 7:17 PM in reply to: People still buying – masses have no clue about bubble #36973ParticipantNeighbors in our rental complex just bought a place in San Marcos for about $760K. My wife mentioned to them that they might want to wait a while (which is a big step for her, since she too longs for one). But, they had new home (or used home) fever and they bought.
On one hand the husband is pretty successful in the medical field. So, if his likely high-paying job is steady, then they’ll probably be able to make the payments.
Its just that 5 years from now, if they decide they want to move to different part of town, they could be stuck in an overpriced home that isn’t worth what’s owed on it. Claustraphobic. (sp?)
September 23, 2006 at 12:27 PM in reply to: Senate Banking Committee Video on Non-traditional Mortgages #36182Participant“When it Hits”
When one chairman asked this question: what happens when “it hits” * the answers were very evasive. (agreeing
with PS)Paraphrasing:
“The numbers are low right now…but they might be higher
later”The Chair persons asked tough questions of the regulators but let them off pretty easily.
*ARMs reset en masse and people are upside down.
Sarbanes asked about the sustainability of the whole process and accountability (bank makes loan and sells it off)as well as validating the borrowers ability to handle the loan: Answers were – “we concur, the new guidelines will fix everything. No real problems here”.
You know, based upon the senate hearing, I think we’re okay. We should ask Rich to shut down the site and do something more productive with his time. ;- )
ParticipantWhen I tried in vein to sell my place in the 90’s I switched realtors 2 or 3 times. I think I just faxed over a memo to that effect and it was accepted.
Is it still that straight forward?
ParticipantJG, keep the graphs coming! Question – how long did the trough last? can't read the fine print on the x axis….
On average, median prices for resale homes remained within 2% (
Your frowny face means: Bad the trough lasted a long time, or bad the trough lasted a short time? Other?
ParticipantWaiting Hawk, good multimedia post.
It sounds like the type of company that gets the owner to deed over the property and the company negotiates the loss with the bank.
If so, I think the 1099 will still apply and the seller will be responsible for the tax burden.
ParticipantSounds like fun. Here’s my email address: [email protected]
Look forward to meeting everyone.
ParticipantAvidsaver, yes, that’s the overall impression I got.
I still think that we’ll see greater drops than 8 – 10 % this time round. But if we only went with the prior down turn percentage we’re already bottomed out in certain zipcodes.
ParticipantOn the note of Building companies and Capital.
Although its hearsay, I’ve heard from a banking friend that Banks aren’t giving money to building companies because that fear that its throwing good money after bad.
This makes sense and I believe it to be true (whether it is or not, another story…)So, if this is true and banks are starving the builders, then the stocks at some point should resume the downward trend.
ParticipantStupid Question I have to ask…
JG, excellent graphs by the way!
But, if median (despite it not being a great measure of RE
value) was largely flat from 91 to 96, what data suggests as us Piggingtons believe, that prices will drop after this current bubble runs its course?I know this is blasphemy on this blog, but I had to ask…
ParticipantYep, JG pretty nice data.
PS, had thought you were already married and with children?
I like the inflection point idea. High NOD’s and actual Defaults + Low interest rates + High percentage of exotic loans = inflection point?
Humbling to not have any more to offer than that. But very cool graphs indeed JG.
ParticipantDataQuick
A quote:
“Although the market has been edging downward, DataQuick analyst Andrew LePage said the region’s home prices don’t appear to be headed for a steep drop in the near future.”
DataQuick is in the awkward position of attempting to provide accurate data to help people make more objective decisions on RE, but the degree to which the market declines, the value of DQ data declines as well. If nothing is moving, DQ may make less selling data.
So, its predictable that they will spin the market upwards. If they were objective, they wouldn’t spin the data at all, they would merely provide it to customers and let them draw their own conclusions.
ParticipantDel Mar and Carmel Valley New homes are up 51% and 70% respectively. Wouldn’t have expected that.
ParticipantQuick summary
1) First, make sure you qualify for a Roth IRA. Your annual income may be an obstacle. Check the link below.
2) Talk to a Pro – a CPA and/or your tax guy to look at implications for what you'd be doing to short and long term tax burden.
If you decide its a go, then….
3)Open one at: Online – E*TRADE, Fidelity
In person: Vanguard
4) A job change is a good opportunity to convert your 401K to a Roth IRA.
Thanks for the info. Much appreciated. Also, PS thanks for the CPA contact. Always good to get a referral from someone.
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