[Deal Hunter]

As righteous as that position is, “they” will still get their bail out and you will still end up paying for it. Well, if only we could refuse to pay our taxes and by that route refuse to bail out the banks. Then, we could really teach those “geniuses” a lesson.

I read this article and recalled what one of my clients told me about “walking away.” She said that the government was going to do all it can to bail out the banks, the brokers and the many homeowners who bought homes beyond their means. As a taxpayer, she is contributing to the bail out and therefore feels justified in walking away from her upside down mortgage. She figures it’s her money in the end anyway.

I’m not so quick to put all the blame on homeowners. Banks who approved the loans and sold them off as derivatives also refuse to deal symmetrically with the consequences of home price decreases. If you have a pension fund that invested in these derivatives, you got walked out on by the banks when they wrote-down their assets in mortgage backed securities.

[Deal Hunter]

Sucks, but for the best, man.

True liquidity is not being in debt or leveraged at all, but have cash to wave around at opportunity. If a maxed out HELOC helps you cushion existing liabilities, there’s no real liquidity in that situation.

Time for us all to rethink how we go about spending and investing. Tide will go back out (real estate will come back), but how long can you hold your breath in the meantime?

[Deal Hunter]

Sucks, but for the best, man.

True liquidity is not being in debt or leveraged at all, but have cash to wave around at opportunity. If a maxed out HELOC helps you cushion existing liabilities, there’s no real liquidity in that situation.

Time for us all to rethink how we go about spending and investing. Tide will go back out (real estate will come back), but how long can you hold your breath in the meantime?

[Deal Hunter]

Sucks, but for the best, man.

True liquidity is not being in debt or leveraged at all, but have cash to wave around at opportunity. If a maxed out HELOC helps you cushion existing liabilities, there’s no real liquidity in that situation.

Time for us all to rethink how we go about spending and investing. Tide will go back out (real estate will come back), but how long can you hold your breath in the meantime?

[Deal Hunter]

Sucks, but for the best, man.

True liquidity is not being in debt or leveraged at all, but have cash to wave around at opportunity. If a maxed out HELOC helps you cushion existing liabilities, there’s no real liquidity in that situation.

Time for us all to rethink how we go about spending and investing. Tide will go back out (real estate will come back), but how long can you hold your breath in the meantime?

[Deal Hunter]

Sucks, but for the best, man.

True liquidity is not being in debt or leveraged at all, but have cash to wave around at opportunity. If a maxed out HELOC helps you cushion existing liabilities, there’s no real liquidity in that situation.

Time for us all to rethink how we go about spending and investing. Tide will go back out (real estate will come back), but how long can you hold your breath in the meantime?

[Deal Hunter]

I too am waiting for prices to drop further. In fact, I’ve been waiting for prices to get better in SD area since early 2000. Prices just won’t plummet in SD like they do in other areas. The area is just too desireable, especially with school districts considered.

I’d start with the foreclosures and short sale townhomes as you can come in with very low offers and just see who is most motivated and wise to sell to you. I have an investor partner throwing out offers on short sales at 50% of value. So far, no takers, but we’re not giving up yet.

No question on whether to own or rent if the monthly is the same – owning is the way to go.

Oh and another thing – get a BUYER’S AGENT to represent you. Best if the agent only represents you and not the seller also. Dual agency never made sense to me – like having the same lawyer for the defendant and the plaintiff. Interview many until you find one that you like and trust.

Good luck!

[Deal Hunter]

I too am waiting for prices to drop further. In fact, I’ve been waiting for prices to get better in SD area since early 2000. Prices just won’t plummet in SD like they do in other areas. The area is just too desireable, especially with school districts considered.

I’d start with the foreclosures and short sale townhomes as you can come in with very low offers and just see who is most motivated and wise to sell to you. I have an investor partner throwing out offers on short sales at 50% of value. So far, no takers, but we’re not giving up yet.

No question on whether to own or rent if the monthly is the same – owning is the way to go.

Oh and another thing – get a BUYER’S AGENT to represent you. Best if the agent only represents you and not the seller also. Dual agency never made sense to me – like having the same lawyer for the defendant and the plaintiff. Interview many until you find one that you like and trust.

Good luck!

[Deal Hunter]

I too am waiting for prices to drop further. In fact, I’ve been waiting for prices to get better in SD area since early 2000. Prices just won’t plummet in SD like they do in other areas. The area is just too desireable, especially with school districts considered.

I’d start with the foreclosures and short sale townhomes as you can come in with very low offers and just see who is most motivated and wise to sell to you. I have an investor partner throwing out offers on short sales at 50% of value. So far, no takers, but we’re not giving up yet.

No question on whether to own or rent if the monthly is the same – owning is the way to go.

Oh and another thing – get a BUYER’S AGENT to represent you. Best if the agent only represents you and not the seller also. Dual agency never made sense to me – like having the same lawyer for the defendant and the plaintiff. Interview many until you find one that you like and trust.

Good luck!

[Deal Hunter]

I too am waiting for prices to drop further. In fact, I’ve been waiting for prices to get better in SD area since early 2000. Prices just won’t plummet in SD like they do in other areas. The area is just too desireable, especially with school districts considered.

I’d start with the foreclosures and short sale townhomes as you can come in with very low offers and just see who is most motivated and wise to sell to you. I have an investor partner throwing out offers on short sales at 50% of value. So far, no takers, but we’re not giving up yet.

No question on whether to own or rent if the monthly is the same – owning is the way to go.

Oh and another thing – get a BUYER’S AGENT to represent you. Best if the agent only represents you and not the seller also. Dual agency never made sense to me – like having the same lawyer for the defendant and the plaintiff. Interview many until you find one that you like and trust.

Good luck!

[Deal Hunter]

I too am waiting for prices to drop further. In fact, I’ve been waiting for prices to get better in SD area since early 2000. Prices just won’t plummet in SD like they do in other areas. The area is just too desireable, especially with school districts considered.

I’d start with the foreclosures and short sale townhomes as you can come in with very low offers and just see who is most motivated and wise to sell to you. I have an investor partner throwing out offers on short sales at 50% of value. So far, no takers, but we’re not giving up yet.

No question on whether to own or rent if the monthly is the same – owning is the way to go.

Oh and another thing – get a BUYER’S AGENT to represent you. Best if the agent only represents you and not the seller also. Dual agency never made sense to me – like having the same lawyer for the defendant and the plaintiff. Interview many until you find one that you like and trust.

Good luck!

[Deal Hunter]

It’s a buyer’s market, so I would buy. However, don’t buy the biggest house you can afford. Find the most modest house you can stand, and buy the house JUST BELOW that standard! Work it out so that you have the ability to set aside 6months to 1 year of emergency cash.

Put as much down as you can and DON’T FORGET you have mortgage interest deduction with ownership that you don’t have with renting. Take the total of your potential mortgage interest deduction and divide by 3200. The result is the number you can add to your W4 exclusions to pull more money out of your paycheck each week. (Note: Your refund at the end of the year will be smaller).

I understand that school district is important, but so is your financial well-being. A reasonable purchase in those areas may still be putting you too much at risk with no ability to save. Perhaps a unsurpassable deal in a different area would give you the “cushion” you need and still allow you to own a home.

It’s temporary until you and the U.S. economy recovers better footing. You just have to put more effort into supporting your kids through a couple of years of a less than ideal school district. But I echo the post before me….

SAVE MONEY!

[Deal Hunter]

It’s a buyer’s market, so I would buy. However, don’t buy the biggest house you can afford. Find the most modest house you can stand, and buy the house JUST BELOW that standard! Work it out so that you have the ability to set aside 6months to 1 year of emergency cash.

Put as much down as you can and DON’T FORGET you have mortgage interest deduction with ownership that you don’t have with renting. Take the total of your potential mortgage interest deduction and divide by 3200. The result is the number you can add to your W4 exclusions to pull more money out of your paycheck each week. (Note: Your refund at the end of the year will be smaller).

I understand that school district is important, but so is your financial well-being. A reasonable purchase in those areas may still be putting you too much at risk with no ability to save. Perhaps a unsurpassable deal in a different area would give you the “cushion” you need and still allow you to own a home.

It’s temporary until you and the U.S. economy recovers better footing. You just have to put more effort into supporting your kids through a couple of years of a less than ideal school district. But I echo the post before me….

SAVE MONEY!

[Deal Hunter]

It’s a buyer’s market, so I would buy. However, don’t buy the biggest house you can afford. Find the most modest house you can stand, and buy the house JUST BELOW that standard! Work it out so that you have the ability to set aside 6months to 1 year of emergency cash.

Put as much down as you can and DON’T FORGET you have mortgage interest deduction with ownership that you don’t have with renting. Take the total of your potential mortgage interest deduction and divide by 3200. The result is the number you can add to your W4 exclusions to pull more money out of your paycheck each week. (Note: Your refund at the end of the year will be smaller).

I understand that school district is important, but so is your financial well-being. A reasonable purchase in those areas may still be putting you too much at risk with no ability to save. Perhaps a unsurpassable deal in a different area would give you the “cushion” you need and still allow you to own a home.

It’s temporary until you and the U.S. economy recovers better footing. You just have to put more effort into supporting your kids through a couple of years of a less than ideal school district. But I echo the post before me….

SAVE MONEY!

[Deal Hunter]

It’s a buyer’s market, so I would buy. However, don’t buy the biggest house you can afford. Find the most modest house you can stand, and buy the house JUST BELOW that standard! Work it out so that you have the ability to set aside 6months to 1 year of emergency cash.

Put as much down as you can and DON’T FORGET you have mortgage interest deduction with ownership that you don’t have with renting. Take the total of your potential mortgage interest deduction and divide by 3200. The result is the number you can add to your W4 exclusions to pull more money out of your paycheck each week. (Note: Your refund at the end of the year will be smaller).

I understand that school district is important, but so is your financial well-being. A reasonable purchase in those areas may still be putting you too much at risk with no ability to save. Perhaps a unsurpassable deal in a different area would give you the “cushion” you need and still allow you to own a home.

It’s temporary until you and the U.S. economy recovers better footing. You just have to put more effort into supporting your kids through a couple of years of a less than ideal school district. But I echo the post before me….

SAVE MONEY!

[Author]

Posts