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Fearful
Participant$100,000 per account maximum?
My broker told me it was per institution, not per account. You cannot buy two $100K CD’s from one bank and hope the FDIC covers them both.
ParticipantGruesome. Thanks.
ParticipantGruesome. Thanks.
ParticipantNeed it.
ParticipantNeed it.
ParticipantGood article. A bit optimistic (“ARM holders can just refinance or sell their houses”) but illustrating the issues nonetheless. Basically gets the data from the Credit Suisse report.
ParticipantGood article. A bit optimistic (“ARM holders can just refinance or sell their houses”) but illustrating the issues nonetheless. Basically gets the data from the Credit Suisse report.
ParticipantQuestion about tax and short sales …
If debt is canceled, I understand the amount forgiven is considered ordinary income. Makes sense so far.
Now, you have a capital loss (presumably, otherwise debt would not be canceled) on the house. Can the capital loss be used to offset the ordinary income of the house sale? Or are you stuck with taking just $3K a year of capital loss against ordinary income … for the next, say, hundred years?
If you can offset immediately, then you don’t really have to worry about the income from the debt cancellation. If not, then I would bet most people can only exit foreclosure via bankruptcy. If you are so strapped for cash you cannot make the mortgage payments, it is hard for me to imagine you having the cash to pay the IRS.
ParticipantQuestion about tax and short sales …
If debt is canceled, I understand the amount forgiven is considered ordinary income. Makes sense so far.
Now, you have a capital loss (presumably, otherwise debt would not be canceled) on the house. Can the capital loss be used to offset the ordinary income of the house sale? Or are you stuck with taking just $3K a year of capital loss against ordinary income … for the next, say, hundred years?
If you can offset immediately, then you don’t really have to worry about the income from the debt cancellation. If not, then I would bet most people can only exit foreclosure via bankruptcy. If you are so strapped for cash you cannot make the mortgage payments, it is hard for me to imagine you having the cash to pay the IRS.
ParticipantRe: the pigeon
Made me laugh out loud. Thanks!
ParticipantRe: the pigeon
Made me laugh out loud. Thanks!
ParticipantHLS wrote: When the vast majority of people are in and giddy and happy about a market, I’m pretty much out.
That line brought back memories! One business school prof wrote some of his own case studies for us. In one, regarding real estate, he relayed his experience with the Texas real estate boom in the late ’80s: “When you hear cowboys saying ‘This here’s the easiest money ah evah made’, it’s time to get out.”
A bear market is not done until all optimism is gone, until everyone swears they will never invest again. It is a long, slow, painful grind.
ParticipantHLS wrote: When the vast majority of people are in and giddy and happy about a market, I’m pretty much out.
That line brought back memories! One business school prof wrote some of his own case studies for us. In one, regarding real estate, he relayed his experience with the Texas real estate boom in the late ’80s: “When you hear cowboys saying ‘This here’s the easiest money ah evah made’, it’s time to get out.”
A bear market is not done until all optimism is gone, until everyone swears they will never invest again. It is a long, slow, painful grind.
ParticipantThe steepness and severity of the NOD graph, looking a bit like a rocket launch, gives one pause. My only guess is that it will affect the depth and length of the decline, less so the slope. Here’s why: The only sellers I see rapidly becoming aggressive on pricing are the builders. Banks are hard to predict; sometimes they will auction, sometimes they will market in the conventional way. Individual sellers will tend more to let the house sit on the market than to price aggressively. If an enormous supply of houses, priced conservatively, is suddenly dumped on the market, that has little effect on the house selling prices because those houses just sit there – the transactions are what determine the house prices. A large inventory will thus take a long time to make its effects on house prices felt.
If all houses were sold at auction, with immediate effect on house prices, the NOD chart would portend a precipitous drop indeed.
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