[(former)FormerSanDiegan]

What is your monthly PITI plus hoa ?
What could you get in rent for this property ?

If these numbers are reasonably close (e.g. rent being within a couple hundred bucks of PITI plus hoa) then you are in a good long-term position buying today at 2003 prices.

[(former)FormerSanDiegan]

What is your monthly PITI plus hoa ?
What could you get in rent for this property ?

If these numbers are reasonably close (e.g. rent being within a couple hundred bucks of PITI plus hoa) then you are in a good long-term position buying today at 2003 prices.

[(former)FormerSanDiegan]

[quote=Fletch][quote=HLS]Former…
There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS[/quote]

Can you elaborate what you mean by the govt sharing in their loss? I sold my house (primary residence) at a loss and could not find any way to deduct this…[/quote]

One example is principal write-downs given by the bank, that are subsidized by government support of these banks.

But, you are right, there is no deduction for losses on a personal residence.

It is too late in your situation, but for others out there in a similar boat …
One strategy (untested by me) might be to convert it to an investment property. The value of the property at conversion time (or the original value whichever is lower) is the cost basis used for determining depreciation and future capital gains and losses.

So, if you convert your primary to a rental and received a favorable (inflated?) appraisal at that time for tax purposes, you could eventually take the loss when selling as an investment property.

http://www.aicpa.org/PUBS/taxadv/jul2008/casestudy.html

[(former)FormerSanDiegan]

[quote=Fletch][quote=HLS]Former…
There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS[/quote]

Can you elaborate what you mean by the govt sharing in their loss? I sold my house (primary residence) at a loss and could not find any way to deduct this…[/quote]

One example is principal write-downs given by the bank, that are subsidized by government support of these banks.

But, you are right, there is no deduction for losses on a personal residence.

It is too late in your situation, but for others out there in a similar boat …
One strategy (untested by me) might be to convert it to an investment property. The value of the property at conversion time (or the original value whichever is lower) is the cost basis used for determining depreciation and future capital gains and losses.

So, if you convert your primary to a rental and received a favorable (inflated?) appraisal at that time for tax purposes, you could eventually take the loss when selling as an investment property.

http://www.aicpa.org/PUBS/taxadv/jul2008/casestudy.html

[(former)FormerSanDiegan]

[quote=Fletch][quote=HLS]Former…
There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS[/quote]

Can you elaborate what you mean by the govt sharing in their loss? I sold my house (primary residence) at a loss and could not find any way to deduct this…[/quote]

One example is principal write-downs given by the bank, that are subsidized by government support of these banks.

But, you are right, there is no deduction for losses on a personal residence.

It is too late in your situation, but for others out there in a similar boat …
One strategy (untested by me) might be to convert it to an investment property. The value of the property at conversion time (or the original value whichever is lower) is the cost basis used for determining depreciation and future capital gains and losses.

So, if you convert your primary to a rental and received a favorable (inflated?) appraisal at that time for tax purposes, you could eventually take the loss when selling as an investment property.

http://www.aicpa.org/PUBS/taxadv/jul2008/casestudy.html

[(former)FormerSanDiegan]

[quote=Fletch][quote=HLS]Former…
There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS[/quote]

Can you elaborate what you mean by the govt sharing in their loss? I sold my house (primary residence) at a loss and could not find any way to deduct this…[/quote]

One example is principal write-downs given by the bank, that are subsidized by government support of these banks.

But, you are right, there is no deduction for losses on a personal residence.

It is too late in your situation, but for others out there in a similar boat …
One strategy (untested by me) might be to convert it to an investment property. The value of the property at conversion time (or the original value whichever is lower) is the cost basis used for determining depreciation and future capital gains and losses.

So, if you convert your primary to a rental and received a favorable (inflated?) appraisal at that time for tax purposes, you could eventually take the loss when selling as an investment property.

http://www.aicpa.org/PUBS/taxadv/jul2008/casestudy.html

[(former)FormerSanDiegan]

[quote=Fletch][quote=HLS]Former…
There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS[/quote]

Can you elaborate what you mean by the govt sharing in their loss? I sold my house (primary residence) at a loss and could not find any way to deduct this…[/quote]

One example is principal write-downs given by the bank, that are subsidized by government support of these banks.

But, you are right, there is no deduction for losses on a personal residence.

It is too late in your situation, but for others out there in a similar boat …
One strategy (untested by me) might be to convert it to an investment property. The value of the property at conversion time (or the original value whichever is lower) is the cost basis used for determining depreciation and future capital gains and losses.

So, if you convert your primary to a rental and received a favorable (inflated?) appraisal at that time for tax purposes, you could eventually take the loss when selling as an investment property.

http://www.aicpa.org/PUBS/taxadv/jul2008/casestudy.html

[(former)FormerSanDiegan]

kcal09 –

Google “Home Loan Sheldon”
Go to his web site and give him a call.

[quote=kcal09][quote=HLS]KCAL,
It sounds like they are wasting your time.
Rates are actually a little lower today than mid Sept. Rates have not “been going up steadily”.
There is no advantage to them to stall.
You are correct that they have done this to many other customers. Amazing to me that people stick with them.

If a refi cannot be funded within 30 days, something is wrong. 90 day locks are usually at a premium cost, even if they don’t tell you that.
People remain foolish about their mortgage choices.

With the majority of loans, just because a bank services your current loan it doesn’t mean that they own it and you aren’t going to get any special service or favors just because you currently make your payments to them.
It doesn’t matter if you and 50 of your relatives have been banking with that bank for the last 200 years and have $500,000 deposited there. That doesn’t qualify you for a loan today.

A new loan is a new loan, sold off into a new pool of mortgage backed securities. The old loan is being paid off. They aren’t making an adjustment to an old loan. FNMA doesn’t care if you get a refi from the existing servicer.

Guidelines are stricter than they were last year, even if your property value went up. For qualified borrowers, conforming loans at 5.00% are available at almost no cost today, it changes a bit everyday.
Lower rates have a cost.

You didn’t mention your type of loan, loan amount, credit score or property value. Perhaps you don’t qualify for a refi today.
If you don’t qualify, it’s not fraud and the rate is meaningless. You made a bad choice. The appraiser doesn’t care if your loan goes through or not. They want to be paid for their work.

An appraisal done last Sept should no longer be valid. Have they told you that you have to pay for another one to compound your aggravation and get you funded ?

To add insult to injury, every month that you remain in a 6.375% loan you are wasting more money, most likely hundreds of dollars a month depending on your loan balance.

Sadly, many people make the same mistake that you did. An internet lender that gives the impression that they only charge $2000 as a broker fee overcharges on their rates and isn’t as cheap as they appear to be.Misleading but not fraud.
Lots of people with excellent credit don’t qualify for loans today.

If you would like to know the right rate and what you qualify for today, please contact me privately… HLS[/quote]

Thank you, are you a mortgage broker?[/quote]

[(former)FormerSanDiegan]

kcal09 –

Google “Home Loan Sheldon”
Go to his web site and give him a call.

[quote=kcal09][quote=HLS]KCAL,
It sounds like they are wasting your time.
Rates are actually a little lower today than mid Sept. Rates have not “been going up steadily”.
There is no advantage to them to stall.
You are correct that they have done this to many other customers. Amazing to me that people stick with them.

If a refi cannot be funded within 30 days, something is wrong. 90 day locks are usually at a premium cost, even if they don’t tell you that.
People remain foolish about their mortgage choices.

With the majority of loans, just because a bank services your current loan it doesn’t mean that they own it and you aren’t going to get any special service or favors just because you currently make your payments to them.
It doesn’t matter if you and 50 of your relatives have been banking with that bank for the last 200 years and have $500,000 deposited there. That doesn’t qualify you for a loan today.

A new loan is a new loan, sold off into a new pool of mortgage backed securities. The old loan is being paid off. They aren’t making an adjustment to an old loan. FNMA doesn’t care if you get a refi from the existing servicer.

Guidelines are stricter than they were last year, even if your property value went up. For qualified borrowers, conforming loans at 5.00% are available at almost no cost today, it changes a bit everyday.
Lower rates have a cost.

You didn’t mention your type of loan, loan amount, credit score or property value. Perhaps you don’t qualify for a refi today.
If you don’t qualify, it’s not fraud and the rate is meaningless. You made a bad choice. The appraiser doesn’t care if your loan goes through or not. They want to be paid for their work.

An appraisal done last Sept should no longer be valid. Have they told you that you have to pay for another one to compound your aggravation and get you funded ?

To add insult to injury, every month that you remain in a 6.375% loan you are wasting more money, most likely hundreds of dollars a month depending on your loan balance.

Sadly, many people make the same mistake that you did. An internet lender that gives the impression that they only charge $2000 as a broker fee overcharges on their rates and isn’t as cheap as they appear to be.Misleading but not fraud.
Lots of people with excellent credit don’t qualify for loans today.

If you would like to know the right rate and what you qualify for today, please contact me privately… HLS[/quote]

Thank you, are you a mortgage broker?[/quote]

[(former)FormerSanDiegan]

kcal09 –

Google “Home Loan Sheldon”
Go to his web site and give him a call.

[quote=kcal09][quote=HLS]KCAL,
It sounds like they are wasting your time.
Rates are actually a little lower today than mid Sept. Rates have not “been going up steadily”.
There is no advantage to them to stall.
You are correct that they have done this to many other customers. Amazing to me that people stick with them.

If a refi cannot be funded within 30 days, something is wrong. 90 day locks are usually at a premium cost, even if they don’t tell you that.
People remain foolish about their mortgage choices.

With the majority of loans, just because a bank services your current loan it doesn’t mean that they own it and you aren’t going to get any special service or favors just because you currently make your payments to them.
It doesn’t matter if you and 50 of your relatives have been banking with that bank for the last 200 years and have $500,000 deposited there. That doesn’t qualify you for a loan today.

A new loan is a new loan, sold off into a new pool of mortgage backed securities. The old loan is being paid off. They aren’t making an adjustment to an old loan. FNMA doesn’t care if you get a refi from the existing servicer.

Guidelines are stricter than they were last year, even if your property value went up. For qualified borrowers, conforming loans at 5.00% are available at almost no cost today, it changes a bit everyday.
Lower rates have a cost.

You didn’t mention your type of loan, loan amount, credit score or property value. Perhaps you don’t qualify for a refi today.
If you don’t qualify, it’s not fraud and the rate is meaningless. You made a bad choice. The appraiser doesn’t care if your loan goes through or not. They want to be paid for their work.

An appraisal done last Sept should no longer be valid. Have they told you that you have to pay for another one to compound your aggravation and get you funded ?

To add insult to injury, every month that you remain in a 6.375% loan you are wasting more money, most likely hundreds of dollars a month depending on your loan balance.

Sadly, many people make the same mistake that you did. An internet lender that gives the impression that they only charge $2000 as a broker fee overcharges on their rates and isn’t as cheap as they appear to be.Misleading but not fraud.
Lots of people with excellent credit don’t qualify for loans today.

If you would like to know the right rate and what you qualify for today, please contact me privately… HLS[/quote]

Thank you, are you a mortgage broker?[/quote]

[(former)FormerSanDiegan]

kcal09 –

Google “Home Loan Sheldon”
Go to his web site and give him a call.

[quote=kcal09][quote=HLS]KCAL,
It sounds like they are wasting your time.
Rates are actually a little lower today than mid Sept. Rates have not “been going up steadily”.
There is no advantage to them to stall.
You are correct that they have done this to many other customers. Amazing to me that people stick with them.

If a refi cannot be funded within 30 days, something is wrong. 90 day locks are usually at a premium cost, even if they don’t tell you that.
People remain foolish about their mortgage choices.

With the majority of loans, just because a bank services your current loan it doesn’t mean that they own it and you aren’t going to get any special service or favors just because you currently make your payments to them.
It doesn’t matter if you and 50 of your relatives have been banking with that bank for the last 200 years and have $500,000 deposited there. That doesn’t qualify you for a loan today.

A new loan is a new loan, sold off into a new pool of mortgage backed securities. The old loan is being paid off. They aren’t making an adjustment to an old loan. FNMA doesn’t care if you get a refi from the existing servicer.

Guidelines are stricter than they were last year, even if your property value went up. For qualified borrowers, conforming loans at 5.00% are available at almost no cost today, it changes a bit everyday.
Lower rates have a cost.

You didn’t mention your type of loan, loan amount, credit score or property value. Perhaps you don’t qualify for a refi today.
If you don’t qualify, it’s not fraud and the rate is meaningless. You made a bad choice. The appraiser doesn’t care if your loan goes through or not. They want to be paid for their work.

An appraisal done last Sept should no longer be valid. Have they told you that you have to pay for another one to compound your aggravation and get you funded ?

To add insult to injury, every month that you remain in a 6.375% loan you are wasting more money, most likely hundreds of dollars a month depending on your loan balance.

Sadly, many people make the same mistake that you did. An internet lender that gives the impression that they only charge $2000 as a broker fee overcharges on their rates and isn’t as cheap as they appear to be.Misleading but not fraud.
Lots of people with excellent credit don’t qualify for loans today.

If you would like to know the right rate and what you qualify for today, please contact me privately… HLS[/quote]

Thank you, are you a mortgage broker?[/quote]

[(former)FormerSanDiegan]

kcal09 –

Google “Home Loan Sheldon”
Go to his web site and give him a call.

[quote=kcal09][quote=HLS]KCAL,
It sounds like they are wasting your time.
Rates are actually a little lower today than mid Sept. Rates have not “been going up steadily”.
There is no advantage to them to stall.
You are correct that they have done this to many other customers. Amazing to me that people stick with them.

If a refi cannot be funded within 30 days, something is wrong. 90 day locks are usually at a premium cost, even if they don’t tell you that.
People remain foolish about their mortgage choices.

With the majority of loans, just because a bank services your current loan it doesn’t mean that they own it and you aren’t going to get any special service or favors just because you currently make your payments to them.
It doesn’t matter if you and 50 of your relatives have been banking with that bank for the last 200 years and have $500,000 deposited there. That doesn’t qualify you for a loan today.

A new loan is a new loan, sold off into a new pool of mortgage backed securities. The old loan is being paid off. They aren’t making an adjustment to an old loan. FNMA doesn’t care if you get a refi from the existing servicer.

Guidelines are stricter than they were last year, even if your property value went up. For qualified borrowers, conforming loans at 5.00% are available at almost no cost today, it changes a bit everyday.
Lower rates have a cost.

You didn’t mention your type of loan, loan amount, credit score or property value. Perhaps you don’t qualify for a refi today.
If you don’t qualify, it’s not fraud and the rate is meaningless. You made a bad choice. The appraiser doesn’t care if your loan goes through or not. They want to be paid for their work.

An appraisal done last Sept should no longer be valid. Have they told you that you have to pay for another one to compound your aggravation and get you funded ?

To add insult to injury, every month that you remain in a 6.375% loan you are wasting more money, most likely hundreds of dollars a month depending on your loan balance.

Sadly, many people make the same mistake that you did. An internet lender that gives the impression that they only charge $2000 as a broker fee overcharges on their rates and isn’t as cheap as they appear to be.Misleading but not fraud.
Lots of people with excellent credit don’t qualify for loans today.

If you would like to know the right rate and what you qualify for today, please contact me privately… HLS[/quote]

Thank you, are you a mortgage broker?[/quote]

[(former)FormerSanDiegan]

HLS – We are about half way through a decade since the peak of the bubble in San Diego. The lost decade might actually be 15 years in this case, but I have faith in my fellow Califronia, who has proven incapable of avoiding speculative bubbles in real estate for generations.
Although I agree that the magnitude will not be the same as the bubble of the 2000’s, we will surely retest the relative values of the peaks in 1990 and 1979 sometime in the next 15 years.

[(former)FormerSanDiegan]

HLS – We are about half way through a decade since the peak of the bubble in San Diego. The lost decade might actually be 15 years in this case, but I have faith in my fellow Califronia, who has proven incapable of avoiding speculative bubbles in real estate for generations.
Although I agree that the magnitude will not be the same as the bubble of the 2000’s, we will surely retest the relative values of the peaks in 1990 and 1979 sometime in the next 15 years.

[(former)FormerSanDiegan]

HLS – We are about half way through a decade since the peak of the bubble in San Diego. The lost decade might actually be 15 years in this case, but I have faith in my fellow Califronia, who has proven incapable of avoiding speculative bubbles in real estate for generations.
Although I agree that the magnitude will not be the same as the bubble of the 2000’s, we will surely retest the relative values of the peaks in 1990 and 1979 sometime in the next 15 years.

[Author]

Posts