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Huckleberry
Participant[quote=justsayin1964]Huckleberry- if they got thier loan reduced it certainly would not be for less that market value so how would they have enough for another home loan- also their credit would be shot so which lender gave them another loan with bad credit?[/quote]
I never said the loan would be for less, but they may use the money they have been saving for the last year (not paying their mortgage), plus the margin between the new loan and the sale price. Meaning, they are using taxpayer money to fund their new home! Whala…
But now that you mention it. How do you KNOW the new loan wouldn’t be for less than the local market value. Do you figure the gov’t is going to come out to each individual home and assess the value before making the new loan? And, we all know how well the current appraisal system is working…
And again, how do you know their credit is shot with a new loan? I haven’t seen that as one of the stipulations to getting one, have you???
Participant[quote=justsayin1964]Huckleberry- if they got thier loan reduced it certainly would not be for less that market value so how would they have enough for another home loan- also their credit would be shot so which lender gave them another loan with bad credit?[/quote]
I never said the loan would be for less, but they may use the money they have been saving for the last year (not paying their mortgage), plus the margin between the new loan and the sale price. Meaning, they are using taxpayer money to fund their new home! Whala…
But now that you mention it. How do you KNOW the new loan wouldn’t be for less than the local market value. Do you figure the gov’t is going to come out to each individual home and assess the value before making the new loan? And, we all know how well the current appraisal system is working…
And again, how do you know their credit is shot with a new loan? I haven’t seen that as one of the stipulations to getting one, have you???
Participant[quote=justsayin1964]Huckleberry- if they got thier loan reduced it certainly would not be for less that market value so how would they have enough for another home loan- also their credit would be shot so which lender gave them another loan with bad credit?[/quote]
I never said the loan would be for less, but they may use the money they have been saving for the last year (not paying their mortgage), plus the margin between the new loan and the sale price. Meaning, they are using taxpayer money to fund their new home! Whala…
But now that you mention it. How do you KNOW the new loan wouldn’t be for less than the local market value. Do you figure the gov’t is going to come out to each individual home and assess the value before making the new loan? And, we all know how well the current appraisal system is working…
And again, how do you know their credit is shot with a new loan? I haven’t seen that as one of the stipulations to getting one, have you???
ParticipantWow, I sure hope those new FHA loans/home valuations are publicly disclosed. Otherwise you have a bunch of people getting principal forgiveness, then selling their homes for more than the new “adjusted” loan amount.
Basically, I see LOTS of people getting new loans. Then selling their “new no longer underwater” home for substantially more than their new loan amount, getting their free taxpayer money, then using those proceeds for a huge down payment on another home.
Essentially, the taxpayer subsidizing the new home purchase for people that were financially imprudent in the first place…
Awesome!
ParticipantWow, I sure hope those new FHA loans/home valuations are publicly disclosed. Otherwise you have a bunch of people getting principal forgiveness, then selling their homes for more than the new “adjusted” loan amount.
Basically, I see LOTS of people getting new loans. Then selling their “new no longer underwater” home for substantially more than their new loan amount, getting their free taxpayer money, then using those proceeds for a huge down payment on another home.
Essentially, the taxpayer subsidizing the new home purchase for people that were financially imprudent in the first place…
Awesome!
ParticipantWow, I sure hope those new FHA loans/home valuations are publicly disclosed. Otherwise you have a bunch of people getting principal forgiveness, then selling their homes for more than the new “adjusted” loan amount.
Basically, I see LOTS of people getting new loans. Then selling their “new no longer underwater” home for substantially more than their new loan amount, getting their free taxpayer money, then using those proceeds for a huge down payment on another home.
Essentially, the taxpayer subsidizing the new home purchase for people that were financially imprudent in the first place…
Awesome!
ParticipantWow, I sure hope those new FHA loans/home valuations are publicly disclosed. Otherwise you have a bunch of people getting principal forgiveness, then selling their homes for more than the new “adjusted” loan amount.
Basically, I see LOTS of people getting new loans. Then selling their “new no longer underwater” home for substantially more than their new loan amount, getting their free taxpayer money, then using those proceeds for a huge down payment on another home.
Essentially, the taxpayer subsidizing the new home purchase for people that were financially imprudent in the first place…
Awesome!
ParticipantWow, I sure hope those new FHA loans/home valuations are publicly disclosed. Otherwise you have a bunch of people getting principal forgiveness, then selling their homes for more than the new “adjusted” loan amount.
Basically, I see LOTS of people getting new loans. Then selling their “new no longer underwater” home for substantially more than their new loan amount, getting their free taxpayer money, then using those proceeds for a huge down payment on another home.
Essentially, the taxpayer subsidizing the new home purchase for people that were financially imprudent in the first place…
Awesome!
March 24, 2010 at 8:34 AM in reply to: If u are up in arms over healthcare bill, have a drink b4 u click this #530296ParticipantJust saw an snippet on CNBC regarding this.
Per BoA, it’s not going to help very many people. It’s only targeted at sub-prime and pay-option ARM’s, NO prime loans. BoA stated it projects only helping about 45,000 qualifying loans of it’s more than 1 mill.
They may modify the program further but remember, the banks only do what’s in THEIR best interest. I’m sure they have figured out what local RE markets are their worst performing (down 30-50%) and most underwater, only offering these mods to them, as they don’t want these people walking away. Banks have become pretty RE savvy over the last two years…
If you’re in an area where values are only down 20%, I seriously doubt they are going to give you any principal forgiveness, as they know your local market has relative strength, and they prefer short sale or foreclosure.
I can see them writing down 60K on a $200K house in a crappy local RE market with little upside potential, but I can’t see them writing down 150K on a 500K house in a quality neighborhood with decent potential for stability or upside in the next three years.
March 24, 2010 at 8:34 AM in reply to: If u are up in arms over healthcare bill, have a drink b4 u click this #530424ParticipantJust saw an snippet on CNBC regarding this.
Per BoA, it’s not going to help very many people. It’s only targeted at sub-prime and pay-option ARM’s, NO prime loans. BoA stated it projects only helping about 45,000 qualifying loans of it’s more than 1 mill.
They may modify the program further but remember, the banks only do what’s in THEIR best interest. I’m sure they have figured out what local RE markets are their worst performing (down 30-50%) and most underwater, only offering these mods to them, as they don’t want these people walking away. Banks have become pretty RE savvy over the last two years…
If you’re in an area where values are only down 20%, I seriously doubt they are going to give you any principal forgiveness, as they know your local market has relative strength, and they prefer short sale or foreclosure.
I can see them writing down 60K on a $200K house in a crappy local RE market with little upside potential, but I can’t see them writing down 150K on a 500K house in a quality neighborhood with decent potential for stability or upside in the next three years.
March 24, 2010 at 8:34 AM in reply to: If u are up in arms over healthcare bill, have a drink b4 u click this #530875ParticipantJust saw an snippet on CNBC regarding this.
Per BoA, it’s not going to help very many people. It’s only targeted at sub-prime and pay-option ARM’s, NO prime loans. BoA stated it projects only helping about 45,000 qualifying loans of it’s more than 1 mill.
They may modify the program further but remember, the banks only do what’s in THEIR best interest. I’m sure they have figured out what local RE markets are their worst performing (down 30-50%) and most underwater, only offering these mods to them, as they don’t want these people walking away. Banks have become pretty RE savvy over the last two years…
If you’re in an area where values are only down 20%, I seriously doubt they are going to give you any principal forgiveness, as they know your local market has relative strength, and they prefer short sale or foreclosure.
I can see them writing down 60K on a $200K house in a crappy local RE market with little upside potential, but I can’t see them writing down 150K on a 500K house in a quality neighborhood with decent potential for stability or upside in the next three years.
March 24, 2010 at 8:34 AM in reply to: If u are up in arms over healthcare bill, have a drink b4 u click this #530973ParticipantJust saw an snippet on CNBC regarding this.
Per BoA, it’s not going to help very many people. It’s only targeted at sub-prime and pay-option ARM’s, NO prime loans. BoA stated it projects only helping about 45,000 qualifying loans of it’s more than 1 mill.
They may modify the program further but remember, the banks only do what’s in THEIR best interest. I’m sure they have figured out what local RE markets are their worst performing (down 30-50%) and most underwater, only offering these mods to them, as they don’t want these people walking away. Banks have become pretty RE savvy over the last two years…
If you’re in an area where values are only down 20%, I seriously doubt they are going to give you any principal forgiveness, as they know your local market has relative strength, and they prefer short sale or foreclosure.
I can see them writing down 60K on a $200K house in a crappy local RE market with little upside potential, but I can’t see them writing down 150K on a 500K house in a quality neighborhood with decent potential for stability or upside in the next three years.
March 24, 2010 at 8:34 AM in reply to: If u are up in arms over healthcare bill, have a drink b4 u click this #531232ParticipantJust saw an snippet on CNBC regarding this.
Per BoA, it’s not going to help very many people. It’s only targeted at sub-prime and pay-option ARM’s, NO prime loans. BoA stated it projects only helping about 45,000 qualifying loans of it’s more than 1 mill.
They may modify the program further but remember, the banks only do what’s in THEIR best interest. I’m sure they have figured out what local RE markets are their worst performing (down 30-50%) and most underwater, only offering these mods to them, as they don’t want these people walking away. Banks have become pretty RE savvy over the last two years…
If you’re in an area where values are only down 20%, I seriously doubt they are going to give you any principal forgiveness, as they know your local market has relative strength, and they prefer short sale or foreclosure.
I can see them writing down 60K on a $200K house in a crappy local RE market with little upside potential, but I can’t see them writing down 150K on a 500K house in a quality neighborhood with decent potential for stability or upside in the next three years.
ParticipantI have a friend that is a school teacher (grades 1-6) in Encinitas. Their small school of 24 teachers had to lay off four of them this week. Think of the impact to larger schools…
From what she said, more may be let go this summer before the start of the next school year.
This is just the beginning of the state’s efforts to balance the budget. State employees and any organization/employee funded by the state are at huge risk right now.
Yes, I DO believe this will affect SD home pricing in the future.
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