[no_such_reality]

Duplicate system is hanging.

[no_such_reality]

Why wouldn’t you stop paying rent and now wait until someone comes to kick you out? You’ll probably stay for three or six months while the home goes into foreclosure.

You can look for a new place and basically, get fair value for your last month’s rent and security deposit.

You just have the pain of moving.

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Is rent really $2000 in Temecula?

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I hadn’t thought about taking it through escrow..makes sense to me. Practically speaking, has anyone ever heard of something like this happening?

Isn’t that what those 125% loans were originally intended for? Buying a fixer with good credit knowing you would need to put X extra in to get a house worth 1+2X.

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A 10% annual reduction in price might seem like a slow rate of decline

I caught myself thinking that this weekend. Homes were down in price about 10% from real pricing from what I was used to seeing so they all seemed cheap.

Compare today’s common realistic Orange County asking price of $850K to last years commonly seen wish pricing of $990K or $1.1M, and the homes seem downright cheap.

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Wow, I didn’t know teachers make that much. $68k for 9 months of work = $91k/year if they work a full 12 months. Is that a fresh out of college salary?

No, it’s average salary. You can see all the school district info to the school level at Hidden Gap.

Hiddengap researched the tendency of lower income schools getting the most inexperienced teachers due to the seniority clauses in the contracts.

[no_such_reality]

Yes, and all of those government-paid highway workers will be buying $700K houses in La Costa.

Ahem, you may wish to educate yourself. A member of the California Correctional Officer Union (31,000 of them, guards, probation officers, have an average base pay of $65,000, with overtime, 1 in 5 makes over $100,000.

The San Dieguito School District that serves La Costa has an average teacher salary of $68,000.

A government worker family of a teacher and correctional officer will have a family incomee above $133,000 and possibly over $168,000.

At today’s interest rates being near historical lows, that government worker family can afford that La Costa home.

Fire, Police, city workers, all of their union contracts are equally out of whack.

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We discussed this last week in this Thread

You’re missing something very critical, there is no magic, you are prepaying the loan with your current savings.

[no_such_reality]

And basically, if you have no intention of accepting an offer at the low end of the range, it’s deceitful.

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The devil is in the details. The details that are pertinent in this case are:

1. What are you going to do with the money in the short term? Park it in a CD?

2. What’s the total amount of loans you’ll have out? $600-700K + current balance?

3. What’s the rate you’ll qualify for on a cash out refi? Cash out refi’s are usually higher than regular mortgages.

4. How much time and capital is left on your current mortgages?

5. How does your debt load with the refi compare to your current income?

Other options may include refi-ing one house and using it to completely pay off your primary residence. You still get the tax deduction of the current loan amount, however one house is no longer subject to a loan and mortgage lien.

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sdr, we would expect most sellers to hold tight now. Human psychology is messed up that way.

A seller may have bought years ago at $100,000 or $200,000 and be able to sell today for $600,000 but they won’t. In their mind they don’t see the $400,000 they’re making, they see the $100,000 more they should make by selling at peak or waiting for prices to return to peak

[no_such_reality]

but I can cover these with the equity money.

That should answer your question that you can’t really afford the new payments.

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Just two thoughts:

1. How many months with the $100,000 you save waiting for $450K versus $550K pay your rent?

2. Did you see the discussion here and the major papers on the massive $2,000,000,000 fraud investment scam on homes in Temecula/Murrieta?

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Cashman, why don’t you just sign a long term lease with option to subrent and strike the transfer of ownership excape clause of the owner?

[no_such_reality]

Call me cynical, raise your price 3%. Offer a 5% buyer commission, 3% seller commission, and 5% if your seller agent double-ends it. Use the extra 3/4ths of percent you’ll make to smooth any ofi’s during escrow.

Let any unscrupulous agents fleece their buyers for you.

(No offense to the ethical agents on the board.)

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