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patientrenter
Participantwhatodo, your agent may be acting on knowledge that a quick offer is advisable, but I doubt it. Be very skeptical.
Patient renter in OC
Participantwhatodo, your agent may be acting on knowledge that a quick offer is advisable, but I doubt it. Be very skeptical.
Patient renter in OC
Participantwhatodo, your agent may be acting on knowledge that a quick offer is advisable, but I doubt it. Be very skeptical.
Patient renter in OC
ParticipantAnd this is the biggest news of the week for people like me who are hoping home prices here is Southern California come down…. way down.
This one from Bernanke was the lurking weapon to end all weapons in the house price war. I admit to being shocked that it came first from the lips of someone with so much responsibility for managing financial risk in our economy. If the government starts to offer guarantees to investors in home loans up to $1 million, then we can all go back to our rentals and give up. With no risk-pricing discipline on home loans, there’s no effective limit on how much the market can be pumped up.
Patient renter in OC
ParticipantAnd this is the biggest news of the week for people like me who are hoping home prices here is Southern California come down…. way down.
This one from Bernanke was the lurking weapon to end all weapons in the house price war. I admit to being shocked that it came first from the lips of someone with so much responsibility for managing financial risk in our economy. If the government starts to offer guarantees to investors in home loans up to $1 million, then we can all go back to our rentals and give up. With no risk-pricing discipline on home loans, there’s no effective limit on how much the market can be pumped up.
Patient renter in OC
ParticipantAnd this is the biggest news of the week for people like me who are hoping home prices here is Southern California come down…. way down.
This one from Bernanke was the lurking weapon to end all weapons in the house price war. I admit to being shocked that it came first from the lips of someone with so much responsibility for managing financial risk in our economy. If the government starts to offer guarantees to investors in home loans up to $1 million, then we can all go back to our rentals and give up. With no risk-pricing discipline on home loans, there’s no effective limit on how much the market can be pumped up.
Patient renter in OC
ParticipantAnd this is the biggest news of the week for people like me who are hoping home prices here is Southern California come down…. way down.
This one from Bernanke was the lurking weapon to end all weapons in the house price war. I admit to being shocked that it came first from the lips of someone with so much responsibility for managing financial risk in our economy. If the government starts to offer guarantees to investors in home loans up to $1 million, then we can all go back to our rentals and give up. With no risk-pricing discipline on home loans, there’s no effective limit on how much the market can be pumped up.
Patient renter in OC
ParticipantI think many of these now overextended young people with apparently limited career prospects who became no-money-down buyers of multiple properties were doing a very smart thing. Dumb lenders allowed them to buy valuable options on house prices for free, or for very little. All they had to lose was a few years’ worth of good credit. Not a big price to pay for someone with no money and limited prospects.
Let’s say the monetary value of poor credit for a few years for such a person is $20,000. That’s their downside. If they bought 8 properties worth $300K each, and the properties went up by 50% over 3 years (not unusual in recent times) they probably netted almost a million. No one could know the future, and the gamble for recent buyers is turning out badly, but it was a gamble heavily loaded in favor of the ‘dumb’ buyer.
Patient renter in OC
ParticipantI think many of these now overextended young people with apparently limited career prospects who became no-money-down buyers of multiple properties were doing a very smart thing. Dumb lenders allowed them to buy valuable options on house prices for free, or for very little. All they had to lose was a few years’ worth of good credit. Not a big price to pay for someone with no money and limited prospects.
Let’s say the monetary value of poor credit for a few years for such a person is $20,000. That’s their downside. If they bought 8 properties worth $300K each, and the properties went up by 50% over 3 years (not unusual in recent times) they probably netted almost a million. No one could know the future, and the gamble for recent buyers is turning out badly, but it was a gamble heavily loaded in favor of the ‘dumb’ buyer.
Patient renter in OC
ParticipantI think many of these now overextended young people with apparently limited career prospects who became no-money-down buyers of multiple properties were doing a very smart thing. Dumb lenders allowed them to buy valuable options on house prices for free, or for very little. All they had to lose was a few years’ worth of good credit. Not a big price to pay for someone with no money and limited prospects.
Let’s say the monetary value of poor credit for a few years for such a person is $20,000. That’s their downside. If they bought 8 properties worth $300K each, and the properties went up by 50% over 3 years (not unusual in recent times) they probably netted almost a million. No one could know the future, and the gamble for recent buyers is turning out badly, but it was a gamble heavily loaded in favor of the ‘dumb’ buyer.
Patient renter in OC
ParticipantI think many of these now overextended young people with apparently limited career prospects who became no-money-down buyers of multiple properties were doing a very smart thing. Dumb lenders allowed them to buy valuable options on house prices for free, or for very little. All they had to lose was a few years’ worth of good credit. Not a big price to pay for someone with no money and limited prospects.
Let’s say the monetary value of poor credit for a few years for such a person is $20,000. That’s their downside. If they bought 8 properties worth $300K each, and the properties went up by 50% over 3 years (not unusual in recent times) they probably netted almost a million. No one could know the future, and the gamble for recent buyers is turning out badly, but it was a gamble heavily loaded in favor of the ‘dumb’ buyer.
Patient renter in OC
ParticipantSome of those singing the praises of cash back may be missing the point that it misleads the lender into lending too much. The lender ends up lending money for whatever the buyer wants to spend it on. Loans like that are risky and should bear a higher interest rate. Cash back is a way to get the lender to charge a low-risk rate for a high-risk loan without the lender’s knowledge or agreement.
I don’t know if it’s legal, but I would feel defrauded if I were the lender.
Patient renter in OC
ParticipantSome of those singing the praises of cash back may be missing the point that it misleads the lender into lending too much. The lender ends up lending money for whatever the buyer wants to spend it on. Loans like that are risky and should bear a higher interest rate. Cash back is a way to get the lender to charge a low-risk rate for a high-risk loan without the lender’s knowledge or agreement.
I don’t know if it’s legal, but I would feel defrauded if I were the lender.
Patient renter in OC
ParticipantSome of those singing the praises of cash back may be missing the point that it misleads the lender into lending too much. The lender ends up lending money for whatever the buyer wants to spend it on. Loans like that are risky and should bear a higher interest rate. Cash back is a way to get the lender to charge a low-risk rate for a high-risk loan without the lender’s knowledge or agreement.
I don’t know if it’s legal, but I would feel defrauded if I were the lender.
Patient renter in OC
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