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permabearParticipant
I just went through this exercise in the Santaluz area and decided not to build. I spoke with several architects, and all of them told me $200-250 was more realistic.
Those contractors are likely lowballing you to get the job. I spoke with one who said $150, and then we went through the type of house, and finishes, etc, and it became $180… 200… 230…
What is your total budget? If you’re talking $1-1.2M, my conclusion was you can’t build a nice home for that, especially in that area. If you then go up a bit in price, I think 1.5M is definitely doable, but then there are also occasional deals like this too in that price range:
http://www.redfin.com/CA/San-Diego/7828-Santaluz-Inlt-92127/home/7447454
I ran a whole excel spreadsheet and figured the house would have to be about 3000 sq ft and the land < 300k, and then you could hit $1-1.2M realistically. But remember there's that extra $1000 each month you have to pay too. For me it was just on the edge - a 10% overrun would have be death. Your budget may be different.
permabearParticipantI just went through this exercise in the Santaluz area and decided not to build. I spoke with several architects, and all of them told me $200-250 was more realistic.
Those contractors are likely lowballing you to get the job. I spoke with one who said $150, and then we went through the type of house, and finishes, etc, and it became $180… 200… 230…
What is your total budget? If you’re talking $1-1.2M, my conclusion was you can’t build a nice home for that, especially in that area. If you then go up a bit in price, I think 1.5M is definitely doable, but then there are also occasional deals like this too in that price range:
http://www.redfin.com/CA/San-Diego/7828-Santaluz-Inlt-92127/home/7447454
I ran a whole excel spreadsheet and figured the house would have to be about 3000 sq ft and the land < 300k, and then you could hit $1-1.2M realistically. But remember there's that extra $1000 each month you have to pay too. For me it was just on the edge - a 10% overrun would have be death. Your budget may be different.
permabearParticipant[quote=carlsbadworker]inflation will not happen over-night.[/quote]
13% in 4 months. Prices you see at the store trail a bit.
http://www.zerohedge.com/article/three-horrifying-facts-about-us-debt-%E2%80%9Csituation%E2%80%9D
permabearParticipant[quote=carlsbadworker]inflation will not happen over-night.[/quote]
13% in 4 months. Prices you see at the store trail a bit.
http://www.zerohedge.com/article/three-horrifying-facts-about-us-debt-%E2%80%9Csituation%E2%80%9D
permabearParticipant[quote=carlsbadworker]inflation will not happen over-night.[/quote]
13% in 4 months. Prices you see at the store trail a bit.
http://www.zerohedge.com/article/three-horrifying-facts-about-us-debt-%E2%80%9Csituation%E2%80%9D
permabearParticipant[quote=carlsbadworker]inflation will not happen over-night.[/quote]
13% in 4 months. Prices you see at the store trail a bit.
http://www.zerohedge.com/article/three-horrifying-facts-about-us-debt-%E2%80%9Csituation%E2%80%9D
permabearParticipant[quote=carlsbadworker]inflation will not happen over-night.[/quote]
13% in 4 months. Prices you see at the store trail a bit.
http://www.zerohedge.com/article/three-horrifying-facts-about-us-debt-%E2%80%9Csituation%E2%80%9D
permabearParticipantSound reasoning. But you forgot second mortgages.
[quote]One of the barriers to liquidation is the write downs required by “solvent” banks (we all know most of them are not solvent). A huge problem within the GSE portfolios is that the servicers of delinquent loans are intentionally delaying foreclosure when the parent bank holds the second mortgage.
For example, let’s say that Bank of America is the servicer on a delinquent first mortgage. Their servicer agreement with the GSEs lays out a procedure to mitigate losses for the GSE portfolio. If there is no second mortgage, servicers will generally follow these procedures to the letter, and in the end, most properties end up in foreclosure. However, if Bank of America is the servicer, and they also hold the second mortgage, they do not follow standard procedure because the resulting foreclosure will cause them to lose most or all of the value in the second mortgage.[/quote]
Links:
permabearParticipantSound reasoning. But you forgot second mortgages.
[quote]One of the barriers to liquidation is the write downs required by “solvent” banks (we all know most of them are not solvent). A huge problem within the GSE portfolios is that the servicers of delinquent loans are intentionally delaying foreclosure when the parent bank holds the second mortgage.
For example, let’s say that Bank of America is the servicer on a delinquent first mortgage. Their servicer agreement with the GSEs lays out a procedure to mitigate losses for the GSE portfolio. If there is no second mortgage, servicers will generally follow these procedures to the letter, and in the end, most properties end up in foreclosure. However, if Bank of America is the servicer, and they also hold the second mortgage, they do not follow standard procedure because the resulting foreclosure will cause them to lose most or all of the value in the second mortgage.[/quote]
Links:
permabearParticipantSound reasoning. But you forgot second mortgages.
[quote]One of the barriers to liquidation is the write downs required by “solvent” banks (we all know most of them are not solvent). A huge problem within the GSE portfolios is that the servicers of delinquent loans are intentionally delaying foreclosure when the parent bank holds the second mortgage.
For example, let’s say that Bank of America is the servicer on a delinquent first mortgage. Their servicer agreement with the GSEs lays out a procedure to mitigate losses for the GSE portfolio. If there is no second mortgage, servicers will generally follow these procedures to the letter, and in the end, most properties end up in foreclosure. However, if Bank of America is the servicer, and they also hold the second mortgage, they do not follow standard procedure because the resulting foreclosure will cause them to lose most or all of the value in the second mortgage.[/quote]
Links:
permabearParticipantSound reasoning. But you forgot second mortgages.
[quote]One of the barriers to liquidation is the write downs required by “solvent” banks (we all know most of them are not solvent). A huge problem within the GSE portfolios is that the servicers of delinquent loans are intentionally delaying foreclosure when the parent bank holds the second mortgage.
For example, let’s say that Bank of America is the servicer on a delinquent first mortgage. Their servicer agreement with the GSEs lays out a procedure to mitigate losses for the GSE portfolio. If there is no second mortgage, servicers will generally follow these procedures to the letter, and in the end, most properties end up in foreclosure. However, if Bank of America is the servicer, and they also hold the second mortgage, they do not follow standard procedure because the resulting foreclosure will cause them to lose most or all of the value in the second mortgage.[/quote]
Links:
permabearParticipantSound reasoning. But you forgot second mortgages.
[quote]One of the barriers to liquidation is the write downs required by “solvent” banks (we all know most of them are not solvent). A huge problem within the GSE portfolios is that the servicers of delinquent loans are intentionally delaying foreclosure when the parent bank holds the second mortgage.
For example, let’s say that Bank of America is the servicer on a delinquent first mortgage. Their servicer agreement with the GSEs lays out a procedure to mitigate losses for the GSE portfolio. If there is no second mortgage, servicers will generally follow these procedures to the letter, and in the end, most properties end up in foreclosure. However, if Bank of America is the servicer, and they also hold the second mortgage, they do not follow standard procedure because the resulting foreclosure will cause them to lose most or all of the value in the second mortgage.[/quote]
Links:
http://www.irvinehousingblog.com/blog/comments/government-expedites-foreclosures-threatens-banking-cartel/
GSEs Announce A Policy Of Loss Mitigation Which Imperils The Banking Industry’s Shadow Inventory Of Homes And The Squatters Entitlement Of Payment Free LivingpermabearParticipant[quote=davelj]I’m curious… What does the “GSEs cracking down on delinquent loans” have to do with banks having to write down losses?[/quote]
Are you being serious? I ask because the chain of events is very straightforward. Delinquent, foreclosed, sold at auction, any loss written down. Once the property is marked to market, the loss is made real – hence the current “extend and pretend”. The GSEs are now explicitly saying that delinquent loans MUST be foreclosed and sold at auction w/i 60 days, rather than at the banks’ leisure as it has been so far.
Since foreclosures just hit a new record in August, AND the banks are already sitting on tons of delinquencies (squatters) that they have neglected to foreclose on, this new scrutiny could cause banks to suddenly have to write down large losses.
permabearParticipant[quote=davelj]I’m curious… What does the “GSEs cracking down on delinquent loans” have to do with banks having to write down losses?[/quote]
Are you being serious? I ask because the chain of events is very straightforward. Delinquent, foreclosed, sold at auction, any loss written down. Once the property is marked to market, the loss is made real – hence the current “extend and pretend”. The GSEs are now explicitly saying that delinquent loans MUST be foreclosed and sold at auction w/i 60 days, rather than at the banks’ leisure as it has been so far.
Since foreclosures just hit a new record in August, AND the banks are already sitting on tons of delinquencies (squatters) that they have neglected to foreclose on, this new scrutiny could cause banks to suddenly have to write down large losses.
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