[Rich Toscano]

Dude, you have got way too much free time.

Yes, it’s true that my prior landlord defaulted on his mortgage. He also defaulted on about 7 other mortgages, all serially refinanced at 100% LTV (and often more) with the proceeds used to buy more rental properties until the game came to an end.

As for my specific property, he has been holding up the foreclosure process through legal tactics. But given the amount he owes vs. what the home is worth (including the amount in arrears he owes almost double what zillow says the home is worth) there is no way he is getting the home back.

It is a sure REO, yet along with many other of his and others’ sure REOs it hasn’t even hit the market yet. So I ask you: how exactly is this a sign of the bottom?

There is just no data to justify that this is the bottom. Instead of snooping about my personal information, maybe you can research this: how is this the bottom with homes still overpriced, 13 months of inventory on the market, and huge amount of REOs in the pipeline?

[Rich Toscano]

Dude, you have got way too much free time.

Yes, it’s true that my prior landlord defaulted on his mortgage. He also defaulted on about 7 other mortgages, all serially refinanced at 100% LTV (and often more) with the proceeds used to buy more rental properties until the game came to an end.

As for my specific property, he has been holding up the foreclosure process through legal tactics. But given the amount he owes vs. what the home is worth (including the amount in arrears he owes almost double what zillow says the home is worth) there is no way he is getting the home back.

It is a sure REO, yet along with many other of his and others’ sure REOs it hasn’t even hit the market yet. So I ask you: how exactly is this a sign of the bottom?

There is just no data to justify that this is the bottom. Instead of snooping about my personal information, maybe you can research this: how is this the bottom with homes still overpriced, 13 months of inventory on the market, and huge amount of REOs in the pipeline?

[Rich Toscano]

Drunkle – The price breakpoints are as of August 2007. It means that a given home’s category was determined as of that date (either by the sale price if it sold in Aug 2007, or the imputed price based on the HPI), and it will never jump categories regardless of where its price goes.

The problem you describe, of a home jumping categories, would happen if they were measuring median price or something. But they can avoid it because they are comparing same-home sales, so they can “pin” a given home into one category even if the price changes.

In retrospect, I’ll bet there was a much better way to explain that. 🙂

Rich

PS – As for the weird breakpoints, I assume they are just using a distribution of some sort so that there are an equal number of homes in the hi and low categories, or something.

PPS – All of the above is speculation on my part. But I’ll bet it’s true.

[Rich Toscano]

Drunkle – The price breakpoints are as of August 2007. It means that a given home’s category was determined as of that date (either by the sale price if it sold in Aug 2007, or the imputed price based on the HPI), and it will never jump categories regardless of where its price goes.

The problem you describe, of a home jumping categories, would happen if they were measuring median price or something. But they can avoid it because they are comparing same-home sales, so they can “pin” a given home into one category even if the price changes.

In retrospect, I’ll bet there was a much better way to explain that. 🙂

Rich

PS – As for the weird breakpoints, I assume they are just using a distribution of some sort so that there are an equal number of homes in the hi and low categories, or something.

PPS – All of the above is speculation on my part. But I’ll bet it’s true.

[Rich Toscano]

Drunkle – The price breakpoints are as of August 2007. It means that a given home’s category was determined as of that date (either by the sale price if it sold in Aug 2007, or the imputed price based on the HPI), and it will never jump categories regardless of where its price goes.

The problem you describe, of a home jumping categories, would happen if they were measuring median price or something. But they can avoid it because they are comparing same-home sales, so they can “pin” a given home into one category even if the price changes.

In retrospect, I’ll bet there was a much better way to explain that. 🙂

Rich

PS – As for the weird breakpoints, I assume they are just using a distribution of some sort so that there are an equal number of homes in the hi and low categories, or something.

PPS – All of the above is speculation on my part. But I’ll bet it’s true.

[Rich Toscano]

Drunkle – The price breakpoints are as of August 2007. It means that a given home’s category was determined as of that date (either by the sale price if it sold in Aug 2007, or the imputed price based on the HPI), and it will never jump categories regardless of where its price goes.

The problem you describe, of a home jumping categories, would happen if they were measuring median price or something. But they can avoid it because they are comparing same-home sales, so they can “pin” a given home into one category even if the price changes.

In retrospect, I’ll bet there was a much better way to explain that. 🙂

Rich

PS – As for the weird breakpoints, I assume they are just using a distribution of some sort so that there are an equal number of homes in the hi and low categories, or something.

PPS – All of the above is speculation on my part. But I’ll bet it’s true.

[Rich Toscano]

Good point SD, the leinholder would surely be entitled to the insurance payout, it seems to me.

rich

[Rich Toscano]

Good point SD, the leinholder would surely be entitled to the insurance payout, it seems to me.

rich

[Rich Toscano]

Good point SD, the leinholder would surely be entitled to the insurance payout, it seems to me.

rich

[Rich Toscano]

Hi PW – The thing is, you don’t really have to claim hardship to walk away. You can just walk away. (You’ll get less sympathy, I will admit).

However, that’s a good point about taking the money and running. That’s a pretty huge loophole though, and maybe they have things in place to prevent it. Hopefully someone with some experience or knowledge in this area can chime in.

rich

[Rich Toscano]

Hi PW – The thing is, you don’t really have to claim hardship to walk away. You can just walk away. (You’ll get less sympathy, I will admit).

However, that’s a good point about taking the money and running. That’s a pretty huge loophole though, and maybe they have things in place to prevent it. Hopefully someone with some experience or knowledge in this area can chime in.

rich

[Rich Toscano]

Hi PW – The thing is, you don’t really have to claim hardship to walk away. You can just walk away. (You’ll get less sympathy, I will admit).

However, that’s a good point about taking the money and running. That’s a pretty huge loophole though, and maybe they have things in place to prevent it. Hopefully someone with some experience or knowledge in this area can chime in.

rich

[Rich Toscano]

I don’t understand this line of reasoning. If someone’s house burns down, the insurance company pays them for the replacement cost of the home, not the home AND land. This won’t give them anywhere near enough to pay off their mortgages. They are left with an expensive plot of raw land that nobody would buy, just enough money to rebuild the home, their original mortgage debt, and no place to live (although insurance should pay for a rental while they rebuild). How does this bail them out?

rich

[Rich Toscano]

I don’t understand this line of reasoning. If someone’s house burns down, the insurance company pays them for the replacement cost of the home, not the home AND land. This won’t give them anywhere near enough to pay off their mortgages. They are left with an expensive plot of raw land that nobody would buy, just enough money to rebuild the home, their original mortgage debt, and no place to live (although insurance should pay for a rental while they rebuild). How does this bail them out?

rich

[Rich Toscano]

I don’t understand this line of reasoning. If someone’s house burns down, the insurance company pays them for the replacement cost of the home, not the home AND land. This won’t give them anywhere near enough to pay off their mortgages. They are left with an expensive plot of raw land that nobody would buy, just enough money to rebuild the home, their original mortgage debt, and no place to live (although insurance should pay for a rental while they rebuild). How does this bail them out?

rich

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