[Running Bear]

DJC gave you very good advice.

I would try and sell the house since it sounds like you can get out of it for little to no loss. But if you choose to do this it better be fast. This spring selling pop won’t last very long. IMHO

Rent until the lease is up on the tenants in the condo then move back into the condo. You are bleeding money every month holding on to both and also have double exposure to the price depreciation in the market.

Also, the condo is on a 30 year fixed more then likely recourse loan and underwater. You can’t get away from this money drain so get rid of what you can….the house.

You have to make the choice that is going to be better for your financial future. If you can take the emotion out of it I think you will come to realize that moving back into the condo is the best course financially by far.

My2Cents

[Running Bear]

DJC gave you very good advice.

I would try and sell the house since it sounds like you can get out of it for little to no loss. But if you choose to do this it better be fast. This spring selling pop won’t last very long. IMHO

Rent until the lease is up on the tenants in the condo then move back into the condo. You are bleeding money every month holding on to both and also have double exposure to the price depreciation in the market.

Also, the condo is on a 30 year fixed more then likely recourse loan and underwater. You can’t get away from this money drain so get rid of what you can….the house.

You have to make the choice that is going to be better for your financial future. If you can take the emotion out of it I think you will come to realize that moving back into the condo is the best course financially by far.

My2Cents

[Running Bear]

DJC gave you very good advice.

I would try and sell the house since it sounds like you can get out of it for little to no loss. But if you choose to do this it better be fast. This spring selling pop won’t last very long. IMHO

Rent until the lease is up on the tenants in the condo then move back into the condo. You are bleeding money every month holding on to both and also have double exposure to the price depreciation in the market.

Also, the condo is on a 30 year fixed more then likely recourse loan and underwater. You can’t get away from this money drain so get rid of what you can….the house.

You have to make the choice that is going to be better for your financial future. If you can take the emotion out of it I think you will come to realize that moving back into the condo is the best course financially by far.

My2Cents

[Running Bear]

DJC gave you very good advice.

I would try and sell the house since it sounds like you can get out of it for little to no loss. But if you choose to do this it better be fast. This spring selling pop won’t last very long. IMHO

Rent until the lease is up on the tenants in the condo then move back into the condo. You are bleeding money every month holding on to both and also have double exposure to the price depreciation in the market.

Also, the condo is on a 30 year fixed more then likely recourse loan and underwater. You can’t get away from this money drain so get rid of what you can….the house.

You have to make the choice that is going to be better for your financial future. If you can take the emotion out of it I think you will come to realize that moving back into the condo is the best course financially by far.

My2Cents

[Running Bear]

DJC gave you very good advice.

I would try and sell the house since it sounds like you can get out of it for little to no loss. But if you choose to do this it better be fast. This spring selling pop won’t last very long. IMHO

Rent until the lease is up on the tenants in the condo then move back into the condo. You are bleeding money every month holding on to both and also have double exposure to the price depreciation in the market.

Also, the condo is on a 30 year fixed more then likely recourse loan and underwater. You can’t get away from this money drain so get rid of what you can….the house.

You have to make the choice that is going to be better for your financial future. If you can take the emotion out of it I think you will come to realize that moving back into the condo is the best course financially by far.

My2Cents

[Running Bear]

“Wonder if that will change anything in the North county Coastal market that has been stuck for the time being.”

Seems like this has gotten into a bit of a pissing contest between 2 sides and the original questions isn’t being answered. If we want to stay ahead of this market and make the prudent choices we have to look at things on a broader scale. In the short term and in certain areas will we see a positive from this…yes. In the long run and the big picture will it make a big difference in the direction of the market…no. IMHO

Gents, the macro economic forces going on here are large and very hard to quantify. But if you want to bet on the side that is more likely then not you have to be on the side of home prices are still heading down. Any short term slowing or pops that we get from this years selling season will be in my opinion short lived. The major pillars of this housing bubble are now gone and we are still a long way off before this has totally played out in the market. If the government continues to try and bail out everyone and keep this bubble afloat, we have the potential for a very dire situation. Stay a renter if you are and keep your money and assets safe and liquid. Patience here is your friend and if you get caught up in the hype and jump back in thinking we are at some sort of V shaped bottom, I am afraid you will regret it.

My2Cents

[Running Bear]

“Wonder if that will change anything in the North county Coastal market that has been stuck for the time being.”

Seems like this has gotten into a bit of a pissing contest between 2 sides and the original questions isn’t being answered. If we want to stay ahead of this market and make the prudent choices we have to look at things on a broader scale. In the short term and in certain areas will we see a positive from this…yes. In the long run and the big picture will it make a big difference in the direction of the market…no. IMHO

Gents, the macro economic forces going on here are large and very hard to quantify. But if you want to bet on the side that is more likely then not you have to be on the side of home prices are still heading down. Any short term slowing or pops that we get from this years selling season will be in my opinion short lived. The major pillars of this housing bubble are now gone and we are still a long way off before this has totally played out in the market. If the government continues to try and bail out everyone and keep this bubble afloat, we have the potential for a very dire situation. Stay a renter if you are and keep your money and assets safe and liquid. Patience here is your friend and if you get caught up in the hype and jump back in thinking we are at some sort of V shaped bottom, I am afraid you will regret it.

My2Cents

[Running Bear]

“Wonder if that will change anything in the North county Coastal market that has been stuck for the time being.”

Seems like this has gotten into a bit of a pissing contest between 2 sides and the original questions isn’t being answered. If we want to stay ahead of this market and make the prudent choices we have to look at things on a broader scale. In the short term and in certain areas will we see a positive from this…yes. In the long run and the big picture will it make a big difference in the direction of the market…no. IMHO

Gents, the macro economic forces going on here are large and very hard to quantify. But if you want to bet on the side that is more likely then not you have to be on the side of home prices are still heading down. Any short term slowing or pops that we get from this years selling season will be in my opinion short lived. The major pillars of this housing bubble are now gone and we are still a long way off before this has totally played out in the market. If the government continues to try and bail out everyone and keep this bubble afloat, we have the potential for a very dire situation. Stay a renter if you are and keep your money and assets safe and liquid. Patience here is your friend and if you get caught up in the hype and jump back in thinking we are at some sort of V shaped bottom, I am afraid you will regret it.

My2Cents

[Running Bear]

“Wonder if that will change anything in the North county Coastal market that has been stuck for the time being.”

Seems like this has gotten into a bit of a pissing contest between 2 sides and the original questions isn’t being answered. If we want to stay ahead of this market and make the prudent choices we have to look at things on a broader scale. In the short term and in certain areas will we see a positive from this…yes. In the long run and the big picture will it make a big difference in the direction of the market…no. IMHO

Gents, the macro economic forces going on here are large and very hard to quantify. But if you want to bet on the side that is more likely then not you have to be on the side of home prices are still heading down. Any short term slowing or pops that we get from this years selling season will be in my opinion short lived. The major pillars of this housing bubble are now gone and we are still a long way off before this has totally played out in the market. If the government continues to try and bail out everyone and keep this bubble afloat, we have the potential for a very dire situation. Stay a renter if you are and keep your money and assets safe and liquid. Patience here is your friend and if you get caught up in the hype and jump back in thinking we are at some sort of V shaped bottom, I am afraid you will regret it.

My2Cents

[Running Bear]

“Wonder if that will change anything in the North county Coastal market that has been stuck for the time being.”

Seems like this has gotten into a bit of a pissing contest between 2 sides and the original questions isn’t being answered. If we want to stay ahead of this market and make the prudent choices we have to look at things on a broader scale. In the short term and in certain areas will we see a positive from this…yes. In the long run and the big picture will it make a big difference in the direction of the market…no. IMHO

Gents, the macro economic forces going on here are large and very hard to quantify. But if you want to bet on the side that is more likely then not you have to be on the side of home prices are still heading down. Any short term slowing or pops that we get from this years selling season will be in my opinion short lived. The major pillars of this housing bubble are now gone and we are still a long way off before this has totally played out in the market. If the government continues to try and bail out everyone and keep this bubble afloat, we have the potential for a very dire situation. Stay a renter if you are and keep your money and assets safe and liquid. Patience here is your friend and if you get caught up in the hype and jump back in thinking we are at some sort of V shaped bottom, I am afraid you will regret it.

My2Cents

[Running Bear]

RolyPoly,

I am commenting because I don’t like some of the advice you are getting on this topic. I believe that right now you should be focused on wealth preservation and not high rate of return on your investments.

1. I would refi the loan and get a 30 year fixed. I say this because paying off the house quickly isn’t the best place to put your cash and if you run into any financial difficulty a 15 year loan doesn’t give you the option of paying less per month. If you choose to pay off your loan sooner there is no reason you can’t pay more per month. The 30 will give you the most flexibility and you won’t have to worry about your interest rate changing.

2. I would not recommend tying up all your cash in what now is clearly an illiquid asset. We don’t know what the future will bring but putting your savings and your available cash into a house that may take months or years to sell isn’t a smart choice.

3. Taking out a HELOC at this point makes no sense to me. You will expose yourself to more debt and will pay interest to borrow your own money. It seems to me you have plenty of equity in your home and are in no danger of losing it. Why open up that potential?

I believe there are 2 options ahead of us at this point. Since we all agree that the housing market is imploding and the economy is headed into a recession, we have 2 options.

1. Inflation. If the government decides to bailout all of these speculators and investors I believe that the rest of the world will shun US T-Bills. This means that borrowing costs will go through the roof.

2. Deflation. If all of the bail out plans and scheme don’t work we are going to see a serious reversion to mean. This will hit most if not all asset classes and until we get back to a normal lvl.

In either case a loan will either get more expensive in the form of higher interest rates or very hard to get as banks tighten lending even more. Lock in your interest rate for a long period of time if the payment is manageable and keep your cash on the side ready to take advantage or either scenario. Do not take on any more debt if you can help it.

For what it is worth I believe we are going into a fairly short term inflation event then a much longer deflation period. There is no asset class left that can create free wealth like the housing market did so we have to get back to a reasonable level. All that the bailouts will do is delay this from occurring but it will happen.

My2Cents

[Running Bear]

RolyPoly,

I am commenting because I don’t like some of the advice you are getting on this topic. I believe that right now you should be focused on wealth preservation and not high rate of return on your investments.

1. I would refi the loan and get a 30 year fixed. I say this because paying off the house quickly isn’t the best place to put your cash and if you run into any financial difficulty a 15 year loan doesn’t give you the option of paying less per month. If you choose to pay off your loan sooner there is no reason you can’t pay more per month. The 30 will give you the most flexibility and you won’t have to worry about your interest rate changing.

2. I would not recommend tying up all your cash in what now is clearly an illiquid asset. We don’t know what the future will bring but putting your savings and your available cash into a house that may take months or years to sell isn’t a smart choice.

3. Taking out a HELOC at this point makes no sense to me. You will expose yourself to more debt and will pay interest to borrow your own money. It seems to me you have plenty of equity in your home and are in no danger of losing it. Why open up that potential?

I believe there are 2 options ahead of us at this point. Since we all agree that the housing market is imploding and the economy is headed into a recession, we have 2 options.

1. Inflation. If the government decides to bailout all of these speculators and investors I believe that the rest of the world will shun US T-Bills. This means that borrowing costs will go through the roof.

2. Deflation. If all of the bail out plans and scheme don’t work we are going to see a serious reversion to mean. This will hit most if not all asset classes and until we get back to a normal lvl.

In either case a loan will either get more expensive in the form of higher interest rates or very hard to get as banks tighten lending even more. Lock in your interest rate for a long period of time if the payment is manageable and keep your cash on the side ready to take advantage or either scenario. Do not take on any more debt if you can help it.

For what it is worth I believe we are going into a fairly short term inflation event then a much longer deflation period. There is no asset class left that can create free wealth like the housing market did so we have to get back to a reasonable level. All that the bailouts will do is delay this from occurring but it will happen.

My2Cents

[Running Bear]

RolyPoly,

I am commenting because I don’t like some of the advice you are getting on this topic. I believe that right now you should be focused on wealth preservation and not high rate of return on your investments.

1. I would refi the loan and get a 30 year fixed. I say this because paying off the house quickly isn’t the best place to put your cash and if you run into any financial difficulty a 15 year loan doesn’t give you the option of paying less per month. If you choose to pay off your loan sooner there is no reason you can’t pay more per month. The 30 will give you the most flexibility and you won’t have to worry about your interest rate changing.

2. I would not recommend tying up all your cash in what now is clearly an illiquid asset. We don’t know what the future will bring but putting your savings and your available cash into a house that may take months or years to sell isn’t a smart choice.

3. Taking out a HELOC at this point makes no sense to me. You will expose yourself to more debt and will pay interest to borrow your own money. It seems to me you have plenty of equity in your home and are in no danger of losing it. Why open up that potential?

I believe there are 2 options ahead of us at this point. Since we all agree that the housing market is imploding and the economy is headed into a recession, we have 2 options.

1. Inflation. If the government decides to bailout all of these speculators and investors I believe that the rest of the world will shun US T-Bills. This means that borrowing costs will go through the roof.

2. Deflation. If all of the bail out plans and scheme don’t work we are going to see a serious reversion to mean. This will hit most if not all asset classes and until we get back to a normal lvl.

In either case a loan will either get more expensive in the form of higher interest rates or very hard to get as banks tighten lending even more. Lock in your interest rate for a long period of time if the payment is manageable and keep your cash on the side ready to take advantage or either scenario. Do not take on any more debt if you can help it.

For what it is worth I believe we are going into a fairly short term inflation event then a much longer deflation period. There is no asset class left that can create free wealth like the housing market did so we have to get back to a reasonable level. All that the bailouts will do is delay this from occurring but it will happen.

My2Cents

[Running Bear]

RolyPoly,

I am commenting because I don’t like some of the advice you are getting on this topic. I believe that right now you should be focused on wealth preservation and not high rate of return on your investments.

1. I would refi the loan and get a 30 year fixed. I say this because paying off the house quickly isn’t the best place to put your cash and if you run into any financial difficulty a 15 year loan doesn’t give you the option of paying less per month. If you choose to pay off your loan sooner there is no reason you can’t pay more per month. The 30 will give you the most flexibility and you won’t have to worry about your interest rate changing.

2. I would not recommend tying up all your cash in what now is clearly an illiquid asset. We don’t know what the future will bring but putting your savings and your available cash into a house that may take months or years to sell isn’t a smart choice.

3. Taking out a HELOC at this point makes no sense to me. You will expose yourself to more debt and will pay interest to borrow your own money. It seems to me you have plenty of equity in your home and are in no danger of losing it. Why open up that potential?

I believe there are 2 options ahead of us at this point. Since we all agree that the housing market is imploding and the economy is headed into a recession, we have 2 options.

1. Inflation. If the government decides to bailout all of these speculators and investors I believe that the rest of the world will shun US T-Bills. This means that borrowing costs will go through the roof.

2. Deflation. If all of the bail out plans and scheme don’t work we are going to see a serious reversion to mean. This will hit most if not all asset classes and until we get back to a normal lvl.

In either case a loan will either get more expensive in the form of higher interest rates or very hard to get as banks tighten lending even more. Lock in your interest rate for a long period of time if the payment is manageable and keep your cash on the side ready to take advantage or either scenario. Do not take on any more debt if you can help it.

For what it is worth I believe we are going into a fairly short term inflation event then a much longer deflation period. There is no asset class left that can create free wealth like the housing market did so we have to get back to a reasonable level. All that the bailouts will do is delay this from occurring but it will happen.

My2Cents

[Running Bear]

RolyPoly,

I am commenting because I don’t like some of the advice you are getting on this topic. I believe that right now you should be focused on wealth preservation and not high rate of return on your investments.

1. I would refi the loan and get a 30 year fixed. I say this because paying off the house quickly isn’t the best place to put your cash and if you run into any financial difficulty a 15 year loan doesn’t give you the option of paying less per month. If you choose to pay off your loan sooner there is no reason you can’t pay more per month. The 30 will give you the most flexibility and you won’t have to worry about your interest rate changing.

2. I would not recommend tying up all your cash in what now is clearly an illiquid asset. We don’t know what the future will bring but putting your savings and your available cash into a house that may take months or years to sell isn’t a smart choice.

3. Taking out a HELOC at this point makes no sense to me. You will expose yourself to more debt and will pay interest to borrow your own money. It seems to me you have plenty of equity in your home and are in no danger of losing it. Why open up that potential?

I believe there are 2 options ahead of us at this point. Since we all agree that the housing market is imploding and the economy is headed into a recession, we have 2 options.

1. Inflation. If the government decides to bailout all of these speculators and investors I believe that the rest of the world will shun US T-Bills. This means that borrowing costs will go through the roof.

2. Deflation. If all of the bail out plans and scheme don’t work we are going to see a serious reversion to mean. This will hit most if not all asset classes and until we get back to a normal lvl.

In either case a loan will either get more expensive in the form of higher interest rates or very hard to get as banks tighten lending even more. Lock in your interest rate for a long period of time if the payment is manageable and keep your cash on the side ready to take advantage or either scenario. Do not take on any more debt if you can help it.

For what it is worth I believe we are going into a fairly short term inflation event then a much longer deflation period. There is no asset class left that can create free wealth like the housing market did so we have to get back to a reasonable level. All that the bailouts will do is delay this from occurring but it will happen.

My2Cents

[Author]

Posts