Forum Replies Created
-
AuthorPosts
-
SD Realtor
ParticipantThis is an example of short sale processing… The original offer at close to the 499k mark was submitted to the lender in October! Yes you heard me right….October. I believe the asking price was 485k. So fast forward over 4 months and the offer is “close” to being accepted. The second has been approved for 2k but the first has ordered yet another BPO. Meanwhile the original buyers are in escrow for another property although they keep inquiring about this property.
waitingtobuy – yes the base property tax will be reassessed at the new sales price. So that is good news for whoever buys. Mello Roos is not affected by sales price at all so you are stuck with the 3200/year nut on this puppy. Let’s not forget the 159 HOA fee either. What you pay as a total tax to San Diego county will vary in 4S based on the subdivision you buy in. Mello Roos districts are indpendently created/designated. I know it is kind of maddening. Figure this… 1.2% base tax rate and then tack on the MR.
Also for all this home is condo ownership, not fee simple. Home sold for 635k in 05. So basically at 485k we are seeing a 25% haircut… not to bad.
SD Realtor
ParticipantThis is an example of short sale processing… The original offer at close to the 499k mark was submitted to the lender in October! Yes you heard me right….October. I believe the asking price was 485k. So fast forward over 4 months and the offer is “close” to being accepted. The second has been approved for 2k but the first has ordered yet another BPO. Meanwhile the original buyers are in escrow for another property although they keep inquiring about this property.
waitingtobuy – yes the base property tax will be reassessed at the new sales price. So that is good news for whoever buys. Mello Roos is not affected by sales price at all so you are stuck with the 3200/year nut on this puppy. Let’s not forget the 159 HOA fee either. What you pay as a total tax to San Diego county will vary in 4S based on the subdivision you buy in. Mello Roos districts are indpendently created/designated. I know it is kind of maddening. Figure this… 1.2% base tax rate and then tack on the MR.
Also for all this home is condo ownership, not fee simple. Home sold for 635k in 05. So basically at 485k we are seeing a 25% haircut… not to bad.
SD Realtor
ParticipantThis is an example of short sale processing… The original offer at close to the 499k mark was submitted to the lender in October! Yes you heard me right….October. I believe the asking price was 485k. So fast forward over 4 months and the offer is “close” to being accepted. The second has been approved for 2k but the first has ordered yet another BPO. Meanwhile the original buyers are in escrow for another property although they keep inquiring about this property.
waitingtobuy – yes the base property tax will be reassessed at the new sales price. So that is good news for whoever buys. Mello Roos is not affected by sales price at all so you are stuck with the 3200/year nut on this puppy. Let’s not forget the 159 HOA fee either. What you pay as a total tax to San Diego county will vary in 4S based on the subdivision you buy in. Mello Roos districts are indpendently created/designated. I know it is kind of maddening. Figure this… 1.2% base tax rate and then tack on the MR.
Also for all this home is condo ownership, not fee simple. Home sold for 635k in 05. So basically at 485k we are seeing a 25% haircut… not to bad.
SD Realtor
ParticipantBoth answers are well thought out and I cannot argue either of them well not just because I am tired but because I don’t have a good argument either way and I am not as well versed in the movement of the ten year. I get brainfreeze when I try to figure out which way it will go. Thanks for providing input guys.
SD Realtor
ParticipantBoth answers are well thought out and I cannot argue either of them well not just because I am tired but because I don’t have a good argument either way and I am not as well versed in the movement of the ten year. I get brainfreeze when I try to figure out which way it will go. Thanks for providing input guys.
SD Realtor
ParticipantBoth answers are well thought out and I cannot argue either of them well not just because I am tired but because I don’t have a good argument either way and I am not as well versed in the movement of the ten year. I get brainfreeze when I try to figure out which way it will go. Thanks for providing input guys.
SD Realtor
ParticipantBoth answers are well thought out and I cannot argue either of them well not just because I am tired but because I don’t have a good argument either way and I am not as well versed in the movement of the ten year. I get brainfreeze when I try to figure out which way it will go. Thanks for providing input guys.
SD Realtor
ParticipantBoth answers are well thought out and I cannot argue either of them well not just because I am tired but because I don’t have a good argument either way and I am not as well versed in the movement of the ten year. I get brainfreeze when I try to figure out which way it will go. Thanks for providing input guys.
SD Realtor
ParticipantPW and PR, good posts.
PW the current short sale I have listed right now tried to convince the lender to go for a deed in lieu of foreclosure but the lender would not budge. They said that we could attempt to sell it short or they would just take the home at trustee sale. This WAS indeed a hardship case as well! I am working with another client at the moment and they actually have a hardship case as well. They has authorized me to talk to the lender and I have been going round and round with them. This home is not yet listed either and the owners simply do want to just mail the keys in but the lender is being uncooperative.
As far as the advice to people who want to simply mail it in so to speak. I guess I don’t have any strong feelings. I would have to agree that yeah simply paying out money you cannot afford to pay is something that one should not do. Still I cannot help but to want to grab these people by the collar and shake em around a bit and ask why the heck they bought something they couldn’t afford in the first place? If it is a true hardship where something did happen, at least there is an excuse there. Anyways walking away is a very realistic option and yes I have recommended it to many people. It is a very realistic option and it dovetails nicely in the the post PR made.
Essentially we as taxpayers have/will take on the burden of these shortfalls. To me this has to be one of the changes in the housing market. I cannot stand these non recourse loans. Build the risk into the purchase and let the buyer pay that risk. If it means 20% down, or if it means 30% down then so be it.
If we make it a major hurdle to purchase a home, I don’t think we would ever get close to creating a bubble like the one we created again.
Right now it is like we keep squeezing these bubbles into different areas. The stock bubble got squeezed into real estate, now real estate is getting squeezed into the tax bill… Seems to me sometime someday there will be no places left to squeeze to.
ParticipantPW and PR, good posts.
PW the current short sale I have listed right now tried to convince the lender to go for a deed in lieu of foreclosure but the lender would not budge. They said that we could attempt to sell it short or they would just take the home at trustee sale. This WAS indeed a hardship case as well! I am working with another client at the moment and they actually have a hardship case as well. They has authorized me to talk to the lender and I have been going round and round with them. This home is not yet listed either and the owners simply do want to just mail the keys in but the lender is being uncooperative.
As far as the advice to people who want to simply mail it in so to speak. I guess I don’t have any strong feelings. I would have to agree that yeah simply paying out money you cannot afford to pay is something that one should not do. Still I cannot help but to want to grab these people by the collar and shake em around a bit and ask why the heck they bought something they couldn’t afford in the first place? If it is a true hardship where something did happen, at least there is an excuse there. Anyways walking away is a very realistic option and yes I have recommended it to many people. It is a very realistic option and it dovetails nicely in the the post PR made.
Essentially we as taxpayers have/will take on the burden of these shortfalls. To me this has to be one of the changes in the housing market. I cannot stand these non recourse loans. Build the risk into the purchase and let the buyer pay that risk. If it means 20% down, or if it means 30% down then so be it.
If we make it a major hurdle to purchase a home, I don’t think we would ever get close to creating a bubble like the one we created again.
Right now it is like we keep squeezing these bubbles into different areas. The stock bubble got squeezed into real estate, now real estate is getting squeezed into the tax bill… Seems to me sometime someday there will be no places left to squeeze to.
ParticipantPW and PR, good posts.
PW the current short sale I have listed right now tried to convince the lender to go for a deed in lieu of foreclosure but the lender would not budge. They said that we could attempt to sell it short or they would just take the home at trustee sale. This WAS indeed a hardship case as well! I am working with another client at the moment and they actually have a hardship case as well. They has authorized me to talk to the lender and I have been going round and round with them. This home is not yet listed either and the owners simply do want to just mail the keys in but the lender is being uncooperative.
As far as the advice to people who want to simply mail it in so to speak. I guess I don’t have any strong feelings. I would have to agree that yeah simply paying out money you cannot afford to pay is something that one should not do. Still I cannot help but to want to grab these people by the collar and shake em around a bit and ask why the heck they bought something they couldn’t afford in the first place? If it is a true hardship where something did happen, at least there is an excuse there. Anyways walking away is a very realistic option and yes I have recommended it to many people. It is a very realistic option and it dovetails nicely in the the post PR made.
Essentially we as taxpayers have/will take on the burden of these shortfalls. To me this has to be one of the changes in the housing market. I cannot stand these non recourse loans. Build the risk into the purchase and let the buyer pay that risk. If it means 20% down, or if it means 30% down then so be it.
If we make it a major hurdle to purchase a home, I don’t think we would ever get close to creating a bubble like the one we created again.
Right now it is like we keep squeezing these bubbles into different areas. The stock bubble got squeezed into real estate, now real estate is getting squeezed into the tax bill… Seems to me sometime someday there will be no places left to squeeze to.
ParticipantPW and PR, good posts.
PW the current short sale I have listed right now tried to convince the lender to go for a deed in lieu of foreclosure but the lender would not budge. They said that we could attempt to sell it short or they would just take the home at trustee sale. This WAS indeed a hardship case as well! I am working with another client at the moment and they actually have a hardship case as well. They has authorized me to talk to the lender and I have been going round and round with them. This home is not yet listed either and the owners simply do want to just mail the keys in but the lender is being uncooperative.
As far as the advice to people who want to simply mail it in so to speak. I guess I don’t have any strong feelings. I would have to agree that yeah simply paying out money you cannot afford to pay is something that one should not do. Still I cannot help but to want to grab these people by the collar and shake em around a bit and ask why the heck they bought something they couldn’t afford in the first place? If it is a true hardship where something did happen, at least there is an excuse there. Anyways walking away is a very realistic option and yes I have recommended it to many people. It is a very realistic option and it dovetails nicely in the the post PR made.
Essentially we as taxpayers have/will take on the burden of these shortfalls. To me this has to be one of the changes in the housing market. I cannot stand these non recourse loans. Build the risk into the purchase and let the buyer pay that risk. If it means 20% down, or if it means 30% down then so be it.
If we make it a major hurdle to purchase a home, I don’t think we would ever get close to creating a bubble like the one we created again.
Right now it is like we keep squeezing these bubbles into different areas. The stock bubble got squeezed into real estate, now real estate is getting squeezed into the tax bill… Seems to me sometime someday there will be no places left to squeeze to.
ParticipantPW and PR, good posts.
PW the current short sale I have listed right now tried to convince the lender to go for a deed in lieu of foreclosure but the lender would not budge. They said that we could attempt to sell it short or they would just take the home at trustee sale. This WAS indeed a hardship case as well! I am working with another client at the moment and they actually have a hardship case as well. They has authorized me to talk to the lender and I have been going round and round with them. This home is not yet listed either and the owners simply do want to just mail the keys in but the lender is being uncooperative.
As far as the advice to people who want to simply mail it in so to speak. I guess I don’t have any strong feelings. I would have to agree that yeah simply paying out money you cannot afford to pay is something that one should not do. Still I cannot help but to want to grab these people by the collar and shake em around a bit and ask why the heck they bought something they couldn’t afford in the first place? If it is a true hardship where something did happen, at least there is an excuse there. Anyways walking away is a very realistic option and yes I have recommended it to many people. It is a very realistic option and it dovetails nicely in the the post PR made.
Essentially we as taxpayers have/will take on the burden of these shortfalls. To me this has to be one of the changes in the housing market. I cannot stand these non recourse loans. Build the risk into the purchase and let the buyer pay that risk. If it means 20% down, or if it means 30% down then so be it.
If we make it a major hurdle to purchase a home, I don’t think we would ever get close to creating a bubble like the one we created again.
Right now it is like we keep squeezing these bubbles into different areas. The stock bubble got squeezed into real estate, now real estate is getting squeezed into the tax bill… Seems to me sometime someday there will be no places left to squeeze to.
ParticipantAgreed that the low 10 year is best for the housing recession however the best way to get the correction underway would be a higher 10 year. As long as the 10 year is low then there is some facet of affordability to the housing market. Actually 3.78 is pretty darn low if you look at the 10 year yield back to 1965. In fact the two lowest points we have had SINCE 1965 have been the yield a few weeks ago and the yield back in 2003.
I do not argue about the possibilities of a Japan style scenario that occurred in the 90s. However one thing I have never heard anyone explain is how we will continue to get our astronomical debt financed at 1-2% treasury yields.
The other thing that is somewhat “not fitting the data” in my opinion is the low inflation expectations. While the “official” measurement du jour of inflation does not indicate high inflation, anyone that has kids and has to buy alot of milk will tell you otherwise. Similarly nobody can honestly say with a straight face that you cannot count energy costs for inflation. So while there may be an official inflation number that is in check so to speak, the reality of the situation is that a measureable amount of personal income does indeed go to basic goods and services in comparison to the no to distant pass cost of those same goods and services.
Don’t get me wrong, Your point may be correct. Just to be sure though, you are saying that you believe the 10 year will hit levels that it basically has never hit before. Which would be awesome for housing. A 10 year at 1.5% puts a fixed rate conforming loan at 3%… Not bad at all. At the same time our debt will continue to be financed by foreign entities who will buy these instruments at that low of a yield.
Not sure if I agree but I guess we will see.
SD Realtor
-
AuthorPosts
