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SD Realtor
ParticipantPlease see the advice that I gave the previous distressed seller in that other post. First thing I would recommend is to call your lender. It is not hard to do and dealing with the issue is the best thing to do. What sdrealtor said makes alot of sense. One current short sale I have, the second mortgage has been totally wiped out for the cost of $1000 and the first has formally accepted a 60k loss. Both lenders have agreed not to pursue the deficiency. Additionally the sellers had been in default for quite awhile. It has been a royal pain in the rear they are quite relieved. The short sale package was not trivial to fill out. Lenders all vary with the acceptance of a short sale. I would absolutely take everything you read here with a grain of salt. If you want to not talk to your lender that is your prerogative but I would advise you to talk to an attorney if you are going to play cat and mouse with them.
Whether your lender will let you wipe out the second totally or buy it for pennies on the dollar is not known to me but it sure couldn’t help to try.
SD Realtor
ParticipantPlease see the advice that I gave the previous distressed seller in that other post. First thing I would recommend is to call your lender. It is not hard to do and dealing with the issue is the best thing to do. What sdrealtor said makes alot of sense. One current short sale I have, the second mortgage has been totally wiped out for the cost of $1000 and the first has formally accepted a 60k loss. Both lenders have agreed not to pursue the deficiency. Additionally the sellers had been in default for quite awhile. It has been a royal pain in the rear they are quite relieved. The short sale package was not trivial to fill out. Lenders all vary with the acceptance of a short sale. I would absolutely take everything you read here with a grain of salt. If you want to not talk to your lender that is your prerogative but I would advise you to talk to an attorney if you are going to play cat and mouse with them.
Whether your lender will let you wipe out the second totally or buy it for pennies on the dollar is not known to me but it sure couldn’t help to try.
SD Realtor
ParticipantPlease see the advice that I gave the previous distressed seller in that other post. First thing I would recommend is to call your lender. It is not hard to do and dealing with the issue is the best thing to do. What sdrealtor said makes alot of sense. One current short sale I have, the second mortgage has been totally wiped out for the cost of $1000 and the first has formally accepted a 60k loss. Both lenders have agreed not to pursue the deficiency. Additionally the sellers had been in default for quite awhile. It has been a royal pain in the rear they are quite relieved. The short sale package was not trivial to fill out. Lenders all vary with the acceptance of a short sale. I would absolutely take everything you read here with a grain of salt. If you want to not talk to your lender that is your prerogative but I would advise you to talk to an attorney if you are going to play cat and mouse with them.
Whether your lender will let you wipe out the second totally or buy it for pennies on the dollar is not known to me but it sure couldn’t help to try.
SD Realtor
ParticipantKewp you still don’t get it so I will not address you anymore. You are obviously missing the point entirely. There is no gravy train I am referring to. What I am referring to is taking initiative. You have stated many a time about your recession proof position in higher education. That is great. Personally I live a life of little leverage and risk in exchange for lack of debt. However that decision that I have made will ultimately prevent me from achieving more extreme wealth.
If you want to piss on everyone for taking risk and making money and say, “I guess we will see how you all do when that gravy train gets derailed.” You are simply illustrating lack of comprehending the point. My gosh.
Ray, like I said, I think it is all in the wiring of each of us. What you said is correct and the affect of taxes and inflation bolster your argument even further. The fact that our system promotes that sort of methodology is something that more intelligent people take advantage of and excel in. Most of the people I have been referring to do EXACTLY what you are promoting and if anything I am more envious then anything else.
Again though, the majority of the population would not use the money that they didn’t plunk into a down payment to make more money, they use it to spend. The other issue I have a bit of exception with is as follows….
If the goal is to maximize the return on the money that you have, why purchase a property to own at all? Wouldn’t it be more prudent to simply purchase property for investment to enjoy the tax benefits, leverage to the hilt, and live in a nice rental? As long as the cost of renting is less then the cost of ownership (including the tax consequences) then wouldn’t living like that carry your mode of thought to a far end of the spectrum? It seems to me that this would be a less expensive way to live and would enable you to maximize alternate investments. This question is more philosophical but am wondering what the response will be.
SD Realtor
ParticipantKewp you still don’t get it so I will not address you anymore. You are obviously missing the point entirely. There is no gravy train I am referring to. What I am referring to is taking initiative. You have stated many a time about your recession proof position in higher education. That is great. Personally I live a life of little leverage and risk in exchange for lack of debt. However that decision that I have made will ultimately prevent me from achieving more extreme wealth.
If you want to piss on everyone for taking risk and making money and say, “I guess we will see how you all do when that gravy train gets derailed.” You are simply illustrating lack of comprehending the point. My gosh.
Ray, like I said, I think it is all in the wiring of each of us. What you said is correct and the affect of taxes and inflation bolster your argument even further. The fact that our system promotes that sort of methodology is something that more intelligent people take advantage of and excel in. Most of the people I have been referring to do EXACTLY what you are promoting and if anything I am more envious then anything else.
Again though, the majority of the population would not use the money that they didn’t plunk into a down payment to make more money, they use it to spend. The other issue I have a bit of exception with is as follows….
If the goal is to maximize the return on the money that you have, why purchase a property to own at all? Wouldn’t it be more prudent to simply purchase property for investment to enjoy the tax benefits, leverage to the hilt, and live in a nice rental? As long as the cost of renting is less then the cost of ownership (including the tax consequences) then wouldn’t living like that carry your mode of thought to a far end of the spectrum? It seems to me that this would be a less expensive way to live and would enable you to maximize alternate investments. This question is more philosophical but am wondering what the response will be.
SD Realtor
ParticipantKewp you still don’t get it so I will not address you anymore. You are obviously missing the point entirely. There is no gravy train I am referring to. What I am referring to is taking initiative. You have stated many a time about your recession proof position in higher education. That is great. Personally I live a life of little leverage and risk in exchange for lack of debt. However that decision that I have made will ultimately prevent me from achieving more extreme wealth.
If you want to piss on everyone for taking risk and making money and say, “I guess we will see how you all do when that gravy train gets derailed.” You are simply illustrating lack of comprehending the point. My gosh.
Ray, like I said, I think it is all in the wiring of each of us. What you said is correct and the affect of taxes and inflation bolster your argument even further. The fact that our system promotes that sort of methodology is something that more intelligent people take advantage of and excel in. Most of the people I have been referring to do EXACTLY what you are promoting and if anything I am more envious then anything else.
Again though, the majority of the population would not use the money that they didn’t plunk into a down payment to make more money, they use it to spend. The other issue I have a bit of exception with is as follows….
If the goal is to maximize the return on the money that you have, why purchase a property to own at all? Wouldn’t it be more prudent to simply purchase property for investment to enjoy the tax benefits, leverage to the hilt, and live in a nice rental? As long as the cost of renting is less then the cost of ownership (including the tax consequences) then wouldn’t living like that carry your mode of thought to a far end of the spectrum? It seems to me that this would be a less expensive way to live and would enable you to maximize alternate investments. This question is more philosophical but am wondering what the response will be.
SD Realtor
ParticipantKewp you still don’t get it so I will not address you anymore. You are obviously missing the point entirely. There is no gravy train I am referring to. What I am referring to is taking initiative. You have stated many a time about your recession proof position in higher education. That is great. Personally I live a life of little leverage and risk in exchange for lack of debt. However that decision that I have made will ultimately prevent me from achieving more extreme wealth.
If you want to piss on everyone for taking risk and making money and say, “I guess we will see how you all do when that gravy train gets derailed.” You are simply illustrating lack of comprehending the point. My gosh.
Ray, like I said, I think it is all in the wiring of each of us. What you said is correct and the affect of taxes and inflation bolster your argument even further. The fact that our system promotes that sort of methodology is something that more intelligent people take advantage of and excel in. Most of the people I have been referring to do EXACTLY what you are promoting and if anything I am more envious then anything else.
Again though, the majority of the population would not use the money that they didn’t plunk into a down payment to make more money, they use it to spend. The other issue I have a bit of exception with is as follows….
If the goal is to maximize the return on the money that you have, why purchase a property to own at all? Wouldn’t it be more prudent to simply purchase property for investment to enjoy the tax benefits, leverage to the hilt, and live in a nice rental? As long as the cost of renting is less then the cost of ownership (including the tax consequences) then wouldn’t living like that carry your mode of thought to a far end of the spectrum? It seems to me that this would be a less expensive way to live and would enable you to maximize alternate investments. This question is more philosophical but am wondering what the response will be.
SD Realtor
ParticipantKewp you still don’t get it so I will not address you anymore. You are obviously missing the point entirely. There is no gravy train I am referring to. What I am referring to is taking initiative. You have stated many a time about your recession proof position in higher education. That is great. Personally I live a life of little leverage and risk in exchange for lack of debt. However that decision that I have made will ultimately prevent me from achieving more extreme wealth.
If you want to piss on everyone for taking risk and making money and say, “I guess we will see how you all do when that gravy train gets derailed.” You are simply illustrating lack of comprehending the point. My gosh.
Ray, like I said, I think it is all in the wiring of each of us. What you said is correct and the affect of taxes and inflation bolster your argument even further. The fact that our system promotes that sort of methodology is something that more intelligent people take advantage of and excel in. Most of the people I have been referring to do EXACTLY what you are promoting and if anything I am more envious then anything else.
Again though, the majority of the population would not use the money that they didn’t plunk into a down payment to make more money, they use it to spend. The other issue I have a bit of exception with is as follows….
If the goal is to maximize the return on the money that you have, why purchase a property to own at all? Wouldn’t it be more prudent to simply purchase property for investment to enjoy the tax benefits, leverage to the hilt, and live in a nice rental? As long as the cost of renting is less then the cost of ownership (including the tax consequences) then wouldn’t living like that carry your mode of thought to a far end of the spectrum? It seems to me that this would be a less expensive way to live and would enable you to maximize alternate investments. This question is more philosophical but am wondering what the response will be.
SD Realtor
ParticipantRay I think I see where our disconnect is. Whereas I am using the word risk, I should probably use the words personal peace of mind. Never would I advocate putting your entire savings into a downpayment. Of course one should always have cash reserves for emergencies. Let’s say I have 400k stashed in the house fund… Assume I have other monies stashed for emergencies, 401ks etc… So I see a home I want to buy for 800k. By your model you would say put down 10% maybe 20% rather then the 400k correct? As you said, reduce the debt by making an extra payment or whatever correct? With all the leftover invest that money or something of that nature. Putting the minimum amount of money down indeed reduces your risk because if something goes wrong, you walk away from the home with minimal loss.
I assume this is your point about minimizing risk.
*******
I understand that and agree to it. Per my first sentence here, it is about personal peace of mind. We are all wired different. Personally I don’t ever see myself walking away from a home. No matter what I do I will buy but it will be within my means. I have gauranteed it will be within my means because of the downpayment I will put down on it. Thus market up or market down I will always be able to afford my payment because I don’t want to ever move out until the kids are out of school OR I move because of personal choice not because of financial problems I BROUGHT UPON MYSELF buy purchasing something I cannot afford. The bottom line in my opinion is if home ownership were harder to obtain, and more personal responsibility was mandated, then we would not have the problems we have.
Your method of risk reduction indeed works because lenders are stupid enough to have ridiculous non recourse loans of which I have gone on record many a time should be banished.
What you say does make alot of sense and I agree with you in that respect. As I said, many of the wealthy people I know, indeed the majority of them think I am crazy for having as much of a downpayment as I will put down. They have made alot of money with alot less then what I will put down… I guess I play it to close to the vest. We are all wired differently.
SD Realtor
ParticipantRay I think I see where our disconnect is. Whereas I am using the word risk, I should probably use the words personal peace of mind. Never would I advocate putting your entire savings into a downpayment. Of course one should always have cash reserves for emergencies. Let’s say I have 400k stashed in the house fund… Assume I have other monies stashed for emergencies, 401ks etc… So I see a home I want to buy for 800k. By your model you would say put down 10% maybe 20% rather then the 400k correct? As you said, reduce the debt by making an extra payment or whatever correct? With all the leftover invest that money or something of that nature. Putting the minimum amount of money down indeed reduces your risk because if something goes wrong, you walk away from the home with minimal loss.
I assume this is your point about minimizing risk.
*******
I understand that and agree to it. Per my first sentence here, it is about personal peace of mind. We are all wired different. Personally I don’t ever see myself walking away from a home. No matter what I do I will buy but it will be within my means. I have gauranteed it will be within my means because of the downpayment I will put down on it. Thus market up or market down I will always be able to afford my payment because I don’t want to ever move out until the kids are out of school OR I move because of personal choice not because of financial problems I BROUGHT UPON MYSELF buy purchasing something I cannot afford. The bottom line in my opinion is if home ownership were harder to obtain, and more personal responsibility was mandated, then we would not have the problems we have.
Your method of risk reduction indeed works because lenders are stupid enough to have ridiculous non recourse loans of which I have gone on record many a time should be banished.
What you say does make alot of sense and I agree with you in that respect. As I said, many of the wealthy people I know, indeed the majority of them think I am crazy for having as much of a downpayment as I will put down. They have made alot of money with alot less then what I will put down… I guess I play it to close to the vest. We are all wired differently.
SD Realtor
ParticipantRay I think I see where our disconnect is. Whereas I am using the word risk, I should probably use the words personal peace of mind. Never would I advocate putting your entire savings into a downpayment. Of course one should always have cash reserves for emergencies. Let’s say I have 400k stashed in the house fund… Assume I have other monies stashed for emergencies, 401ks etc… So I see a home I want to buy for 800k. By your model you would say put down 10% maybe 20% rather then the 400k correct? As you said, reduce the debt by making an extra payment or whatever correct? With all the leftover invest that money or something of that nature. Putting the minimum amount of money down indeed reduces your risk because if something goes wrong, you walk away from the home with minimal loss.
I assume this is your point about minimizing risk.
*******
I understand that and agree to it. Per my first sentence here, it is about personal peace of mind. We are all wired different. Personally I don’t ever see myself walking away from a home. No matter what I do I will buy but it will be within my means. I have gauranteed it will be within my means because of the downpayment I will put down on it. Thus market up or market down I will always be able to afford my payment because I don’t want to ever move out until the kids are out of school OR I move because of personal choice not because of financial problems I BROUGHT UPON MYSELF buy purchasing something I cannot afford. The bottom line in my opinion is if home ownership were harder to obtain, and more personal responsibility was mandated, then we would not have the problems we have.
Your method of risk reduction indeed works because lenders are stupid enough to have ridiculous non recourse loans of which I have gone on record many a time should be banished.
What you say does make alot of sense and I agree with you in that respect. As I said, many of the wealthy people I know, indeed the majority of them think I am crazy for having as much of a downpayment as I will put down. They have made alot of money with alot less then what I will put down… I guess I play it to close to the vest. We are all wired differently.
SD Realtor
ParticipantRay I think I see where our disconnect is. Whereas I am using the word risk, I should probably use the words personal peace of mind. Never would I advocate putting your entire savings into a downpayment. Of course one should always have cash reserves for emergencies. Let’s say I have 400k stashed in the house fund… Assume I have other monies stashed for emergencies, 401ks etc… So I see a home I want to buy for 800k. By your model you would say put down 10% maybe 20% rather then the 400k correct? As you said, reduce the debt by making an extra payment or whatever correct? With all the leftover invest that money or something of that nature. Putting the minimum amount of money down indeed reduces your risk because if something goes wrong, you walk away from the home with minimal loss.
I assume this is your point about minimizing risk.
*******
I understand that and agree to it. Per my first sentence here, it is about personal peace of mind. We are all wired different. Personally I don’t ever see myself walking away from a home. No matter what I do I will buy but it will be within my means. I have gauranteed it will be within my means because of the downpayment I will put down on it. Thus market up or market down I will always be able to afford my payment because I don’t want to ever move out until the kids are out of school OR I move because of personal choice not because of financial problems I BROUGHT UPON MYSELF buy purchasing something I cannot afford. The bottom line in my opinion is if home ownership were harder to obtain, and more personal responsibility was mandated, then we would not have the problems we have.
Your method of risk reduction indeed works because lenders are stupid enough to have ridiculous non recourse loans of which I have gone on record many a time should be banished.
What you say does make alot of sense and I agree with you in that respect. As I said, many of the wealthy people I know, indeed the majority of them think I am crazy for having as much of a downpayment as I will put down. They have made alot of money with alot less then what I will put down… I guess I play it to close to the vest. We are all wired differently.
SD Realtor
ParticipantRay I think I see where our disconnect is. Whereas I am using the word risk, I should probably use the words personal peace of mind. Never would I advocate putting your entire savings into a downpayment. Of course one should always have cash reserves for emergencies. Let’s say I have 400k stashed in the house fund… Assume I have other monies stashed for emergencies, 401ks etc… So I see a home I want to buy for 800k. By your model you would say put down 10% maybe 20% rather then the 400k correct? As you said, reduce the debt by making an extra payment or whatever correct? With all the leftover invest that money or something of that nature. Putting the minimum amount of money down indeed reduces your risk because if something goes wrong, you walk away from the home with minimal loss.
I assume this is your point about minimizing risk.
*******
I understand that and agree to it. Per my first sentence here, it is about personal peace of mind. We are all wired different. Personally I don’t ever see myself walking away from a home. No matter what I do I will buy but it will be within my means. I have gauranteed it will be within my means because of the downpayment I will put down on it. Thus market up or market down I will always be able to afford my payment because I don’t want to ever move out until the kids are out of school OR I move because of personal choice not because of financial problems I BROUGHT UPON MYSELF buy purchasing something I cannot afford. The bottom line in my opinion is if home ownership were harder to obtain, and more personal responsibility was mandated, then we would not have the problems we have.
Your method of risk reduction indeed works because lenders are stupid enough to have ridiculous non recourse loans of which I have gone on record many a time should be banished.
What you say does make alot of sense and I agree with you in that respect. As I said, many of the wealthy people I know, indeed the majority of them think I am crazy for having as much of a downpayment as I will put down. They have made alot of money with alot less then what I will put down… I guess I play it to close to the vest. We are all wired differently.
SD Realtor
ParticipantKewp undortunately you missed my point entirely. Not only did I not have any intent to imply real estate investment, I don’t believe I mentioned it at all in my post. The people I know all made money by varying means from taking risks and opening businesses, forming investment syndicates, purchasing mobile home parks, starting private practices, tax lien investments, selling freeking hot dogs are fairs, all kinds of stuff. Some of these people did it on their own, some did it with investors, some took out equity to do it, most all of them didn’t pump a 30-40% downpayment into the home they live in. All of them took risk. Some failed, many did not. I am quite envious of all of them for taking the risk.
I guess I should have spelled it out more clearly.
Show me where I said anything about real estate. Sorry you didn’t really get what I was trying to say.
SD Realtor
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