[spdrun]

There should be less restrictive HELOCs which base the high price off of average appreciation over several decades (more conservative estimate) but let you spend it on whatever you want and then HELOCs which take whatever the appraiser says but requires oversight so that you invest in something that will actually improve your financial situation (home improvement, pay off higher interest student loan debt, etc).

That makes zero sense. If the less restrictive HELOC is based on average appreciation going forward, then people could borrow MORE than the more restrictive HELOC (which is based on a % of current appraised value). Shouldn’t this be the other way around?

[spdrun]

Assuming that they’re keeping skin in the game on each property and initially paying cash, how is serially buying investment properties using lines of credit any worse than having cash on hand and paying 20-25% down for them?

Answer: it’s not. And as long as rents exceed monthly expenses by a tidy margin, it’s a relatively safe thing to do provided that the credit lines can be converted to fixed-rate loans within a reasonable time.

Flipping would be fueling the bubble. Buying for rental income and remortgaging below purchase price is just good business sense.

[spdrun]

Horseshit — your logic could be applied to any asset. Should people not be allowed to pawn their cars or their jewelry so they “have enough for retirement?” What is considered “enough?”

Why should someone with 100% equity in their home be required to sell it to start a business. If anything, lack of available credit (with L-to-V percentages within reason) will just help those who are already rich and hurt the little guy.

And as far as government retirement pensions, Social Security is a system where people GET BACK WHAT THEY PAID INTO IT. I have absolutely no problem with such a system, and in any case, living on SS isn’t exactly living high on the hog. Isn’t is something like $15k/yr?

[spdrun]

What’s your farkin’ point?

Are you expecting prices to drop 40-50% below current values on REOs in the foreseeable future? If yes, then the HELOCs are a bad thing. If no, then the banks are making a rational decision.

The previous problem was different, caused by people being allowed to borrow nearly ALL (or more than all) of the home’s value.

[spdrun]

Have offers in the process on two as I write this. If anything, foreclosures are selling for above appraisal in a lot of areas, and I don’t see a lot of downward pressure on prices, so 50% of appraisal should allow banks to sell off REO’s at a profit.

[spdrun]

So the bank will be able to foreclose at a profit to itself, same as was done in pre-Bubble days.

[spdrun]

Regardless, as long as the total equity withdrawal is limited to a fraction of current value that doesn’t approach (or exceed!) unity, then they shouldn’t have a problem selling or renting out in case of financial hardship.

[spdrun]

That they’re highly religious, since they pray after spraying?

[spdrun]

Plenty of people own their homes for cash or have low debt-to-value ratios — what’s wrong with having say 50-60% of equity or so available to pull out?

[spdrun]

Again: why is precise sq ft measurement so relevant? If you like the space and the price, buy it. If not, then walk. You’re not buying potatoes by the pound here.

I don’t think I even knew how many sq ft my condo was precisely till I put an offer on it.

[spdrun]

I pick up tools on Craigslist and estate sales. Money stays in America that way, and the tools are often high-quality stuff.

[spdrun]

How someone mistakes a Blue Toyota Tacoma for a Gray Nissan Titan is beyond me..

If they were smart, they’d have gone to work for the DMV 😀

[spdrun]

I heard the news this morning mention that Anderson Cooper supposedly said there are scenes on the DVD he was mailed that appears to support Dorner’s claim that the suspect was kicked.

Not justifying Dorner’s insane actions in any way.

But if the scenes are there, I hope that the sow who kicked the mentally ill man loses her job over that, and that she won’t be even be able to find employment as a toilet cleaner in the fair state of CA. I have no patience for cops who abuse their power — as I said, in a fair world, they’d get a swift trip down a stout rope.

[spdrun]

And now LAPD will have the reputation for hiring homicidal loonjobs in addition to being racist, sexist, rude, unhelpful, and happy to give out parking tickets like confetti on a Thanksgiving Day parade. The 90 or so % of decent cops on the LAPD must be thrilled with this situation.

I have to wonder if LAPD’s behavior varies by precinct — speaking only to NYC, I’ve heard horror stories about NYPD in “bad” areas of the Bronx and Brooklyn and how they treat the residents. Yet my experiences with the dept in lower (read: below 100th St) Manhattan haven’t been negative at all thus far.

[spdrun]

Considering that a lot of houses in SD have rinky-dink electric wall heaters (that’s all that’s needed) only in a few rooms, wouldn’t that mean that a lot of houses have their square footage over-reported?

[Author]

Posts