[spdrun]

The refis are also bad because most of them only allow for sale at the price of the original mortgage unless a separate short sale is negotiated, and don’t allow for renting the property. Basically, they’ll tie people to their homes for the next 10 years, and reduce their flexibility.

[spdrun]

flu —

Simple solution to this would be to treat ALL mortgages like commercial mortgages. If PITI isn’t below 75-80% of the market rent for the property, then the loan won’t be made.

This would give people a “walk away by renting it out, and go rent something cheaper” option.

[spdrun]

Why are foreclosures a “crappy” thing to do? They’re a NECESSARY thing, and in fact make it easier for banks to lend.

Banks need to be able to easily enforce the terms of their loans if they’re able to give loans. The reason that sub-prime loans for cars are still popular is that they’re easily and quickly enforceable.

[spdrun]

Or buy something inland or in Phoenix for cash, keep it rented out, and use it to pay for your rent. Once it’s income-producing, you may be able to mortgage it to about 60% of value, pulling cash out.

$110k cash is actually a decent chunk of change for an individual, considering that AVERAGE net worth in the US is something like $80k for a family. Meaning more like $40k or less per individual. A lot of that “average worth” is also in illiquid real estate.

[spdrun]

Snarkasm aside…

Actually, voting for Romney might be better. Less “consumer financial protection” nonsense, and he supports quick foreclosures and kicking the bums out.

i.e. a bank would be happy to lend at say prime +2% to less qualified people if they know they can foreclose within 6 months if payments aren’t made.

[spdrun]

Portfolio lenders/credit unions that keep the loans on their books and may be more flexible with underwriting standards.

Other option is seller financing, doesn’t hurt to ask if you can put 40-50% cash down and it’s an equity or estate sale.

[spdrun]

The question remains if current rents are sustainable. Make sure you can break even after de-rating by 25% to account for this.

[spdrun]

Shouldn’t Deeeee-TROIT have plenty of extra parking spots, now that 70% of its population has left for less crazy climes?

[spdrun]

Yep, I meant grant/scholarship, not loan-type financial aid.

I went to a small but well-endowed private school. “Grants” of 50% of tuition and board weren’t unusual, which brought expenses down to levels not much higher than state schools.

[spdrun]

The one exception with dorms/campus food being more expensive is if the student has a large financial aid/scholarship package. This can sometimes cover on-campus housing and food, but not apply to living costs off campus.

[spdrun]

BG – your list of “dont’s” really depends on a lot of things. If they own $900k of property, paid off and want to spend $50k getting a degree for themselves of a kid, why not?

A couple alternatives which haven’t been considered:
(a) Send kids to college abroad. A family friend sent his son to med school in Poland. Much cheaper than in the US, level of education is equivalent these days, and some of the coursework was actually done in the US via an “exchange.”
(b) Kids don’t always have to work in Costco or similar. Tell them to look at local small firms that do what they’re interested in doing. I interned for a local engineering firm last year of high school. An advertising firm that I consulted for hired college freshmen as paid interns.

[spdrun]

4300 lb — no. More like 3200 lb. 4300 lb may be the max rated loaded weight capacity (GVWR).

An extremely heavy car isn’t good for safety either, since it reduces maneuverability and increases braking distance and brake fade.

[spdrun]

Or maybe it’s that foreign immigrants actually HAVE money to buy property. Unlike your average American, who was conditioned from birth to spend like a drunken fool.

Need an iPhone, and iPad, and an iPod. Check.
Need 3000 sq ft of McMansion out in “lizardia.” Check.
Won’t look stylish unless they roll up in a Bimmer. Check.

Also, more immigrants (or 1st-gen children thereof) that I know are interested in buying rental property than the red-blooded Americans. The Americans think that being a landlord is beneath them.

[spdrun]

One more reason why I hope that Sacramento will either go bankrupt, or get hit by a quake centered on the Capitol while the State Assembly is in session. California is a beautiful place, but it’s run by unreasonable c*nts who should be washed into the sea via the Sacramento River.

[spdrun]

VERY hard. They have all the records from where every salesperson’s license is hung and with whom and for how long from day one.

Exactly. So find some dried-up old prune of a broker who will let you do most of the work, “work” for them for 4 yrs, then take your exam.

Sweeten the deal with some nice kickbacks, and hope that the prune will be too senile (or dead) to testify to anything a few years after you gain your license.

NY is much more reasonable in this regard. 2-3 years non-consecutive (but full-time) experience covers it, and you also get some “credit” for buying and selling houses on your own, leases, etc.

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