Forum Replies Created
-
AuthorPosts
-
temeculaguy
ParticipantI have to admit, I had never read Jim Grant or made a mental note of him if I had. Thanks for posting it, right or wrong, I really like his writing style. Authors of that quality are rare in such dry subjects, the blend of history, historical references, philosiphy of balance, the guy writes like a Taoist, I loved it. Thanks davelj
The problem is the topic, by writing an opinion somewhat against the grain, many readers will ignore the style because they disagree with the content. I did like the overiding theme, that value sells and pendulums swing but skies don’t fall.
The whole thing reminded me of a poem/story about overeacting to every incident in a vacuum, that events are not always what they appear to be, that there is opportunity in bad fortune and risk in good fortune.
http://www.inspirationpeak.com/cgi-bin/stories.cgi?record=31
Like Econprof, I find it hard to disagree with him, it’s a a cogent argument, albeit a big picture view. I do think, that regardless of the size or speed of the recovery, if it even arrives at all, we as a people will be slightly different, slightly more frugal, having experienced the depression of our generation. I’m not so sure that’s a bad thing.
ParticipantI have to admit, I had never read Jim Grant or made a mental note of him if I had. Thanks for posting it, right or wrong, I really like his writing style. Authors of that quality are rare in such dry subjects, the blend of history, historical references, philosiphy of balance, the guy writes like a Taoist, I loved it. Thanks davelj
The problem is the topic, by writing an opinion somewhat against the grain, many readers will ignore the style because they disagree with the content. I did like the overiding theme, that value sells and pendulums swing but skies don’t fall.
The whole thing reminded me of a poem/story about overeacting to every incident in a vacuum, that events are not always what they appear to be, that there is opportunity in bad fortune and risk in good fortune.
http://www.inspirationpeak.com/cgi-bin/stories.cgi?record=31
Like Econprof, I find it hard to disagree with him, it’s a a cogent argument, albeit a big picture view. I do think, that regardless of the size or speed of the recovery, if it even arrives at all, we as a people will be slightly different, slightly more frugal, having experienced the depression of our generation. I’m not so sure that’s a bad thing.
ParticipantI have to admit, I had never read Jim Grant or made a mental note of him if I had. Thanks for posting it, right or wrong, I really like his writing style. Authors of that quality are rare in such dry subjects, the blend of history, historical references, philosiphy of balance, the guy writes like a Taoist, I loved it. Thanks davelj
The problem is the topic, by writing an opinion somewhat against the grain, many readers will ignore the style because they disagree with the content. I did like the overiding theme, that value sells and pendulums swing but skies don’t fall.
The whole thing reminded me of a poem/story about overeacting to every incident in a vacuum, that events are not always what they appear to be, that there is opportunity in bad fortune and risk in good fortune.
http://www.inspirationpeak.com/cgi-bin/stories.cgi?record=31
Like Econprof, I find it hard to disagree with him, it’s a a cogent argument, albeit a big picture view. I do think, that regardless of the size or speed of the recovery, if it even arrives at all, we as a people will be slightly different, slightly more frugal, having experienced the depression of our generation. I’m not so sure that’s a bad thing.
Participant[quote=Diego Mamani]”Now the home is worth $300-$350k”
I think that’s still grossly overpriced. If the house would rent for about $2500/month, sales price should not be much higher than $250K.
I know, this is an OT remark, but couldn’t help myself. A new guy in my office (west San Fernando Valley) is about to pay close to $500K for a small house that wouldn’t fetch more than $2000/month in rent. He doesn’t want to lose his $8000 tax credit, I guess (duh!)[/quote]
larger sfr’s don’t usually get to the same multiplier as smaller ones and condos, but I do agree it won’t fetch 2500 in rent, murrietta didn’t have many places in the bubble where 2500 sq rented for 2500, 2500 is a tough rental price point here because at that rate, you can buy anything. My 3300 sq fter in a better location is probably worth just around 2k rent, doubtful it would fetch 2200 or 2300, but a 1500 sq ft house will fetch 1500, it’s just the way it is, there is a cap on rent in a way.
Your buddy better check the tax credit rules, the income restrictions almost put 500k houses out of range. 75k for a single, 150k for a couple, since you can only borrow around 3x income, if he’s single and wants 500, he makes too much for the credit, if he’s married it’s gonna be close. Very few people in so cal qualify for the credit, in order to qual for the loan your income needs to be higher than they allow.
Participant[quote=Diego Mamani]”Now the home is worth $300-$350k”
I think that’s still grossly overpriced. If the house would rent for about $2500/month, sales price should not be much higher than $250K.
I know, this is an OT remark, but couldn’t help myself. A new guy in my office (west San Fernando Valley) is about to pay close to $500K for a small house that wouldn’t fetch more than $2000/month in rent. He doesn’t want to lose his $8000 tax credit, I guess (duh!)[/quote]
larger sfr’s don’t usually get to the same multiplier as smaller ones and condos, but I do agree it won’t fetch 2500 in rent, murrietta didn’t have many places in the bubble where 2500 sq rented for 2500, 2500 is a tough rental price point here because at that rate, you can buy anything. My 3300 sq fter in a better location is probably worth just around 2k rent, doubtful it would fetch 2200 or 2300, but a 1500 sq ft house will fetch 1500, it’s just the way it is, there is a cap on rent in a way.
Your buddy better check the tax credit rules, the income restrictions almost put 500k houses out of range. 75k for a single, 150k for a couple, since you can only borrow around 3x income, if he’s single and wants 500, he makes too much for the credit, if he’s married it’s gonna be close. Very few people in so cal qualify for the credit, in order to qual for the loan your income needs to be higher than they allow.
Participant[quote=Diego Mamani]”Now the home is worth $300-$350k”
I think that’s still grossly overpriced. If the house would rent for about $2500/month, sales price should not be much higher than $250K.
I know, this is an OT remark, but couldn’t help myself. A new guy in my office (west San Fernando Valley) is about to pay close to $500K for a small house that wouldn’t fetch more than $2000/month in rent. He doesn’t want to lose his $8000 tax credit, I guess (duh!)[/quote]
larger sfr’s don’t usually get to the same multiplier as smaller ones and condos, but I do agree it won’t fetch 2500 in rent, murrietta didn’t have many places in the bubble where 2500 sq rented for 2500, 2500 is a tough rental price point here because at that rate, you can buy anything. My 3300 sq fter in a better location is probably worth just around 2k rent, doubtful it would fetch 2200 or 2300, but a 1500 sq ft house will fetch 1500, it’s just the way it is, there is a cap on rent in a way.
Your buddy better check the tax credit rules, the income restrictions almost put 500k houses out of range. 75k for a single, 150k for a couple, since you can only borrow around 3x income, if he’s single and wants 500, he makes too much for the credit, if he’s married it’s gonna be close. Very few people in so cal qualify for the credit, in order to qual for the loan your income needs to be higher than they allow.
Participant[quote=Diego Mamani]”Now the home is worth $300-$350k”
I think that’s still grossly overpriced. If the house would rent for about $2500/month, sales price should not be much higher than $250K.
I know, this is an OT remark, but couldn’t help myself. A new guy in my office (west San Fernando Valley) is about to pay close to $500K for a small house that wouldn’t fetch more than $2000/month in rent. He doesn’t want to lose his $8000 tax credit, I guess (duh!)[/quote]
larger sfr’s don’t usually get to the same multiplier as smaller ones and condos, but I do agree it won’t fetch 2500 in rent, murrietta didn’t have many places in the bubble where 2500 sq rented for 2500, 2500 is a tough rental price point here because at that rate, you can buy anything. My 3300 sq fter in a better location is probably worth just around 2k rent, doubtful it would fetch 2200 or 2300, but a 1500 sq ft house will fetch 1500, it’s just the way it is, there is a cap on rent in a way.
Your buddy better check the tax credit rules, the income restrictions almost put 500k houses out of range. 75k for a single, 150k for a couple, since you can only borrow around 3x income, if he’s single and wants 500, he makes too much for the credit, if he’s married it’s gonna be close. Very few people in so cal qualify for the credit, in order to qual for the loan your income needs to be higher than they allow.
Participant[quote=Diego Mamani]”Now the home is worth $300-$350k”
I think that’s still grossly overpriced. If the house would rent for about $2500/month, sales price should not be much higher than $250K.
I know, this is an OT remark, but couldn’t help myself. A new guy in my office (west San Fernando Valley) is about to pay close to $500K for a small house that wouldn’t fetch more than $2000/month in rent. He doesn’t want to lose his $8000 tax credit, I guess (duh!)[/quote]
larger sfr’s don’t usually get to the same multiplier as smaller ones and condos, but I do agree it won’t fetch 2500 in rent, murrietta didn’t have many places in the bubble where 2500 sq rented for 2500, 2500 is a tough rental price point here because at that rate, you can buy anything. My 3300 sq fter in a better location is probably worth just around 2k rent, doubtful it would fetch 2200 or 2300, but a 1500 sq ft house will fetch 1500, it’s just the way it is, there is a cap on rent in a way.
Your buddy better check the tax credit rules, the income restrictions almost put 500k houses out of range. 75k for a single, 150k for a couple, since you can only borrow around 3x income, if he’s single and wants 500, he makes too much for the credit, if he’s married it’s gonna be close. Very few people in so cal qualify for the credit, in order to qual for the loan your income needs to be higher than they allow.
ParticipantThe 300k is not a gift, it’s not free, it’s a temporary stay of execution. Let’s say they have a 3 year or a 5 year mod. If values increase in that time (or after that time), if they want to sell in that time, if they want to refi in that time if they want a heloc in that time, if they want to do anything other than just pay the rent(you can call it a mortgage I guess) then the 300k kicks back in. It doesn’t accure interest, I guess it’s not as bad as a neg am, but it’s damn close. I also agree that over 300k was too high a few months ago, but it’s bounced off bottom a bit, probably closer than you think. If it were to get repo’d it would cost gmac a year of no payments, lost interest, leagal fees, processing fees, back taxes and back hoa. In the end, they’d probably get close to mid to high 2’s and probably net only 200k after all is said and done. So they rig the payement to get them to stay, only lose a little a month on the lost interest for the 300k, and down the road they will recover more than the 200k, maybe get all their money back, a little chip in from the govmt, like 15k towards the interest (not sure what hope4homeowners pays the lender these days).
The riddle is, they are not on a path to ownership, at then end of this loan they don’t own the home. What do you call money tht you pay that does not go towards eventual ownership, equity and you will not partake in the appreciation? Hint: it rhymes with DENT!
However if their new payment is on par with current rents and they do get to deduct their payment, it makes sense to stay as opposed to walk away as long as they can do it and they have no chance at buying one accross the street anytime soon, which would allow them to rest their basis.
So don’t get mad at other peoples mods, if saw the actual terms, if it were an actual loan you could get when buying, you wouldn’t want it, just like you didn’t want a neg am, I/O, option arm special.
ParticipantThe 300k is not a gift, it’s not free, it’s a temporary stay of execution. Let’s say they have a 3 year or a 5 year mod. If values increase in that time (or after that time), if they want to sell in that time, if they want to refi in that time if they want a heloc in that time, if they want to do anything other than just pay the rent(you can call it a mortgage I guess) then the 300k kicks back in. It doesn’t accure interest, I guess it’s not as bad as a neg am, but it’s damn close. I also agree that over 300k was too high a few months ago, but it’s bounced off bottom a bit, probably closer than you think. If it were to get repo’d it would cost gmac a year of no payments, lost interest, leagal fees, processing fees, back taxes and back hoa. In the end, they’d probably get close to mid to high 2’s and probably net only 200k after all is said and done. So they rig the payement to get them to stay, only lose a little a month on the lost interest for the 300k, and down the road they will recover more than the 200k, maybe get all their money back, a little chip in from the govmt, like 15k towards the interest (not sure what hope4homeowners pays the lender these days).
The riddle is, they are not on a path to ownership, at then end of this loan they don’t own the home. What do you call money tht you pay that does not go towards eventual ownership, equity and you will not partake in the appreciation? Hint: it rhymes with DENT!
However if their new payment is on par with current rents and they do get to deduct their payment, it makes sense to stay as opposed to walk away as long as they can do it and they have no chance at buying one accross the street anytime soon, which would allow them to rest their basis.
So don’t get mad at other peoples mods, if saw the actual terms, if it were an actual loan you could get when buying, you wouldn’t want it, just like you didn’t want a neg am, I/O, option arm special.
ParticipantThe 300k is not a gift, it’s not free, it’s a temporary stay of execution. Let’s say they have a 3 year or a 5 year mod. If values increase in that time (or after that time), if they want to sell in that time, if they want to refi in that time if they want a heloc in that time, if they want to do anything other than just pay the rent(you can call it a mortgage I guess) then the 300k kicks back in. It doesn’t accure interest, I guess it’s not as bad as a neg am, but it’s damn close. I also agree that over 300k was too high a few months ago, but it’s bounced off bottom a bit, probably closer than you think. If it were to get repo’d it would cost gmac a year of no payments, lost interest, leagal fees, processing fees, back taxes and back hoa. In the end, they’d probably get close to mid to high 2’s and probably net only 200k after all is said and done. So they rig the payement to get them to stay, only lose a little a month on the lost interest for the 300k, and down the road they will recover more than the 200k, maybe get all their money back, a little chip in from the govmt, like 15k towards the interest (not sure what hope4homeowners pays the lender these days).
The riddle is, they are not on a path to ownership, at then end of this loan they don’t own the home. What do you call money tht you pay that does not go towards eventual ownership, equity and you will not partake in the appreciation? Hint: it rhymes with DENT!
However if their new payment is on par with current rents and they do get to deduct their payment, it makes sense to stay as opposed to walk away as long as they can do it and they have no chance at buying one accross the street anytime soon, which would allow them to rest their basis.
So don’t get mad at other peoples mods, if saw the actual terms, if it were an actual loan you could get when buying, you wouldn’t want it, just like you didn’t want a neg am, I/O, option arm special.
ParticipantThe 300k is not a gift, it’s not free, it’s a temporary stay of execution. Let’s say they have a 3 year or a 5 year mod. If values increase in that time (or after that time), if they want to sell in that time, if they want to refi in that time if they want a heloc in that time, if they want to do anything other than just pay the rent(you can call it a mortgage I guess) then the 300k kicks back in. It doesn’t accure interest, I guess it’s not as bad as a neg am, but it’s damn close. I also agree that over 300k was too high a few months ago, but it’s bounced off bottom a bit, probably closer than you think. If it were to get repo’d it would cost gmac a year of no payments, lost interest, leagal fees, processing fees, back taxes and back hoa. In the end, they’d probably get close to mid to high 2’s and probably net only 200k after all is said and done. So they rig the payement to get them to stay, only lose a little a month on the lost interest for the 300k, and down the road they will recover more than the 200k, maybe get all their money back, a little chip in from the govmt, like 15k towards the interest (not sure what hope4homeowners pays the lender these days).
The riddle is, they are not on a path to ownership, at then end of this loan they don’t own the home. What do you call money tht you pay that does not go towards eventual ownership, equity and you will not partake in the appreciation? Hint: it rhymes with DENT!
However if their new payment is on par with current rents and they do get to deduct their payment, it makes sense to stay as opposed to walk away as long as they can do it and they have no chance at buying one accross the street anytime soon, which would allow them to rest their basis.
So don’t get mad at other peoples mods, if saw the actual terms, if it were an actual loan you could get when buying, you wouldn’t want it, just like you didn’t want a neg am, I/O, option arm special.
ParticipantThe 300k is not a gift, it’s not free, it’s a temporary stay of execution. Let’s say they have a 3 year or a 5 year mod. If values increase in that time (or after that time), if they want to sell in that time, if they want to refi in that time if they want a heloc in that time, if they want to do anything other than just pay the rent(you can call it a mortgage I guess) then the 300k kicks back in. It doesn’t accure interest, I guess it’s not as bad as a neg am, but it’s damn close. I also agree that over 300k was too high a few months ago, but it’s bounced off bottom a bit, probably closer than you think. If it were to get repo’d it would cost gmac a year of no payments, lost interest, leagal fees, processing fees, back taxes and back hoa. In the end, they’d probably get close to mid to high 2’s and probably net only 200k after all is said and done. So they rig the payement to get them to stay, only lose a little a month on the lost interest for the 300k, and down the road they will recover more than the 200k, maybe get all their money back, a little chip in from the govmt, like 15k towards the interest (not sure what hope4homeowners pays the lender these days).
The riddle is, they are not on a path to ownership, at then end of this loan they don’t own the home. What do you call money tht you pay that does not go towards eventual ownership, equity and you will not partake in the appreciation? Hint: it rhymes with DENT!
However if their new payment is on par with current rents and they do get to deduct their payment, it makes sense to stay as opposed to walk away as long as they can do it and they have no chance at buying one accross the street anytime soon, which would allow them to rest their basis.
So don’t get mad at other peoples mods, if saw the actual terms, if it were an actual loan you could get when buying, you wouldn’t want it, just like you didn’t want a neg am, I/O, option arm special.
ParticipantThe word kickback has such a negative connotation. There are different scenarios and people have different levels of sophistication and different needs. As a buyer, it almost always benefits you to use a realtor, especially one on his own turf, look for one that can tell you the square footage or model layouts off the top of their head and look for a good negotiator, not just a pretty one (my personal weakness).
For short sales you “need” one. For organic sales, you “should have” one. For an REO that you found yourself in your hood that you are familiar with, with multiple bids, they can be a handicap because their commission comes off your net offer, they can slow you down and about all they can do for you is the negotiation which doesn’t really exist with banks, they aren’t going to fix it or change it, they just look at the net offer. I spent a few thousand hours educating myself about r/e, I found the house myself, but in the end I still had a buddy in the biz proofread my stuff and take a look at my deal, I’m still paying him off in alcohol. I didn’t get a kickback, I used the listing agent, had them write a fraction of the normal buyers comission and it sweetened my net offer. I did try to get one of the piggy realtors to handle my deal but the three that I trust and have had a drink with (a prerequisite for my business, sd, SD and urban) all work too far away from me, so I went it alone, but i don’t reccomend it for most scenarios or most people.
redfin and other kickback realtors will not allow you to tour or make an offer on a short sale, they are just too much work. http://www.redfin.com/buy-a-home/short-sales
-
AuthorPosts
