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temeculaguy
ParticipantLease option is better when values are rising and much worse when values are falling. It can also benefit someone short of a down payment.
standard L/O scenario is lets say you find a house that is on the market for 500k and would rent for $2500, the lease option might involve a minor downpayment, let’s say 5 or 10k and a rent of $3000, with $500 each month being deposited into an account being added to your 5 or 10k. The lease option can be set for finite amount of time, lets say 1 year. At the end of a year you will have added 6k to your potential downpayment kitty and you can now buy it for the price you agreed upon when you first moved in. If the value has fallen to 600k, you are out the entire kitty (16k) and you walk away. If it rises to 800k, you put the 16k down and get the house for 700k with a loan of 684k and you are up 116k. The problem is right now you can no longer get financing with only 16k down on 700k and the odds of it appreciating is almost nil, so you will have just been renting for a 30% premium.
It’s almost just like stock options and if R/E were a stock would you really want to lock in today’s price and pay a fee for that privelige when it’s almost certain the price will not rise. In 2001 through 2004 it was a decent play but in 2008 it is a suckers bet.
ParticipantLease option is better when values are rising and much worse when values are falling. It can also benefit someone short of a down payment.
standard L/O scenario is lets say you find a house that is on the market for 500k and would rent for $2500, the lease option might involve a minor downpayment, let’s say 5 or 10k and a rent of $3000, with $500 each month being deposited into an account being added to your 5 or 10k. The lease option can be set for finite amount of time, lets say 1 year. At the end of a year you will have added 6k to your potential downpayment kitty and you can now buy it for the price you agreed upon when you first moved in. If the value has fallen to 600k, you are out the entire kitty (16k) and you walk away. If it rises to 800k, you put the 16k down and get the house for 700k with a loan of 684k and you are up 116k. The problem is right now you can no longer get financing with only 16k down on 700k and the odds of it appreciating is almost nil, so you will have just been renting for a 30% premium.
It’s almost just like stock options and if R/E were a stock would you really want to lock in today’s price and pay a fee for that privelige when it’s almost certain the price will not rise. In 2001 through 2004 it was a decent play but in 2008 it is a suckers bet.
ParticipantLease option is better when values are rising and much worse when values are falling. It can also benefit someone short of a down payment.
standard L/O scenario is lets say you find a house that is on the market for 500k and would rent for $2500, the lease option might involve a minor downpayment, let’s say 5 or 10k and a rent of $3000, with $500 each month being deposited into an account being added to your 5 or 10k. The lease option can be set for finite amount of time, lets say 1 year. At the end of a year you will have added 6k to your potential downpayment kitty and you can now buy it for the price you agreed upon when you first moved in. If the value has fallen to 600k, you are out the entire kitty (16k) and you walk away. If it rises to 800k, you put the 16k down and get the house for 700k with a loan of 684k and you are up 116k. The problem is right now you can no longer get financing with only 16k down on 700k and the odds of it appreciating is almost nil, so you will have just been renting for a 30% premium.
It’s almost just like stock options and if R/E were a stock would you really want to lock in today’s price and pay a fee for that privelige when it’s almost certain the price will not rise. In 2001 through 2004 it was a decent play but in 2008 it is a suckers bet.
ParticipantActually arson would be pursued and flooding may, arson endangers the neighbors and the environment, then incurs firefighting costs which can also be pursued. Flooding ends up in stormwater and environmental violations as well as possibly damaging neigbors property (getting into that “other people’s property” area again). It’s not that it’s hard to get in trouble, it’s quite easy. It is the fact that this country was founded on individual property rights and it’s laws reflect that. Do what you like to yourself or your own stuff, stay away from others and their stuff. (actually the drug laws contradict that, but that is another argument).
The whole point is risk, those lenders gave their money away. If they stopped storing their cash in locked vaults and left piles of cash in the parking lot overnight would you feel the same pity if the homeless guys had the party of their life with the cash. That is a terrible analogy because misappropriation of found property is a crime (over $400 is a felony) but you get the point. See, pre-law wasn’t a complete waste of time after all.
ParticipantActually arson would be pursued and flooding may, arson endangers the neighbors and the environment, then incurs firefighting costs which can also be pursued. Flooding ends up in stormwater and environmental violations as well as possibly damaging neigbors property (getting into that “other people’s property” area again). It’s not that it’s hard to get in trouble, it’s quite easy. It is the fact that this country was founded on individual property rights and it’s laws reflect that. Do what you like to yourself or your own stuff, stay away from others and their stuff. (actually the drug laws contradict that, but that is another argument).
The whole point is risk, those lenders gave their money away. If they stopped storing their cash in locked vaults and left piles of cash in the parking lot overnight would you feel the same pity if the homeless guys had the party of their life with the cash. That is a terrible analogy because misappropriation of found property is a crime (over $400 is a felony) but you get the point. See, pre-law wasn’t a complete waste of time after all.
ParticipantActually arson would be pursued and flooding may, arson endangers the neighbors and the environment, then incurs firefighting costs which can also be pursued. Flooding ends up in stormwater and environmental violations as well as possibly damaging neigbors property (getting into that “other people’s property” area again). It’s not that it’s hard to get in trouble, it’s quite easy. It is the fact that this country was founded on individual property rights and it’s laws reflect that. Do what you like to yourself or your own stuff, stay away from others and their stuff. (actually the drug laws contradict that, but that is another argument).
The whole point is risk, those lenders gave their money away. If they stopped storing their cash in locked vaults and left piles of cash in the parking lot overnight would you feel the same pity if the homeless guys had the party of their life with the cash. That is a terrible analogy because misappropriation of found property is a crime (over $400 is a felony) but you get the point. See, pre-law wasn’t a complete waste of time after all.
ParticipantActually arson would be pursued and flooding may, arson endangers the neighbors and the environment, then incurs firefighting costs which can also be pursued. Flooding ends up in stormwater and environmental violations as well as possibly damaging neigbors property (getting into that “other people’s property” area again). It’s not that it’s hard to get in trouble, it’s quite easy. It is the fact that this country was founded on individual property rights and it’s laws reflect that. Do what you like to yourself or your own stuff, stay away from others and their stuff. (actually the drug laws contradict that, but that is another argument).
The whole point is risk, those lenders gave their money away. If they stopped storing their cash in locked vaults and left piles of cash in the parking lot overnight would you feel the same pity if the homeless guys had the party of their life with the cash. That is a terrible analogy because misappropriation of found property is a crime (over $400 is a felony) but you get the point. See, pre-law wasn’t a complete waste of time after all.
ParticipantActually arson would be pursued and flooding may, arson endangers the neighbors and the environment, then incurs firefighting costs which can also be pursued. Flooding ends up in stormwater and environmental violations as well as possibly damaging neigbors property (getting into that “other people’s property” area again). It’s not that it’s hard to get in trouble, it’s quite easy. It is the fact that this country was founded on individual property rights and it’s laws reflect that. Do what you like to yourself or your own stuff, stay away from others and their stuff. (actually the drug laws contradict that, but that is another argument).
The whole point is risk, those lenders gave their money away. If they stopped storing their cash in locked vaults and left piles of cash in the parking lot overnight would you feel the same pity if the homeless guys had the party of their life with the cash. That is a terrible analogy because misappropriation of found property is a crime (over $400 is a felony) but you get the point. See, pre-law wasn’t a complete waste of time after all.
ParticipantWe’ve covered this before, the banks can’t press charges, the D.A. can’t charge them, it’s entirely legal and they had every right to sledge the granite and say that they did it on purpose because they were mad, even though they had a loan and no equity, it was their’s, they were on the deed and they owned it. You can also buy a house, decide you hate the appliances, replace them and throw the old ones away without offering to return them to the bank. You know that your entitled to slash your own tires even if you have a loan on the car (rental cars are different, you aren’t the registered owner). California law requires vandalism is committed on the property of another (loans do not change property rights). You also can’t be tried for attempted murder for attempting suicide, murder is another one of those laws that has a pesky clause requiring you do it to another person.
In an devious way, I’m happy it is happening. The reason I am happy is that the banks deserve it and they need to have these images burned into their memory. The lenders permitted the bubble to take place and hopefully they will learn their lesson and not give loans to people with nothing down and no ability to pay. If I were a bank executive I would be making a scrapbook so that in 20 years when someone proposed we reinstate zero down pay option loans to make more profit, we can sit down and have a little history lesson.
ParticipantWe’ve covered this before, the banks can’t press charges, the D.A. can’t charge them, it’s entirely legal and they had every right to sledge the granite and say that they did it on purpose because they were mad, even though they had a loan and no equity, it was their’s, they were on the deed and they owned it. You can also buy a house, decide you hate the appliances, replace them and throw the old ones away without offering to return them to the bank. You know that your entitled to slash your own tires even if you have a loan on the car (rental cars are different, you aren’t the registered owner). California law requires vandalism is committed on the property of another (loans do not change property rights). You also can’t be tried for attempted murder for attempting suicide, murder is another one of those laws that has a pesky clause requiring you do it to another person.
In an devious way, I’m happy it is happening. The reason I am happy is that the banks deserve it and they need to have these images burned into their memory. The lenders permitted the bubble to take place and hopefully they will learn their lesson and not give loans to people with nothing down and no ability to pay. If I were a bank executive I would be making a scrapbook so that in 20 years when someone proposed we reinstate zero down pay option loans to make more profit, we can sit down and have a little history lesson.
ParticipantWe’ve covered this before, the banks can’t press charges, the D.A. can’t charge them, it’s entirely legal and they had every right to sledge the granite and say that they did it on purpose because they were mad, even though they had a loan and no equity, it was their’s, they were on the deed and they owned it. You can also buy a house, decide you hate the appliances, replace them and throw the old ones away without offering to return them to the bank. You know that your entitled to slash your own tires even if you have a loan on the car (rental cars are different, you aren’t the registered owner). California law requires vandalism is committed on the property of another (loans do not change property rights). You also can’t be tried for attempted murder for attempting suicide, murder is another one of those laws that has a pesky clause requiring you do it to another person.
In an devious way, I’m happy it is happening. The reason I am happy is that the banks deserve it and they need to have these images burned into their memory. The lenders permitted the bubble to take place and hopefully they will learn their lesson and not give loans to people with nothing down and no ability to pay. If I were a bank executive I would be making a scrapbook so that in 20 years when someone proposed we reinstate zero down pay option loans to make more profit, we can sit down and have a little history lesson.
ParticipantWe’ve covered this before, the banks can’t press charges, the D.A. can’t charge them, it’s entirely legal and they had every right to sledge the granite and say that they did it on purpose because they were mad, even though they had a loan and no equity, it was their’s, they were on the deed and they owned it. You can also buy a house, decide you hate the appliances, replace them and throw the old ones away without offering to return them to the bank. You know that your entitled to slash your own tires even if you have a loan on the car (rental cars are different, you aren’t the registered owner). California law requires vandalism is committed on the property of another (loans do not change property rights). You also can’t be tried for attempted murder for attempting suicide, murder is another one of those laws that has a pesky clause requiring you do it to another person.
In an devious way, I’m happy it is happening. The reason I am happy is that the banks deserve it and they need to have these images burned into their memory. The lenders permitted the bubble to take place and hopefully they will learn their lesson and not give loans to people with nothing down and no ability to pay. If I were a bank executive I would be making a scrapbook so that in 20 years when someone proposed we reinstate zero down pay option loans to make more profit, we can sit down and have a little history lesson.
ParticipantWe’ve covered this before, the banks can’t press charges, the D.A. can’t charge them, it’s entirely legal and they had every right to sledge the granite and say that they did it on purpose because they were mad, even though they had a loan and no equity, it was their’s, they were on the deed and they owned it. You can also buy a house, decide you hate the appliances, replace them and throw the old ones away without offering to return them to the bank. You know that your entitled to slash your own tires even if you have a loan on the car (rental cars are different, you aren’t the registered owner). California law requires vandalism is committed on the property of another (loans do not change property rights). You also can’t be tried for attempted murder for attempting suicide, murder is another one of those laws that has a pesky clause requiring you do it to another person.
In an devious way, I’m happy it is happening. The reason I am happy is that the banks deserve it and they need to have these images burned into their memory. The lenders permitted the bubble to take place and hopefully they will learn their lesson and not give loans to people with nothing down and no ability to pay. If I were a bank executive I would be making a scrapbook so that in 20 years when someone proposed we reinstate zero down pay option loans to make more profit, we can sit down and have a little history lesson.
ParticipantMatt, I was just playing around, it’s all about the traffic, baby.
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