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temeculaguy
ParticipantHere’s an ever better one that may make you smile
currently on market for 569k
04/26/2007: $661,215
11/23/2005: $790,00018 months, 221k loss
About a third of the houses on that street are for sale or brown lawners, most asking more than 100k less than they paid and still not selling. I think morgan hill will be the tap the free beer flows from.
ParticipantI love that link OC, everytime I see that picture I can’t help but notice the mispelled sign (Hundres of Forclosures). They should be protesting at their old high school for giving them a Disploma.
ParticipantI love that link OC, everytime I see that picture I can’t help but notice the mispelled sign (Hundres of Forclosures). They should be protesting at their old high school for giving them a Disploma.
ParticipantSo what’s your guess hawk, it repo’d for 511k but sold for 645k two weeks later, no free beer on this one.
ParticipantSo what’s your guess hawk, it repo’d for 511k but sold for 645k two weeks later, no free beer on this one.
ParticipantDon’t worry too much about the affect of a 50 year loan. On a 200k loan the monthly savings in going from a 15 to a 30 is $431, from a 30 to a 40 is only $94 (If you borrow 600k it is amost 300 a month). From a 40 to a 50 is almost nothing because the interest rate is higher. Yes 25% of new loans in California are 40 yr loans according to Bankrate but the benefits of lengthening a loan diminish as it gets longer. If a buyer was that tight and needed a fifty to qualify, then last weeks interest rate rise just knocked them out. If it hits 7% it will have dissqualified the people that need the 40 yr as well.
The following article goes into depth about the 50 yr mortgage and why it isn’t much cheaper. Also, higher rates tighten the differences. The blog at the bottom of the article is priceless, some guy posted in March of 07 that it is perfect for him because he plans to flip a house, talk about late to the party, pick up one of those new 8-tracks on the way to the bank, too.
ParticipantDon’t worry too much about the affect of a 50 year loan. On a 200k loan the monthly savings in going from a 15 to a 30 is $431, from a 30 to a 40 is only $94 (If you borrow 600k it is amost 300 a month). From a 40 to a 50 is almost nothing because the interest rate is higher. Yes 25% of new loans in California are 40 yr loans according to Bankrate but the benefits of lengthening a loan diminish as it gets longer. If a buyer was that tight and needed a fifty to qualify, then last weeks interest rate rise just knocked them out. If it hits 7% it will have dissqualified the people that need the 40 yr as well.
The following article goes into depth about the 50 yr mortgage and why it isn’t much cheaper. Also, higher rates tighten the differences. The blog at the bottom of the article is priceless, some guy posted in March of 07 that it is perfect for him because he plans to flip a house, talk about late to the party, pick up one of those new 8-tracks on the way to the bank, too.
ParticipantThere are plenty of people from all walks of life who plunk down their paycheck at a casino, we may feel pity but if they stood out front of the casino with a sign protesting that they didn’t realize they could lose, they wouldn’t get much pity. There are also people who wire thousands of dollars to pay the taxes on the Nigerian Lottery knowing they didn’t enter only to find out it is a scam. There is no difference here just because it is real estate. Scams work because a person is blinded by the prize and selectively ignores logic and advice. I do it when i buy a lottery ticket, but I don’t mortgage my house to buy lottery tickets and I don’t hold picket signs asking for help when I lose my dollar. I was approached a few years ago by a friend who wanted me to invest in this or a similar scam. They had invested and were earning 20-40% annual return loaning money to a group of flippers, it was a profit share so the retunrn varied. I asked them why would someone give me 20-40% when they could get the money at the bank for far less. He didn’t know the answer other than he was going to get rich. I told him to get out because things that are too good to be true, usually are. It wasn’t true.
Who has deceiv’d thee so oft as thy self? -Benjamin Franklin
ParticipantThere are plenty of people from all walks of life who plunk down their paycheck at a casino, we may feel pity but if they stood out front of the casino with a sign protesting that they didn’t realize they could lose, they wouldn’t get much pity. There are also people who wire thousands of dollars to pay the taxes on the Nigerian Lottery knowing they didn’t enter only to find out it is a scam. There is no difference here just because it is real estate. Scams work because a person is blinded by the prize and selectively ignores logic and advice. I do it when i buy a lottery ticket, but I don’t mortgage my house to buy lottery tickets and I don’t hold picket signs asking for help when I lose my dollar. I was approached a few years ago by a friend who wanted me to invest in this or a similar scam. They had invested and were earning 20-40% annual return loaning money to a group of flippers, it was a profit share so the retunrn varied. I asked them why would someone give me 20-40% when they could get the money at the bank for far less. He didn’t know the answer other than he was going to get rich. I told him to get out because things that are too good to be true, usually are. It wasn’t true.
Who has deceiv’d thee so oft as thy self? -Benjamin Franklin
ParticipantThere is a house near my kids school where the lender painted the brown lawn green during the foreclosure process, I should take a picture of it, it’s hillarious becuase it’s the wrong color green, like seeing a 90 year old guy with a jet black wig.
From a buyers perspective, the brown lawns are a good thing, gives you more insight and it makes the future repos easier to spot. I actually went through the neighborhood I want to buy in yesterday and made a note of the brown lawners, then compared them to the internet, sort of a “coming attractions” if you will.
ParticipantThere is a house near my kids school where the lender painted the brown lawn green during the foreclosure process, I should take a picture of it, it’s hillarious becuase it’s the wrong color green, like seeing a 90 year old guy with a jet black wig.
From a buyers perspective, the brown lawns are a good thing, gives you more insight and it makes the future repos easier to spot. I actually went through the neighborhood I want to buy in yesterday and made a note of the brown lawners, then compared them to the internet, sort of a “coming attractions” if you will.
ParticipantI like moms in BMW’s with fake boobs. Your frustrations would be felt in any of So Cal’s master planned communities such as Irvine or the place I grew up, Valencia, where you will find tanning salons, gyms, plastic surgeons on every corner but have to drive to buy guns or hunting supplies. Take a weekend trip to one of these “less superficial” places, stand in front of the walmart for an hour and count the human doublewides and if you do see a woman with all of her teeth, ask her where she lives, odds are she’s visiting relatives.
This is from a cdc study “Although the national goal is to reduce the number of people with edentulism to less than 20 percent of the population over age 65 by the year 2000, only five states achieved that goal – Arizona, California, Hawaii, Oregon and Wisconsin. In addition to West Virginia, more than 40 percent of Louisiana and Kentucky residents over age 65 were also toothless.” Only half of West Virgina residents over 65 have at least one tooth.
The winner is Hawaii, combining low obesity rates and high tooth count, last I checked the R/E prices were even higher than So Cal.
You want to find real people, salt of the earth, no fake boobs, BMW’s or thongs, then West Virginia is calling you, combining one of the highest obesity rates, lowest tooth counts and cheap real estate prices, good luck with that. Personally, I’ll stick with Wisteria Lane.
ParticipantI like moms in BMW’s with fake boobs. Your frustrations would be felt in any of So Cal’s master planned communities such as Irvine or the place I grew up, Valencia, where you will find tanning salons, gyms, plastic surgeons on every corner but have to drive to buy guns or hunting supplies. Take a weekend trip to one of these “less superficial” places, stand in front of the walmart for an hour and count the human doublewides and if you do see a woman with all of her teeth, ask her where she lives, odds are she’s visiting relatives.
This is from a cdc study “Although the national goal is to reduce the number of people with edentulism to less than 20 percent of the population over age 65 by the year 2000, only five states achieved that goal – Arizona, California, Hawaii, Oregon and Wisconsin. In addition to West Virginia, more than 40 percent of Louisiana and Kentucky residents over age 65 were also toothless.” Only half of West Virgina residents over 65 have at least one tooth.
The winner is Hawaii, combining low obesity rates and high tooth count, last I checked the R/E prices were even higher than So Cal.
You want to find real people, salt of the earth, no fake boobs, BMW’s or thongs, then West Virginia is calling you, combining one of the highest obesity rates, lowest tooth counts and cheap real estate prices, good luck with that. Personally, I’ll stick with Wisteria Lane.
ParticipantCyphire, I agree that the new system doesn’t cause banks to have more stake in the borrower, it makes them care less than they might have in the last cycle. But it still makes business sense (and stock price sense) to have a lower number of foreclosures from your loans as an institution. If they can roll a client into another loan, make some transaction fees and postpone or prevent some forclosures it makes sense. The key is that they said they would call him, not guarantee a loan and the true terms of the loan aren’t here and this is hearsay. It’s just like how firemen look at houses in big fire, put your effort into the ones that look like you can save, don’t even bother with the gonners.
Rustico, how did you get cash positive in 1991? You are smarter than me, I bought a house in early 1992 and was upside down till 1998, but I was young and dumb, guess you were just young.
Good to see you two couldn’t stay away from the boards, I enjoy your posts.
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