[The-Shoveler]

[quote=spdrun]Shouldn’t vacant delivery of the place be added as a condition of sale in the final contract? The above sounds almost criminal.[/quote]

Almost LOL, I guess they should have been carrying a bug,

Usually that is the case, but not in this case, the seller somehow got a deal with the bank to rent the place for a certain period of time (which was several months after close would have been).

[The-Shoveler]

I have also seen where the bank has cut a deal with the seller that they will be able to rent the place from the new owners,

The owners never saw the seller until the escrow inspection period was over, once the new owner have the first encounter (not going to say what transpired), but after that encounter, the buyers walked away from the deal and their deposit, making the agent very happy (the agent at that time this was the third deposit they got).

[The-Shoveler]

From my limited experience with short sales.

They may just be going through the motions (not intending to leave quickly).

Things I have seen with short sales.
For sale signs pointing at the wrong house,
Not trespassing signs.
listing agent can never get a hold of seller to make
appointment.

Make an offer if you want, me I just move on.

[The-Shoveler]

2006-2009 we had most of our assets in FDIC insured CD’s getting close to 5% returns.
In our 401K we were in money market doing about the same.

We felt like financial geniuses.

Although not so much lately however as I have been out of the market this last year as well, win some lose some, just don’t lose it all !!!

[The-Shoveler]

Seriously ?
I don’t think a Coastal SoCal native would be able to survive Phoenix regardless of the lot,

In the summer it is like 90 degrees at midnight in September.

I talked to people who were so happy just to get back to TV after the bust. (Let that sink in a little).

Most front yards are just dirt, no trees, no green anything.

[The-Shoveler]

[quote=flu]Thanks China, Taiwan, India and Korea!… Go world![/quote]

Yea if it was not for them CPI would be like… well it would be like hmm,

I mean it would have to reflect true inflation.

[The-Shoveler]

First you have to recognize that the housing bubble was created as designed, then you will realize there is no interest in digging too deep.

You really think they did not know what was happening?
I should start a poll on the above.

This is why you have inflation calculation based mostly imported cheap stuff, not on assets.

[The-Shoveler]

[quote=earlyretirement][quote=The-Shoveler]Hmmm I mean I wonder it they could call the loan if the portfolio assets price falls ?
In some respects this does look like a margin loan,

Seems complex maybe too complex.[/quote]

And what happens if the value of the assets were to have a sudden fall? With a margin account you get a margin call but how would it work here?[/quote]

If they could not call the loan as long as you were making payments, then not too bad.

Other wise I see a trap (first impression anyway).

Sorry, Currently it is possible for banks to call the mortgage home loans in certain cases (basically, pay off the loan now or we foreclose), there is always fine print on these loans, ie.. must occupy home a certain amount of time etc…

[The-Shoveler]

Hmmm I mean I wonder it they could call the loan if the portfolio assets price falls ?
In some respects this does look like a margin loan,

Seems complex maybe too complex.

[The-Shoveler]

That was Paul Adolph Volcker, vowing to kill inflation, (enter OER) at that time as well.

Anything to kill wage inflation including to absolutely destroy the economy.

it was a bad time from in 1980-84.

That was the time CPI was changed to deny any inflation was occurring, it separated asset prices from inflation.

Minimum wage earners have suffered disportionately ever since

[The-Shoveler]

The Game can go on for a long time.

well at least until resources dry up.

Hint, the U.S.A. will be close to last on the list of insolvent countries that go BK if they start to call in the loans. there are a lot more countries a lot more insolvent than the usa (it is in no one’s interest to end the game).

Actually inflation and technology will most likely make this a non-event type of thing.

[The-Shoveler]

[quote=livinincali][quote=AN]
I wouldn’t 100% count on interest rates either. It depends on why interest rates went up. If the reason is like the 70s, good luck trying to catch the nominal price.[/quote]

Why did the interest rates go up in the 1970’s. I’d argue that the primary reason was baby boomers coming of age and demanding loans for houses while there was limited supply. In essence the supply demand curve for creditors and debtors was skewed heavily towards the debtors. Over time that curve has switched as baby boomers would rather be creditors rather than debtors as they approach retirement. I really think everything is going to boil down to the demographics in the end barring some miracle technology breakthrough.

In a decade or so when the boomers go from asset collectors to asset sellers asset prices will decline. Maybe not nominally but in real terms they will. Maybe the boomers will reverse mortgage homes and stay there but it’s hard to see a scenario where asset prices keep rising faster than the economy grows when a large portion of the population is going to be looking to cash in those assets either via rent collection or outright sale. Maybe I’m just looking at this too analytically or logically.[/quote]

Look up owner’s equivalent rent,

This whole thing would have ended a lot differently if CPI was calculated the same as it was in the seventies.

[The-Shoveler]

I am looking for a complete worldwide economic collapse and possibly the end of civilization as we know it.
Just kidding sort of,
But really there is no fear anymore, they just need the sucker money to come into the Market, then WHAM!!!
Out goes the rug..
Anyway that would get me just about even. (just kidding again).

[The-Shoveler]

Well I got to throw this out as well, all the time I have been a home owner, I have NEVER lived less than 45 minutes from work., almost EVERYONE of the CA natives I know have ever lived less than 30 minute’s drive from work, none of them had an ocean view home from their first home at least.

None of them bought a New home as their first home, in fact most of the homes were at least 30 years old and needing some repair.

Most were 30, or near 30 when they bought their first home in SoCal, Meaning they were well on their way to established careers by the time they bought their first home in SoCal.

Yes it has ALWAYS been tough to buy a home in SoCal I would say especially for boomers (we had a lot of competition, each other!).

[The-Shoveler]

At least coming from L.A., in SoCal it has ALWAYS been that way, it has always been tough for the 20 somethings to buy their first home and get started,
Well at least as long as this boomer has been here,

(with the exception of the last three years actually which I think have been exceptional for first time buyers WHO Were not TOO DANG PICKY!!!).

inflation for as long as this boomer has been alive has always been the home buyers friend, if they can make it the first 10 years.

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