[Vishon]

[quote=sdcellar]
Over the course of a life, we do things that lose us money and things that make us money. You may be losing some money on this one (although time will soften the blow), but if you continue to conduct your life in such a responsible manner, you’ll likely come out ahead in the long run.
[/quote]

I agree with that.

However, this country is setup to encourage risk taking. Most of the time the upside is much higher than the downside. To come out ahead, one has to take risks.

On the other hand, being responsible is not rewarded. In the long run, the ones being responsible are usually left behind.

It is a giant racket, with everyone, the government, bankers, real estate industry, buyers, all being part of it. The ones play the system gains. The ones that refuse to play the game loses.

Of course this is all speaking from the material perspective.

I too believe in doing the right thing. What’s said above is just an observation.

V

[Vishon]

[quote=sdcellar]
Over the course of a life, we do things that lose us money and things that make us money. You may be losing some money on this one (although time will soften the blow), but if you continue to conduct your life in such a responsible manner, you’ll likely come out ahead in the long run.
[/quote]

I agree with that.

However, this country is setup to encourage risk taking. Most of the time the upside is much higher than the downside. To come out ahead, one has to take risks.

On the other hand, being responsible is not rewarded. In the long run, the ones being responsible are usually left behind.

It is a giant racket, with everyone, the government, bankers, real estate industry, buyers, all being part of it. The ones play the system gains. The ones that refuse to play the game loses.

Of course this is all speaking from the material perspective.

I too believe in doing the right thing. What’s said above is just an observation.

V

[Vishon]

[quote=sdcellar]
Over the course of a life, we do things that lose us money and things that make us money. You may be losing some money on this one (although time will soften the blow), but if you continue to conduct your life in such a responsible manner, you’ll likely come out ahead in the long run.
[/quote]

I agree with that.

However, this country is setup to encourage risk taking. Most of the time the upside is much higher than the downside. To come out ahead, one has to take risks.

On the other hand, being responsible is not rewarded. In the long run, the ones being responsible are usually left behind.

It is a giant racket, with everyone, the government, bankers, real estate industry, buyers, all being part of it. The ones play the system gains. The ones that refuse to play the game loses.

Of course this is all speaking from the material perspective.

I too believe in doing the right thing. What’s said above is just an observation.

V

[Vishon]

[quote=sdcellar]
Over the course of a life, we do things that lose us money and things that make us money. You may be losing some money on this one (although time will soften the blow), but if you continue to conduct your life in such a responsible manner, you’ll likely come out ahead in the long run.
[/quote]

I agree with that.

However, this country is setup to encourage risk taking. Most of the time the upside is much higher than the downside. To come out ahead, one has to take risks.

On the other hand, being responsible is not rewarded. In the long run, the ones being responsible are usually left behind.

It is a giant racket, with everyone, the government, bankers, real estate industry, buyers, all being part of it. The ones play the system gains. The ones that refuse to play the game loses.

Of course this is all speaking from the material perspective.

I too believe in doing the right thing. What’s said above is just an observation.

V

[Vishon]

[quote=sdcellar]
Over the course of a life, we do things that lose us money and things that make us money. You may be losing some money on this one (although time will soften the blow), but if you continue to conduct your life in such a responsible manner, you’ll likely come out ahead in the long run.
[/quote]

I agree with that.

However, this country is setup to encourage risk taking. Most of the time the upside is much higher than the downside. To come out ahead, one has to take risks.

On the other hand, being responsible is not rewarded. In the long run, the ones being responsible are usually left behind.

It is a giant racket, with everyone, the government, bankers, real estate industry, buyers, all being part of it. The ones play the system gains. The ones that refuse to play the game loses.

Of course this is all speaking from the material perspective.

I too believe in doing the right thing. What’s said above is just an observation.

V

[Vishon]

[quote=SD Realtor]I have dealt with USAA on a previous short sale and they were quite challenging to deal with. Fortunately my clients had a small balance with them on the second and actually ended up converting the second to a non secured loan at a fixed low rate to complete the sale. That client also had several other services with USAA and had moved all of them out of the USAA umbrella so to speak prior to undertaking the short sale.

It is a tough call for you VC. One thing I would say though, if you do walk away, which indeed may be more financially prudent, it is not likely you will be buying a home soon no matter how well it is priced. So for those saying you instantly make 150k in equity, they are wrong. Now you may somehow be able to pull a rabbit out of your house and buy a new home now and then let your other home go into foreclosure and short sell it. That is another issue altogether.[/quote]

SDR is right. It takes some planning to pull this off. Ideally one should purchase the new property before showing any sign of financial distress with the current, i.e. no late payment, loan mod etc…

But nonetheless, it makes financial sense to do so if one’s able. The math doesn’t lie.

Renting is not worth it IMO, either getting into a new place or staying put.

[Vishon]

[quote=SD Realtor]I have dealt with USAA on a previous short sale and they were quite challenging to deal with. Fortunately my clients had a small balance with them on the second and actually ended up converting the second to a non secured loan at a fixed low rate to complete the sale. That client also had several other services with USAA and had moved all of them out of the USAA umbrella so to speak prior to undertaking the short sale.

It is a tough call for you VC. One thing I would say though, if you do walk away, which indeed may be more financially prudent, it is not likely you will be buying a home soon no matter how well it is priced. So for those saying you instantly make 150k in equity, they are wrong. Now you may somehow be able to pull a rabbit out of your house and buy a new home now and then let your other home go into foreclosure and short sell it. That is another issue altogether.[/quote]

SDR is right. It takes some planning to pull this off. Ideally one should purchase the new property before showing any sign of financial distress with the current, i.e. no late payment, loan mod etc…

But nonetheless, it makes financial sense to do so if one’s able. The math doesn’t lie.

Renting is not worth it IMO, either getting into a new place or staying put.

[Vishon]

[quote=SD Realtor]I have dealt with USAA on a previous short sale and they were quite challenging to deal with. Fortunately my clients had a small balance with them on the second and actually ended up converting the second to a non secured loan at a fixed low rate to complete the sale. That client also had several other services with USAA and had moved all of them out of the USAA umbrella so to speak prior to undertaking the short sale.

It is a tough call for you VC. One thing I would say though, if you do walk away, which indeed may be more financially prudent, it is not likely you will be buying a home soon no matter how well it is priced. So for those saying you instantly make 150k in equity, they are wrong. Now you may somehow be able to pull a rabbit out of your house and buy a new home now and then let your other home go into foreclosure and short sell it. That is another issue altogether.[/quote]

SDR is right. It takes some planning to pull this off. Ideally one should purchase the new property before showing any sign of financial distress with the current, i.e. no late payment, loan mod etc…

But nonetheless, it makes financial sense to do so if one’s able. The math doesn’t lie.

Renting is not worth it IMO, either getting into a new place or staying put.

[Vishon]

[quote=SD Realtor]I have dealt with USAA on a previous short sale and they were quite challenging to deal with. Fortunately my clients had a small balance with them on the second and actually ended up converting the second to a non secured loan at a fixed low rate to complete the sale. That client also had several other services with USAA and had moved all of them out of the USAA umbrella so to speak prior to undertaking the short sale.

It is a tough call for you VC. One thing I would say though, if you do walk away, which indeed may be more financially prudent, it is not likely you will be buying a home soon no matter how well it is priced. So for those saying you instantly make 150k in equity, they are wrong. Now you may somehow be able to pull a rabbit out of your house and buy a new home now and then let your other home go into foreclosure and short sell it. That is another issue altogether.[/quote]

SDR is right. It takes some planning to pull this off. Ideally one should purchase the new property before showing any sign of financial distress with the current, i.e. no late payment, loan mod etc…

But nonetheless, it makes financial sense to do so if one’s able. The math doesn’t lie.

Renting is not worth it IMO, either getting into a new place or staying put.

[Vishon]

[quote=SD Realtor]I have dealt with USAA on a previous short sale and they were quite challenging to deal with. Fortunately my clients had a small balance with them on the second and actually ended up converting the second to a non secured loan at a fixed low rate to complete the sale. That client also had several other services with USAA and had moved all of them out of the USAA umbrella so to speak prior to undertaking the short sale.

It is a tough call for you VC. One thing I would say though, if you do walk away, which indeed may be more financially prudent, it is not likely you will be buying a home soon no matter how well it is priced. So for those saying you instantly make 150k in equity, they are wrong. Now you may somehow be able to pull a rabbit out of your house and buy a new home now and then let your other home go into foreclosure and short sell it. That is another issue altogether.[/quote]

SDR is right. It takes some planning to pull this off. Ideally one should purchase the new property before showing any sign of financial distress with the current, i.e. no late payment, loan mod etc…

But nonetheless, it makes financial sense to do so if one’s able. The math doesn’t lie.

Renting is not worth it IMO, either getting into a new place or staying put.

[Vishon]

To OP,

To simplify the matter to what financially makes sense:

For the same property, walking away and buying it again at $230k means a $150k gain when the home appreciates back to the original purchase price, a 65% gain versus 0% for staying put. It doesn’t even include the delta from monthly payment difference.

It just seems to make sense to walk away.

Ethically, as long as the banks are taking money from the government, one should have no qualm in taking advantage of the situation. Of course it depends on how you feel about it.

V

[Vishon]

To OP,

To simplify the matter to what financially makes sense:

For the same property, walking away and buying it again at $230k means a $150k gain when the home appreciates back to the original purchase price, a 65% gain versus 0% for staying put. It doesn’t even include the delta from monthly payment difference.

It just seems to make sense to walk away.

Ethically, as long as the banks are taking money from the government, one should have no qualm in taking advantage of the situation. Of course it depends on how you feel about it.

V

[Vishon]

To OP,

To simplify the matter to what financially makes sense:

For the same property, walking away and buying it again at $230k means a $150k gain when the home appreciates back to the original purchase price, a 65% gain versus 0% for staying put. It doesn’t even include the delta from monthly payment difference.

It just seems to make sense to walk away.

Ethically, as long as the banks are taking money from the government, one should have no qualm in taking advantage of the situation. Of course it depends on how you feel about it.

V

[Vishon]

To OP,

To simplify the matter to what financially makes sense:

For the same property, walking away and buying it again at $230k means a $150k gain when the home appreciates back to the original purchase price, a 65% gain versus 0% for staying put. It doesn’t even include the delta from monthly payment difference.

It just seems to make sense to walk away.

Ethically, as long as the banks are taking money from the government, one should have no qualm in taking advantage of the situation. Of course it depends on how you feel about it.

V

[Vishon]

To OP,

To simplify the matter to what financially makes sense:

For the same property, walking away and buying it again at $230k means a $150k gain when the home appreciates back to the original purchase price, a 65% gain versus 0% for staying put. It doesn’t even include the delta from monthly payment difference.

It just seems to make sense to walk away.

Ethically, as long as the banks are taking money from the government, one should have no qualm in taking advantage of the situation. Of course it depends on how you feel about it.

V

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