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Biden -- Wants to give away houses????
- Thread starter jond
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Re: Biden -- Wants to give away houses???????
Leverage is not a sin if used coerrectly. Never leverage to buy something that does not cash flow. Make sure to buy it at a fire sale price in case you have to sell it quickly.
Every single house I own I owe less on it then it's worth some of them I owe nothing. EVERY ONE OF THEM has equity!!! The banks were beating my door down to loan me money and I told them to go f themselves. Looking back now and if they reduce the principle on loans I am going to be a little pissed at myself.
There is a guy on prime who bought RE out here but he is so F---ing rich he doesn't cash the check I send him every month. I see he just cashed the last two months worth of checks last week. :biggrin:
All these investments out here have worked out where the investor has followed my instructions. RE out here is not an in and out game it takes long term commitment and properly managed assets.
One investor we manage for through our management company insisted on borrowing more than the house was selling for and taking back 15 year paper. That house still cash flows but no where near what it should. There is a method to insuring profit. It works every time if the directions are followed. Step outside the classroom and the lesson gets learned the hard way.
Leverage is not a sin if used coerrectly. Never leverage to buy something that does not cash flow. Make sure to buy it at a fire sale price in case you have to sell it quickly.
Every single house I own I owe less on it then it's worth some of them I owe nothing. EVERY ONE OF THEM has equity!!! The banks were beating my door down to loan me money and I told them to go f themselves. Looking back now and if they reduce the principle on loans I am going to be a little pissed at myself.
There is a guy on prime who bought RE out here but he is so F---ing rich he doesn't cash the check I send him every month. I see he just cashed the last two months worth of checks last week. :biggrin:
All these investments out here have worked out where the investor has followed my instructions. RE out here is not an in and out game it takes long term commitment and properly managed assets.
One investor we manage for through our management company insisted on borrowing more than the house was selling for and taking back 15 year paper. That house still cash flows but no where near what it should. There is a method to insuring profit. It works every time if the directions are followed. Step outside the classroom and the lesson gets learned the hard way.
Re: Biden -- Wants to give away houses???????
Absolutely, how many tech stock did you own prior to the crash?
The whole point is, I HAD equity, and so was my neighbor who put down $70k and thought he would be safe. The whole point of the crash is supposed to be a market adjustment/correction, but lost of 45% in value is more than a value adjustment, it is a over reaction. If the foreclosure situation is "only" have as bad, people can easily pull through it in couple of years.
I have a investment rental property in Washington state and that property so far, increased value by 40% since three years ago, but dipped 15% last three months, that is a reasonable "adjustment/correction."
Therefore according to you, in a similar situation, people who invest money in tech back in the days, who lost 90 plus % in matter of days, never gain it back, are irresponsible?
The government should not force the mortgage company to lower the balance, that should be negotiable between the owner and the bank if applicable. The market needs to sort things out on its own, this way, the "real" value of the property will prevail.
In my case, people with similar situation just need to bite the bullet and deal with it, like the money people lost over stocks over night.
Absolutely, how many tech stock did you own prior to the crash?
The whole point is, I HAD equity, and so was my neighbor who put down $70k and thought he would be safe. The whole point of the crash is supposed to be a market adjustment/correction, but lost of 45% in value is more than a value adjustment, it is a over reaction. If the foreclosure situation is "only" have as bad, people can easily pull through it in couple of years.
I have a investment rental property in Washington state and that property so far, increased value by 40% since three years ago, but dipped 15% last three months, that is a reasonable "adjustment/correction."
Therefore according to you, in a similar situation, people who invest money in tech back in the days, who lost 90 plus % in matter of days, never gain it back, are irresponsible?
The government should not force the mortgage company to lower the balance, that should be negotiable between the owner and the bank if applicable. The market needs to sort things out on its own, this way, the "real" value of the property will prevail.
In my case, people with similar situation just need to bite the bullet and deal with it, like the money people lost over stocks over night.
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Re: Biden -- Wants to give away houses???????
i owned a few tech stocks prior / during and continue to, post-bust. it was a painful, but valuable, learning lesson on a number of levels.
i'm sorry, but i'm incapable of following how you arrived at statement #2. i would appreciate it if you would point out my use of the word irresponsible in my post... i'm darned if i can find it, but my eyes aren't as good as they used to be.
i owned a few tech stocks prior / during and continue to, post-bust. it was a painful, but valuable, learning lesson on a number of levels.
i'm sorry, but i'm incapable of following how you arrived at statement #2. i would appreciate it if you would point out my use of the word irresponsible in my post... i'm darned if i can find it, but my eyes aren't as good as they used to be.
Re: Biden -- Wants to give away houses???????
Financially irresponsible on a personal level is what I intended say.
The point I'm was making was the fact that if the mortgage company did play the game, none of this would have happen. The current property situation in S. Cal dropped in value so much that it is NOT because people are irresponsible for signing a loan they couldn't afford, it is because the property is no longer worth of keeping. That scenario is happening all over my complex. Therefore, is it a irresponsible thing to do when you lost so much value, should you hold on to it or should you dump it at a lost?
What really bothers me is that the media and our politicians are not point out the obvious. The issue of affordability is in the hands of the mortgage company. When they know the situation with ARM is not working out, they did absolutely nothing. Like my friend who worked in the loan business told me, it doesn't cost them much to automatically lock the rate in for every one. They were greedy all the way to the end.
Financially irresponsible on a personal level is what I intended say.
The point I'm was making was the fact that if the mortgage company did play the game, none of this would have happen. The current property situation in S. Cal dropped in value so much that it is NOT because people are irresponsible for signing a loan they couldn't afford, it is because the property is no longer worth of keeping. That scenario is happening all over my complex. Therefore, is it a irresponsible thing to do when you lost so much value, should you hold on to it or should you dump it at a lost?
What really bothers me is that the media and our politicians are not point out the obvious. The issue of affordability is in the hands of the mortgage company. When they know the situation with ARM is not working out, they did absolutely nothing. Like my friend who worked in the loan business told me, it doesn't cost them much to automatically lock the rate in for every one. They were greedy all the way to the end.
But again Vance what we are saying is that a big part of the problem is that buyers(like you) accepted these ridiculous prices per square,and banks were all too willing to play the shell game with financing.Easy for us to critisize now but again the average price for a square ft in an average home in Cali should not have doubled or tripled over the last decade.
I guess it's the question of "how do you assign a value to a property or any thing?"
I assumed that the reason it is called "real" estate because there are certain security, of course nothing is 100%, even gold, but the point is when I, or any one else who was in the market for a property to "actually live in," NOT because it's the second home, third home, or home to be flipped in six months and still have to deal with this unfortunate event, but was dragged down by the speculators, yeah, it sucks.
When you are ready to buy, you're ready to buy. It is not a car, you can't wait till it because a used car and buy it for 50% of the value after three years. There is no blue book for it, or Crystal ball book for it.
The fact that I bought my property two years prior the crash, or the people who bought their property 4 years prior to the crash and still lost all of their down payment and equity, yeah, it sucks.
Just got off the phone with another guy who wanted to do what I do. The boiler is down in a building he bought about a year ago. He said if it cost more than 5k to fix he is going to walk as he is 95% LTV on the property.
Steve, sorry you didn't make it to S. Cal, we're about to have a NSX meet at my shop, Mike will be here too.
Maybe some other time. Many of us were looking forward to meet you.
I will be in LA on the 17th through the 20th. I would like to do something with you guys on Sunday the 19th.
You know I really don't know much about cigars but what ever you think is good I am sure I would like.
A Cuban it is.:biggrin::wink:
Osiris_x11
Gold Member, Moderator: Marketplace
Re: Cuban? No, German-Irish!
You know, I realize some people lost money buying their houses. Their investment went down in value. Sucks.
You know, my 401K lost about 20-25% this year. I wonder if the government could just give me that money back too? Same difference right?
You know, I realize some people lost money buying their houses. Their investment went down in value. Sucks.
You know, my 401K lost about 20-25% this year. I wonder if the government could just give me that money back too? Same difference right?
Re: Biden -- Wants to give away houses???????
vance,
i think the issues of (1) affordable mortgage and (2) value of property are perhaps related, but different.
as for walking away from an investment (residence or business or ???) i think each individual has to make their own judgment call and act accordingly to their best interests.
good luck with your personal situation, vance.
hal
vance,
i think the issues of (1) affordable mortgage and (2) value of property are perhaps related, but different.
as for walking away from an investment (residence or business or ???) i think each individual has to make their own judgment call and act accordingly to their best interests.
good luck with your personal situation, vance.
hal
I got a letter from Chase this morning that they now believe my house is worth 20% of what they appraised it for 3 years ago and that they are now locking my line of credit. LOL.
I wonder how many people will get the same letter and just walk away from the loan. The banks new assesment is way off IMO.
I wonder how many people will get the same letter and just walk away from the loan. The banks new assesment is way off IMO.
I got a letter from Chase this morning that they now believe my house is worth 20% of what they appraised it for 3 years ago and that they are now locking my line of credit. LOL.
I wonder how many people will get the same letter and just walk away from the loan. The banks new assesment is way off IMO.
interesting.
i wonder what zillow would say it's worth?
Re: Biden -- Wants to give away houses???????
Aye. :wink:
Can someone please call a "do-over" and get us a new set of primaries with a new cast of candidates... please?
Aye. :wink:
Can someone please call a "do-over" and get us a new set of primaries with a new cast of candidates... please?
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So, what do all of the people who were maligning Biden about his proposal to adjust principal in bankruptcy think about McCain's new plan to buy up all of the bad home loans and adjust the principal?
They are both clueless. At least McCain doesn't try to hide it or claim the opposite.
Re: McCain -- Wants to renegotiate principal????
I had the same thought. It's enough of an irony that perhaps we should add Senator McCain's name to the title to make clear he's a socialist too.
I had the same thought. It's enough of an irony that perhaps we should add Senator McCain's name to the title to make clear he's a socialist too.
Correct me if I'm wrong, but it seems that McCain is advocating reduction of principle as an aspect of his plan to keep home-owners in their homes. Is that a change of opinion? Or has he had this opinion for awhile? Is that exactly what Biden suggested and what so many of you maligned him for? I'm confused. Is McCain a republican? Is this in keeping with "conservative" fiscal thinking?
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