Biden -- Wants to give away houses????

[peiserg]

Re: Biden -- Wants to give away houses???????

You bought your condo with an ARM. What did you think was going to happen?

+5.

When we bought our home here in phoenix, the lender asked us 3 or 4 times if we wanted an ARM. I said something like "why would I want a loan where I can't tell what I will own from one week to the next?"

Goes back to buying more house than you could reasonably afford. Self control, unfortunately, seems to be in short supply.

 

[steveny]

Re: Biden -- Wants to give away houses???????

Steve,

Correct me if I'm wrong, but it sounds like you agree with Biden on this. Steveny was quite clear that he agrees with Biden. I do too. I have a friend who specializes in hard money lending. According to him, on houses near foreclosure with multiple notes,the first note holder is actually offering the second (and sometimes third) $1000 to simply walk away. And the second note holders are accepting it. My point is it is happening already and much more of this is coming. Both you and steveny have a lot more financial knowledge (as per both your discussions on the bailout thread) than me and I appreciate your honest, not knee-jerk anti-Biden, response.

Regards,

Danny

I am not voting for Obama/Biden.

I do agree with what Biden says about reducing the principle. I also firmly believe he was talking out his ass when he made the remark. I could see it on his face that what he said he said in hopes to get votes but never intends to follow through on it.

In fact I believe he will rebuff the comment within one weeks time. it's pissing off the people who make their payments on time. If they adjust loan principles they better adjust them all, thats all or their will be a civil war.

 

[White92]

Re: Biden -- Wants to give away houses???????

I am not voting for Obama/Biden.

I do agree with what Biden says about reducing the principle. I also firmly believe he was talking out his ass when he made the remark. I could see it on his face that what he said he said in hopes to get votes but never intends to follow through on it.

In fact I believe he will rebuff the comment within one weeks time. it's pissing off the people who make their payments on time. If they adjust loan principles they better adjust them all, thats all or their will be a civil war.

How do you suppose they adjust the principal? I'm really curious. How do you think they should do it? What will it all be based on?

 

[steveny]

Re: Biden -- Wants to give away houses???????

The unfortunate part here is that many people in the U.S. have lived beyond their means and now will pay for it. Its shocking how many examples are out there on various forums..

Let's say I have access to money that can be used for buying a home.

Would you purchase a home in the U.S. as an investment and if so, what are the areas you'd buy in?

Would it be advisable to purchase a home in a newer community to rent out?

What cities would you do this in?

You want to be PE on a deal? I have one for you at 10% with collateral. You want to be on the REI side of the deal you could do ~10%/m + or -. The deals up here are asnine at this point.

10 unit townhouse complex for 225k rents are 7k a month. Has to be cash. 30 day closing. I am putting these things together everyday. People with cash are cleaning up.

 

[steveny]

Re: Biden -- Wants to give away houses???????

Correct me if I'm wrong, but wouldn't lowering the loans down to what the houses are worth create a chain reaction that would lower the value of every single house below that one? The houses are appraised with comps and if all the comps are now changing value overnight, what are any of them worth? Does this make sense?

Yep, but if they knock the loan down, the person stays in the house and the house never becomes a comp because it never changed hands. Kinda like Carfax and a totaled car that is wrecked but fixed by the owner and the title never gets branded.

 

[White92]

Re: Biden -- Wants to give away houses???????

You want to be PE on a deal? I have one for you at 10% with collateral. You want to be on the REI side of the deal you could do ~10%/m + or -. The deals up here are asnine at this point.

10 unit townhouse complex for 225k rents are 7k a month. Has to be cash. 30 day closing. I am putting these things together everyday. People with cash are cleaning up.

Wow! If you kept it fully rented for 2 1/2 years, you'd have your full return back. Amazing! I'm sure you'll be able to keep it rented too because people will be renting a whole lot more now that they can't get loans to buy their own home.

 

[White92]

Re: Biden -- Wants to give away houses???????

Yep, but if they knock the loan down, the person stays in the house and the house never becomes a comp because it never changed hands. Kinda like Carfax and a totaled car that is wrecked but fixed by the owner and the title never gets branded.

:biggrin:

 

[steveny]

Re: Biden -- Wants to give away houses???????

How do you suppose they adjust the principal? I'm really curious. How do you think they should do it? What will it all be based on?

Move the loans to the county/state assessment.


I just talked to a guy in Denver who owes 700k on a house that is assessed for 240k and he purchased it for 330k. He's walking. But he would stay if the loan was adjusted to 240k. I just spoke to about this very subject last night.

One thing I have not mentioned yet is the fact that income tax is due on debt that is forgiven. This could also help the fed collect some loot. Although I think they would have to adjust that law in these case as people don't have 50k sitting around to pay a bill like that.

 

[steveny]

Re: Biden -- Wants to give away houses???????

Wow! If you kept it fully rented for 2 1/2 years, you'd have your full return back. Amazing! I'm sure you'll be able to keep it rented too because people will be renting a whole lot more now that they can't get loans to buy their own home.

It's a smoking deal.

 

[White92]

Did anyone see the story about the 90 year old lady being evicted and shot herself twice?

 

[docjohn]

All of this dept forgiveness is palatible if we are talking about families that want to live in the house,how bout all the greedy numbnuts who refied thier own homes to free up cash to buy another home for flippy profit

 

[steveny]

All of this dept forgiveness is palatible if we are talking about families that want to live in the house,how bout all the greedy numbnuts who refied thier own homes to free up cash to buy another home for flippy profit

Different story altogether. I have 6 rentals that I have to refi that I paid cash for. I have a VERY high FICO score, close to perfect. Banks don't have any money. I am now working with credit unions to refi those houses. But it's hard as hell to get a loan right now. Loota Palooza is over.

On fast money last night I saw that a major rental company that is listed on the exchange, a company much larger than mine, went way down in value because of vacancies and they also have had to lower rents to fill units. We only have 5 vacancies right now but I too have had to lower rents a bit to attract good tenants. That scared the crap out of me when I saw that last night.

 

[Osiris_x11]

dealings...

steveny... are you ever looking for silent-investors/partners (w/ cash), etc'? Or have you ever thought about starting your own real-estate fund to be marketed/offered, that people anywhere could buy into? I know of a few individuals who have their own commercial real-estate funds, and over the years they've taken off w/ it... insane market capitalization from word-of-mouth! They went from owning/operating gas-stations & mom-pop shops to owning RR Phantoms, and Lear Jets. . .

(I'm 101% serious about any potential investing and/or fund creation)

 

[White92]

Re: dealings...

steveny... Are you ever looking for silent-investors/partners (w/ cash), etc'? Or have you ever thought about starting your own real-estate fund to be marketed/offered, that people anywhere could buy into? I know of a few individuals who have their own commercial real-estate funds, and over the years they've taken off w/ it... Insane market capitalization from word-of-mouth! They went from owning/operating gas-stations & mom-pop shops to owning rr phantoms, and lear jets. . .

(i'm 101% serious about any potential investing and/or fund creation)

+25

 

[01blacks4]

Re: Biden -- Wants to give away houses???????

It's called debt forgiveness and it has been offered by some as a much better alternative to government purchase of distressed securities. Banks already do this today-- If they sell your foreclosed house for $100k and you have a $200k loan, where exactly do you think the other $100k difference comes from? You either owe it, declare bankruptcy or they forgive it. It also happens to be that the amount is taxble for the forgiven too. only on a second home or investment. primary home is non taxableIf I were you, I'd be more worried about this bailout including credit card and auto debt. At least with real estate you've got an appreciating asset as security. Autos are worth-less as time goes by and vacation costs can't be recovered. The treasury wants to purchase those types of debt obligations too-- now that seems stupid to me.

sorry...

 

[steveny]

Re: Biden -- Wants to give away houses???????

steveny... are you ever looking for silent-investors/partners (w/ cash), etc'? Or have you ever thought about starting your own real-estate fund to be marketed/offered, that people anywhere could buy into? I know of a few individuals who have their own commercial real-estate funds, and over the years they've taken off w/ it... insane market capitalization from word-of-mouth! They went from owning/operating gas-stations & mom-pop shops to owning RR Phantoms, and Lear Jets. . .

(I'm 101% serious about any potential investing and/or fund creation) .

why yes I have

edit. We are going for the G-5. The Lear is a little too low class IMO.

You want to be PE on a deal? I have one for you at 10% with collateral. You want to be on the REI side of the deal you could do ~10%/m + or -. The deals up here are asnine at this point.

10 unit townhouse complex for 225k rents are 7k a month. Has to be cash. 30 day closing. I am putting these things together everyday. People with cash are cleaning up.

 

[White92]

Re: Biden -- Wants to give away houses???????

why yes I have

......and?

 

[steveny]

Re: Biden -- Wants to give away houses???????

......and?

Look at where I quoted myself. :biggrin:

10% per year guarentee for PE unless you want the Investment side then it could a positive 10% to a negative 10% per month.

 

[Osiris_x11]

big pimpin' steve-style...

LMFAO @ G5/Lear-Jet...

O.k., Gulfstream it is!

Well wait, check-that; make it Honda-Jet (gotta keep it R-E-A-L...)!

Anywayz... steveny, I'll email/ring you soon again as I did send a long pm after Lania's birth (a well-wish to Renee` & seeing where/when to meet-up w/ you in Upstate when I was in the area), but never got a reply back from you. I assumed because I envied your Hamann wheels & you felt threatened and wanted keep your distance...

 

[White92]

Re: big pimpin' steve-style...

LMFAO @ G5/Lear-Jet...

O.k., Gulfstream it is!

Well wait, check-that; make it Honda-Jet (gotta keep it R-E-A-L...)!

Anywayz... steveny, I'll email/ring you soon as I sent a long pm after Lania's birth (a well-wish to Renee` & seeing where/when to meet-up w/ you in Upstate when I was in the area), but never got a reply back from you. I assumed because I envied your Hamann wheels & you felt threatened and wanted keep your distance...

Steve doesn't check his pm's. He has an assistant do it. She wasn't able to pencil you into his busy schedule as he's been busy picking out new shag carpet and bean bag chairs for his jet.

 

[steveny]

I checked the little box in my PM folder that erased all my pm's :frown:

I never got a chance to reply. Sorry.

In other news, The FAA will not allow me to use the orange bean bag chairs as they have been deemed unsafe in emergency landing situation. However if several are used which are made from velcro and a velcro suit is worn by the occupant the FAA feels this would be sufficient in a crash landing. IMO it's not gonna be fun trying to get out of the wreckage with several flaming bean bag chairs stuck to me so we are just going to go with the level 7 leather.:wink:

 

[BD]

Re: Biden -- Wants to give away houses???????

That's right. Everyone I know who is in trouble is saying, "if my credit is going to be bad anyway I might as well walk away completely, whats the sense in paying more for something then it's worth when good credit isn't helping me anyways."

What's happened is the credit markets seizing stopped the real POS people from being in the market but it has frustrated the good people. They see the POS people walking away and figure if they can't get refi then why should they stay. What good is a 7 some thing FICO if the banks have no money?
I am hearing this all the time from new in coming tenants who are renting single families from us.

Steve, I'm glad that you agree with me.

Any one posts "What do you expect, you bought it with ARM rate" neither understand the situation, or fail to grasp the concept. I see most of them are still living in areas that are less impacted by the situation.

The fact that if the market did not crash this heavily, I belief most foreclosures could have been prevented.

By forcing the bank to lower the balance is NOT the solution, if the government is going to do that, the market will absolutely collapse.

There is no quick fix, in fact, there is no fix right now.

Remember when the tech market crashed, no one knew what to do.

 

[BD]

Re: Biden -- Wants to give away houses???????

+5.

When we bought our home here in phoenix, the lender asked us 3 or 4 times if we wanted an ARM. I said something like "why would I want a loan where I can't tell what I will own from one week to the next?"

Goes back to buying more house than you could reasonably afford. Self control, unfortunately, seems to be in short supply.

The issue of ARM is part of the problem. If you read my post, you will understand that the mortgage company I dealt with play games when it's time to lock in my rate. I have no doubt they did it to others.

What both candidates should do is to offer enforcement of loan modification to all current ARM mortgages. Lock all of them into a proper rate, keep the owners in their property. This may help the foreclosure situation, once the number of foreclosure is minimizes, the market should stabilize, therefore, value free fall will drop. With this scenario, you can filter out those who really want to keep their home vs. people continue to foreclose the property because it is no longer contain any investment sense.

When the government pass the law to remove the after effect financial responsibility couple of years ago, they give people a free pass to walk away from the property. People who foreclosed their properties will not be penalize by taxes, fees, etc.

 

[heySkippy]

Re: Biden -- Wants to give away houses???????

Move the loans to the county/state assessment.


I just talked to a guy in Denver who owes 700k on a house that is assessed for 240k and he purchased it for 330k. He's walking. But he would stay if the loan was adjusted to 240k. I just spoke to about this very subject last night.

One thing I have not mentioned yet is the fact that income tax is due on debt that is forgiven. This could also help the fed collect some loot. Although I think they would have to adjust that law in these case as people don't have 50k sitting around to pay a bill like that.

So this guy is going to walk with $400,000 that he took as equity out of his house? I hope he is forced into permanent poverty until he pays that back. It makes me ill that these thieves took huge cash outs and now want bailed out of their deals.

 

[queenlives]

Re: Biden -- Wants to give away houses???????

Any one posts "What do you expect, you bought it with ARM rate" neither understand the situation, or fail to grasp the concept.

or simply means what they say, "you bought with an arm, what did you expect?"... that everything would just keep going up and... what? it would all just keep going up?

sadly (for those caught in the squeeze), things usually don't work this way for very long.

and to the other comment, it seems to me it's not where you live but how you live that influences the thinking on this: people who bought / live within their means / didn't go out on a limb leveraging themselves to the teeth likely have less to sweat about.

as for the dotcom bubble, yup, that was a bitch. some lived and learned, some didn't.