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billb
Guest
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 Posted:
Sun Nov 13, 2005 1:00 am Post subject:
here's a question |
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if house prices simply stop going up, are lenders still going to make
these interest only 107% of value loans I see advertised?
I guess if FNMA is the buyer of the mortgage it doesn't much matter
because the federal government will presumably just print the money
to pay off the lender, but suppose a reasonable person had made the
loan and it became "nonperforming" because the home "owner" moved out
and decided it made more sense to rent rather than buy when it cost
half as much per month that way.
Who will bailout the "reasonable person" in the above scenario?
--
billb
Do not squander time, that is the stuff life is made of.
The war is over, don't ask for credit.
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millstox
Guest
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| Posted:
Sun Nov 13, 2005 8:19 am Post subject:
Re: here's a question |
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"billb" <sevenoutpinball@yahoo.com> wrote:
| Quote: | if house prices simply stop going up, are lenders still going to make
these interest only 107% of value loans I see advertised?
I guess if FNMA is the buyer of the mortgage it doesn't much matter
because the federal government will presumably just print the money
to pay off the lender, but suppose a reasonable person had made the
loan and it became "nonperforming" because the home "owner" moved out
and decided it made more sense to rent rather than buy when it cost
half as much per month that way.
Who will bailout the "reasonable person" in the above scenario?
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I think the usual scenario will probably prevail: the reasonable
person gets screwed. |
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Guest
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| Posted:
Sun Nov 13, 2005 8:34 am Post subject:
Re: here's a question |
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On Sat, 12 Nov 2005 14:13:26 -0800, "billb"
<sevenoutpinball@yahoo.com> wrote:
| Quote: | if house prices simply stop going up, are lenders still going to make
these interest only 107% of value loans I see advertised?
I guess if FNMA is the buyer of the mortgage it doesn't much matter
because the federal government will presumably just print the money
to pay off the lender, but suppose a reasonable person had made the
loan and it became "nonperforming" because the home "owner" moved out
and decided it made more sense to rent rather than buy when it cost
half as much per month that way.
Who will bailout the "reasonable person" in the above scenario?
|
Ther is no easy way out for any of the parties especially the
consumer.
Around 1988 the real estate market went South when we lived in
Houston. I went with ont of the neighbors to look at homes advertised
for 20-40% off which had been flood damage. They were luxurious homes
by all standards and in todays market woul probably fetch around 300k
but then these house were going for as little as 60k I suppose the
bank or finance company was forcing a fire sale and getting releases
from all purchasers releasing them from mold claims or other. The
actual price went down as the down payment went up at 10k intervals.
Probably the bank recovered a large portion of their money, then
whatever govt loan guarantee program probably kied in and last they
bunc of them probably ganged up to get leins or judgements against
the builder. There are all kinds of underhanded dealing going on when
there is money one th line with defaults.
I heard one story about a nice home in far North Dallas being
foreclosed and the guy invited every realtor in Dallas to a cocktail
party to make offers on his equity and he made a deal with a trendy
well known property company to pay him 5k a week for six weeks so he
could move and then as soon as he cashed the last check he turned
around a filed bankruptcy which canceled the whole deal from the get
go....
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Arthur
Guest
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| Posted:
Sun Nov 13, 2005 9:00 am Post subject:
Re: here's a question |
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Why? Does more, ie higher tax revenue mean more happiness for non
politians? I had real estate tax go from 1300 to 6000++ and I was not
happier.
The easier fix is to dump the politians. Failing that, sucker them
into bribes and send them up the river or wherever you hide the
prisions. It works great.
a
==
On Sun, 13 Nov 2005 01:30:31 -0500, wrote:
| Quote: |
There are so many million dollar houses in my area now the people want
to change the property tax system. The legislature is considering
raising the sales tax to get the haves off the hook and let the have
nots pay the tax. |
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aubrey
Guest
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| Posted:
Sun Nov 13, 2005 9:00 am Post subject:
Re: here's a question |
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There are so many million dollar houses in my area now the people want
to change the property tax system. The legislature is considering
raising the sales tax to get the haves off the hook and let the have
nots pay the tax. |
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Arthur
Guest
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| Posted:
Sun Nov 13, 2005 9:00 am Post subject:
Re: here's a question |
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Contradiction. A "resonable" person will not attempt to own something
they can not really afford. I never owned a house costing more than
2.5x my gross income. That is "resonable".
a
=
On Sat, 12 Nov 2005 19:19:03 -0700, millstox wrote:
| Quote: |
I think the usual scenario will probably prevail: the reasonable
person gets screwed. |
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Guest
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| Posted:
Mon Nov 14, 2005 1:00 am Post subject:
Re: here's a question |
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On Sun, 13 Nov 2005 00:02:54 -0800, Arthur
<nobody.lives.here@xoxy.net> wrote:
| Quote: | Why? Does more, ie higher tax revenue mean more happiness for non
politians? I had real estate tax go from 1300 to 6000++ and I was not
happier.
The easier fix is to dump the politians. Failing that, sucker them
into bribes and send them up the river or wherever you hide the
prisions. It works great.
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You got it!
I have to relate a short story about an elderly couple whose only son
died in Vietnam and developers wanted to sieze the parents farm which
was right smack dab in the middle of one of these high stepping burbs.
the couple gave the entire fare to the Cherokee Nation of OK and got
everyone off their backs including the tax man.
Give it to a good cause and reamin there until you die. :-)
"Frackem"
| Quote: | a
==
On Sun, 13 Nov 2005 01:30:31 -0500, wrote:
There are so many million dollar houses in my area now the people want
to change the property tax system. The legislature is considering
raising the sales tax to get the haves off the hook and let the have
nots pay the tax. |
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