The Glade 4.0

http://www.calculatedriskblog.com/2010/ ... or-in.html
So, we've been talking about Quantitative Easing, and I decided to post some serious numbers, because most of you aren't keeping up with the specifics.

The current housing market is already in a double dip. Reasonable estimates have a shadow inventory and stationary inventory in housing equal total national demand. However, the official government position is to push more and more bad debt onto the consumer.

Quantitative Easing, credit freedom, and non-solvent policies aren't going to help here. Also, look for Q1 2011 to double those foreclosure numbers.

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But... the Fed made $36.9 billions off the Mae securities, treasuries and mortgage backed securities!

That's actually kind of funny, because Mae and Mac Securities are currently more value in minimum expectation default: measures in the Health Care bill raised their insured value to 95% of principle and to date interest.

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"...but there exists also in the human heart a depraved taste for equality, which impels the weak to attempt to lower the powerful to their own level and reduces men to prefer equality in slavery to inequality with freedom." - De Tocqueville

Fannie lost what 4.3 Billion this quarter alone? It was just published today.

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I was outraged to learn that I need to be delinquent on my mortgage to sell my house.

Currently, it is worth about $10,000 less than what we owe on it.

We have never been so much as a day late on a payment in the 5 years since we bought it.

The only way we can sell it right now is on short sale, which would require us to be behind on the damn mortage, and we aren't.

I'm looking into the possibility of either rolling the difference between what we get for the house and what we owe into the mortgage on a new house, or simply paying the bank the difference rather than take the credit hit.

I don't intend to start missing payments, on purpose or otherwise because that's just not how I do business. Still, I'm appalled to learn that the bank would rather deal with a short sale or foreclosure than let someone just sell the house for as much as they can get, give it to the bank, and then work out some equitable arrangment to deal with the difference. It seems that they're actually encouraging people who need to move to lapse in their obligations.

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"Hysterical children shrieking about right-wing anything need to go sit in the corner and be quiet while the adults are talking."

Because if they foreclose or short sale, the bank gets the balance of the money from the government. If you just sell it, they have to eat it.

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Holy shitsnacks!

Wow, talk about a moral hazard.

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"Hysterical children shrieking about right-wing anything need to go sit in the corner and be quiet while the adults are talking."

I'm still shiny side up on my home purchase. At the time my wife was a bit upset with me on how hard a deal I was insisting on... but she's happier with me these days.

A couple more percent and I'll just be breaking even. I expect to be underwater this time next year, given the way the wind is blowing, and probably 2-3 years after that before there's a recovery, long as the creek don't rise.

Thing to remember is, you will only lose if you sell. Hold on to your property and you're good. I'm looking at land now...I'd like to have a couple hundred acres an hour away.

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In time, this too shall pass.

If I had an option, I wouldn't sell. I'm starting a new job close to 2000 miles away from where I am now though, and I'm not doing the geographic bachelor thing any longer than the end of this school year when my older one graduates and the little one will be done with preschool.

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"Hysterical children shrieking about right-wing anything need to go sit in the corner and be quiet while the adults are talking."

You can always hire a property management company to rent your property.

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In time, this too shall pass.

I figure I've got 2-3 years of weathering the storm before I'm right side up thanks to all the forclosures.

Good luck folks.

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The U. S. Constitution doesn't guarantee happiness, only the pursuit of it. You have to catch up with it yourself. B. Franklin

"A mind needs books like a sword needs a whetstone." -- Tyrion Lannister, A Game of Thrones

I considered that, but there are 2 problems:

My VA loan is tied up in it. I don't even know if you can rent a home you bought with a VA-backed loan, and I need the backing freed up for a new home anyhow.

I'm **** if I end up with a renter that doesn't make his payments. I can't afford to pay for a house we're not living in, nor to deal with an eviction. I also don't think I can charge enough rent to cover the mortgage plus the maintenance and what the manager would cost. A guy at my church that I trust said he would do it inexpensively but I still don't think I could get enough.

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"Hysterical children shrieking about right-wing anything need to go sit in the corner and be quiet while the adults are talking."

Really? I thought Obama's priority was to stop foreclosures, not encourage them.

...

Why, besides taking him at his word, would you believe this?

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“The duty of a patriot is to protect his country from its government.” - Thomas Paine

lol, that was funny...

I had to come to closing with ~26k when I sold my house.. I had no offers, then finally got one that lowballed. I countered but they only agreed to small concessions. If I hadn't been so desparate to sell, maybe I could have waited it out. But, my credit score is intact so I can buy another house eventually. My 403b looked pretty bad though, replenishing that ATM.

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Dream as if you'll live forever...
...Live as if you'll die tomorrow

Vivere Senza Rimpianti

You're one of those people who keeps smacking themselves in the face with a hammer and hoping the result will change, aren't you?

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I put $32k down on a $386k house in August 2007.

So... yeah. It's ugly. I knew it would be, but I was hoping it wouldn't get that bad.

I'm at 6.5%, and I'd like to get one of those shiny 4.5%s. Actually, they have 15 years in the 3's. A couple of hundred more a month and I could save 15 years of mortgage payments.

Regardless, though, I doubt seriously that I can refinance. I could maybe come up with 20k, but I suspect I'm further under than that.

viewtopic.php?p=94257#p94257

That house is not an asset.

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Wow, Khross, I knew you were a prick, but damn. You're right, bro - you got me, I do think I'm underwater now.

That still doesn't change the validity of my posts in that thread, nor am I "so underwater it's not even funny".

***.

Arathain:

I'm not saying anything to be a prick; I'm pointing out you need to find an exit strategy on that piece of property given recent legislation and continued government policy.

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My CA mortgage just reset at 3.00%; I'm officially making money on the property (as long as the renters stay!).

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"Dress cops up as soldiers, give them military equipment, train them in military tactics, tell them they’re fighting a ‘war,’ and the consequences are predictable." —Radley Balko

No, I really don't. What I'd <LIKE> to do (still don't need to), is refinance and get a lower interest rate.

I'm 0-10k underwater, approximately, and I can afford the current payments just fine. The amount I'm underwater is approximately equivalent to the closing costs on a new property, so moving would not save me any money.