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Zfuut posted:We backed out of the whole house buying idea before signing anything (cold feet). I think we are going to wait a while and see what happens with the home market here. That's a good idea. AZ is crazy right now and I don't think it's hit bottom yet. Keep taking advantage of cheap rental rates for a while.
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# ¿ Oct 9, 2009 17:15 |
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# ¿ May 15, 2024 21:56 |
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The tax credit isn't really going to the sellers, it's going to Home Depot, handymen, Lowe's, Sears, etc. You don't get the credit until after you buy, so most people are either putting it back in savings to replace monies taken for a down payment, or using it to fix up the new house. I don't think that it's inflating existing properties by 8K either. There's been a huge crackdown on appraisals lately. There are a couple programs out there to monetize the tax credit to use as a down payment on a house, but they're mostly geared towards lower income families. Interest rates are fantastic and encouraging people to buy. I'm going to buy because 5.125% interest is historically awesome. Probably won't close until late January so no tax credit for me unless it gets extended. If it does great, if not, oh well.
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# ¿ Oct 22, 2009 23:37 |
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There are a ton of 5 year ARMS out there that will be resetting in 2010/11/12 that have the potential to gently caress with everything.
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# ¿ Oct 23, 2009 00:27 |
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Strict 9 posted:Man, this poo poo just never ends. Check your purchase agreement and talk to your realtor. Usually blinds and window treatments are a part of the home unless otherwise specified. Pretty much anything bolted down (above stove microwave, blinds, even home theatre speakers attached to the wall) should be part of the home unless otherwise specified.
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# ¿ Oct 28, 2009 17:08 |
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This is cool. I won't close until mid January on our home, so I wasn't counting on the free cash, but hey, I'll take it.
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# ¿ Oct 29, 2009 00:28 |
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Elendil004 posted:Sort of related. I bought a house cash, and want to pull money out with a mortgage. I will 99.9% for sure be selling this house in 3-5 years. Is there any reason not to go with a low 5 year fixed variable APR mortgage that might jump up in 5 years if I'm going to be out by then? Is there a pitfall I'm not seeing? Plans in life changing and you not being out in 5 years. Interest rates are retarded low right now, just get a 15 or 30 year fixed
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# ¿ Oct 29, 2009 17:20 |
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Chajara posted:Speaking of PMI, I have a coworker who's in the process of buying a house and she told me we didn't necessarily need a 20% down payment. I asked "What about PMI? Don't you end up paying like an extra hundred bucks or more a month due to that if you don't have the down payment?" and she said that since the place she's trying to get is out in the country outside city lines that there was no PMI. She's knowledgeable and has a pretty good head on her shoulders so I'm inclined to believe that this is the case rather than somebody just fed her some bullshit and she bought it, but I thought I'd ask here anyway. If this is true it'd be pretty cool because I want a place out in the country anyway (Milwaukee taxes are insane) and while we definitely intend to save up 20% if we can it'd be nice to know that if we found a really great place we could afford that we could cut it a bit short and not get screwed in PMI payments for it. There's a USDA Rural Development loan program out there right now. 100% financing, low credit score requirements, no mortgage insurance, no downpayment. Everyone and their mom is jumping on this thing right now if the house they want qualifies and they don't make too much money. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do The other big option right now are FHA mortgages which only require 3.5% down. You pay 1.75% in up front mortgage insurance (MI) that usually gets financed into your loan, (one time fee) and then .55% a year. It's much cheaper than Private Mortgage Insurance on a conventional loan. On a 160K loan, FHA MI is only 73 bucks a month.
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# ¿ Nov 7, 2009 18:33 |
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slap me silly posted:Then again, my current loan is >$200k and my PMI is $60/mo, so I'm not sure there's a general rule here. True. On a conventional loan it can depend on credit score, LTV, and a ton of other poo poo.
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# ¿ Nov 7, 2009 21:47 |
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dwoloz posted:Hm, thanks for the responses A good mortgage broker should be able to find a loan for you, but you might not like the terms. It won't be conventional with a low 5% rate. Might be in the 6.5 to 10% area.
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# ¿ Nov 11, 2009 18:01 |
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Leperflesh posted:
Unemployment is having a big effect, but don't discount the people strategically defaulting on mortgages as well. When you're paying 2200 a month for a house, and the exact same house is renting for 1350 a month across the street and you're over 100K underwater on your mortgage it's hard to argue against defaulting and going and renting somewhere for a few years. The scary part is going to be all the 5 year ARM's bought in 2006/2007 that aren't going to reset until 2011/2012. This poo poo is far from over.
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# ¿ Nov 20, 2009 21:46 |
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Kerpal posted:Posting for a friend, not sure if this is the right thread. My friend already bought a house and he's in the first year of an FHA loan. Is there any way for him to renegotiate the interest rate? He has made all of his payments but he bought the place when the market was still up for around $280k, now the market value is around $200k. He's paying 6.5% interest but now he says he has seen loans for homes offered at around 4.5%, so we're wondering if it's possible to renegotiate a lower interest rate through any means. Probably not. The reason being he can't get an appraisal that will work with the loan because the house is probably underwater. You might have him talk to a broker about an FHA Streamline, those don't (or didn't) need an appraisal and would have gotten him down to about 5% or so. Those 4.5% advertisements are bullshit. That's paying all broker fees out of pocket, blah blah blah. You can get 4.5% but it's going to cost you a fortune up front. Or they might be 5/1 ARMS
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# ¿ Dec 9, 2009 00:16 |
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alreadybeen posted:Ultimate, maybe you or others can enlighten me. What does it matter that type of loan the offers come with. You get the cash regardless so I don't understand. In addition to what Moana said, A paper 20% down conventional loans tend to close faster. They can close in as little as 12 or 15 days, where a FHA or VA loan might need 30, 45, or even 60 days to close. So less hassle, quicker closing, and usually a smoother transaction.
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# ¿ Dec 9, 2009 18:54 |
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Niklas Kronwall 2.0 posted:Is there any significant difference in lenders? I'm looking for conventional 30 year fixed and have talked to lots of banks and it looks like I'm going to get 5.15-5.25 interest and 800-1100 in bank-related closing costs. The banks are estimating 3000-3500 in all closing costs in addition to inspection, for a 165000 home with 20% down. Like Flowers said, HUGE difference. Who are you getting your mortgage through? If your credit is good, find a broker that friends or family have recommended. 5 1/4 right now is paying 2 points on the back end, plus whatever you're paying up front. You decide if 4K is too much money for them to make on this deal.
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# ¿ Dec 15, 2009 20:53 |
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Niklas Kronwall 2.0 posted:We're going to have it paid off in 4-5 years, we're really only taking 30-year fixed in case something goes wrong and we lose our jobs. Right now I'm less interested in rate and more interested in how timely\dependable the lender is. What's your credit like? Are you 760+? Stable job history? Good DTI numbers? If so I would find a broker that can put a file through provident. They'll close a file in 12 days if it's clean.
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# ¿ Dec 15, 2009 21:09 |
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Niklas Kronwall 2.0 posted:My average credit score is 760+, as is my wife's, but I just graduated with my master's and, although I have a job, I have no proof of that yet. My wife has been working for ~4 years. We have 0 debt aside from student loans. I would find a good broker, as opposed to going retail through a bank. Retail tends to take longer because the people in it aren't on a pure commission basis. A mortgage broker though will push your file through fast, because the faster you close, the faster they get paid. Find someone motivated to get a deal done. If you want this done fast though, be prepared and have everything they're going to want up front. Last 2 years taxes, last 3 to 6 months bank statements, etc. People can really slow things down when they take forever to get documents needed.
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# ¿ Dec 15, 2009 21:19 |
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Ultimate Mango posted:Update: That really sucks. If the buyers were using any kind of FHA/Gov't financing, the deal is probably dead. They're really cracking down on appraisals these days.
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# ¿ Dec 22, 2009 23:22 |
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In addition to all the great questions Arzakon asked, is that 48K before or after taxes? I'm assuming before taxes. Right now customary FHA DTI limits are about 31/43. That means no more than 31% of your gross income can go to your mortgage, and your total debt payments (car loans, mortgage, credit cards, student loans) cannot be more than 43% of your total gross income. There are cases where you can get approved for higher rates, but you usually need compensating factors to do so (large reserves, excellent credit, etc.) So going off your income, the absolute largest mortgage you should get would be is about 1240 a month. That's Principal, Interest, Mortgage Insurance (PIMI), Taxes, insurance, the whole shebang. Great right! You should be able to afford a house easy right? Not so fast. Remember your total debt is limited to 43% of gross income, so you only have 1720 a month for total debt repayment 1720 - 560 cars - 54 SL1 - 75 SL2 (estimated) --------- 1031 left for housing. Those cars put a big dent in your ratios. This guy has a pretty good website with lots of calculators. He's a little nutty, but the info is sound. http://michaelbluejay.com/house/index.html As for the actual purchasing process, say you and the wife find a 100K house you like. An FHA loan is your best bet in this market with a low down payment, unless you can get USDA Rural Development 100% financing. Let's assume you go FHA. On the 100K house, you'll need 3500 down. That's the easy part. Now comes closing costs. Closing costs can run 3 to 5% of the amount of the house. My house it's running about 4% so I'll use that. You can get the seller to pay closing costs if you negotiate, or you can pay them out of pocket. If you go the out of pocket route, that's another 4K. Your 10K is now down to 2500. You still need to move, buy a refrigerator, and pay for all those other moving related expenses. Those can add up quick. In summary, it's doable, you could buy right now, but it might not be the best idea for you in your situation.
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# ¿ Dec 31, 2009 18:40 |
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El Mariachi posted:Short Sales. Short sales usually take a while, the banks take forever to get poo poo done and approve them. You can score a good deal though, my buddy just bought a beautiful house in Phoenix for about 190K. It sold brand new in late 2006 for 420K. It took them over 60 days from offer to close, closer to 90 I believe.
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# ¿ Jan 14, 2010 17:51 |
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IndyPunkOne posted:Looks like long waits for those of us who closed after Nov 6. This definitely sucks, but I don't need the money that bad. It's just going right back into the saving account to replenish funds I used for the down payment. The amount of scammers out there hosed it up for everyone.
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# ¿ Jan 16, 2010 21:48 |
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I close on Thursday and haven't even thought about packing. Good thing I have my apartment for 10 days after I close.
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# ¿ Jan 25, 2010 19:56 |
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rangergirl posted:My husband and I are looking at buying a house sometime soon hopefully. We both have great credit (mine is over 760, his is around 800) and we have stable full time jobs. We should be able to get a loan for well over the price of the homes we are considering. The problem is we don't have much of a downpayment, we can use a "gift" from his parents but after reading the rest of this thread I'm not sure if we'll be able to do that. We are considering trying to get a USDA loan since we live in a rural area, does anyone have experience with them??? USDA loans are great, as are normal FHA loans. FHA can get you in for 3.5% of the home and the seller concessions should cover all the closing costs. My wife and I close on a home tommorow and we went FHA and got in for exactly 3.5% which was awesome. The only thing about USDA loans are the income restrictions. You wont' qualify if you make over X amount of dollars. My brother bought his house with a USDA Rural Development loan, and it was pretty easy to deal with. There are also programs out there that will give you a short term loan based on the first time homebuyer tax credit that you can monetize into a down payment. Programs vary by region, so I suggest finding a really good real estate agent familiar with the programs. In a pinch you could also take out 401K loans to cover a minimal downpayment if either of you have any money in there.
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# ¿ Jan 27, 2010 17:25 |
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I closed today. I can't really believe it, I never really thought I'd actually ever have a house.
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# ¿ Jan 29, 2010 02:49 |
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Caustic posted:What are the best resources for downpayment assistance? My wife and I had saved nearly $10,000 only to have that savings reduced to less than $1,000 due to medical bills and terrible insurance last year. We are tired of renting and want to buy here in the East Bay, CA. I think Livermore may be our best option at this point and am looking for homes in the $300,000 range. I know you don't want to hear it, but really you're in no position to buy a house, especially in CA. If either of you are teachers or other lower income state employees there are a few programs out there, but it sounds like you aren't. Your best bet is to contact a realtor or mortgage broker that specializes in first time buyers to see if there are any programs out there for you. You can also check http://www.calhfa.ca.gov/ for programs, but I'm pretty sure you make way too much money. Honestly you guys make 120K a year, it shouldn't be hard to save up 3.5% for a FHA loan
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# ¿ Feb 8, 2010 19:52 |
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I personally shy away from Condos. Renting one is fine, but I wouldn't buy one.
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# ¿ Feb 25, 2010 21:31 |
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Verloc posted:Reality check plz: Don't do it. I wouldn't buy property with someone else unless I was married to them. If you guys break up, who gets the house? If you're dead set on the house, whoever makes the most money should be able to buy it themselves.
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# ¿ Mar 6, 2010 19:01 |
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If anyone's wondering about their first time homebuyers credit, I mailed my taxes off Jan 30th right after I closed and it's scheduled for direct deposit on March 12th. Much faster than I anticipated.
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# ¿ Mar 10, 2010 21:04 |
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BeastOfExmoor posted:Did you just do it with your normal tax filings for 2009? I've heard that's a lot faster, but for us it was going to involve doing all our taxes longhand so we filed our 2009 and then after we closed last month we amended them. I'll post back when we get our $8k, but I'm not holding my breath. Correct. I figured that by filing all at once with our normal 2009 taxes it would get looked at faster than going with an amended return. We were only getting 132 dollars back this year anyway so I waited until I got our HUD1 and sent them off then. My personal theory is the amended tax dept is probably smaller and more overloaded courtesy of the tax credit so it'll take a lot longer to process.
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# ¿ Mar 11, 2010 19:41 |
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The best advice I can give anyone looking to buy a home, remember it's a BUSINESS TRANSACTION. People get way too emotionally involved in these things. The house isn't a smart business decision, you should walk from it. Ophelia's Ashes posted:It's been hard because my husband is extremely head strong and it's a power struggle for him. We live in Edmonton Alberta where the average single home is $369,500 and my husband feels for all of that we should be able to get everything we want. I tend to agree, but I'm more realistic. Comps in that area are selling for $390,000 - $400,000. When looking, remember the big picture. Say he hates some little stuff, like light fixtures, carpet, or a color of a room. All thats easily changed in a few hours or a weekend. Major stuff like room layout, kitchen cabinets, etc is the big stuff. You're not going to find 'your house' as everyone has different tastes, but look at the house as a canvas. Can you make it 'your house'? For example, I hated the lights in my house, but for less than 400 bucks and 6 hours of my time I've replaced them all with light fixtures that I love.
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# ¿ Apr 5, 2010 17:25 |
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There's a ton of unforeseen costs in moving to a house. Be prepared for the additional costs over renting. Extra maintenance, increased utility bills, etc. As for the wait or not question, depends on the market, how long your going to be there, etc. What area are you looking at? I bought about 3 months ago. I have a stable job in a city that wasn't really affected by the bubble (San Antonio) and conservatively estimate I'll be here another 5 years or so. Buying was worth it for me. On the flip side, in a major declining market like yours, you can rent a house cheaply, have all the benefits of home ownership, but none of the commitment!
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# ¿ Apr 19, 2010 17:11 |
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Borrowing money from a friend, and not listing it as a debt/liability is mortgage fraud. That's bad, you don't want to do that. The amount of revolving debt won't matter as long as your debt to income ratio isn't out of whack. Your monthly payments on all debts need to be in the sub 40% range compared to your gross monthly income. You're big down payment, good credit scores, long history of mortgage payments, etc are all positive factors in trying to get a mortgage but since you're self employed the lender is going to want at least 2 years of tax returns proving your income.
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# ¿ Apr 27, 2010 03:58 |
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Well before you go trying to outfox the system, run your ratios. Without getting creative, are the minimum payments on the revolving debt pushing you past 40% with your projected mortgage payment?
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# ¿ Apr 27, 2010 04:30 |
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Can you take a picture of the rack in the garage? I'm probably doing something similar pretty soon, wouldn't mind seeing what you installed and how.
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# ¿ May 12, 2010 17:22 |
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FHA drastically changed their condo rules last year. http://www.bankrate.com/finance/mortgages/new-fha-condo-rules-may-hinder-mortgages.aspx It's drat near impossible to get FHA financing on a condo these days. In fact the condo market is so hosed up some places (Florida) it's almost impossible to get any kind of condo financing.
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# ¿ May 12, 2010 19:21 |
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Wagonburner posted:What does this mean? that they'd pay an age-pro-rated value for the roof if it's ever destroyed? Correct. Most roofs these days are good for 30/35/40 years depending on the type of shingles used. What travelers is saying is that if you have a big wind storm or hail event they're not paying 100% to replace your 15 year old roof. They'll probably pay half of it. As for how they tell, who knows, it'll probably be a fight like everything else with an insurance company.
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# ¿ May 18, 2010 22:41 |
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I would check with your insurance agent, but I'm pretty sure that a standard homeowners policy isn't going to cover tenant damage. Pretty Good Time posted:it was a foreclosure, 6 bed 4.5 bath(an amazing deal, built in 2006). I hope you got a really really thorough inspection done, the McMansions thrown up during the boom are some of the shittiest construction out there.
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# ¿ May 22, 2010 04:48 |
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It's unlikely you'll find anyone to give you a HELOC that big on a condo. Especially with the low OO rate
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# ¿ May 30, 2010 04:28 |
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I Wish I Was posted:Anybody know in general how tight banks are being with listing prices vs. what they'll accept for a foreclosure? This is in Austin, Texas, and the house is owned by HOMECOMINGS FINANCIAL REAL ESTATE HOLDINGS LLC % LITTON LOAN SERVICING in Houston according to the tax records. I would talk to an agent that's handled these transactions before. I think your expectations are off base. If that house is a desirable area you can plan on it being sold way above asking price. Investors who have cash are watching the market carefully and will scoop that property up fast.
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# ¿ Jun 25, 2010 04:11 |
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Strict 9 posted:And destroy your credit? I guess for some people that might be an option, but I would never consider that to be viable. So for example, say you bought in Nevada or Arizona at the boom, and are currently 150K upside down on your house. You owe 300K on a house that might sell for 150K tomorrow. (If you're lucky) You would continue to keep paying your mortgage to avoid a temporary credit hit, even thought the smart financial decision is to walk away from the house? You're kidding right?
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# ¿ Jun 30, 2010 20:07 |
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sanchez posted:Would it be also possible, if your credit was good enough, to buy another house (for 150k) before walking away from the other one as well? Seems like a good move to me. Some people are doing this. senor punk posted:I also think the point being made about not considering walking away a viable option is simply that it should really be the last resort option, not a matter-of-fact way of dealing with a poorly thought out decision. Why should it be a last resort?
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# ¿ Jun 30, 2010 20:32 |
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# ¿ May 15, 2024 21:56 |
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Bastard Tetris posted:How the hell did you make that work? Every time I offer under asking the seller says no and the place forecloses within 90 days. You'd think if they were in such dire straits they'd be willing to cut a few percent off the price. He hasn't made it work yet, that was just his offer going in. A ton of owners these days owe what the home is worth or more, so going too low isn't possible if they can't come up with cash at the end of the deal. Say the guy selling the house quoted owes 290 on the mortgage, there's no way he will sell for 290 and 12K concessions + 6% Realtor fees. He would need to come up with almost 30K in cash to get out of the house. People that don't have 30K in cash just let it go to the bank eventually. The loving real estate agents cut on this deal is 18K. That's insane.
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# ¿ Sep 29, 2010 17:37 |