Tuesday, July 04, 2006

Happy 4th!


Happy July 4th! :-)

38 comments:

  1. so_cal_fence_sitterJuly 04, 2006 2:20 PM

    Can't wait until the next July 4th. That huge POP will already have heard though!

    Happy 4th

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  2. so_cal_housesitterJuly 04, 2006 2:23 PM

    Next 4th will be awesome. But,we will have already heard that cracker POP!

    Happy 4th

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  3. http://tinyurl.com/jt3tp

    Death of the Real Estate Agent (Movie)

    http://smhbn.blogspot.com/2006/07/death-of-real-estate-agent.html

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  4. Thanks, David -- Happy Independence Day to you, too, and to your American bloggers.

    Just watched the Shuttle go up, straight out in front of us -- it was awesome. Takes some big cojones to ride that rocket.

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  5. "these colors don't rent!"

    LOL

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  6. Patch Tuesday said"
    "http://tinyurl.com/jt3tp

    Death of the Real Estate Agent (Movie)"

    Patch, good song, but I'm really confused as to the message of the video. Do you know what a Realtor is? I suspect not ... from the way your video portrays Realtors and real estate agents at being at odds. A Realtor is nothing more than a real estate agent that has joined a professional association ... that professional association being the Realtors. Just about ALL real estate agents are Realtors .. .just like almost all public accountants are CPAs ...

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  7. "these colors don't rent"

    Most owners rent the money for the house from the lender. and at these purchase prices and lending terms lately, the owners will be renting money for a long time.

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  8. " rent the money for the house from the lender"

    wow! ... no wonder renters are so confused .... they haven't a clue about all the legal and practical differences between buying and renting ... including that one does not "rent" money but borrow it ... and I'm not going to waste my time explaining the vast differences between the two 'cause this renter at least, will never understand them!

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  9. Looks like home owners have no
    clue what a debt is.

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  10. The (A) difference is that the mortgage costs less in real dollars as time goes by and will eventually be paid off.

    Try telling your landlord that you have been renting for 30 yrs and shouldn't have to pay anymore.

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  11. va investor said:
    "Try telling your landlord that you have been renting for 30 yrs and shouldn't have to pay anymore."

    Bubbleheads can't think that far out. It scares the begeebers out of 'em. It involves commitment, something that terrifies 'em.

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  12. If recent borrowers were paying down their loans, that would be fine. Many probably are not. Try paying interest only for thirty years and then telling the lender you don't want to pay anymore. When the monthly adjustable resets higher, try telling the lender you don't want to pay the higher amount. Yes you could sell the house, provided there is a willing or better yet a capable buyer. If there is no buyer, well, we all know what happens.

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  13. "The (A) difference is that the mortgage costs less in real dollars as time goes by"

    The real cost of mortgages today will cause people to lose their homes as time goes by.

    "and will eventually be paid off."

    With the number of interst only loans used in the last couple of years, can't wait to see that trick.

    Try telling the lender after 30 years of interest only payments that you feel the loan should be paid in full now and won't be making anymore loan payments.

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  14. "Bubbleheads can't think that far out. It scares the begeebers out of 'em. It involves commitment, something that terrifies 'em."

    Would that be the same type of commitment a Captain makes on his sinking ship?

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  15. Anonymous said...
    "If recent borrowers were paying down their loans, that would be fine. Many probably are not. Try paying interest only for thirty years and then telling the lender you don't want to pay anymore. When the monthly adjustable resets higher, try telling the lender you don't want to pay the higher amount. Yes you could sell the house, provided there is a willing or better yet a capable buyer. If there is no buyer, well, we all know what happens."

    I hate to disappoint you but that's not how I/O are written. They are I/O for a set period of time like 5 or 10 years and then a scheduled amortization sets in ... like a 25 yr or 29 yr amtz.

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  16. "and will eventually be paid off."

    Be sure to tell these people that.. They need the boost.
    http://forsakencraft.com/proof.htm

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  17. * like a 25 yr or 20 yr amtz.

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  18. I'd be in terested to know exactly how many borrowers have I/O, neg am., or those terrible ARMS. And of this number, how many will be in jeopardy in the next 5 years.

    It seems to me that I read that 40% of homeowners own free and clear and of the remainder 60% have either 40 or 60% equity.

    You will never own a rental free and clear, and, yes, mortgage payments decline in real dollars over time.

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  19. va_investor said:

    "I'd be in terested to know exactly how many borrowers have I/O, neg am., or those terrible ARMS. And of this number, how many will be in jeopardy in the next 5 years."

    I don't know if I'm typical of someone who bought last year, but I've got between 44% and 48% equity in the house based on what neighbors' houses have been selling for this year.

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  20. Sounds like you are in "serious" financial jeopardy there Lance. Watch out! Those renters are ready to swoop!

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  21. va_investor said...
    "Sounds like you are in "serious" financial jeopardy there Lance. Watch out! Those renters are ready to swoop!"

    yeah, maybe I should jack up the basement tenant's rent as a precaution? ;)

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  22. time for david to declare his independence from mum and pop, his flatmates (though he enjoys the scent of their farts), and his own slothful, plump existence.

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  23. "I don't know if I'm typical of someone who bought last year, but I've got between 44% and 48% equity in the house based on what neighbors' houses have been selling for this year."

    I don't know either, but I wonder how much of that estimated equity is the result of a down payment and principle payments. I also wonder in which area is the home located.

    2. What months are being compared.
    In the last couple of months builders and economists are reporting that inventory is up and sales are slowing dramatically. However, last summer and even into the fall, sales were still pretty good.

    Those that buy just before the peak always see an increase for awhile.

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  24. Wise comments on the first part of the paragraph Lance, but it appears your opinion on the second part of the paragraph is missing???? You know the part about affording the higher cost of the adjustable loan and finding a buyer if needed. Just how does the monthly amount of the new scheduled amoritization payment compare to the monthly amount of the interst only payment??


    Lance says:

    "I hate to disappoint you but that's not how I/O are written. They are I/O for a set period of time like 5 or 10 years and then a scheduled amortization sets in ... like a 25 yr or 29 yr amtz."


    responding to:

    Anonymous said...
    "If recent borrowers were paying down their loans, that would be fine. Many probably are not. Try paying interest only for thirty years and then telling the lender you don't want to pay anymore. When the monthly adjustable resets higher, try telling the lender you don't want to pay the higher amount. Yes you could sell the house, provided there is a willing or better yet a capable buyer. If there is no buyer, well, we all know what happens."

    ReplyDelete
  25. Why do all the bubbleheads think everyone has an I/O, neg.am. loan AND is on the brink of financial ruin?

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  26. Lance,

    Why didn't you buy before last year? You'd have even more equity.

    My $0.02.

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  27. MyTwoCents said...
    "Lance,

    Why didn't you buy before last year? You'd have even more equity."

    Because, as you will eventually learn to regret, you can't turn back the clock. With 20-20 hindsight it is easy to say who should have done what when. Some of us aren't out there trying to "time the market". Believe it or not, there are people out there who really look at buying a house as buying a home ... and not as "making a financial investment".

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  28. va_investor said...
    “Why do all the bubbleheads think everyone has an I/O, neg.am. loan AND is on the brink of financial ruin?”

    Not every one. Just over half. I don’t know about financial ruin, foreclosures not all that bad is it? By the way, are foreclosures up this year?

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  29. robert,

    Half of all homeowners are in financial jeopardy? That is just laughable.

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  30. My point Lance, is that for whatever reason, you weren't in a position to buy before last year.

    Buying a residence to have as a home is very much a personal decision, dependent on circumstances, only some of which are financial.

    Your constant chastising attacks on renters being commitment phobes has become tiresome.

    My $0.02.

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  31. mytwocents,

    As someone pointed out earlier, the folks on here WANT to buy, or else they wouldn't be on here. It is only fear standing in their way. And the idea of a bubble bursting that is going to give them 50% saving "if they just wait for it" is just a crutch validating their holding off because of fear of commiting.

    WHEN I wanted to buy, I did. I was in a position to buy earlier but didn't for reasons totally unrelated to "being able to". But when I did want to buy, I went out there and found what I wanted at a price I could afford. (And at a serious discount over "market".) Did it mean being realistic and knowing I couldn't afford the single family house in the neighborhood the condo was in and I would have to leave that neighborhood behind? It sure did. But I didn't let all this talk of high prices scare me. I knew in the end that you have to look out for yourself and not count on "market conditions" to be your savior. I agree with the folks who resent the 20 somethings who happened to time it right. They were lucky is all. (Not that it is right to resent anyone their good fortune, just that they shouldn't be bragging about their business acumen since this was handed to them.) The only message I am trying to get across is that if your really want to buy a home (and I'm not talking about an investment property, but a home), you shouldn't let anything or anyone stand in your way ... especially fear of commitment to a large mortgage of whatever. Just do it wisely ... Like the poster on Church Street said, he's not looking to lose his shirt by not being able to afford the house if things go wrong, but that is not a likely scenario ... and you have to take chances in life ... just not stupid chances. And frankly, waiting for a 50% discount is waiting on a "stupid" chance because it is such a remote possibility. Making your own "deal" is the much more sure thing. Like I said before, the bubblicious fence would tell me that if I wanted a condo in that building, I bet I could find one of those flippers willing to sell me his for a lot less than he paid for it. And THAT is a lot more sure than waiting for that never-gonna-happen 50% across the board discount.

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  32. OK Lance, time to put your money where you mouth is.

    What did you pay for your house? In what neighborhood?

    You keep talking discount, and 'instant equity' (er, paper equity). You are bragging that you swooped in and bought a house 'not even on the market' for $200 less than appraisal (er, realtor assessment).

    SO, cought if up or we will know you are lying through your teeth.

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  33. Anonymous 10:51 AM Poster: Personal attacks are not tolerated. Your IP address has been recorded and if you keep posting such attacks, you will be prevented from posting any more on this website.

    You have been warned.

    ReplyDelete
  34. Lance,

    You "were able to buy" but didn't for "totally unrelated" reasons. What reasons?

    My $0.02.

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  35. MyTwoCents said...
    "Lance,

    You "were able to buy" but didn't for "totally unrelated" reasons. What reasons?"

    I was the longtime pres. of our condo association. Most people in condos don't enjoy worrying about building maintenance, renovation, etc. I did. I saw to it that we had our building lobby and common areas redone, etc. And it wasn't till I gave up that post in favor of new blood that I realized how much I missed the "home improvement" stuff ... Renovation of a house of my own was the logical next step.

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  36. That's a great sales pitch. How effective do you find it is in your real estate agent work these days?

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  37. Bill:

    What part of go away do you not understand?

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  38. All of it - especially the free speech/open society part of it. Rephrase in the form of a zen koan, and then I might get it.

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