Not my neighborhood

[rabot10]

http://www.reuters.com/article/inDep...rpc=22&sp=true

View from the street - in fact my street. I live in a custom 48 home development in Florida, one house has been foreclosed on, two have been rented out after being on the market for over a year. The rents are for 2200 - makes me think about giving my house back to the bank and then renting it from them - would save me 3000 a month after taking the tax deduction into account.

[jk]

Re: Not my neighborhood

http://www.reuters.com/article/inDep...rpc=22&sp=true

View from the street - in fact my street. I live in a custom 48 home development in Florida, one house has been foreclosed on, two have been rented out after being on the market for over a year. The rents are for 2200 - makes me think about giving my house back to the bank and then renting it from them - would save me 3000 a month after taking the tax deduction into account.

if you're willing to see your credit rating trashed you might actually be able to negotiate something with the entity that holds your mortgage, assuming that entity can be identified.

[rabot10]

Re: Not my neighborhood

if you're willing to see your credit rating trashed you might actually be able to negotiate something with the entity that holds your mortgage, assuming that entity can be identified.

jk for now i would't take that option - but in the future I'm not really sure how valuable credit ratings will be. Any thoughts on that?

[jk]

Re: Not my neighborhood

jk for now i would't take that option - but in the future I'm not really sure how valuable credit ratings will be. Any thoughts on that?

we've all learned the value of the ratings given by the credit rating agencies, and the article/link you posted in this thread is saying that "prime," i.e. good credit ratings, is turning out to be just as useless a predictor of solvency as the AAA's given to cdos by moody's et al. i think we're going toward a situation where what matters is cash on the barrel head, not promises, because "credit" will be a dirty word.

[rabot10]

Re: Not my neighborhood

we've all learned the value of the ratings given by the credit rating agencies, and the article/link you posted in this thread is saying that "prime," i.e. good credit ratings, is turning out to be just as useless a predictor of solvency as the AAA's given to cdos by moody's et al. i think we're going toward a situation where what matters is cash on the barrel head, not promises, because "credit" will be a dirty word.

I think your right

[Jim Nickerson]

Re: Not my neighborhood

we've all learned the value of the ratings given by the credit rating agencies, and the article/link you posted in this thread is saying that "prime," i.e. good credit ratings, is turning out to be just as useless a predictor of solvency as the AAA's given to cdos by moody's et al. i think we're going toward a situation where what matters is cash on the barrel head, not promises, because "credit" will be a dirty word.

jk, it seems this country runs on credit, and were it to become a place of cash on the barrel head, surely we would be in a depression.

There is no let up in TV adds, that I can discern, offering credit on everything, nor a let up in the number of credit card offers, home loan offers I get in the mail weekly.

[c1ue]

Re: Not my neighborhood

Gentlemen,

Good comments.

My 2 cents: one result of high inflation is general levels of lending drop off. This is either because interest rates become outrageous, or because the money being lent is being eroded - and that isn't good for most non-Fed related entities.

Thus credit ratings will become worthless - not necessarily because of lack of utility, but because of lack of money/willingness to lend combined with inability to repay.

You're all old enough to remember the 20% loans in the early '80s...

[Jim Nickerson]

Re: Not my neighborhood

Gentlemen,

Good comments.

My 2 cents: one result of high inflation is general levels of lending drop off. This is either because interest rates become outrageous, or because the money being lent is being eroded - and that isn't good for most non-Fed related entities.

Thus credit ratings will become worthless - not necessarily because of lack of utility, but because of lack of money/willingness to lend combined with inability to repay.

You're all old enough to remember the 20% loans in the early '80s...

Shit, right now it is way over 20% on goddammed credit cards.

[GRG55]

Re: Not my neighborhood

jk, it seems this country runs on credit, and were it to become a place of cash on the barrel head, surely we would be in a depression.

There is no let up in TV adds, that I can discern, offering credit on everything, nor a let up in the number of credit card offers, home loan offers I get in the mail weekly.

Hard to disagree with Jim's statement. I took jk's comment about "cash on the barrel head" as meaning the banks will go back to their old habit of lending only to those who don't really need the loan (because they have cash)...

[DemonD]

Re: Not my neighborhood

http://www.reuters.com/article/inDep...rpc=22&sp=true

View from the street - in fact my street. I live in a custom 48 home development in Florida, one house has been foreclosed on, two have been rented out after being on the market for over a year. The rents are for 2200 - makes me think about giving my house back to the bank and then renting it from them - would save me 3000 a month after taking the tax deduction into account.

Rick, am I reading this right? Your PITI is over 5k/month?!?

Hand back the keys man! yowza! short term hit to your credit score is nothing compared to the ability to save and not feed the freaking alligator.

[rabot10]

Re: Not my neighborhood

Rick, am I reading this right? Your PITI is over 5k/month?!?

Hand back the keys man! yowza! short term hit to your credit score is nothing compared to the ability to save and not feed the freaking alligator.

Hey I moved from So Calif in 2003 and with the profits i had made after owning my home for 20 years I paid off a big place in cheap Florida. Well by early 2006 my house had almost doubled in value. I started looking at who could afford to buy this thing and realized that the home values were Bull Shit. I have always believed that something is only as valuable as someone is willling to pay for it. Then i thought what if the shit hits the fan and i can't get anyone to buy it? So I took out the max fixed loan i could get, and bought Gold and Silver. now that is not all i am invested in, but that is where my house money is lol. So if the shit really hits the fan the bank can have my house and i will live with a less than 760 credit score.

Crazy but the PITI is over 7k -and i hate the freaking alligators, bugs, and snakes

[jk]

Re: Not my neighborhood

good move, rick! that gold and silver is worth a lot more now than when you borrowed to buy it. the question at hand is whether you want to think more seriously about walking away from the house, as opposed to just keeping that as a hypothetical option. this article from the ny times is relevent:
http://www.nytimes.com/2008/01/18/bu...71b&ei=5087%0A


it says that the housing market is frozen because the trade up market is dead - you can't sell your house because your potential buyer can't sell his house because his potential buyer can't get a mortgage, or because his mortgage is upside-down, etc.

so the simple question is one of value: do you love your house enough to want to stay there at the extra cost? or do you want to walk out on your mortgage, and perhaps sell your gold and silver to pay cash for the foreclosed one down the street [or maybe even buy your own house for cash after it's foreclosed!], and live debt free? [i am making a lot of assumptions about values and prices here, but the question is for illustrative purposes only.]

[rabot10]

Re: Not my neighborhood

good move, rick! that gold and silver is worth a lot more now than when you borrowed to buy it. the question at hand is whether you want to think more seriously about walking away from the house, as opposed to just keeping that as a hypothetical option. this article from the ny times is relevent:
http://www.nytimes.com/2008/01/18/bu...71b&ei=5087%0A


it says that the housing market is frozen because the trade up market is dead - you can't sell your house because your potential buyer can't sell his house because his potential buyer can't get a mortgage, or because his mortgage is upside-down, etc.

so the simple question is one of value: do you love your house enough to want to stay there at the extra cost? or do you want to walk out on your mortgage, and perhaps sell your gold and silver to pay cash for the foreclosed one down the street [or maybe even buy your own house for cash after it's foreclosed!], and live debt free? [i am making a lot of assumptions about values and prices here, but the question is for illustrative purposes only.]

Thanks jk. I think that i will have the house for quite some time, I have never defaulted on anything and hope that i don't start here. I have three young daughters and they love the place, that would keep me in it for years lol. My companys are doing well and i see a bright future for them, so money should not be a problem - I hope

[Guest]

Re: Not my neighborhood

That Rick Bishop is a crafty devil.

[rabot10]

Re: Not my neighborhood

That Rick Bishop is a crafty devil.

craft·y /ˈkræfti, ˈkrɑf-/ Pronunciation Key - Show Spelled Pronunciation[kraf-tee, krahf-] Pronunciation Key - Show IPA Pronunciation
–adjective, craft·i·er, craft·i·est.

1.	skillful in underhand or evil schemes; cunning; deceitful; sly.

2.	Obsolete. skillful; ingenious; dexterous.

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[Origin: bef. 900; ME; OE cræftig skilled. See craft, -y¹]

Luk was that the obsolete definition?