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Refis on underwater jumbo loans nearly impossible (San Francisco Chronicle)

By Biff Baxter   Follow   Sat, 23 Jun 2012, 12:11pm   840 views   10 comments
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http://www.sfgate.com/business/article/Refis-on-underwater-jumbo-loans-nearly-impossible-3657762.php

This should have an impact on the Fortress.

Biff

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1. bubblesitter Follow Befriend (5) 10 threads 2,329 comments

   1   4:58pm Sat 23 Jun 2012   Share   Quote   Permalink   Like   Dislike   Refi of any declining value RE does not makes sense,not just jumbo loans - it only makes sense to walk out,holding out for the return of golden year values would not be wise.

2. agst Follow Befriend 12 threads 27 comments

   2   5:03pm Sat 23 Jun 2012   Share   Quote   Permalink   Like   Dislike   Is anyone in the fortress areas underwater? PS: I'm a renter, don't flame me. I'm amazed at how prices keep going up in the fortress. They're in their own little world. This is a serious question.

3. bubblesitter Follow Befriend (5) 10 threads 2,329 comments

   3   5:45pm Sat 23 Jun 2012   Share   Quote   Permalink   Like   Dislike   agst says I'm amazed at how prices keep going up No they are not going up.

4. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 182 threads 4,604 comments Premium

   4   6:07pm Sat 23 Jun 2012   Share   Quote   Permalink   Like   Dislike   Protected   Burn them! Burn the fucking McMansions! Nail the fucking Realtor®s inside the fucking things and light them the fuck up!

5. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 182 threads 4,604 comments Premium

   5   7:00pm Sat 23 Jun 2012   Share   Quote   Permalink   Like   Dislike   Protected   That's right. Anyone who isn't arguing that FHA limits on 3/2s in Stockton should be north of a million bucks is a fucking 'perma-bear' psycho, though realistically it should be closer to $10 million!

6. E-man Follow Befriend (31) 34 threads 2,612 comments San Jose, CA Premium

   6   7:13pm Sat 23 Jun 2012   Share   Quote   Permalink   Like   Dislike   Protected   ptiemann says agst says They're in their own little world. that's probably true.. the RE market in Los Altos, Palo Alto, Mountain View, Menlo Park etc seems to make its own economic weather. 'their own little world' - that's also what some perma-bears here live in. Now come and 'dislike' this so that it gets hidden in a few hours. That's what the perma-bears do.. they cannot tolerate dissenting opinions. Aw, why are you calling their bluff? Yep, expect the post to disappear. :0)

7. E-man Follow Befriend (31) 34 threads 2,612 comments San Jose, CA Premium

   7   7:24pm Sat 23 Jun 2012   Share   Quote   Permalink   Like   Dislike   Protected   agst says Is anyone in the fortress areas underwater? PS: I'm a renter, don't flame me. I'm amazed at how prices keep going up in the fortress. They're in their own little world. This is a serious question. No doubt, but the number is negligible. Take Alamo for example, there is like 1 property per month that receives a Notice of Default. Palo Alto has a couple NODs per month but most of them still have equity in their homes. They could definitely sell them and still walk away with money in their pocket. I see properties that still have plenty of equity got foreclosed and auctioned off at the courthouse steps all the time whether they are in the fortress or not. However, the ratio is overwhelming for properties in the fortress/non-fortress. I guess it is because their properties held up in value much better. I'm helping a guy to buy an $800k SFH in Mountain View at the courthouse steps for all cash. It's been almost six months and we haven't found anything yet. :( There is essentially nothing came up for auction. How can you buy when nothing is for sell? How can price fall when they don't sell if they don't get the price they want? Either you pay their wishing price or they're not selling. Frustrating isn't it? But it is what it is. :)

8. agst Follow Befriend 12 threads 27 comments

   8   9:52pm Sat 23 Jun 2012   Share   Quote   Permalink   Like   Dislike   ptiemann says 'their own little world' - that's also what some perma-bears here live in. Actually, I'm somewhat of an anti-debt / perma bear too. But the government and every one else has the back of borrowers (atleast those that are strong enough under some stress). A prolonged tech recession would seriously sting the fortress areas around the SF bay for sure, but that is not looking likely. However, 30 years is too long to gamble - that's what most people seem to be unconcerned about when they grab those loans. The government came by this time and someone will come by the next time too, but there will be collateral damage and you've got to make sure it's not you.

9. bmwman91 Follow Befriend (8) 38 threads 1,606 comments Mountain View, CA bmwman91's website Premium

   9   5:28am Sun 24 Jun 2012   Share   Quote   Permalink   Like   Dislike   Protected   Looking at the numbers in the article's examples, it doesn't look like these people were putting 20% down. I hardly call that "buying what you can afford." It sucks for them that they are stuck with higher rates (which are still pretty low, historically), but it is what it is. When you take a jumbo loan, it should register that you are borrowing a lot of money and that it doesn't conform to the same rules as smaller ones...hence "non-conforming."

10. Blurtman Follow Befriend 9 threads 186 comments

    10   9:00am Sun 24 Jun 2012   Share   Quote   Permalink   Like   Dislike   Why not allow folks who are underwater, or everyone for that matter, access to money at zero percent interest? Here we have folks paying 6.75% to a bank that is borrowing from us at near zero percent. So who is continually bailing out the banks, and paying their bonuses? Folks like the couple described in this story, and also the rest of us. What clearer example does anyone need to see who is running this country?