patrick.net

gbenson says

Took a little more time clearing the title, and I am not privy to what lender is getting what out of the deal, but guessing the 2nd mortgage holder is getting close to diddly.

Jest be sure you don't have problem with the deed later down th e line. i have some hassle right now with that very sort of deal on one of my properties.

Robber Baron Elite Scum says

I also believe that the coming crash will be worse for those with no assets of real estate... Just fiat currency kept in banks.

Disagree. The dollar is king and will be. Listen to Jody.

JodyChunder says

Robber Baron Elite Scum says

I also believe that the coming crash will be worse for those with no assets of real estate... Just fiat currency kept in banks.

Disagree. The dollar is king and will be. Listen to Jody.

Deflation will be short-term. I do believe it will be king since all other fiats will collapse and the world will run to the dollar.

It is the world's reserve currency that will rise due to other currencies collapsing... Until the dollar then collapses.

Also while probably everyone agrees on the need to drastically reduce the military budget by ending useless wars, thinking that the continued spending spree by Dems will save the middle class is stupid - cuts are needed and yes, there will be stagnation, maybe even depression for a while, but in the end prosperity will set in faster as the bad debt is gradually cleared and deflation is correcting the prices. If you spend and inflate the rich will have it easy as they have most of their fortunes in assets that will inflate with them while the middle class is mainly depending on day job salaries as their main source of income, and we all know that those already haven't been able to follow the recent inflation. A loose spending policy under the false premise to help the middle class will make things far worse than spending cuts where prices will deflate back to fair value - money always finds a way to trickle up but it never comes back.

mell says

but in the end prosperity will set in faster as the bad debt is gradually cleared and deflation

No sir. This will not save the middle class. besides what we are in is a depression like new-normal. That's all.

I'll also admit that I somewhat respect Roberto for not falling for 2005-2007 prices.

Cashing out and selling then.

I also believe that even if the crash which I expect really happens... Then Roberto will better off than 99% of people since he at least sold during the peak and then bought as cheap as he could in today's prices with profits he made during the peak.

But I still strongly disagree with his investments and am bearish vs him being bullish... Albeit respectfully.

Robber Baron Elite Scum says

I'll also admit that I somewhat respect Roberto for not falling for 2005-2007 prices.

Roberto is mathematician so he calculates risk in a way that is very hi tek and not emotional

zhanka says

And few years from now some will say the bottom was 20___

We purchased our property in June 2009 thinking it was the bottom.

At that time it was apprised at $430,000

Tried to refinance two times in 2010 and 2011. In Nov. 2010 it was apprised at $395,00, and in Sep. 2011 at $354,000.

Z, you jumped in a little too early with the condo market. SFH homes bottomed out first in 2009. In early 2010, I talked to a veteran investor, and he advised me not to touch condos and townhomes until Feb 2011. This guy bought 50 SFHs for himself in the Silicon Valley in 2009.

We bought 2 condos and 2 townhomes between October 2011 and May 2011 this year. Got one more condo in pending status. Hope to get it wrapped up in the next couple of months. The complex has appreciated tremendously. Fingers crossed.

Robber Baron Elite Scum says

You are very short-sighted

Wow. How did you know? That's correct. I wear glasses. :0)

If TPTB navigate thru the headwinds "we" are facing here over the next few years, and people still have faith in the currency, it will be nothing short of a miracle imo.

When interest rates bottom out (stop going lower to accommodate flatlined prices ) that will be our 'take the training wheels off' the damn thing moment. The way I see it, they won't even have to start going up like many have claimed they eventually have to do, they'll just have to stop going lower, and then all bets are off. By the election, you'll have to figure every house debtor that will have made their final refinance by then, so there won't be much of a re-fi market moving forward. Then the fun starts

E-man says

zhanka says

And few years from now some will say the bottom was 20___

We purchased our property in June 2009 thinking it was the bottom.

At that time it was apprised at $430,000

Tried to refinance two times in 2010 and 2011. In Nov. 2010 it was apprised at $395,00, and in Sep. 2011 at $354,000.

Z, you jumped in a little too early with the condo market. SFH homes bottomed out first in 2009. In early 2010, I talked to a veteran investor, and he advised me not to touch condos and townhomes until Feb 2011. This guy bought 50 SFHs for himself in the Silicon Valley in 2009.

We bought 2 condos and 2 townhomes between October 2011 and May 2011 this year. Got one more condo in pending status. Hope to get it wrapped up in the next couple of months. The complex has appreciated tremendously. Fingers crossed.

Yes, I believe we did jump too soon, but on the other hand with 3.5% down, and almost 15,000 back at closing from a seller, we though it was a good deal because of Cupertino school district. So our plans were to sell it in 3 years or rent it out before buying a house. But it is hard to refinance it now (I don't see comparable sales that would support high price tag), and it will be even harder after we buy a house considering a fact it would be a rental property.

I spoke to a few different brockers at different times, almost all of them say not to put cash down to get it refinanced, kinda not worth it, and even some of them advised to buy a house and then dump this one.

My husband and I still believe it is better to hold on it since it almost cost us nothing and the rent ($2,800 if believe to patrick calculator) would cover mortgage, interest and HOA, and maybe someday taxes, so rent would pay it off someday and we will have additional income when we retire and pass it to our kids...

Anyway, I'm like many patrick readers believe we didn't rich the bottom yet, but it is a good time to refinance if you can. I hold my husband to not buy a house at least before election...

Z,

If your loan is FHA, you might qualify for streamline refinance. Underwater or not doesn't matter. Talk to a mortgage broker that understand HARP 2.0.

Good luck.