patrick.net

I think there's another type of short sale candidate where the person thinks they can short sale to get out of their underwater home and go buy the cheaper bigger house across the street.

If I were looking to buy I would stay clear of short sales. Even foreclosures are questionable because you know that behind each foreclosure is a disgruntled former owner. There's no telling what may happen.

E-man says

I’m not surprised at the situation. I can’t speak for your acquaintance, but I do believe in karma.

Karma - as in the buyer deserves it? Or karma as in, the occupant will eventually get his own? Sounds like this guy bought a house he currently can't live in. He's not the bad guy in this story, but is getting screwed anyway.

Why fool around with all of the hassles and pitfalls of a short sale or REO when there are so many other great deals to be had without the headaches? Just the waiting and waiting on banks to make a decision is enough for me to stay away from them. Buyer beware

This depression is much better with bankers bonuses, home buyer credits, and bridges to no where.

I made one attempt at buying a foreclosed home. That was very frustrating.

After reading some of the short sale stories in this forum, that sounds far worse.

there is no recourse with the bank
The bank didn't sell him the home; the owner did (with bank approval). I assume the former owner did a short sale (as opposed to a foreclosure) because he had something to lose. I'm sure a decent lawyer should be able to come up with several reasons to sue the pants off the former owner (assuming he still has pants, of course!) What am I missing?

My gosh are u guys a bunch of miserable frackers .

Can't wait until u guys fall into the ocean :)

Looking all these charts, graphs and indicators there is no way in hell you can predict the market. It's all hogwash. The Bankers and media are praying the market will correct soon. Correct to where? up^? Ridiculous...Buying a house in today's fiasco is almost impossible because the homes on the MLS are complete wrecks while good value homes are scooped up in a week not even hitting the MLS radar. Good luck trying to buy an REO or forecloser property with multiple bidding unless you have all cash.

Websites like:
foreclosureradar.com
realtytrac.com
foreclosure.com

and all the others who want your money only to sell you lists of properties. You will have no chance of buying these homes(wrecks) and are a real waste of time.

ditto here. Avalon Bay is sitting on 4B in debt, but they are also generating 400M in operating cash flow. Debt in itself is not the concern, it's how you use and manage it.

If Avalon Bay can make it work with all that overhead, it certainly can work individually.

For me it's a mixed bag--some things I'm happy about, some things not so much.

For me it's a very mixed bag. I knew he wasn't a Liberal before he got elected. I just thought he'd be leaning left from the middle. Lately it seems that he leans to the right of center and has sided with corporate interests at our expense. Also, he's dragging his feet on "Don't Ask Don't Tell" and he shouldn't count on enthusiastic GLBTQI support for other reasons around Gay Rights, like his stance on Gay Marriage that we didn't like even before he was elected.

I'm disappointed that he took single payer healthcare off the table even before negotiations started, thus giving away negotiating room with the Corporate Hacks Who Run Congress. I'm happy that he was able to get something through our very disfunctional Congress though.

Financial reform hasn't been going well and I don't expect miracles. The credit card reform was full of giant holes for the banks to walk directly through.

The thing is that the POTUS can only do so much to influence Congress. He is the Supreme Executor and is in charge of only 1/3 of the government. Congress writes and passes the laws and has 1/3 of the power. Congress and the POTUS have equal power and since Congress is bought and paid for by Big Corporate Special Interests, there's only so much Obama can influence.

I'm not terribly thrilled with his selection of Justices for the Supreme Court that heads up the last 1/3 of our government. However, he does have to get his appointees through the Giant Corporate Special Interest Group Purchased Congress.

And, we've had 30 years of Conservative/Republican dismantling of the middle class and our economy. They've cut taxes for the very rich while spending giant sums of money on weapons and war leaving record deficits when they were running things. Under the the former regime we had 8 years of the largest expansion in goverment ever seen as evidenced by the creation of the largest Governmental Department Ever -- The Department of Homeland Security. We saw an unprecedented dismantling of our basic rights that were enshrined in the Bill of Rights and our Constitution. This is now a police state.

Obama inherited a giant mess from his predecessor (the appointed p-resident who won his second election only through voter fraud in Ohio) and only 1 term won't turn that around.

So, I think Obama has made sour lemonade out of the rotting lemons he was given by the former regime.

I spotted him coming in that he would be a "conservative" Democrat, meaning cautious, in the Clinton mold of triangulating towards the middle on things.

Contrary to the Right's propaganda about him, he's not the second coming of Marx or Che. He's basically Clinton, or a little more to the right of him perhaps.

He knows that it's the mushy middle in this country that determines elections and reelections, the people so clueless that they actually still consider voting for Republicans these days.

This means he's got to dumb down his policy to not surprise or shock them.

Continue Bush's policy of saving the banks. Double down in Afghanistan in a repeat of Bush's surge in Iraq. Not outrun middle America on equal rights for gay couples. Pro-Israel at all costs.

Not terribly impressed with his two SCOTUS picks but as long as they are pro-choice and anti-Fundamentalist (ie pro-Brain) that's the main thing.

The Bush team handed over an economy in total free fall and what we have now is about what could be expected. Same thing with Afghanistan.

We'll see how the Az thing goes. As a left-libertarian my sympathies are with the state not Feds. I did like that Arizona is using English ABILITY as a key indicator of possible immigration problems. NOTHING wrong with that from the libertarian perspective. If the Az law breaks down such that if you can't speak English like a native, you have to carry your papers, I think it's great. I had to carry around my gaijin card in Japan for years and it was no big deal.

But if actual citizens are getting harrassed, then the Feds have an interest, but I think the Feds are moving in too soon here.

Scaling back the war on pot was a good move I think. Bush's Federales coming in an busting growers in Santa Cruz was total BS.

What ^ simchaland said, too.

Like Clinton, Obama would make a good Republican. My preferred Democrat is more of the Howard Dean mold, somebody willing to get in the Right's face on things and tell them to blow it out their ass.

I thought the Devil made him "Do it".

And soon the cat will make a big thud sound... And it did, but it bounced... That cat looked alive for a brief few moments when rising in the air... Alas the velocity decreased and then the cat looked as if it were suspended in mid air... It became immediately apparent to everyone just then that this cat was definitely dead... There was only one direction that dead feline was going and the floor had disappeared...

Wow, that's over 16% gross. Any trouble collecting the rent?

CA Civil Code 1950.5(C):

"A landlord may not demand or receive security, however denominated, in an amount or value in excess of an amount equal to two months' rent, in the case of unfurnished residential property, and an amount equal to three months' rent, in the case of furnished residential property, in addition to any rent for the first month paid on or before initial occupancy."

While security deposit is somewhat reference/tied to rent, it is better to just give an absolute dollar amount (within code) so there is no expectation that the security deposit will be used in lieu of last month rent.

rental, that is a great deal, congrats.

rentalinvestor - do you rent it out personally or do you use a property manager? The reason I ask is that Antioch is far from us, Cupertino. There aren't good investments around here, so if we picked up something in your area we'd probably need a property manager.

Not for me, but 300K is quite possible with couple of credit card limit over 100K. My father in law got credit cards like that.

Back in 2003, this 23 year kids posed himself as a 44yr old senior engineer, opened 20 new credit cards, max them out, took cash out of them, bought a house, then ask her mom file bankruptcy. The same crook she is, she borrowed money from everyone she knew including her 3 boyfriends, hide her cash somewhere eles, changed her home title under her daughter's name who live outside the state, then filed bankruptcy. As one of the creditors I was, I got dumbfaced and it made me even more stunned when I found that during the discovery. I made the judge revoke the bankruptcy decision at the end. But they took away, nowhere to be found.

So, yeah, the world needs ditch diggers too.

TT says

It’s the fault of whoever loaned the money in the first place. Due diligence, suckers.

That's a load of crap. There's such thing as personal responsibility.

Ya, loansafe can be fun to read. Have you ever read anything about their God, Mo Bedard? http://www.mfi-modsquad.com/would-you-hire-this-guy-to-do-your-loan-mod

And wasn't there some guy (probably many) who advised in seminars to us cc debt to put $ down on homes and either flip or refi? $300k is amazing.

during the crash interest rates fell and so did prices
so I dont like to rule out the possibility that rates could rise along with prices.

Actually I expect that to happen at some point. Employment a demand will be much higher
and those have a stronger correlation with prices than the actual interest rate.

So if rates are at 6% in a strong economy
which is historically still pretty low I would expect prices to be higher too.

TT says

It’s the fault of whoever loaned the money in the first place. Due diligence, suckers.

Blame goes to all parties. Don't let deadbeats off the hook that easily.

I can't only thing Obama has done right....he's revitalized the Republican party and made it the biggest political party again.

We are essentially experiencing Jimmy Carter's second term, in more ways than one.

What an incredibly dumb question to ask, RayAmerica, but here is the answer:

Let's see, 18 months into the Bush presidency, he had presided over one extremely deadly terror attack and started an illegal war against Iraq and a misguided war against Afghanistan.

Yeah, is there any doubt I still prefer Obama to the alternatives? No, there is not. The only choice I prefer more than Obama being president now is Obama being president in 2001-2008.

I prefer more than Obama being president now is Obama being president in 2001-2008.

Chances are we'd have made some of the same mistakes. Maybe not Iraq (much of the Army wasn't really enthusiastic about this idea), but Afghanistan most likely. Plus the same Congress would have done the same spending and deregulation and I think Obama would have gone along with it, just like Clinton did in the 90s.

The main difference would just be the 4,000 KIA in Iraq not being dead now and the hundreds of billions blown on that neocon misadventure. Plus also somebody other than Roberts and Alito, probably better.

justme says

Let’s see, 18 months into the Bush presidency, he had presided over one extremely deadly terror attack

Using your logic, I suppose you also blame Clinton for the WTC bombing and FDR for Pearl Harbor.

justme says

started an illegal war against Iraq and a misguided war against Afghanistan.

I agree. But I have to ask the question: what exactly has Obama done regarding the “illegal” war in Iraq? He campaigned on bringing the troops home in his first 16 months (he also at various times said “immediately,” “within the first 6 months,” “within the first year,” etc.).

As far as Afghanistan, Obama's policy has been to EXPAND the war dramatically. Bush was "misguided" and Obama enhances this misguided mistake. Yep, Obama is way better and different from the inept Bush.

Another point to consider: Obama kept Robert Gates as Sec. of Defense ... the same Sec. of Def. that Bush had (i.e. in order to keep and expand Bush’s policies). I've said it all along; Bush was a horrible president, and Obama is Bush on steroids. And all this time you fell for all that “CHANGE” nonsense.

You're good friend is very optimistic. It does make sense in some ways but I will guarantee that the economy is going to tank BIG TIME very soon. His theory would be possible if the economy was booming again. That is not going to happen within 5-7 years.

Robert, that is exactly why interest rate is not going up as well.

I'm sure it will once the massive inflation kicks in from all the money printing.

RobertShiller says

I’m sure it will once the massive inflation kicks in from all the money printing.

It's one or the other Robert. If inflation kicks in because of money printing, then there will be wage inflation.

Well, if interest rates go up and wages don't, there will be blood in the streets, running from the carnage at every retail banking location. This is not going to happen. The Fed will print money for the Treasury to lend to homedebtors before this happens.

And it's safe to say that ANY wage inflation will be met with rising interest rates. This accompanied the 1970s price-wages spiral.

Call me Mr Pessimistic, but I just don't see middle-class buying power coming back this decade. Too many headwinds, and no real tailwinds that i can identify.

Gov't, medical services, and finance have been pulling a lot of weight as far as jobs go since these haven't been outsourced or offshored that much (tough sending lab work to India or the Philippines I guess).

California has a $20B budget shortfall to close, and the rich of the state can sit behind their 'no mas' front and have the bulk of the balancing come out of the middle class who either use the subsidized services or cash the state paychecks.

Interest rates I think can go down more, to 3%, should buying power continue to evaporate like I think it is. This will just stabilize prices for the most part tho. Japan has 3% rates (35-year fixed) last I checked!

It is also possible for buying power to go down without interest rates going down more. This will put downward pressure on prices.

If inflation kicks in because of money printing, then there will be wage inflation.

Not necessarily. SOME sectors have pricing power -- energy, government, medicine, insurance -- some don't. Overall the system has J6P over a barrel and his pants pulled down.

10% unemployment does wonders to keep wage inflation away.

tatupu70 says

RobertShiller says

I’m sure it will once the massive inflation kicks in from all the money printing.

It’s one or the other Robert. If inflation kicks in because of money printing, then there will be wage inflation.

If Paul Krugman is correct and we are heading into a third depression then the "wage increase" won't be as effective when unemployment is 20%+

Let's see:

Obama's 1st 18-months:
Health Care Legislation
Wall Street Regulation Legislation (Financial Reform)
Credit Card Protection Legislation
Economic stimulus
Tobacco regulation
Student loan reform
Responds To Gulf Disaster In Timely Manner

And coming soon: A Real Energy Policy

G.W. "The Shrub" Bush's 1st 18 Months (First term)
Fail to recognize warnings of an extremely deadly terror attack
Preside over the extremely deadly terror attack
Start an illegal war against Iraq
Start a misguided war against Afghanistan
Reverse budget surplus and start running deficits

And coming next term: Katrina - The Complete and Total Failure To Respond
And for the finale: Economic Disaster of Epic Proportions

Simcha, much more diplomatic than me, aren't you. I just dont have much patience with Ray-Ray.

Definately not living up to the "change we can believe in" slogan. Steady but unimpressive. Certainly has not embarrassed black people. If that is not PC then I appologize in advance and take it back, but thats my opinion lol.

Unfortunately, the political machine that is our government makes it hard for anyone to change anything. But I admire his efforts and only wish that he'd ushered in socialized medicine rather than the shitstorm we got.

I like him.

Troy says

I spotted him coming in that he would be a “conservative” Democrat, meaning cautious, in the Clinton mold of triangulating towards the middle on things.

Contrary to the Right’s propaganda about him, he’s not the second coming of Marx or Che. He’s basically Clinton, or a little more to the right of him perhaps.

Except Clinton is an experienced Statesman, and he's nothing like Clinton. Clinton did more than razzle dazzle lip service.

Obama! is the most defeatist man I've seen in a public office of any degree.
He's great at telling us what we want to hear, but sucks at telling us what we need to hear.

On is terms leading a Pep rally blaming past administrations for his short comings and he's on fire like a daytime talk show host.

Comes time in a National crisis like the wet land gate way for 40% of Americas waterway system, is under threat from the crud being the crude in the Gulf. Millions of barrels a day being pumped into the Gulf, and he
has little to say. Much talk little action the one time in his administration where he could have acted on something; rather than promising to delegate, in some transparent transaction nobody knows about. He grew gray hairs the last two or three months.

Clinton loved low hanging fruit, Obama can't be bothered, he takes action through monologue.

Tenouncetrout says

Comes time in a National crisis like the wet land gate way for 40% of Americas waterway system, is under threat from the crud being the crude in the Gulf.

What are you talking about?

elliemae says

Tenouncetrout says

Comes time in a National crisis like the wet land gate way for 40% of Americas waterway system, is under threat from the crud being the crude in the Gulf.

What are you talking about?

Tenouncetrout says

Millions of barrels a day being pumped into the Gulf, and he
has little to say. Much talk little action the one time in his administration where he could have acted on something;