patrick.net

Why does everyone hate our Freedom(tm) to pass on bad investments and inflated paper money to suckers? Why must you lowball? WHY?

"A note to home buyers: If you only want to pay $200,000 for a home……don’t look at homes that are $90,000 more than you want to spend or can afford just because it’s a slow market, and you think you can get a seller down that much…..because….IT AIN’T GONNA HAPPEN!!!”

Or to really drive the point ...
Bring you BMW, find on of Becky's open houses...
And be sure to offer 100K less than asking.

Just to freaking insult her...

Continued from prior thread

Prices in his area are likely higher than when I first started posting here or are only down slightly from 05’s highs.

Ventura has taken quite a sch-lacking lately and it is within our budget now. I just don’t know, way back when, in the mid 90’s, just out of grad school 1, I was making decent coin but had no down, it just wouldn’t work. I do have doubts in that if you don’t have the down maybe you shouldn’t sign the forms and make the payments. Mrs-X and I have no deductions, I think our only option to avoid the Uncle Sam man love each year is to go into debt. Either than or do the “my business loses money” thing but the stress might not be worth it. I figure if prices drop to 400K or so, this brings it into reach for those making about 80K, which is two earning 40K, which you can do at Trader Joes. It’s the TJ metric. Just don’t know. With the tax thingy it costs us about 300 more a month to “buy” in Ventura Vs. rent in $anta Barbara. Just don’t know. DinOR, can I contact you offline?

SuCkIt

It'd be interesting to see the data on Ventura. Watching the carnage in some of the CA towns, I can almost believe that there are areas heading back towards historic norms, especially given all the spin the NAR would like to heap on the numbers.

SFBB, Ventura is dangerously close to historic norms. I just take the 10 year graph off of Zillow and fit it with a line and thats what it "should" be now. I then offered ~10% below that. If it goes through seller makes about 100K after holding for 8 years or so.

Fannie Mae and Freddie Mac to the rescue!

http://news.yahoo.com/s/ap/20070417/ap_on_bi_ge/risky_mortgages;_ylt=AmQ1WrwTaBuYfzryDac8PhIDW7oF

Fannie Mae, in a new program called "HomeStay," is offering new options so that lenders can help subprime borrowers refinance out of high-interest adjustable-rate mortgages or other difficult loans, said President and CEO Daniel Mudd. He said the company plans to stretch the term on subprime loans to 40 years from the current maximum 30 years — which will reduce monthly payments for borrowers by around 5 percent.

Will they offer 50 year loans for the special Bay Area?

Sheila Bair, chairman of the Federal Deposit Insurance Corp., exhorted mortgage lenders to show flexibility toward borrowers to help staunch a flood of defaults among homeowners with subprime loans.

Many of those borrowers "could avoid foreclosure if they were offered (loans) that allow for affordable mortgage payments," Bair testified. "Restructuring their loans into more affordable products, especially 30-year fixed-rate mortgages, would bring them back to good standing, allow them to repair their credit histories and dampen the impact that foreclosures may have on the broader housing market."

Huh? Didn't these people go away from 30 year loans because they weren't affordable?

"which will reduce monthly payments for borrowers by around 5 percent."

They need a 30 - 50 percent reduction to stay afloat. and if they did take the deal, it just takes one unfortunate event to take them back to foreclosure or they eat Cup-O-Noodles for the next 40 years. WOW! Slow death....

These sorts of programs will have a limited impact. The absolute best they can do is put the FB into a fixed rate 40 year mortgage. This might slow the foreclosure rate, but people who couldn't sell out of their ARM aren't going to be able to sell out of their 40 year FRM either. Either they stay put and pay a 5% reduced payment on a loan they couldn't 'afford' at 5% higher... and get foreclosed on... or they try and short sale.

The only people this will REALLY benifit are the people who bought a home they COULD afford, but had a reaaaaly toxic loan sold to them by a MB who was in it only for the cash. And I suspect these people could get the refi on themselves.

Savers now get the chance to be evil.

I'm going to lowball big time, and of course be turned down.

Then when the house is still unsold months later, I will get a call seeing if I'm still interested.

Then I knock another 20% off the price and do the "evil dance"

It will be the revenge of the "too stupid to take advantage of leverage" crowd.

"How insulted would you be if you were that seller and someone asked you to come down off your price $90,000? Do you think you would say…ok sure no problem. I’m not spinning my heels in mud with an unrealistic buyer who only wants to try and rip a seller off!”

Sellers already ripped themselves off for buying overpriced investment properties. :)

The only people this will REALLY benifit are the people who bought a home they COULD afford, but had a reaaaaly toxic loan sold to them by a MB who was in it only for the cash. And I suspect these people could get the refi on themselves.

Maybe this not very useful PLAN is the one where everyone wins.

Politicians can take credit for "saving" housing.
Fannie Mae and Freddie Mac can take credit for "saving" housing - justifying their existence.
Some FB's will be "saved" - but most won't be.
Savers won't be completely screwed over.

Sounds like a win-win.