Comments on: Strategic Defaults

By: SantaFeHills

SantaFeHills — Sun, 01 Nov 2009 14:30:59 +0000

Pigpen wrote:
“JTR, which university did you mention in discussing the view of the last home that was sold by bank without the MLS listing?”

Sounds sketchy, but I think it’s this one:
http://en.wikipedia.org/wiki/San_Elijo_College

By: leslie

leslie — Thu, 08 Oct 2009 15:39:08 +0000

While you still have good credit, rent a place. Then default and pay cash for what you need. You will be better off in the long run.

Screw the banks.

By: kevin

kevin — Fri, 02 Oct 2009 15:35:07 +0000

Re: Bob, the topic of principal reductions. Here is my perspective.

Let’s say that the only thing we’re worried about regarding foreclosures are the strategic defaults. Let’s say that it is a problem that MUST be solved (though I personally don’t care, but whatever). I have heard this debate amongst Mark Hanson and his followers. Their theory/response is that the way to keep people from defaulting on purpose is to lower the amount they owe to the current market value. I find this to be a horrific idea for reasons financial and moral. Why not an even simpler solution of making their personal pains too high to default? Make the amount the bank lost a debt that even bankruptcy can’t ween them from, like student loans? After all, that solves the strategic defaults without the financial or moral malaise.

So let’s say 100 people are deeply underwater. Say 40 of them will walk away because of this, the rest are decent human beings and will pay off the loans. The banks eat it on those 40, but the other 60 are fine. Principal reductions would have been applied to ALL 100 of them. That is far more costly and horribly immoral.

I know I’m sort of ranting here, and this might not be the appropriate forum for this debate, but I’m sure some of you guys have heard proponents of principal reduction at some point before. Just wanted to point out this alternative “solution” to strategic defaults that whether you agree with doing it or not (again, I am indifferent), it accomplishes everything that principal reductions would, without the nonsense of paying for their mortgages which is f***ing INSANE.

By: Smithers

Smithers — Fri, 02 Oct 2009 02:21:20 +0000

“Give It Away Or Else, Bitch”

I like it, but … you are talking about houses, right?

By: Pigpen

Pigpen — Thu, 01 Oct 2009 23:45:16 +0000

JTR, which university did you mention in discussing the view of the last home that was sold by bank without the MLS listing?

I didn’t realize there were any universities in the area.

Cheers,
Pigpen

By: sdbri

sdbri — Thu, 01 Oct 2009 22:35:26 +0000

DB,

Well, 6% commission’s gotta get you something. If you’re going all cash, you need to be prepared to walk if they don’t give you a fair price.

By: Adam

Adam — Thu, 01 Oct 2009 22:31:48 +0000

Yeah, Orion is bad. I run by there all the time and was wondering when you were going to video it. When we bought last December, we had offers on all those homes. Never heard back from the bank at all.

By: DB

DB — Thu, 01 Oct 2009 21:41:42 +0000

I feel dirty now and I must confess. After working with my buyers agent for six months, and getting kicked in the teeth repeatedly, I have contacted the REO listing agent on a property that went MLS today. They refered me to an agent that the broker “works with”(what does that mean?). I made it clear I want to make an all cash offer and make it quickly, as I have felt the stinging disappointment of not having any of my well funded offers considered. The realtor did not say anything to suggest that I will have an “in”, but I made it known that I contacted them for that reason. I don’t like it,I know it’s not ethical, but in the OC market I have just not been able to compete. From on the dark side it’s, well, dark. Pray for me.

By: Jim the Realtor

Jim the Realtor — Thu, 01 Oct 2009 19:57:04 +0000

I am thinking about a second run of Beefy-Ts, because we’re out of shirts now.

This was on the original list:

“Give It Away Or Else, Bitch”

But it got cut after wifey and I had the ‘older vulgar and offensive vs. younger hip and trendy’ argument.

By: 3clicks from da beach

3clicks from da beach — Thu, 01 Oct 2009 19:34:17 +0000

So Jim, does that mean you can cross out the ‘not’ in ‘I’m not giving it away’ and have a second run on Beefy -Ts?