Read the SMALL print!
I just thought I had to share with everybody what I pulled out of my mailbox this week. I got a ‘nice’ 6 x 11 inch card in the mail that says across the top: “RENTERS!” then the next line says “Kiss You Landlord Goodbye!”. Maybe you didn’t catch that, but yes, it said ‘you’ and not ‘your’. So that was my first clue that attention to detail is NOT a strong suit of this ‘luxury’ condo cough-conversion-cough. I assume it is a condo-conversion because of the location and the fact that it says “New Spanish Tile Roofs” as a highlight of the building. Most ‘new-builds’ do not highlight the fact that the roof is new. You can check these condos out for yourself at www.stonemarkatgoldenhill.com.
But lets get back to the “kiss YOUR landlord goodbye!” part of things. Below that it says you can “Own for as little as $1,088*/mo”. That doesn’t SOUND too bad. Heck, it is hard to find a decent place to rent for under $1000 in San Diego. I figured I would check and see what that little asterick (*) had to say. I won’t retype what all of the 23 lines of micro-print had to say, but I will run through the highlights.
Here is the card:
The loan is a CalFHA 2/1 buy-down with a 3.5% start rate and the payments are only $1,088 per month!
Sounds ‘good’ so far… (wink-wink)
This is based on the ‘lowest’ priced unit in the complex of $249,900, and the mortgage is on $242,400 (that would be $7,500 down…or 3%).
The loan is 3.5% for the 1st year with the seller paying for the 2/1 temporary buydown. Hey, at least you are paying principal with this loan!
The next year, the loan payment jumps to $1,228.21 at 4.5%, and the 3rd through 30th year, the payment is $1,376.32 at 5.50%.
So all in all, this doesn’t sound THAT bad. It is a fixed loan after the first 2 years, and you are paying principal and interest the whole time…but wait! I really like these next parts.
“Mortgage monthly payment of $1,088.48 does not include mortgage insurance of $171.70 and property taxes of $229.08. Property taxes calculated at 1.10% tax rate. Does not included HOA fees. (yes, they put included instead of ‘include’) HOA fees estimated at $171 per month.”
Wow, lets add that up…171.70 + 229.08 + 171 = $571.78 I don’t know about you, but that extra $572 bucks a month kind of changes the picture a little bit. These costs add another 52% to the $1,088 mortgage payment. You can look at it like that, or that the mortgage payment only accounts for 66% of the total cost of ownership. Suddenly, $1660.26 per month doesn’t look at good as $1088…and don’t forget that is ONLY for the first 12 months! Assuming HOA’s, taxes stay the same, you are looking at almost a $2000 a month payment after 24 months ($1948.10 assuming the HOA or taxes don’t increase).
Don’t forget, we are talking about the lowest priced 1-bedroom condo (conversion) in the complex!
But here is where it gets interesting: To qualify for the 5.50% CalFHA program, income limit for low income borrowers is $49,680 for 1-2 persons, $57,132 for 3 or more person in household.
Maybe its just me, but if you are only making about 49k per year, I don’t know that spending $250,000 on a small 1-bedroom condo conversion is the best use of funds. You are going to be spending about 45-50% of your gross income on housing. I know there are worse things going on out there, but come on people…it is just a house! Forget the massive appreciation that lots of people have seen the past few years, those days are OVER for a long time. If you are spending that much on housing, that isn’t going to leave much room for savings, car payments, gas, food, etc. I hope that a 3 person household would not be buying a small 1-bedroom condo conversion, so I won’t even go there right now. I know they must be small because they don’t list the square footage, and the units don’t look big from the pictures. If I were making an educated guess, these places would probably rent from $950 to $1200 per month.
I guess the thing that bothers me is that many people will see the “Own for as little as $1,088/month” part of things, and ‘think’ that is all there is. Aside from putting a LOT of money down, there is NO WAY to ‘own’ this place for $1088 per month. The last time I checked, you HAVE to pay your taxes, HOA, and PMI.
I don’t know about the rest of you, but I hate it when I’m shopping for a hotel room on one of the online sites and the rates look good until you find out there is a $15-20 resort fee, and/or a nice 19% hotel tax or something. If you are going to charge a mandatory fee…just add that to the price of you $129 room. Am I the only person annoyed by this??
Other than that, I am sure that many of you are feeling better and better with the news that is coming out with regards to housing. Our fearless leaders are slowly starting to eat their words. Leslie Appleton-Young and Mr. Lereash are slowly coming around. It is just unfortunate that thousands of people are going to lose tens of thousands of dollars because they listened to those biased cheerleaders.
Stay tuned to Ben’s blog and this one. I am working on a few things that I think you will really enjoy. REMEMBER…this is only the beginning. This is the equivalent of the NASDAQ dipping under 5000…it is just a start. 2007 will be the year of reckoning. You think inventories are high now? Wait until another 1.5+ trillion dollars worth of mortgages adjust next year.
Stay tuned!
SoCalMtgGuy
September 8th, 2006 03:34
hello from germany,
when i tell the people here in germany about all the crazy stuff that is going on in the us especially with all this creative financing they don´t believe this untill guys like you and the from the other blogs do the math.
danke / thanks!!!
jan-martin
http://www.immobilienblasen.blogspot.com/
September 8th, 2006 04:57
I’ve been in discussions on other blogs on this subject: how much knowledge can be expected of borrowers?
Sure, I would know enough to read the fine print NOW. But not back in 1994, when I bought a house. I knew to look for the APR, and I knew I wanted a fixed rate loan. But I hired a lawyer to look at all the hundreds of pages of documents. I relied on the lawywer and title insurnace company, the seller relied on the broker, the bank on the appraisal and its own attorney.
At closing, my lawyer scanned the documents and came up with a discrepency (in the bank’s favor) compared with what he had been given to review. But if we had to read all that stuff at the closing table, the 97-year-old woman we were buying from would have died before the deal was done. So in the end I signed and signed and signed.
In the coming bust, lots of people will claim the didn’t understand the implications of the loan they were getting. Some will claim the loan they were offered at closing was not what they expected, and they were pressured into signing or losing their home. There will be lawsuits, and a big battle of legal responsibility, over personal vs. fiduciary responsibility.
What is your point of view on those who didn’t read the fine print, and wouldn’t have understood it even if they did?
September 8th, 2006 05:26
Generally speaking, the courts tend to swing in favor of the contract fine print. As a consumer it is your responsibility to read and understand what you are signing. Ignorance is not an excuse. However, if fraud or duress can be proven, that may be a whole different story. The problem is proving them. IMHO, if it is clearly spelled out in the contract, then the fine print is binding. Call me heartless, but I tend to have the attitude of “buyer beware”. It’s a pain in the ass to read the contracts, but who in their right mind would sign on the dotted line without knowing what they are signing (whether they read it themselves or have an attorney read it for them and then explaining it)?
September 8th, 2006 05:35
Kiss You Future Goodbye
At least that would be truth in advertising. Whenever I see grammatical mistakes in promo material, I assume the authors are scammers or morons, or both. Yes, I’m somewhat sympathetic to buyers confused by the acres of fine print, but come on–buying a house or condo is not something that should be done on a whim. Finding a good RE lawyer and a really good home inspector takes time and effort too. Calculators are cheap and adding up the numbers is not rocket science either. And who in America–land of passionate shoppers–does not know that deals that are too good to be true are just that–come-ons with a lot of strings attached. I am wary of the sorry homebuyer stories that are already in the media–I am not interested in bailing out people who can’t add, won’t read, and are too old to believe in financial magic. Sold your future for a teaser rate?–welcome to the adult world of consequences.
September 8th, 2006 05:36
Now I understand sales as well as anybody, but to have small deceptive print like that for the purchase of a home, should be illegal. You’re not buying a TV. The purchase price is a quarter of a million dollars. That purchase has probably a 99% chance of foreclosure built right in. Ridiculous.
September 8th, 2006 05:43
Wow, that is really crooked to put all that in the fine print and get people’s hopes up. I feel sorry for anyone who buys in there now.
September 8th, 2006 05:56
“To qualify for the 5.50% CalFHA program, income limit for low income borrowers is $49,680 for 1-2 persons, $57,132 for 3 or more person in household…Maybe its just me, but if you are only making about 49k per year, I don’t know that spending $250,000 on a small 1-bedroom condo conversion is the best use of funds. You are going to be spending about 45-50% of your gross income on housing.”
This looks exactly like the same kind of #’s I’m seeing in Chicago. 1 bed condos in desirable areas are starting at $240,000 and go up from there. I estimate that the average single person (which are the people buying these places) need to make $58,000/year just for these units on the lower end of the scale. Just for everyone’s reference the average Chicago single in their 20′ or 30’s is NOT making nearly $60,000/year. I have no idea who’s buying all these places.
I make $50,000 a year and I figure the most house I can RESPONSIBLY afford is $180,000. You can’t find new construction even in the dangerous areas of the city for that and the old contruction is crap with HOA’s that are out the a$$. The new condos and townhomes in the burbs start at over $200,000 and the old stuff is being bought up the gang bangers that are being forced out of the city. Where the hell am I supposed to buy? Something has got to give.
September 8th, 2006 06:29
Great story!
These builders are really, really hurting - but fortunately they can lower their prices without guilt. Existing home sellers won’t (or can’t) lower their prices.
“Hey, my neighbor sold for $400,000 last July, so I won’t sell for a penny less!”
- Typical homeseller (who can’t understand why her house has been sitting empty since last spring)
Ken, hang in there - buying right now is a very, very bad proposition. Prices are dropping, and they’ll continue to drop - just way too much inventory now. The cows always come home to feed.
September 8th, 2006 06:43
I bought my first home in 2004, and since was the biggest financial decision of my life I took the time and effort to educate myself before the process ever began. This meant spending time in the local library, searching the internet, etc. And when it came time for the closing, I felt no qualms whatsoever about reading each page line by line before I signed anything. I had to endure a few expasperated sighs from those present, but SO WHAT! I do feel sorry for those who are going to get burned due to lack of due diligence on their part when it came time to sign on the dotted line. And I recognize that a certain segment of FB’s were victims of fraud to some degree. But ignorance is no excuse when it comes to personal repsonsiblity. Hopefully some of these FB’s will learn that lesson the hard way and be better off for it for the remainder of theier lives.
September 8th, 2006 07:05
what’s scary is that the 1,948 per month payment (beginning year 3) is based on only a 5.5% interest rate. what happens when(if) interest rates increase. what will subsequent buyers have to pay.
also, if you’re making $50,000 per year or less, you’re not paying federal income taxes at a real high rate, so don’t count on a huge write off of the monthly payment (PMI and association fees are not write offs anyway).
September 8th, 2006 07:07
MCat…
You NAILED it!!!
Go spend a few hours educating yourself about a contract you are going to be ‘locked’ into for the next 30 years.
As far as the signing table goes. Yes, there are quite a few forms that need to be signed, and many of these are nothing more than routine forms mandated by governemnt. BUT, there are a few key forms that deal with the loan. If you READ the loan disclosure documents, it spells out things pretty clearly. So even if the broker told you your payment is 1000 a month, and you see 1500 a month on this form…THAT should be a wake up call to back away from the table and get some help. If you have done even minimal research, you will be able to catch many of the shenannigans that could go on if you realize the loan on the paper is NOT the loan you were ’sold’.
Be informed and take PERSONAL RESPONSIBILITY for yourself…
SoCalMtgGuy
September 8th, 2006 07:45
When I was young, I purchased a home. When we were signing the
docs, the payments were not the same as I expected…I pushed back from the table, like I had just eaten a whole turkey and the fixens, made a time out with my hands and said this isnt right….I was scared, but I postponed the closing until I understood what the heck I was doing…
September 8th, 2006 07:48
WP,
It’s hard to tell what happens in this case. This is a subsidized loan program. These programs usually have lower than market rates. They don’t really care if they make money or not the way normal loans work. The people who do get those loans are getting a very good deal on their financing. They have to hope the state has the funds available to others that come after them. If interest rates increase, the non-subsidized borrowers won’t be able to afford as much, which in turn should hurt their property values.
SoCal, as usual, makes a really good point about affordability. If someone wants to buy this house under this program at that price, best case scenario is that you have a buyer at a 40% housing debt to income ratio, 46% if you base the payment on 5.50% end rate. Let’s say they have no other debt at close. Then what happens when they decide to furnish the home and at some point in the future, buy a car? After 2 years, if the borrowers add an additional $500/mo debt, now their debt to income ratio is pushing 60%. This is where people get in trouble and they panic and start refinancing. Is it a good idea for the state to be subsidizing borrowers are more likely to default on their mortgages? It used to be that these type of programs used to be very strict on debt to income ratios. The one used in another state I used to live had a total debt to income ratio of 38%, no deviation from it or the loan was turned down. If the price was more realistic, then this is a great program for lower income, first time buyers. But in the end, they are spending beyond their means.
September 8th, 2006 08:00
SoCalMtgGuy,
Thanks for all your efforts, comments and general dispensation of clear thoughts about the events happening in the real estate GAME. I found your site via Ben’s Blog. I especially like your honest, candid evaluations of the many topics involved in the blogs. This is how the internet is truly a great tool for educating people and allowing folks to exchange ideas that add value to their lives. Your blog is better than anything found in the “mainstream media”. Keep up the good work!
Tim
September 8th, 2006 08:32
Yes, this blog and Ben’s are awesome and so truthful (also Patricks in SF). THe main stream gets their accurate information from here. I also would notice this deceptive advertising for low payments in the home magazines at the doors of supermarkets. They would have pages of ads by different ads from “Jackass Mortgage”, and “Bend Over Its Coming Mortgages”. They would put a picture of some nice home and list the obscene price (ie 500K). It would have large print of payment $1500 (not exact - don’t have one in front of me). Then look at the small print, you see the negative amortization, ARM set to adjust the NEXT MONTH higher, etc. And of course, no mention of taxes, insurance. Check some of them out. Maybe the new adverister is “Sign Here and You Are A F*CKED Slave for Life Mortgage”?
September 8th, 2006 08:32
“If you are going to charge a mandatory fee…just add that to the price of you $129 room. Am I the only person annoyed by this??”
I was once hit up at checkout for an “energy surcharge” during the CA “Gray-out”. I made a scene in the lobby and they reversed the charge just to get rid of me. I’m with you… Give me the total cost of the room and don’t try to sucker punch me at check-in/check-out.
Harris Ranch on I-5 near Coalinga is one of the few honest hotels that quote the rate you pay. They have no room tax or any other add-ons. I highly recommend them.
By the way, your posts are terrific! Keep up the good work.
September 8th, 2006 08:33
SoCalMtgGuy - after reading the fine print, we all might want to be kissing the landlord for saving us from that kind of crap.
September 8th, 2006 09:17
Just a tip (I love your blog, so don’t take this personally):
If you’re going to make fun of people’s spelling (and it *is* funny to see what people send out in an attempt to get hundreds of thousands of dollars from you), you should know that what you pay off in a loan is called “princiPAL” and not “princiPLE”. Look it up!
September 8th, 2006 09:37
need 2 leave ca:
Amen to that..
Anyway, I never did like the idea of having to pay a mortgage and a little ’something else’ that is roughly equivalent to ‘rent’ at the same time.
September 8th, 2006 09:39
Oh dear these look so much like little Motel 6 rooms.
Gah look at the layout of the units, it’s a moterlodge without room service. 250K to bang on the wall when your neighbors TV is blaring.
September 8th, 2006 09:44
Bob: I saw that and other typos/errors. But the message is the important thing and it is damn funny!
September 8th, 2006 10:00
Principal and principle are one of the words I accidentally invert as well.
I have been reading your forum for a while now and I just wanted to thank you for the time and effort you are putting in this, trying to warn people.
We have lead a frugal lifestyle and have been chastized and ostrasized for it but, it is good to know that there are others out there that think the way we do.
We could never understand how others have lived such a high lifestyle. Keep up the good work.
September 8th, 2006 10:29
Welcome back! I see this same kind of stuff around here in northern NJ. All the costs are not factored in, which like you, I find to be deceptive. Hotels and rental cars have all those add ons. I find it very annoying that hotel taxes always get raised because the notion is that visitors don’t vote. But that is to a point, when you overtax they vote with their feet and don’t stay in your fair city or state.
As to the housing meltdown underway, ARM resets are underway and I think are largely responsible for the inventories being so high. As for the loan values next year, I keep seeing all kinds of numbers for the valuation of the loans. The first and maost repeated value was 6 billion for 2006 and 1.3 trillion for 2007. Then last week I saw 2.1 trillion for both years. I assumed they lumped in the option ARMS. Either way it is a pretty scary number because it represents at least 20% of outstanding loan values. Any insight as to the real numbers SoCal?
September 8th, 2006 10:30
that is 6 hundred billion.
September 8th, 2006 10:50
Pazuzu: My thought exactly. I’ll bet anything this is a converted motel of some sort (hence the trumpeting of the “new tile roof”.)
September 8th, 2006 14:20
SoCal,
Been reading your site since first seeing it on Ben’s and I wanted to finally applaud you as well for maintaining it even with the new gig.
First off I am happy to say that I no longer receive these or other credit offers via mail. I would encourage all of those reading this to go to www.optoutprescreen.com and opt out of these types of solicitations. The site is maintained by all three bureaus and is legit. It took about 30 days for it to take full effect and I can say the free time I have freed up by not having to spend time shredding credit card, business credit line, option ARM, etc offers has only improved the quality of my life…. That and I hope I am doing my part to stop global deforestation as well.
Now on this little mailer I am shocked… I would turn this into the state and government officials that regulate this downpayment assistance and FHA/HUD sponsored program. Get them on an excluded party list to prevent the abuse of viable (at least in a normal real estate market)programs that were designed as affordable housing initiatives by said offices!!! Was there even an APR quoted in said fine print?! They are disclosing some of the info but c’mon are any of these slimeballs actually knowledgable in Federal TIL or RESPA?!? I hope they get their hands cutoff by officials…
I gotta come back to this thread later as dinner is ready and I am too pissed to continue my rant…
September 8th, 2006 15:40
Principle vs. Principal.
YES I know the difference, I just missed it one of the times on this post. I go back and proofread my posts, but I don’t always catch everything…and spell check doesn’t catch the error. It is a typing error…not a “dee dee dee” error.
They always told us in school that it is better to have somebody else proof read your papers because since you wrote it, you end up skimming through parts, or you see what you were thinking, not what you wrote.
That said, I will do better with regards to spelling and grammar. Keep pointing it out, and I will keep making the corrections.
That said, if I was doing a small flyer that could not be corrected, you bet I would have it dialed in with NO mistakes before I spent several hundreds/thousands of dollars on print and postage costs.
Thanks again for all of the comments!
SoCalMtgGuy
September 9th, 2006 10:50
tickets, most every book about the home buying process lists those documents essential to peruse at the closing table. When I bought my place back in 2001, I started by going to the library and borrowing books like, “Home Buying for Dummies” and such. They provided nice hand-holding and step-by-step instructions for each phase of the purchasing process.
The only regret I have was using a loan broker. Not only did I have to pay him for his “services,” but when closing I saw that the loan product he set me up with (a 30-year fixed, btw), ended up getting him $2,000 from the lender. I questioned, then, whether he had MY best financial interest in finding the “ideal” loan… hrm…
September 10th, 2006 08:18
‘Prince-apple’ Bob…
Not you. again? You pointed this out to the blog several months ago when SOCAl did the same thing. Spare us the grammer lesson and stick to the RE FB blogging will you? People like you annoy the hell out of me. You wouldnt happen to be an FB yourself would you?
September 10th, 2006 08:20
“not a “dee dee dee” error.”
Carlos Mencia fan are we?? LOL.
I am a biger fan now of this blog.
New term: 3D Borrowers..DEE DEE DEE!!!!
September 10th, 2006 19:07
The only thing more awful then a re-setting option ARM is Mencia. “You were thinking it, but I said it.” Not unless you said, “I suck.”
September 11th, 2006 10:47
My realtor was there at closing giving me a brief description of what each form I was siging was about. Yes, I am perfectly aware that a house manufactured in ‘49 not only MAY but probably DOES have asbestos and lead paint. He found a small discrepancy (less than $100) in the closing costs and had it struk from the total.
September 12th, 2006 07:19
I’m currently looking into buying a house in MArch 2007 in the Cleveland area. My girlfriend and I currently have a combined income of $120K here in New York City. In Cleveland we’ll probably have a combined income of $90K and we’re looking into buying a $170K house, which we will make an offer of $150K. (buyers market) Plus, I expect prices to drop at least $10k-$15K by then, maybe more, so I think we’re in good shape if we get a 30 year fixed rate mortgage. (By the way, we’re only putting 10% down) I wish we could put more down, but it’s difficult saving money in NEw York and we want to move sooner than later. Also, if we wait too long to buy, we run the risk of having interest rates go up on us. It’s amazing what $170K can get you in the Cleveland area. What do yo think?
September 12th, 2006 07:53
Thanks to SoCalMtgGuy for identifying the most disturbing aspects of this bubble - the details of the financing.
My opinion as to what is going on in the mortgage business, followed by my advice for those starting out:
http://earlyretirementadvice.blogspot.com/
September 12th, 2006 09:28
I live a few blocks away from this place. While somewhat new, the pictures don’t show that the whole complex is sort of in a hole. Some of these things aren’t even above street level. They have been hammering up signs all over the place, but no one seems interested.
If it came on the market 2 years ago, they would have had lines around the block to buy. Go for a drive around San Diego and you will see a whole lot of for sale signs. Things are changing.
September 12th, 2006 11:22
Mr. Vincent:
I enjoyed your blog very much and wanted to ask a question/offer a comment. Could you please set your comments board to accept anonymous, or at least “other,” responses? i don’t think many people will leave you comments otherwise, as many do not like to officially register with Blogger. (My question was, Given your example of all the trouble these borrowers will be finding themselves in, would it be best for the young couple at the bottom of your blog to wait a year or two or three?)
September 12th, 2006 12:49
Anon, I changed the settings so anyone can post.
Anon says: “would it be best for the young couple at the bottom of your blog to wait a year or two or three?”
The “When To Buy” question is up for much debate right now. My opinion is to wait until the housing and credit bubble play themselves out which may take a couple of years. As SoCalMtgGuy has pointed out here, housing prices have gone way beyond the average persons ability to afford under normal or old lending standards.
I would keep saving in a cash account if you are a potential home buyer. Vanguard Prime MM is currently paying 5.11%. Not too shabby!
The other thing to do during this time is to work on identifying the location your interested in and learn everything about it including tracking the MLS for that area.
September 12th, 2006 15:36
Mr Vincent,
Great to hear your advice…I currently live in my first home I purchased 4 years ago and the mortgage is a very manageable $750/mo with 26 years to pay…I should be able to rent for $850-$1000. I also have $30K in the Vanguard Prime MM..how about that!
My question to you is I recently ran into someone who seemd trustworthy (and believe me I don’t trust many people) who told me the company she works for could probably rent it out for more to corporate clients….have you ever hooked up with one of these agencies? What would be the good, the bad & the ugly on that?
Thanks for your advice….oh by the way I’ll purchase the next home in 2-3 years when this mess has really played out.
September 12th, 2006 16:32
Tucson Owner. I think your on your way to a great financial future.
I have used property management companies in the past for SFRs. I have not used a company that specifically finds “corporate clients”.
In terms of property management companies, most are lousy…you need to work hard to find a good one. I would not sign on with anyone until you have a full understanding of what they offer, how they find tenants and what their fees are etc.
When you find a good property management company, they can be a god-send when it comes to managing Single Family Residences. The trick is finding a good company. I cannot emphasize this enough.
Again, if you find a good company, it is worth it. I had tried managing some houses on my own before and it is NOT worth it. I found it much easier to manage townhomes on my own, but not houses.
September 12th, 2006 16:37
What is the problem with buying in a market that is declining? Tons, if the buyer plans to leverage the purchase with little down and short term ARM products. Is there a problem with a buyer putting 20% down on a 30 year fixed loan for a house they plan to stay in for 10+ years.
Nothing!
Sure, if the buyer waits, they may get a better deal. But if they find a house they like, there’s little risk in the long term (excluding highly inflated markets driven by speculation such as San Diego, Vegas and Florida).
Furthermore, as real estate investor, the good times are just getting going! With dropping prices, acheiving positive cash flow becomes more likely in many markets, which is a good hedge against other investments (everyone needs somewhere to live, afterall).
I enjoy this blog. I think that the author and maybe 50% of the commenters make good observations and approach the issue of ‘the bubble’ rationally. The other 50% just want to see the pain of others who are caught in the impending financing bubble. I don’t know about you, but I don’t typically like to take glee in the misfortune of others - especially the middle class homeowner who will be impacted by this - just to say ‘I told you so’.
Only in the blogosphere do decorum and class go out the window, since any who chooses to comment are protected by anonymity. Since no one can see there names - let alone any errors in judgement they may have made in the past that colors their biases (buying the extended warranty on that VCR they bought..LOL) - a tidal wave, a riot of thought can be created based on the come, not necessarily the reality of the issues.
That said, the passion of SoCalMort is clear. He’s an insider who sees all the shit that sticks to the wall. I just hope he doesn’t become a Rush Limbaugh, feeding off the frenzy of his following. However, even at some point reality proves him wrong, he can always delete the blog, and walk away, since nobody even knows who he is.
September 12th, 2006 21:51
Seattle Eric,
I have said what you have many times on this blog. Even at todays prices…if you can afford to put some money down, get a 30 year fixed payment, and plan on staying a while (realizing that property values might go down in the meantime), then go ahead and buy.
The reason for doing this blog was to help the ‘middle class homeowner’ who just wants a place to LIVE. Until I got into the industry I just thought that everybody was making a lot more money than I was.
I don’t want to see these people try to compete with the nonsense that is going on out there. Yes, it sucks in the short term, but living within ones means and making good decisions WILL pay off in the long run.
That said, there are plenty of people out there that I have NO sympathy for. They knew exactly what they were doing, and deserve what they have coming to them.
Thanks for the post and for reading my blog.
SoCalMtgGuy
September 12th, 2006 22:43
dear seattle eric the real estate agent: are you too embarrassed of your career to admit what you do for a living? talk about slamming OTHER people’s anonymity. yeesh. yeah, everyone who say that Tulips Part Two is going to end one day or who points out that money doesn’t grow on trees is automatically “taking glee in the misfortune of others.” your whole post is one big series of talking points taken straight from the real estate industry. you might not take glee in the misfortune of others, but you’re the one causing a lot of the misfortune.
September 13th, 2006 08:25
Here is why I don’t think that the market will crash much next year. The reason is that even though there are so many mortgages that will reset, the owners will be able to hang on for another 3-5 years as they refinance with cheap money that is still available.
September 13th, 2006 15:26
Out-er…
Haha. I’m an investor who got his license to save money on his investments (and make some money on the side from sales).
I speak as an investor, not an agent. When I do speak as an agent, my investor perspective is clear.
September 19th, 2006 15:10
“Maybe you didn’t catch that, but yes, it said ‘you’ and not ‘your’. So that was my first clue that attention to detail is NOT a strong suit of this…”
Yeah. Just like all the guaranteed financial opportunities, natural male enhancement products, guaranteed soul-mates, and Nigerian bank emergencies I have to clear out of my inbox every time I log on. Sure, I’m gonna trust my financial and/or personal future to someone I’ve never heard of before who never learned how to spell!
September 13th, 2007 02:53
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September 18th, 2007 06:30
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