Bank of America stole this guy's home, oh wait

[IceBergSLiM]

I couldn't care less if my house is worth $1 at the moment and my mortgage was $500K. I don't plan on moving, I don't need an equity loan and I can pay my mortgage, so why should I care about it's current value?

very few people plan on spending 30-40 years in a house when they buy. This doesn't mean they bought it to "get rich quick" . Nobody would buy houses if they were marketed as depreciating assets.

 

[Minerva]

Hahahaha so this numskull is now renting? I'd rather have a home with a mortgage (and deductible interest) than pissing away money on rent. They could afford it but stopped paying because the balance is higher than the appraised value. That is beyond retarded.

This person might as well take a ride on a bullet train and stand on top before passing under a bridge and off themselves.

 

[waggy]

I couldn't care less if my house is worth $1 at the moment and my mortgage was $500K. I don't plan on moving, I don't need an equity loan and I can pay my mortgage, so why should I care about it's current value?

that's how i think. when i purchased the house i agreed with the price. i thought it was fair. We can afford the payment and no plans on moving out. Maybe when the kids get out of college and have families of there own we might think about it. otherwise i see being in this house 20 years.

 

[rh71]

I couldn't care less if my house is worth $1 at the moment and my mortgage was $500K. I don't plan on moving, I don't need an equity loan and I can pay my mortgage, so why should I care about it's current value?

Our property taxes will be $17k/yr when the '12/'13 school year rolls around because we just built up and the schools here are good. Do you think that after we have an empty nest that we'd be willing to pay this? We're likely going to downsize and even move out of state where it's cheaper to live. As a matter of fact, the avg home lasts about 7 years for people. We stayed in our starter home 8 years before moving to this one for our kids. I think we'll be here about 20 more years, putting us at about 55yo, then moving time.

A lot of older folks live in this town and while they got their places for half the value it's worth now, they still want max value for their homes... a LOT are still trying to sell in this market because of the rising taxes. If I'm 55, and have no reason to be paying these prices anymore, wouldn't I want to sell ASAP?

As for the guy in the story... take a hike... long walk off a short pier type of thing. Just leave, no need to bring others down with you with a display like that. If I were a neighbor, I just might put on a ninja constume and spray paint white over it at 3am one night.

 

[IceBergSLiM]

Hahahaha so this numskull is now renting? I'd rather have a home with a mortgage (and deductible interest) than pissing away money on rent. They could afford it but stopped paying because the balance is higher than the appraised value. That is beyond retarded.

This person might as well take a ride on a bullet train and stand on top before passing under a bridge and off themselves.

depends. If they were paying 2k mortgage for example and now renting at 1k , if they are banking the difference with 5% interest its a win. Hopefully they did the math but judging by the claims this guy is making I DOUBT IT>

 

[Minerva]

If they had a $2k mortgage and are now in a place paying $1k their lifestyle is certainly going to be in the crappers. Well at least in this neck of the woods. Most decent four BR houses around here command $2500/mo and up. $1000/mo. gets a small 2BR apt. in the ghettos here. I suppose $1k /mo. buys decent ammo, however. :biggrin:

 

[GotIssues]

When did homes become a commodity that are bought and sold like cattle?

Can't we go back to when homes were a place to raise a family, instead of get rich quick schemes.

Whatever happened to the days when banks and people were responsible with their money (for the most part anyway)?

If someone thinks there is a way to make a profit, they'll try it. The problem is that people don't want to take responsibility for their failures. You bought a house and it went down in value? Tough.

The problems on the housing market were of both the bank's doing and the people's doing. People weren't bothering to use common sense and buying only what they can truly afford and banks were basically just giving money to whomever, packaging the loans, then selling them back to the public (banks problem was pure evil greed, people's problems were laziness and stupidity).

When the home values started to fall, I think it was CNN that was interviewing a house flipper that had loans for close to $1 million in 3 houses. The guy was complaining that if prices went down anymore, he was not going to be able to sell the homes for a profit, in which case he was going to have to file for bankruptcy protection, might owe the bank hundreds of thousands of dollars he could not pay,,,, blah, blah, blah. What bank in their right mind loaned a guy with no real job (besides flipping homes) $1 million to buy homes with?

Replace a house flipper with someone starting a restaurant, store, or a doctor starting a private practice. It's the same thing they go through to start a business. Do you suggest the banks not loaning them any money either?

I have no problem with people flipping houses. It's a risk that can pay off. If done right, you can definitely still make a profit. If not, you lose money. In the housing bubble, the average Joe could do it because of the craziness involved on all sides. Now, not so much.

 

[Texashiker]

Nobody would buy houses if they were marketed as depreciating assets.

Everything else you buy in life (with a few exceptions) is a depreciating asset, so why would a home be any different?

Do you own a car or truck, is it worth more now then when you bought it?

Do you own a computer, is it worth more now then when you bought it?

Do you have children? Talk about a money pit with kids. I will never recover the money I spent on clothes, diapers, doctors visits,,,, and everything else those rug rats cost me.

Do you buy clothes?

Do you buy food? Talk about a waste of money with food, you buy it, eat it, and then crap is out your butt. Food is a total waste of money, too bad we have to have it to live.

Replace a house flipper with someone starting a restaurant, store, or a doctor starting a private practice. It's the same thing they go through to start a business. Do you suggest the banks not loaning them any money either?

Doctors, lawyers, store, restaurants,,, are providing a service to the community as a whole.

A house flipper provides no service to the community.

 

[Paratus]

Congress ruled this was discrimination in the 90s. If the bank had denied the loan, he could have sued them for it. Accountability and responsibility are a thing of the past.

Yes, I remember the poor people and minorities forcing congress to pass those laws over the cries of the banking industry. I mean what could the banking and wall street lobbyists do in that case? They were helpless.

The only thing they could do was sign any warm body up for an ARM and sell those worthless mortgages to pension funds for billions while shorting the funds for billions more.

Wait what?

 

[Minerva]

Everything else you buy in life (with a few exceptions) is a depreciating asset, so why would a home be any different?

Do you own a car or truck, is it worth more now then when you bought it?

Do you own a computer, is it worth more now then when you bought it?

Do you have children? Talk about a money pit with kids. I will never recover the money I spent on clothes, diapers, doctors visits,,,, and everything else those rug rats cost me.

Do you buy clothes?

Do you buy food? Talk about a waste of money with food, you buy it, eat it, and then crap is out your butt. Food is a total waste of money, too bad we have to have it to live.

I used to say that to my old man (even said why eat you just hungry again) and got a whipping!

But he's right! Respect your elders!

Some things appreciate too. In this economy you can buy a Rolex Sea Dweller Deep Sea for about eight and change. It lists for $9250. You can wear it for a few years (carefully) and when you get tired of it sell it for more than you paid. (assuming 1 the world doesn't actually end by december) and 2 (seriously) the economy is better. The list price ALWAYS goes up. Even if you break even your investment has no loss and you can enjoy it unlike money in a mattress. I know some people that have multimillion dollar watch collections and do this for enjoyment and make some extra money doing it as well.

 

[Bateluer]

Do you have children? Talk about a money pit with kids. I will never recover the money I spent on clothes, diapers, doctors visits,,,, and everything else those rug rats cost me.

So using this reference again.

Yes, I remember the poor people and minorities forcing congress to pass those laws over the cries of the banking industry. I mean what could the banking and wall street lobbyists do in that case? They were helpless.

The only thing they could do was sign any warm body up for an ARM and sell those worthless mortgages to pension funds for billions while shorting the funds for billions more.

Wait what?

Never said the banking industry was guiltless. After all, under the law, they could loan money to people who obviously could not pay it back, then file for a bail out. Win/Win for them. Lose for the taxpayer and smart home buyers.

 

[rh71]

I have no problem with people flipping houses. It's a risk that can pay off. If done right, you can definitely still make a profit. If not, you lose money. In the housing bubble, the average Joe could do it because of the craziness involved on all sides. Now, not so much.

Two houses bordering our backyard were flipped in '06, the height of the market. Contractor(s) bought them for $400/$430k and sold them for $800/$827k respectively, in 3 months time, according to sales info. Now a regular ranch waiting to be flipped is about $350k and a built up colonial would sell for about $600-$700k. Still a nice flip, assuming people are willing to part with that much cash these days. Around here only the lower end homes under $400k are seeing decent traffic.

 

[IceBergSLiM]

Everything else you buy in life (with a few exceptions) is a depreciating asset, so why would a home be any different?

Do you own a car or truck, is it worth more now then when you bought it?

Do you own a computer, is it worth more now then when you bought it?

Do you have children? Talk about a money pit with kids. I will never recover the money I spent on clothes, diapers, doctors visits,,,, and everything else those rug rats cost me.

Do you buy clothes?

Do you buy food? Talk about a waste of money with food, you buy it, eat it, and then crap is out your butt. Food is a total waste of money, too bad we have to have it to live.




Doctors, lawyers, store, restaurants,,, are providing a service to the community as a whole.

A house flipper provides no service to the community.

not again. Do you know what an asset is? Most of the examples you listed are not assets.

With the exception of cars. And people that buy new cars better be doing so with cash in hand.

I'm not a finance wizard but I think everyone can agree financing a depreciating asset is one of the worst moves anyone can make in life.

 

[GotIssues]

Doctors, lawyers, store, restaurants,,, are providing a service to the community as a whole.

A house flipper provides no service to the community.

A house flipper provides better property values to everyone in the vicinity. Do you know how house values are determined? By local comps. Taking a $100k house and making it a $150k house adds value to my house and every house in my neighborhood (assuming they are similar enough to be comps, which they generally are). So if I were selling in the near future, someone flipping my neighbors house for $50k more basically ups the selling price for my own house.

 

[waggy]

Everything else you buy in life (with a few exceptions) is a depreciating asset, so why would a home be any different?

Do you own a car or truck, is it worth more now then when you bought it?

Do you own a computer, is it worth more now then when you bought it?

Do you have children? Talk about a money pit with kids. I will never recover the money I spent on clothes, diapers, doctors visits,,,, and everything else those rug rats cost me.

Do you buy clothes?

Do you buy food? Talk about a waste of money with food, you buy it, eat it, and then crap is out your butt. Food is a total waste of money, too bad we have to have it to live.




Doctors, lawyers, store, restaurants,,, are providing a service to the community as a whole.

A house flipper provides no service to the community.

ugh. I am not suprised you have no idea why a home is an asset and the reason why things gain or lose value.

 

[Paratus]

So using this reference again.




Never said the banking industry was guiltless. After all, under the law, they could loan money to people who obviously could not pay it back, then file for a bail out. Win/Win for them. Lose for the taxpayer and smart home buyers.

Fair enough.

 

[PingSpike]

nvm

 

[Texashiker]

Do you know what an asset is?

If it belongs to me, its an asset. Whether its a wrench, screwdriver, truck (I do not own a car), camera,,,, its an asset.

Most of the examples you listed are not assets.

If I spend money on something, its an asset.

I'm not a finance wizard but I think everyone can agree financing a depreciating asset is one of the worst moves anyone can make in life.

But that is the way life is.

Somethings will increase in value, homes, property, gold, silver, rare items,,,,. But even then, there is no promise they will hold their value. Even gold and silver go up and and down over the years.

If financing a depreciating asset is really "that bad", then never buy anything on credit ever again.

ugh. I am not suprised you have no idea why a home is an asset.

Like I said, if I own it, its an asset to me. Maybe not to you, but it is to me.

 

[IceBergSLiM]

If it belongs to me, its an asset. Whether its a wrench, screwdriver, truck (I do not own a car), camera,,,, its an asset.




If I spend money on something, its an asset.




But that is the way life is.

Somethings will increase in value, homes, property, gold, silver, rare items,,,,. But even then, there is no promise they will hold their value. Even gold and silver go up and and down over the years.

If financing a depreciating asset is really "that bad", then never buy anything on credit ever again.




Like I said, if I own it, its an asset to me. Maybe not to you, but it is to me.

no its actually not. Please take a basic finance/accounting class.

 

[waggy]

If it belongs to me, its an asset. Whether its a wrench, screwdriver, truck (I do not own a car), camera,,,, its an asset.




If I spend money on something, its an asset.




But that is the way life is.

Somethings will increase in value, homes, property, gold, silver, rare items,,,,. But even then, there is no promise they will hold their value. Even gold and silver go up and and down over the years.

If financing a depreciating asset is really "that bad", then never buy anything on credit ever again.




Like I said, if I own it, its an asset to me. Maybe not to you, but it is to me.

correct. our mistake was pointing out that you don't understand why one gains value and others lose it.

a vehicle nearly always lose money (very rare is it that they gain). why? you can get one cheap and they only last a limited time. same with a wench, clothes and the other retarded things you listed.

A home is different. between how long they last, the limited amount of land (even worse if you live in the city) etc they nearly always go up. granted the last bubble was caused by greed and everything went up to fast.

my house is not worth what i paid (perhaps what i owe though). am i going to do anything about it? no. why? i plan on living here 20 years more at least in that time it will be worth more again (that is unless the zombie outbreak happens).

a home is nearly always a positive asset. you can buy it and live in it for 15 years and make your money back.

 

[Texashiker]

no its actually not. Please take a basic finance/accounting class.

Considering my wife and I are debt free, I think I am doing better then most people.

correct. our mistake was pointing out that you don't understand why one gains value and others lose it.

Your mistake is that you do not know how to take something and make money off of it.

If you lose money off of something (except food), you are living your life wrong. But then again, if you want to take the time, you can make money off of food.

 

[the DRIZZLE]

I have no objection to strategic default but you can't then turn around and claim they stole your house. What a dumbass.

 

[GotIssues]

Two houses bordering our backyard were flipped in '06, the height of the market. Contractor(s) bought them for $400/$430k and sold them for $800/$827k respectively, in 3 months time, according to sales info. Now a regular ranch waiting to be flipped is about $350k and a built up colonial would sell for about $600-$700k. Still a nice flip, assuming people are willing to part with that much cash these days. Around here only the lower end homes under $400k are seeing decent traffic.

I didn't say you couldn't do it. I said that it's not easy enough for any idiot to do like it was during the bubble. Now it takes a little more know-how and guts to take the risk.

not again. Do you know what an asset is? Most of the examples you listed are not assets.

With the exception of cars. And people that buy new cars better be doing so with cash in hand.

I'm not a finance wizard but I think everyone can agree financing a depreciating asset is one of the worst moves anyone can make in life.

While TH is a financial moron and loves to make idiotic statements about finances as if they were complete truth, he is right on this one (even a blind squirrel finds a nut now and again). However, it's not for the reasons he thinks.

You HAVE to live somewhere, whether it is renting or buying. To have rentals, they have to be able to make a profit on them, which is heavily dependent on a few things, largest one being property values and price the landlord pays for the unit. Whether or not they depreciate is moot, because it's something you HAVE to have. If it always depreciated, it'd completely change the prices from what they are today, but the markets would still be there.

 

[waggy]

not again. Do you know what an asset is? Most of the examples you listed are not assets.

With the exception of cars. And people that buy new cars better be doing so with cash in hand.

I'm not a finance wizard but I think everyone can agree financing a depreciating asset is one of the worst moves anyone can make in life.

you make a slight mistake they are assets. but they are not worth much some are negitive in worth (meaning the the car you pay 20k for is now worth 10k. its still a 10k asset but he lost 10k so far on it).

I agree that financing a depreciating asset is silly. but who has 25k in cash to buy a new car? this is why i buy used cars 90% of the time. i don't like loseing so much damn money on them.

 

[waggy]

Your mistake is that you do not know how to take something and make money off of it.

lol /facepalm

you don't get it..