WW II was the catalyst in transforming America from an agrarian economy to an industrial one.
War these days ain't the same. And a BIG war is bad news for everybody.
Half The Country's Mortgages Are Underwater
- Thread starter DT-waw
- Start date
WW II was the catalyst in transforming America from an agrarian economy to an industrial one.
War these days ain't the same. And a BIG war is bad news for everybody.
people who bougt at the peak with 20% down are underwater. i know a few in that boat.
About a third of all homes do not have mortgage so when you talk about half of all mortgages being underwater that is not the same as saying half of all homes have no equity
http://economistsoutlook.blogs.real...e-of-owner-occupied-homes-without-a-mortgage/
http://economistsoutlook.blogs.real...e-of-owner-occupied-homes-without-a-mortgage/
I have a question...
If you owe $200k in principal on your mortgage and your home is now worth $50k, can you let your home just go to foreclosure, and then buy your home back or a similar home for $50k in cash, assuming you have the cash? Do banks sue people to recover the bank's deficiency?
I assume you would be responsible to pay taxes on the bank's deficiency when a foreclosure or short sale occurs, since it is considered forgiven debt and that is considered income?
If you owe $200k in principal on your mortgage and your home is now worth $50k, can you let your home just go to foreclosure, and then buy your home back or a similar home for $50k in cash, assuming you have the cash? Do banks sue people to recover the bank's deficiency?
I assume you would be responsible to pay taxes on the bank's deficiency when a foreclosure or short sale occurs, since it is considered forgiven debt and that is considered income?
Vinny, it depends on the state
Google non-recourse mortgage states, there is a lot of info out, example: http://www.helocbasics.com/list-of-non-recourse-mortgage-states-and-anti-deficiency-statutes/
This is a HUGE opportunity for people with money to go in and buy some property.
Rental Property.
I'm doing it, a lot of people are buying up Homes and renting them.
Of course, in Austin and San Antonio, the Foreclosure rate is very low compared to the rest of the nation.
I've picked up 3 homes at around 70k each. Put 30 K each into them and they are all rented for a rent price more than what the Mortgage is. These homes are in San Antonio, in an area where there is strong military presences...because they rent for at least 4 years, then a new family or person comes in.
I've priced Austin but right now, Austin RE is through the roof. To get a decent home will cost 250k plus. To find a foreclosed home in ATX, ur looking in bad areas, which I m not interested in.
Im holding out for the HIGHRISE market in ATX to crash. It may or may not. But 500k buys you a Pimp Pad 40 stories above austin, then rest below going for 200-400K Many are sitting empty...so I'll have to see what happens with those.
So, the Foreclosure story in this country is a HUGE opportunity for those who want to build up hard assets and rental income.
Rental Property.
I'm doing it, a lot of people are buying up Homes and renting them.
Of course, in Austin and San Antonio, the Foreclosure rate is very low compared to the rest of the nation.
I've picked up 3 homes at around 70k each. Put 30 K each into them and they are all rented for a rent price more than what the Mortgage is. These homes are in San Antonio, in an area where there is strong military presences...because they rent for at least 4 years, then a new family or person comes in.
I've priced Austin but right now, Austin RE is through the roof. To get a decent home will cost 250k plus. To find a foreclosed home in ATX, ur looking in bad areas, which I m not interested in.
Im holding out for the HIGHRISE market in ATX to crash. It may or may not. But 500k buys you a Pimp Pad 40 stories above austin, then rest below going for 200-400K Many are sitting empty...so I'll have to see what happens with those.
So, the Foreclosure story in this country is a HUGE opportunity for those who want to build up hard assets and rental income.
that's why I said for the last ten years. For crying out loud, a house doesn't appreciate the day you buy it. But I'll grant you there may be a few, but most of these people refinanced at the top. If you bought at the top the best deal going is a walk away. You get to live free for at least 12 months.
