THat hot HOusing Market....
- Thread starter topguntrader
- Start date
I don't mean to sound idealistic, but...
so, you're saying, enter into a contract you don't intend to fulfill?
I get it! Like getting married, figuring, hey, if it doesn't work, I'll just get a divorce!
Integrity undergirds free markets and free societies. A generation that does business like this is all it takes....
so, you're saying, enter into a contract you don't intend to fulfill?
I get it! Like getting married, figuring, hey, if it doesn't work, I'll just get a divorce!
Integrity undergirds free markets and free societies. A generation that does business like this is all it takes....
Of course I intend to fulfill the contract unless I lose my job and can't. I would lose the house and screw up my credit report anyway. If the system allows you to borrow up to 100% of loan to value, one should take advantage of it and set up this 'hedge'. Will I do it? Heck if this real estate bubble gets further out of hand then yes I will coz the higher they are the harder they fall.
RE: idealism-I believe in free markets for free men.
RE: idealism-I believe in free markets for free men.
Dat,
Why not short some of the REITS as they start to crack. Some have already started to cut dividends. You will still have to pay any dividend being short, but you would pay it with a home equity loan anyway. Then invest the funds like you planned to do. That way you can keep your home and your credit.
Or sell your house now and rent for a while.
Why not short some of the REITS as they start to crack. Some have already started to cut dividends. You will still have to pay any dividend being short, but you would pay it with a home equity loan anyway. Then invest the funds like you planned to do. That way you can keep your home and your credit.
Or sell your house now and rent for a while.
Here is my way to be totally irresponsible.
1. Take out an interest only loan (with no down payment) on a house that I paid too much for during the boom time.
2. Run up a lot of credit card debt because I don't have enough money to pay my bills and the mortgage at the same time (but I will when I get that next big raise).
3. Lose my job working for ifionlyhadaclue.com (oops, I didn't get that raise after all).
4. Pile on another thick layer of credit card debt to insure I'll never get out of this mess.
5. Drive like a bat out of hell to Mexico with my only asset (my car) and let the creditors sort it all out.
Oh wait, that's what everyone else is doing.
Matt,
That sounds like a trade I've read about called the Chicago Swing or something like that. That is where you load up on a position and a plane ticket to the Caribbean. If the position pays off you show up for work on Monday, if not Coffee, Tea or for $4 you can purchase an alcoholic beverage, correct change is appreciated.
That sounds like a trade I've read about called the Chicago Swing or something like that. That is where you load up on a position and a plane ticket to the Caribbean. If the position pays off you show up for work on Monday, if not Coffee, Tea or for $4 you can purchase an alcoholic beverage, correct change is appreciated.
<b>Don't mean to sound flip, but wouldn't that kinda look bad on your credit report when you go and try to get the next house?</B>
The one thing that will always prevail is that bankers are greedy. Prove you don't need the money and likely you will get funded.
If someone planned on walking away anyway, why be concerned with your credit? Especially if you could buy your next home for CASH.
Everybody has priorities regarding how they get the cash out of thier homes. I don't agree with the walk away method, but, people are planning and it's going to happen.
The one thing that will always prevail is that bankers are greedy. Prove you don't need the money and likely you will get funded.
If someone planned on walking away anyway, why be concerned with your credit? Especially if you could buy your next home for CASH.
Everybody has priorities regarding how they get the cash out of thier homes. I don't agree with the walk away method, but, people are planning and it's going to happen.
I was emailing one of my friends about the discussions we've had here relative to the real estate market, and he informed me of something that I had no idea was occurring.
Apparently one of his coworkers has a "negative amortization" mortgage. his monthly payment doesn't even cover the interest, so he's capitalizing interest every month! that's fine if you can refinance down the road, but if values drop he's screwed! yikes!
Apparently one of his coworkers has a "negative amortization" mortgage. his monthly payment doesn't even cover the interest, so he's capitalizing interest every month! that's fine if you can refinance down the road, but if values drop he's screwed! yikes!