I am selling my house in Silver Spring, MD to a first time buyer who is putting down 5% (with $18K help from me for closing costs). He is getting a fixed rate loan through a broker, either with Countrywide or Wells Fargo. Selling price is $459.9K (below appraised value of $492K).
What are my chances he'll make it through closing on 11/30?
As a renter in Silva Sprizzle...I'm sorry that the price has gone down for you. My mother is trying to sell her house in Dedham, MA for sheer financial survival..a tenable retirement even...I mean real motivated seller here.
As a renter though...there are many houses that just went up too much too fast. I like silver spring a lot, but things got pretty out of hand pretty quick. We're hoping to look this spring as another baby comes our way. I don't cheer peoples home values going down, but I hope sanity restored can get us into a house---something we can afford.
I appreciate the schadenfreude here for the sheer excess that has gone on on the macro level, but many home price declines affect real people, in serious ways..and that sometimes gets lost here. There is innocent blood on the street too.
"Look out below" enthusiasm can be a bit sophomoric, n'est pas?
Yup, soft landing...right into quicksand. I think what we are watching is very similar to how we watched and waited for the housing bust. Knew it was coming, everyone and their mother said we were fools, and while it took longer to get here than we thought, all our reasoning was sound. Now, it's the same thing with the overall economy..going to take time, but it's coming. And IMHO, it won't be a small recession, because that's quite impossible given the problems that we already have pre-recession, which will go from bad, not to worse, but to spectacularly horrible.
Derivative Lawsuit Filed Vs Citigroup Over Mortgage Exposure
Dow Jones Newswires - November 07, 2007 11:57 AM ET
shareholder derivative lawsuit was filed Wednesday against Citigroup Inc. (C) its former chief executive, Charles Prince, several top executives and directors over losses related to its subprime mortgage-backed securities portfolio.
The lawsuit, filed in federal court in Manhattan, alleges Citigroup executives recklessly purchased subprime loans to be used for future collateralized debt obligations and then made allegedly improper statements regarding the financial services company's exposure to the subprime market meltdown.
Seems like real estate prices in NYC finally starting to crack. Nearly every apartment listed in my neighborhood (Morningside Heights) has been taken down 50k to 100k.
Makes sense considering the run up here was bigger than probably any other neighborhood in the city - and NYC is still a one-industry town, and the financial sector faces some big troubles.
Be careful about the absentee landlord thing. I am currently in the same boat and regarding evictions, our court mandates that I appear if the eviction is contested by the tenants. Pure bullsh_t but it is their right to demand my presence if they were to seek a trial. Anyway, make sure you print out a rental agreement that pertains to your particular state, run both a credit check as well as a landlord report and hope for the best.
By the way, how much do you think you will be able to rent your house for? I am assuming your CAP rate is under three.
I'm surprised nobody was "surprised" in that article.
Containment is still contained to the planet Earth, fortunately.
Is the Fed and Treasury still saying soft landing? How about that strong dollar Paulson keeps talking about?
I am selling my house in Silver Spring, MD to a first time buyer who is putting down 5% (with $18K help from me for closing costs). He is getting a fixed rate loan through a broker, either with Countrywide or Wells Fargo. Selling price is $459.9K (below appraised value of $492K).
What are my chances he'll make it through closing on 11/30?
No contingency I say the odds are 40%.
Of course if he follows this web site 0%.
The containment is so tight, its imploding before our very eyes! To be replaced by a black hole where the mortgage industry once stood.
As a renter in Silva Sprizzle...I'm sorry that the price has gone down for you. My mother is trying to sell her house in Dedham, MA for sheer financial survival..a tenable retirement even...I mean real motivated seller here.
As a renter though...there are many houses that just went up too much too fast. I like silver spring a lot, but things got pretty out of hand pretty quick. We're hoping to look this spring as another baby comes our way. I don't cheer peoples home values going down, but I hope sanity restored can get us into a house---something we can afford.
I appreciate the schadenfreude here for the sheer excess that has gone on on the macro level, but many home price declines affect real people, in serious ways..and that sometimes gets lost here. There is innocent blood on the street too.
"Look out below" enthusiasm can be a bit sophomoric, n'est pas?
Woe is me, guess I will have to become an absentee landlord (moving to California to keep my job).
What kind of container is used to contain these things. A colander?
Cheers,
Misean
Turn the one on your head right side up again and use it.
Expected "Soft Landing" becomes "Severe Downturn"
At least a soft landing is still expected for the overall economy.
Bull market in containers.
"Woe is me, guess I will have to become an absentee landlord (moving to California to keep my job)."
When you see the prices out here -- based on what you get for your money -- you'll wish you could stay in SS and teleport to work.
The "cheap" housing is always 40 miles from your job.
Uh-oh, I guess this means we might not get another season of A&E's Flip this House.
Yup, soft landing...right into quicksand. I think what we are watching is very similar to how we watched and waited for the housing bust. Knew it was coming, everyone and their mother said we were fools, and while it took longer to get here than we thought, all our reasoning was sound. Now, it's the same thing with the overall economy..going to take time, but it's coming. And IMHO, it won't be a small recession, because that's quite impossible given the problems that we already have pre-recession, which will go from bad, not to worse, but to spectacularly horrible.
Misean,It is an enema bag,not a colander.
It is amazing to me to watch how this has gone on in slow motion for at least 2 years and it still is denied by the Fed, Wall Street, etc.
A Fed that is so far behind the curve is worse than useless: it is harmful.
Derivative Lawsuit Filed Vs Citigroup Over Mortgage Exposure
Dow Jones Newswires - November 07, 2007 11:57 AM ET
shareholder derivative lawsuit was filed Wednesday against Citigroup Inc. (C) its former chief executive, Charles Prince, several top executives and directors over losses related to its subprime mortgage-backed securities portfolio.
The lawsuit, filed in federal court in Manhattan, alleges Citigroup executives recklessly purchased subprime loans to be used for future collateralized debt obligations and then made allegedly improper statements regarding the financial services company's exposure to the subprime market meltdown.
I think there might be some correlation to the ABX indices plunging in Nov and bad things happening.
FDIC Head Wants Investor Transparency
404 Error, No such article | Chron.com - Houston Chronicle
Ed, good luck with your sell. I might consider your house when it's below 300k. SS is way overrated, overpriced.
You guys worry too much. Conjure Bag says the deck chairs are fine just where they are.
When a planned "soft landing" encounters a "severe downturn" shouldn't we now call that a "crash landing".
What are my chances he'll make it through closing on 11/30?
Ed | 11.07.07 - 11:57 am | #
Chances are good because the first trust is conforming (417k and below). There are still all kinds of zero down programs available as well.
A Fed that is so far behind the curve is worse than useless: it is harmful.
wally
it is complicit
somewhat OT-
Seems like real estate prices in NYC finally starting to crack. Nearly every apartment listed in my neighborhood (Morningside Heights) has been taken down 50k to 100k.
Makes sense considering the run up here was bigger than probably any other neighborhood in the city - and NYC is still a one-industry town, and the financial sector faces some big troubles.
Ed-
Be careful about the absentee landlord thing. I am currently in the same boat and regarding evictions, our court mandates that I appear if the eviction is contested by the tenants. Pure bullsh_t but it is their right to demand my presence if they were to seek a trial. Anyway, make sure you print out a rental agreement that pertains to your particular state, run both a credit check as well as a landlord report and hope for the best.
By the way, how much do you think you will be able to rent your house for? I am assuming your CAP rate is under three.
Forbes - Bottomless Banking
Bottomless Banking - Forbes.com