rob R's Discussions
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Mortage for full value Vs. asking price
oh good lord! if the homes are for sale and not selling, then that is at very best their market price, and probably more than their market price. Is this a freaking joke? if they were for sale at any markdown to market price, they would sell immediately.
US Gov't taking Control of Fannie and Freddie
short term, it may seem like good news, but long term of course it is another symptom of the illness: the sickness of the american housing market.
Make no mistake, if the GSE's begin reducing their portfolios, this can only happen by selling MBS or similar assets on the open market. With such selling, risk will be re-priced, and this will increase the cost of lending across the board.
nousetaxes:
In a sense, we already KNOW there will be taxpayer funded bailouts. When you pay taxes for the firedepartment, you are overpaying due to stupid jacktards that smoke in bed while drinking bacardi 151, or weld on their motorcycle gastank in the garage.
My concern is that we are OVER-Bailing out too early. Who really cared about bear stearns or countryslide? Fannie and freddie almost have to be kept functioning, but I'd prefer to see the stockholders wiped out and the bondholders take a loss, hell at least 5 or 10%, those notes were supposed to be riskier than treasuries.
The govt. will need to bailout FDIC before too long, and they seem to be spending their ammunition too early in the firefight. They need to keep some in reserve, as this grinds on.
Moderators.....Cmon this is really getting old.
Well, I've given up. He's posted my name, address, where I teach, etc. on here enough that I just don't care. I think I'll make a thread and just post my resume.
Selling a Building Lot. (Should I wait?)
gone for a bit:
IF you can get a builder to build the home, without you putting in the money, that could be a good deal. try to right the deal with a contingency if the house doesn't sell in say 6 months or 12 months after completion though; You wouldn't want to be stuck with his home there and unable to sell forever should the housing market tank. You will want a very competent real estate lawyer to help write up such a partnership agreement.
what is this rain you speak of? the sun shines everyday and today was like 106!
Selling a Building Lot. (Should I wait?)
No disrespect intended but I see it this way:
1. we are at the precept of possibly the most severe financial crisis in history: (bear stearns gone, lehman to follow, indymac and countrywide gone, fannie and freddie bailed out this weekend, fdic and fha will both need bailouts) the magnitude of this list is not to be dismissed lightly.
2. You have paid off land. (so you have little credit risk, but possibly it will be difficult/impossible to sell a price you perceive it to merit for a long time. Long time as in decades.
3. Building a home will UP your risk. Today you only risk the land value, put a home on it, and should this crisis land as the tsunami it seems to be, you will have invested considerable more that might take even longer to get out, and with much higher carrying costs. (unless you can build something that would rent for a good return on your initial investment, say 8% after clearing all taxes/management/maintenance/vacancy expenses) Now, I know your intention would be to build and sell, but NOT having a contingency plan would be foolhardy.
Government Plans Seizure of Fannie and Freddie
So we have morphed from "you are wrong there is no problem" to "if you're so smart run for office and fix it" I guess that skips right over the socially correct response of, "you guys we're right, I was wrong."
Selling a Building Lot. (Should I wait?)
we are in the biggest housing crash since the great depression, hell we may exceed that one, and you want to emark on a speculative building adventure right now? I'd say either sell it for whatever it can get now, or plan on holding it for decades.
US Gov't taking Control of Fannie and Freddie
well, one way or another, I can't see how credit doesn't tighten out of this, unless the govt just goes into direct lending.
1. the business model is flawed and losing money. You can't stop losing money unless you tighten up on riskier investments.
2. A fair number of banks hold alot of fannie/freddie preferred. taking these anticipated losses forward will stress some household name banks already stressed capitalization ratios.
3. good luck bring DPA back at this juncture. "yeah they can afford it.... errr... i mean... whatever"
10 hours ago
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