Comments on: “None of our subprime borrowers that have demonstrated the ability to make payments should lose their home to foreclosure solely as a result of a rate reset,” http://www.iboughtaduplex.com/real-estate/none-of-our-subprime-borrowers-that-have-demonstrated-the-ability-to-make-payments-should-lose-their-home-to-foreclosure-solely-as-a-result-of-a-rate-reset.php "Are you sure you can handle managing something like that?" Well, there's one sure way to find out... Thu, 01 Jul 2010 01:38:07 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: landlady http://www.iboughtaduplex.com/real-estate/none-of-our-subprime-borrowers-that-have-demonstrated-the-ability-to-make-payments-should-lose-their-home-to-foreclosure-solely-as-a-result-of-a-rate-reset.php/comment-page-1#comment-20889 landlady Fri, 01 Feb 2008 03:59:41 +0000 http://www.iboughtaduplex.com/general-day-to-day-landlord/none-of-our-subprime-borrowers-that-have-demonstrated-the-ability-to-make-payments-should-lose-their-home-to-foreclosure-solely-as-a-result-of-a-rate-reset.php#comment-20889 You're right. If not for the issue of it messing up the entire economy, i'd say that they should all get exactly what they signed up for... but a huge crash in the economy affects everyone, so it does sort of become everyone's problem. Not fair to the people who bought and financed more carefully, but I guess that's the way it goes sometimes.... You’re right. If not for the issue of it messing up the entire economy, i’d say that they should all get exactly what they signed up for… but a huge crash in the economy affects everyone, so it does sort of become everyone’s problem. Not fair to the people who bought and financed more carefully, but I guess that’s the way it goes sometimes….

]]> By: GH http://www.iboughtaduplex.com/real-estate/none-of-our-subprime-borrowers-that-have-demonstrated-the-ability-to-make-payments-should-lose-their-home-to-foreclosure-solely-as-a-result-of-a-rate-reset.php/comment-page-1#comment-20845 GH Wed, 30 Jan 2008 21:57:18 +0000 http://www.iboughtaduplex.com/general-day-to-day-landlord/none-of-our-subprime-borrowers-that-have-demonstrated-the-ability-to-make-payments-should-lose-their-home-to-foreclosure-solely-as-a-result-of-a-rate-reset.php#comment-20845 Well. Got a better idea? It's a pretty complicated problem, and it's @#$%ing up the rest of the economy now. There's no good solution. Only a least bad one. Well. Got a better idea? It’s a pretty complicated problem, and it’s @#$%ing up the rest of the economy now. There’s no good solution. Only a least bad one.

]]> By: Melissa http://www.iboughtaduplex.com/real-estate/none-of-our-subprime-borrowers-that-have-demonstrated-the-ability-to-make-payments-should-lose-their-home-to-foreclosure-solely-as-a-result-of-a-rate-reset.php/comment-page-1#comment-20296 Melissa Sat, 12 Jan 2008 16:41:18 +0000 http://www.iboughtaduplex.com/general-day-to-day-landlord/none-of-our-subprime-borrowers-that-have-demonstrated-the-ability-to-make-payments-should-lose-their-home-to-foreclosure-solely-as-a-result-of-a-rate-reset.php#comment-20296 Please disregard my rent vs buy scenario. Overly simplified! I didn't account for taxes and maintenance. Please disregard my rent vs buy scenario. Overly simplified! I didn’t account for taxes and maintenance.

]]> By: Melissa http://www.iboughtaduplex.com/real-estate/none-of-our-subprime-borrowers-that-have-demonstrated-the-ability-to-make-payments-should-lose-their-home-to-foreclosure-solely-as-a-result-of-a-rate-reset.php/comment-page-1#comment-20285 Melissa Fri, 11 Jan 2008 22:13:44 +0000 http://www.iboughtaduplex.com/general-day-to-day-landlord/none-of-our-subprime-borrowers-that-have-demonstrated-the-ability-to-make-payments-should-lose-their-home-to-foreclosure-solely-as-a-result-of-a-rate-reset.php#comment-20285 So true. We did the same thing with our 1st home 4 years ago. Luckily, the market was still climbing and we refied to a fixed 30. Nowadays, that wouldn't work. But also nowadays, we probably couldn't get a loan, because we could not have saved for a California-sized 20% down payment in that time. Here are the (approximate) numbers: $1500 mortgage minus $800 apt cost is $700. $700 saved per month for 4 years is over $33k. That could work as 10% down, but qualifying would have been more difficult without having a good mortgage history. And even in the current market, we could likely sell our house for at least $50k more than we paid for it, so we're still ahead of the game compared to saving alone. Thanks for the great blog, by the way! We're considering purchasing a duplex and living in one half when we move in a year or so. So true. We did the same thing with our 1st home 4 years ago. Luckily, the market was still climbing and we refied to a fixed 30. Nowadays, that wouldn’t work. But also nowadays, we probably couldn’t get a loan, because we could not have saved for a California-sized 20% down payment in that time. Here are the (approximate) numbers:

$1500 mortgage minus $800 apt cost is $700. $700 saved per month for 4 years is over $33k. That could work as 10% down, but qualifying would have been more difficult without having a good mortgage history. And even in the current market, we could likely sell our house for at least $50k more than we paid for it, so we’re still ahead of the game compared to saving alone.

Thanks for the great blog, by the way! We’re considering purchasing a duplex and living in one half when we move in a year or so.

]]>