Destino Posted May 29, 2008 Share Posted May 29, 2008 Why would you buy now or especially 9 months ago? Why wouldn't you buy now? Depending on where you are the low point may have been 2 months ago. Link to comment Share on other sites More sharing options...
Destino Posted May 29, 2008 Share Posted May 29, 2008 Honestly, I think that's the thinking that got people into trouble in the first place. 3300/month rent gets him a much nicer place than 3300/month mortgage. Plus there are lots of things to buy for a home versus a rental. Not saying it shouldn't be done, but it's a whole lot more work. His credit could be a problem as well. That would make his borrowing power less. They would want 20% down, maybe he doesn't have that nut. It's not the no-brainer that you are describing. 1 - talking about financial trouble and following it with "3300/month rent gets him a much nicer place than 3300/month mortgage" is hilarious. That uglier 3300 is actually going towards your own asset. The nicer one is going into the fireplace. 2- 20% is nonsense. Pay off your collections and get yoru credit over 580 and get an FHA loan for only 3% down (or nothing if your agent can get the seller to cover it). 3300 may or may not be high for the area he's living it. People in WV probably think rent in northern VA is insane. Link to comment Share on other sites More sharing options...
Larry Posted May 29, 2008 Share Posted May 29, 2008 Had the same thing happen to me (although it involved considerable less money) when I lived in Norfolk. I was renting half of a house. One day, me and the folks renting the downstairs receive registered letters from some company in California that began "As you are aware, we forclosed on the property you are occupying three months ago". My landlord not only didn't tell us the property was in forclosure, he continued collecting rent for three months after it wasn't even his house any more. Things may have changed, but I spoke with a lawyer at the time (this was 20 years ago), and he told me that I still had a lease. That when the bank forclosed on the house, the lease was considered an obligation on the property, and that the bank was now my landlord. (The lawyer also told me, though, that I should be prepared for the possibility that a court might rule differently, and that it was concievable that I'd be hearing from a sheriff telling me that I had 48 hours to get out. But that until that time, I had the legal right to keep living there.) I replied (in writing) to the bank, telling them that I was staying, and where did they want me to send the rent. (Of course, the letter arrived two days after I paid the rent to "the landlord".) They never responded. I stayed there for two months, without rent, then got out. (I'd saved up enough for deposit on a new place, and figured I'd better get out before I got evicted/a demand for six months back rent.) Link to comment Share on other sites More sharing options...
Buford T. Justice Posted May 30, 2008 Share Posted May 30, 2008 Those things happen. Link to comment Share on other sites More sharing options...
PleaseBlitz Posted May 30, 2008 Share Posted May 30, 2008 Why wouldn't you buy now? Depending on where you are the low point may have been 2 months ago. And depending where you are it might be 6 months from now. Link to comment Share on other sites More sharing options...
Destino Posted May 30, 2008 Share Posted May 30, 2008 And depending where you are it might be 6 months from now. sure but you won't know it until it's history and at a loan size of slightly over 450k he wouldn't be in the low income segment that hardest hit. Not to mention the fact that REO's can take 6 weeks just to get a ratified contract. So waiting for that "bottom out" could realistically put you 3.5 months past it... when the papers catch wind of it. Then who knows. The time to shop is now.... or in the NoVA area a few months ago. Multiple contracts are now common as far out as sterling. Link to comment Share on other sites More sharing options...
Shilsu Posted May 30, 2008 Share Posted May 30, 2008 There was an article a while back that showed that if you rented instead of owned and invested the difference (down payment + property taxes + etc), you'd actually come out on top. Also, why is everyone trying to time the real estate market, lol. Couple years ago, it was, "buy now or be priced out forever". Now it's the same thing again... Just buy a place when you're ready to settle down, because over 30 years, it's not gonna matter. Link to comment Share on other sites More sharing options...
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