Comments on: “Influx of renters raises tension in Bay Area” http://www.burbed.com/2009/01/10/influx-of-renters-raises-tension-in-bay-area/ San Francisco Bay Area, Silicon Valley House Price and Mortgage Insanity Blog Thu, 09 Feb 2012 01:07:13 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: nomadic http://www.burbed.com/2009/01/10/influx-of-renters-raises-tension-in-bay-area/#comment-24784 nomadic Tue, 13 Jan 2009 21:59:42 +0000 http://www.burbed.com/?p=2852#comment-24784 Yeah, if you move someday, be sure to budget $1,000-$1,500 per month for taxes so you can subsidize the old farts next door. ;-) Yeah, if you move someday, be sure to budget $1,000-$1,500 per month for taxes so you can subsidize the old farts next door. ;-)

]]> By: madhaus http://www.burbed.com/2009/01/10/influx-of-renters-raises-tension-in-bay-area/#comment-24783 madhaus Tue, 13 Jan 2009 21:54:13 +0000 http://www.burbed.com/?p=2852#comment-24783 <i>I think allowing people an extra three months to pay off their debt is pretty reasonable. It’s not like we have debtor’s prisons or anything. :-)</i> Oh don't worry, <b>nomadic</b>, we will. The Brazilification of the US is a real concern of mine. Seriously, look into the privitization of government services such as the military, prisons, and Veterans' services. Debtors' prison is a perfect tie-in with the draconian bankruptcy laws favored by banks that hurt consumers yet let corporations do whatever they want. Sorry. I guess I'm sounding like an angry renter today. I'm going to go admire my Prop 13 valuation now. I think allowing people an extra three months to pay off their debt is pretty reasonable. It’s not like we have debtor’s prisons or anything. :-)

Oh don’t worry, nomadic, we will. The Brazilification of the US is a real concern of mine. Seriously, look into the privitization of government services such as the military, prisons, and Veterans’ services. Debtors’ prison is a perfect tie-in with the draconian bankruptcy laws favored by banks that hurt consumers yet let corporations do whatever they want.

Sorry. I guess I’m sounding like an angry renter today. I’m going to go admire my Prop 13 valuation now.

]]> By: nomadic http://www.burbed.com/2009/01/10/influx-of-renters-raises-tension-in-bay-area/#comment-24782 nomadic Tue, 13 Jan 2009 21:48:03 +0000 http://www.burbed.com/?p=2852#comment-24782 I think allowing people an extra three months to pay off their debt is pretty reasonable. It's not like we have debtor's prisons or anything. :-) Folks need to take responsibility when they sign up for 30 years of payments. I think allowing people an extra three months to pay off their debt is pretty reasonable. It’s not like we have debtor’s prisons or anything. :-)

Folks need to take responsibility when they sign up for 30 years of payments.

]]> By: WillowGlenner http://www.burbed.com/2009/01/10/influx-of-renters-raises-tension-in-bay-area/#comment-24781 WillowGlenner Tue, 13 Jan 2009 20:53:43 +0000 http://www.burbed.com/?p=2852#comment-24781 When you do a lot of traveling to 3rd world countries, where mortgages for regular people are unavailable, it makes you reassess this "tough love" stance on govt subsidized mortgages. When you do a lot of traveling to 3rd world countries, where mortgages for regular people are unavailable, it makes you reassess this “tough love” stance on govt subsidized mortgages.

]]> By: nomadic http://www.burbed.com/2009/01/10/influx-of-renters-raises-tension-in-bay-area/#comment-24780 nomadic Tue, 13 Jan 2009 20:32:36 +0000 http://www.burbed.com/?p=2852#comment-24780 I am opposed to it simply because homeownership should not be subsidized. If they want to allow "hiatus" periods, then the P&I for those missed payments should be tacked on to the principal of the loan. No write-offs. The borrower can pay it back when they sell, refi, or in payment numbers 361-366. Yeah, I'd even be open to ending tax breaks if they were going to be fair/equitable in other ways too. I am opposed to it simply because homeownership should not be subsidized. If they want to allow “hiatus” periods, then the P&I for those missed payments should be tacked on to the principal of the loan. No write-offs. The borrower can pay it back when they sell, refi, or in payment numbers 361-366.

Yeah, I’d even be open to ending tax breaks if they were going to be fair/equitable in other ways too.

]]> By: WillowGlenner http://www.burbed.com/2009/01/10/influx-of-renters-raises-tension-in-bay-area/#comment-24779 WillowGlenner Tue, 13 Jan 2009 19:32:08 +0000 http://www.burbed.com/?p=2852#comment-24779 I am opposed to it because I think it will raise costs for mortgages while benefitting certain areas of the country disproportionately. If they do it and mortgages stay where they are pricewise, I think its a great idea. Basically, when all is said and done and they put this in, I suspect you will see when you run a report that the people that really USE these hiatus periods, assuming they were mandated would be in low cost areas of the country like Detroit. Bay areans pay off their mortgages and tend to have reserves. Not that I don't want to help the less fortunate, but for years the expensive parts of the country have subsidized the poorer areas, the entire "conforming loan limit" scam being the centerpiece of it. I heard Schiller on NPR talk about his plan, I will try to find it somewhere but just doing a google search brings up all kinds of stuff. I will post it if I can find it. I am opposed to it because I think it will raise costs for mortgages while benefitting certain areas of the country disproportionately. If they do it and mortgages stay where they are pricewise, I think its a great idea. Basically, when all is said and done and they put this in, I suspect you will see when you run a report that the people that really USE these hiatus periods, assuming they were mandated would be in low cost areas of the country like Detroit. Bay areans pay off their mortgages and tend to have reserves. Not that I don’t want to help the less fortunate, but for years the expensive parts of the country have subsidized the poorer areas, the entire “conforming loan limit” scam being the centerpiece of it.
I heard Schiller on NPR talk about his plan, I will try to find it somewhere but just doing a google search brings up all kinds of stuff. I will post it if I can find it.

]]> By: madhaus http://www.burbed.com/2009/01/10/influx-of-renters-raises-tension-in-bay-area/#comment-24778 madhaus Tue, 13 Jan 2009 19:23:51 +0000 http://www.burbed.com/?p=2852#comment-24778 <b>WG</b>, you got a decent link to Schiller's proposal? I'd like to take a good look before I make a serious comment (for once). Is it really reamortizing as a 366 month loan, or as a 360 month loan with some interest-only periods (that the mortgage company then writes off)? And are you seriously suggesting that you're opposed to this plan only because it won't benefit you personally? I would think that not having a bunch of foreclosed homes all around your rental empire would be in your interest as well. WG, you got a decent link to Schiller’s proposal? I’d like to take a good look before I make a serious comment (for once).

Is it really reamortizing as a 366 month loan, or as a 360 month loan with some interest-only periods (that the mortgage company then writes off)?

And are you seriously suggesting that you’re opposed to this plan only because it won’t benefit you personally? I would think that not having a bunch of foreclosed homes all around your rental empire would be in your interest as well.

]]> By: WillowGlenner http://www.burbed.com/2009/01/10/influx-of-renters-raises-tension-in-bay-area/#comment-24777 WillowGlenner Tue, 13 Jan 2009 19:16:34 +0000 http://www.burbed.com/?p=2852#comment-24777 Madhaus, Schillers proposal is to extend the loan by the 3 months, which is my issue with it because it then means in order to support this you need to price every mortgage for 366 months, assuming the plan is to offer 2 3-mos hiatus periods, vs todays pricing which is 360 mos. IOW the mortgage company eats it. The problems with this are that most mortgages are paid off in 7 years so the chances of somebody like me even when I was younger actually using those hiatus periods is fairly slim. But if this was mandated I would be paying for it. It would be more valuable in the more static areas of the country where people don't move and pay off their mortgage. Or in the mfg areas where people are laid off and rehired. Madhaus, Schillers proposal is to extend the loan by the 3 months, which is my issue with it because it then means in order to support this you need to price every mortgage for 366 months, assuming the plan is to offer 2 3-mos hiatus periods, vs todays pricing which is 360 mos. IOW the mortgage company eats it.

The problems with this are that most mortgages are paid off in 7 years so the chances of somebody like me even when I was younger actually using those hiatus periods is fairly slim. But if this was mandated I would be paying for it. It would be more valuable in the more static areas of the country where people don’t move and pay off their mortgage. Or in the mfg areas where people are laid off and rehired.

]]> By: madhaus http://www.burbed.com/2009/01/10/influx-of-renters-raises-tension-in-bay-area/#comment-24776 madhaus Tue, 13 Jan 2009 19:13:36 +0000 http://www.burbed.com/?p=2852#comment-24776 <b>anon</b>, that cannot be possible. Nobody in the RBA would get a Pay Option ARM and allow themselves to get that far behind when the loanrecast. If it did, though, a quick trip to Kleiner Perkins is all it takes; raise a hundred mil on one of their spare startup ideas. Problem solved! anon, that cannot be possible. Nobody in the RBA would get a Pay Option ARM and allow themselves to get that far behind when the loanrecast. If it did, though, a quick trip to Kleiner Perkins is all it takes; raise a hundred mil on one of their spare startup ideas. Problem solved!

]]> By: anon http://www.burbed.com/2009/01/10/influx-of-renters-raises-tension-in-bay-area/#comment-24775 anon Tue, 13 Jan 2009 19:00:50 +0000 http://www.burbed.com/?p=2852#comment-24775 LOL. It's not a straw man, I'm explaining to you how you can manipulate the system to the same result. Can't come up with 3 months of mortgage payments over the course of 7 months to make yourself current? You're over your head with respect to your mortgage and shouldn't be there anyway. Here's a straw man for ya: Everyone knows that people in the bay area are so smart that they can figure out how to make mortgage payments with or without a job so this is a moot point anyway. LOL.

It’s not a straw man, I’m explaining to you how you can manipulate the system to the same result.

Can’t come up with 3 months of mortgage payments over the course of 7 months to make yourself current? You’re over your head with respect to your mortgage and shouldn’t be there anyway.

Here’s a straw man for ya: Everyone knows that people in the bay area are so smart that they can figure out how to make mortgage payments with or without a job so this is a moot point anyway.

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