Comments on: Study finds more millionaires in Bay Area http://www.burbed.com/2009/07/17/study-finds-more-millionaires-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/2009/07/17/study-finds-more-millionaires-in-bay-area/#comment-35740 nomadic Sat, 18 Jul 2009 00:43:40 +0000 http://www.burbed.com/?p=3771#comment-35740 <i>Hm, doesn’t that defeat the point of non-recourse?</i> It just depends whether they've owned long enough to refi or take out a HELOC. I'm sure there are plenty of fools that the banks could chase after. Hm, doesn’t that defeat the point of non-recourse?

It just depends whether they’ve owned long enough to refi or take out a HELOC. I’m sure there are plenty of fools that the banks could chase after.

]]> By: Marty McFly http://www.burbed.com/2009/07/17/study-finds-more-millionaires-in-bay-area/#comment-35739 Marty McFly Fri, 17 Jul 2009 23:47:46 +0000 http://www.burbed.com/?p=3771#comment-35739 If all real estate debt was non-recourse, that would be a sweet ATM. Why wouldn't one just take the maximum amount of cash out and walk-away? If all real estate debt was non-recourse, that would be a sweet ATM. Why wouldn’t one just take the maximum amount of cash out and walk-away?

]]> By: R http://www.burbed.com/2009/07/17/study-finds-more-millionaires-in-bay-area/#comment-35738 R Fri, 17 Jul 2009 23:43:10 +0000 http://www.burbed.com/?p=3771#comment-35738 "Hm, doesn’t that defeat the point of non-recourse?" No, CA's non-recourse rule is just designed to protect buyers in the purchase of their primary residence. It is not intended to allow investors, speculators, or idiots that choose to use their home as an ATM to skate on their loan obligations when they decide repaying their debt is no longer convenient or conducive to their lifestyle. “Hm, doesn’t that defeat the point of non-recourse?”

No, CA’s non-recourse rule is just designed to protect buyers in the purchase of their primary residence. It is not intended to allow investors, speculators, or idiots that choose to use their home as an ATM to skate on their loan obligations when they decide repaying their debt is no longer convenient or conducive to their lifestyle.

]]> By: CB http://www.burbed.com/2009/07/17/study-finds-more-millionaires-in-bay-area/#comment-35737 CB Fri, 17 Jul 2009 23:00:57 +0000 http://www.burbed.com/?p=3771#comment-35737 I'd find more satisfaction from seeing the bank's executives and shareholders wiped out, but that sure as hell ain't going to happen. How about for every foreclosure a lender drops within a 2 mile radius of your underwater home, 10% of that recourse debt is forgiven when you walk. I’d find more satisfaction from seeing the bank’s executives and shareholders wiped out, but that sure as hell ain’t going to happen.

How about for every foreclosure a lender drops within a 2 mile radius of your underwater home, 10% of that recourse debt is forgiven when you walk.

]]> By: burbed http://www.burbed.com/2009/07/17/study-finds-more-millionaires-in-bay-area/#comment-35736 burbed Fri, 17 Jul 2009 23:00:26 +0000 http://www.burbed.com/?p=3771#comment-35736 <i>Take for example a lot of the six figure code monkeys in Silicon Valley that used similar I/O and option-ARM loan instruments during the run up. If these folks start walking away from some of their obligations, they will likely still be commanding premium sized paychecks that the banks can go after.</i> Hm, doesn't that defeat the point of non-recourse? Take for example a lot of the six figure code monkeys in Silicon Valley that used similar I/O and option-ARM loan instruments during the run up. If these folks start walking away from some of their obligations, they will likely still be commanding premium sized paychecks that the banks can go after.

Hm, doesn’t that defeat the point of non-recourse?

]]> By: Pralay http://www.burbed.com/2009/07/17/study-finds-more-millionaires-in-bay-area/#comment-35735 Pralay Fri, 17 Jul 2009 21:53:17 +0000 http://www.burbed.com/?p=3771#comment-35735 Although it explains why so many flat screens are selling in craiglist, but RealEstater never had a flat screen because he is priced out for real estate investment after procrastinating for <a href="http://www.burbed.com/2008/03/14/spring-bounce-is-here-5-monthly-appreciation-is-back/#comment-14336" rel="nofollow">more than a year</a>. He has a property</a> what he calls investment <a href="http://www.burbed.com/2009/03/18/375sqft-with-3-bedrooms-in-san-francisco/#comment-41496" rel="nofollow">"equivalent of 3 median priced properties"</a>, but unfortunately all the renters (his trophy wife and children) don't pay him rent <i>equivalent to flat screen</i>. :( Although it explains why so many flat screens are selling in craiglist, but RealEstater never had a flat screen because he is priced out for real estate investment after procrastinating for more than a year. He has a property what he calls investment “equivalent of 3 median priced properties”, but unfortunately all the renters (his trophy wife and children) don’t pay him rent equivalent to flat screen. :(

]]> By: BuyersAreIdiots http://www.burbed.com/2009/07/17/study-finds-more-millionaires-in-bay-area/#comment-35734 BuyersAreIdiots Fri, 17 Jul 2009 21:35:44 +0000 http://www.burbed.com/?p=3771#comment-35734 <i>Don’t you mean that would be a satisfying scenario?</i> Well, that too. :-) I got dibs on Real Excreter's flat screen when it goes up for public auction! Don’t you mean that would be a satisfying scenario?

Well, that too. :-)

I got dibs on Real Excreter’s flat screen when it goes up for public auction!

]]> By: CB http://www.burbed.com/2009/07/17/study-finds-more-millionaires-in-bay-area/#comment-35733 CB Fri, 17 Jul 2009 20:46:31 +0000 http://www.burbed.com/?p=3771#comment-35733 <i>So that will be an interesting scenario.</i> Don't you mean that would be a <i>satisfying</i> scenario? So that will be an interesting scenario.

Don’t you mean that would be a satisfying scenario?

]]> By: BuyersAreIdiots http://www.burbed.com/2009/07/17/study-finds-more-millionaires-in-bay-area/#comment-35732 BuyersAreIdiots Fri, 17 Jul 2009 19:32:50 +0000 http://www.burbed.com/?p=3771#comment-35732 R, My suspicion as to whether or not the banks go after recourse will vary from situation to situation. In the subprime realm, I doubt if they will decide to go after that pink elephant. However, in the Alt-A and prime categories, a lot of those folks will have meat that can be picked. Take for example a lot of the six figure code monkeys in Silicon Valley that used similar I/O and option-ARM loan instruments during the run up. If these folks start walking away from some of their obligations, they will likely still be commanding premium sized paychecks that the banks can go after. So that will be an interesting scenario. R,

My suspicion as to whether or not the banks go after recourse will vary from situation to situation.

In the subprime realm, I doubt if they will decide to go after that pink elephant. However, in the Alt-A and prime categories, a lot of those folks will have meat that can be picked.

Take for example a lot of the six figure code monkeys in Silicon Valley that used similar I/O and option-ARM loan instruments during the run up. If these folks start walking away from some of their obligations, they will likely still be commanding premium sized paychecks that the banks can go after. So that will be an interesting scenario.

]]> By: anon http://www.burbed.com/2009/07/17/study-finds-more-millionaires-in-bay-area/#comment-35731 anon Fri, 17 Jul 2009 19:15:09 +0000 http://www.burbed.com/?p=3771#comment-35731 "then you would have to count the illiquid assets (like home equity) they excluded, no?" Of course... “then you would have to count the illiquid assets (like home equity) they excluded, no?”

Of course…

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