So we put our house on the market.....

[Englewood]

I just emailed it. Yes, no loan contingency in offer even though they were taking out a mortgage.

Hate to give you the bad news but you wont get any of his deposit. I've seen many situations where a seller doesn't even get to keep all of the deposit after a fully executed CR.

 

[OldSchoolBoats]

Hate to give you the bad news but you wont get any of his deposit. I've seen many situations where a seller doesn't even get to keep all of the deposit after a fully executed CR.

I wasn't expecting to anyway. I am just going to try and move on and let this be a situation to learn from. Hopefully we can get back on track and sell soon so that we can keep moving forward on the other house. Really sucks because my wife spent a ton of time boxing stuff up and now we have to take it all out to get the house ready to show again.

 

[JM21]

Might want to re-read the contract. You are incorrect. It's sad how many agents don't understand the NTP process.

View attachment 486783

Sorry, I should not have said "can't"...I personally don't. I wait until day 17 depending on the situation. If the buyers agent is flaky and non-respondent then he/she will get it quicker. If they are in constant contact and say they just need another day or so I give it to them.

 

[Englewood]

I wasn't expecting to anyway. I am just going to try and move on and let this be a situation to learn from. Hopefully we can get back on track and sell soon so that we can keep moving forward on the other house. Really sucks because my wife spent a ton of time boxing stuff up and now we have to take it all out to get the house ready to show again.

I hear ya..If anything it will help you relate to a borrower you're working with in a similar situation. Your house looks nice, don't think you'll have a problem selling it.

 

[wsuwrhr]

I wasn't expecting to anyway. I am just going to try and move on and let this be a situation to learn from. Hopefully we can get back on track and sell soon so that we can keep moving forward on the other house. Really sucks because my wife spent a ton of time boxing stuff up and now we have to take it all out to get the house ready to show again.

Keep your head up bud.

 

[JM21]

I wasn't expecting to anyway. I am just going to try and move on and let this be a situation to learn from. Hopefully we can get back on track and sell soon so that we can keep moving forward on the other house. Really sucks because my wife spent a ton of time boxing stuff up and now we have to take it all out to get the house ready to show again.

Just looked at contract Joe, he is going to get his full deposit back and guarantee he will use paragraph 14B as his reason. He has 17 days to back out no matter what reason is used, unless of course you received a CR for inspection. It is a clean, well written contract but he is bending you over on day 16 for a BS reason.

 

[OldSchoolBoats]

Just looked at contract Joe, he is going to get his full deposit back and guarantee he will use paragraph 14B as his reason. He has 17 days to back out no matter what reason is used, unless of course you received a CR for inspection. It is a clean, well written contract but he is bending you over on day 16 for a BS reason.

Yeah, who knows. God works in mysterious ways so there is a reason behind all this madness, I don't know, but whatever it is I am sure it is for the best.

 

[JM21]

Yeah, who knows. God works in mysterious ways so there is a reason behind all this madness, I don't know, but whatever it is I am sure it is for the best.

Totally agree. Market is on fire up there Joe, you will be fine. My only suggestion, don't accept a contingent offer in today's market, esp in Temecula. There is a buyer out there that does not have to sell first.

 

[Abc123]

I wasn't expecting to anyway. I am just going to try and move on and let this be a situation to learn from. Hopefully we can get back on track and sell soon so that we can keep moving forward on the other house. Really sucks because my wife spent a ton of time boxing stuff up and now we have to take it all out to get the house ready to show again.

Some advice: Next time you interview an agent, ask them how many houses they themselves (not their team/office) have sold. Many sellers, ask a lot of questions on how you'll get the house sold (marketing and etc), that's not enough. Ask what they will do once the home is under contract. This is big. Do they use a TC? Do they have a full-time, part-time assistant, shared assistant or any assistant? If they don't have at least a part-time assistant, who they pay for, you're pissing in the wind with that agent. Would you go to a dentist that doesn't have an assistant? LOL

...What is their relation ship with the venders they use and why do they use them (escrow, title, etc). What systems do they have in place? Agents that have been around for awhile, who have been full-time, typically have been because they treat what they do like an actual business. Most RE agents don't. There's a big reason why 5% of the RE agents do 90% of the business and there's a big reason why RE agents in general get a bad reputation; Most of them are worthless. I know this, because I work with them daily. I regularly have to show agents how to fill out an offer correctly and coach them on what to say to their clients. RE agnets are famous for acting like they're the shit and know what they're doing, then you pull their actual numbers on the MLS and ummm. :rolleyes

 

[Abc123]

My TC fee's are my favorite bill to pay. My girl is a LIFE SAVER! She is a licensed agent, has been an escrow officer, as well as a title rep and has seen it all. Must have.

I don't like sharing a TC and paying the $300 or whatever fee the brokers charge. I prefer having my own full-time staff who focuses on no one but me. That way if they mess up or if they like to play grab ass at the water cooler with the soccer mom agents, I can handle it. Rather than having to complain to the broker (follow the chain of command). Better to have an employee that does all of the non income producing activities, like order signs, schedule showings and etc. I'd rather post on RDP. LOL

 

[OldSchoolBoats]

Just signed the cancellation, deal is dead.

Looked up the buyers agent and she has sold 4 properties total since 2005........:rolleyes

 

[wsuwrhr]

Just signed the cancellation, deal is dead.

Looked up the buyers agent and she has sold 4 properties total since 2005........:rolleyes

Obviously a 1%er Hell, probably doing it for beers :thumbsup

Hope you have better luck round # 2 !!!

Fuck.

Keep your head up. Move on. Next.

Sounds like your realtor needs an evaluation of their own.

I went through 3 agents selling my SB house, three tries to sell it over a few year period. The first agent exerted some effort, held open houses and such. Dropped asking price.... Not one interested buyer.

Second agent didn't do anything except have someone plant a sign.

Third sold it in six weeks for asking price with no damn sign in the yard.

 

[wsuwrhr]

Just signed the cancellation, deal is dead.

Looked up the buyers agent and she has sold 4 properties total since 2005........:rolleyes

Probably the buyers friend. Which may be the reason they got your email address.

 

[Abc123]

Probably the buyers friend. Which may be the reason they got your email address.

Wonder if they were getting the 1% homie hook up. I've seen agents who credit their commissions back to the buyer. :rolleyes

 

[wsuwrhr]

Wonder if they were getting the 1% homie hook up. I've seen agents who credit their commissions back to the buyer. :rolleyes

I got my hand on the lid of that can.

 

[robby dmax]

Fuck.

Keep your head up. Move on. Next.

Sounds like your realtor needs an evaluation of their own.


Playing nice...was the listing agent getting 6% or??

 

[OldSchoolBoats]

Playing nice...was the listing agent getting 6% or??

Listing agent sold me the house in 2013, he also refers me quite a bit of business. He does a lot of transactions in the area. Standard commission in our area is 5%, he is doing this deal for 4% since he is double ending on the buy side of my other house.

He is paying 2.5% to buyers agent, but our new strategy to develop interest right away is going to be to offer 3% to buyers side so technically he would be listing at 1%, however he is making 2.5% on my other purchase so its worth it to him. He is also a broker and owns his own company so doesn't have to pay that split.

 

[wsuwrhr]

Wouldn't part of his job be verifying the legitimacy of buyers offer?

Brian

Listing agent sold me the house in 2013, he also refers me quite a bit of business. He does a lot of transactions in the area. Standard commission in our area is 5%, he is doing this deal for 4% since he is double ending on the buy side of my other house.

He is paying 2.5% to buyers agent, but our new strategy to develop interest right away is going to be to offer 3% to buyers side so technically he would be listing at 1%, however he is making 2.5% on my other purchase so its worth it to him. He is also a broker and owns his own company so doesn't have to pay that split.

 

[wsuwrhr]

In RE, isn't "double ending" when the agent represents both the seller and buyer?

Listing agent sold me the house in 2013, he also refers me quite a bit of business. He does a lot of transactions in the area. Standard commission in our area is 5%, he is doing this deal for 4% since he is double ending on the buy side of my other house.

He is paying 2.5% to buyers agent, but our new strategy to develop interest right away is going to be to offer 3% to buyers side so technically he would be listing at 1%, however he is making 2.5% on my other purchase so its worth it to him. He is also a broker and owns his own company so doesn't have to pay that split.

 

[TOBTEK]

In RE, isn't "double ending" when the agent represents both the seller and buyer?

NO.... Selling agent for this home. Then buyers agent for the next one.


You're referring to a "dual Agency"

 

[thetub]

In RE, isn't "double ending" when the agent represents both the seller and buyer?

thats what I thought...

 

[wsuwrhr]

I won the spelling bee. Mother fucker

No shit?

 

[BHC Vic]

No thanks - your work too hard for your paycheck

It's the 5 hours of traffic that's killing me [emoji15]

 

[OldSchoolBoats]

I am thinking of re listing at $400k and then emailing the listing to the guy and his agent with a big happy face and a middle finger, since the wife was practically in tears last night unpacking all the stuff she spent hours packing up.

At that price we are $20k under the appraisal that was just done.........

 

[BHC Vic]

I am thinking of re listing at $400k and then emailing the listing to the guy and his agent with a big happy face and a middle finger, since the wife was practically in tears last night unpacking all the stuff she spent hours packing up.

At that price we are $20k under the appraisal that was just done.........

Would you still get the other house if you got an offer pretty quick?

 

[YoPengo]

Sucks Joe... Hope it all works out for your family.

 

[Deja_Vu]

Hang in there Joe! Just don't list below your appraisal...you can do this.
Go in at $419900 and be confident. Inventory is still super low!

 

[boatpi]

OSB, maybe you cam old you new house deal together by offering 5K more rather than reducing yours, might get you another 30 day extension.

 

[Singleton]

Joe
Hope everything works out. Sorry to hear the new house has to be delayed

 

[BHC Vic]

The cost of my boat has absolutely zero correlation to my income.

I have more money in my 7 year olds gymnastics and soccer programs lol

Terrible argument, Grads. But it is very much how our society views one another. Sad...

I don't know. In all honesty if I made more money I'd have a more expensive boat. My kids sports and everything would be the same maybe they would have nicer gear but I would for sure have a more expensive boat or maybe just multiple [emoji4]

 

[HitIt]

Because most make more on a % basis.

Right, and I think you kind of hit the nail on the head and illustrate why people dislike the whole "realtor" run system. If we have a true capitalistic market, both the producer (realtor) and consumer (person buying or selling a house) should come to an agreement on a fair price. When that doesn't happen, it is often due to a captured market. I think many people (rightly so) feel that the game is rigged and they don't have any real option other than to pay the fee to the system.

No one is going to pay a realtor T&M to sell a house, it is a Pandoras Box, especially when a deal goes sideways like this one with OSB.

I would, but maybe I am in the minority.

I know one argument for the fixed percentage is that it motivates the agents to complete the sale. If that was taken out of the equation, people would start looking at the agent's completed transaction records in order to determine whether or not they wanted to hire a particular agent. Once again, I think that is a good thing. It helps clear out the riff-raff.

 

[rivrrts429]

I don't know. In all honesty if I made more money I'd have a more expensive boat. My kids sports and everything would be the same maybe they would have nicer gear but I would for sure have a more expensive boat or maybe just multiple [emoji4]

We have different boating styles. Big boats do nothing for me. I admire them but it's not what I like in boats.

I was just making the point that boats are not indicative of ones income. They're simply what type of boating someone enjoys.

 

[HitIt]

Drive down to Newport coast one of these days and see what's in 99% of people's driveways.....

Exotic after exotic.

I think you misread what our delicious breakfast food inmate was attempting to convey. Unless you consider older Volvos to be exotics.

 

[TOBTEK]

Yeah. Might even create a bidding war [emoji2]

You should list it low. Do a 15 or so day silent "highest and best" that's working down here. Nothing drives the price up faster then bidding against the unknown.

 

[djunkie]

Lol. Every time I'm in Newport the one thing I notice is the overabundance of exotic cars.

 

[HitIt]

I am curious, on average, how many hours realtors have tied up in transactions these days with the current average time on market. Just looking for ballpark estimates on a mid-level home including everything like meeting with the client, photos and listing, open houses, escrow, etc. I would be interested in estimates for both the buyer's and seller's end. A breakdown of the time associated with each transaction would be interesting. I realize that transactions are all over the map in terms of complexity so I am just looking for a very rough estimate.

 

[Advantage 1]

This is why more money rarely solves people's problems, because as soon as they get more, they think of ways to spend it, so then they need another raise, then repeat.

My sister and her dude are a perfect examples of this. They really try to keep up with the Jones up in Anaheim Hills. Living paycheck to paycheck the way they do must completely suck. But they have the 'right' zip code and the cars in the driveway to prove it. :rolleyes

 

[boatpi]

Just a thought for anyone doing a house sell, buy about now. A few words of wisdom not mentioned in this thread.

1. A letter of approval from a lender is close to worthless, might as well use it as shit tissue. A client that has gone through complete underwriting with a set loan cap is usually solid.

2. Never when buying RE deposit or withdraw more than 1K from ANY account unless you have complete written documentation, copy of all checks deposited, and on. This goes 90 days prior to entering escrow to purchase/finance. This gives underwriters the willies.

3. Many underwriters are clueless, sometimes plain stupid, and have no concept on how to interpret tax forms from clients that own income property. they have little experience understanding the Fannie guidelines on how to add back in numbers shown as losses for tax purposes. I have received comments like "this makes great tax sense but we do not like to see this". Although it (IRS forms) is perfectly legal and 100% accurate. Just shit birds all to often.

4. No not buy or sell are car, or any big dollar item that would cause a deposit into your account or finance a car during escrow. This could be a fatal mistake causing debt ratio to fall below 42%.

Unless someone involved is paying ca$h, heed my words.
BPI

 

[TCHB]

L.A. is the most unaffordable housing market in the entire country. Beyond the pretense that everyone is rich and has money stashed in their backyards being guarded by Chihuahuas with cubic zirconia necklaces, most in California are living deep in debt. Those buying homes today are either investors, wealthy foreigners, or locals leveraging to the max for that wonderful crap shack. What makes the LA/OC market the most unaffordable is that wages flat out do not justify current home prices. Since LA is a majority renter county, it is important to look at dynamics in this group. One study from UCLA found that LA renters devote nearly 50 percent of their income to rent. Taco Tuesday isn?t only a baby boomer mainstay, it is a necessity to pay the rent. The disconnect only got more profound over the last two years. Housing prices in the LA/OC area went up by 28 percent while wages went up by 2 percent. Thanks to maximum leverage loans, big investor demand, and low interest rates, people can buy a $700,000 crap shack and pretend they are truly rolling deep in cash. All the data coming out is showing that many are flat out pretending and living paycheck to paycheck, even with expensive budgets.

The big disconnect between wages and home prices

It is good to see more people seeing the disconnect for what it truly is. All we are seeing is more money being siphoned off into the housing industry. The amount of justification now coming out for crap shacks is at levels last seen in 2006 and 2007. Just take a look at the glorious deals you can have and be our guest and plunk down $700,000 for a box that needs major remodeling and lock yourself into 30 years of mortgage payments.

The LA/OC market isn?t the only one seeing this dramatic disconnect. The San Francisco market which is even more bananas than SoCal saw even a larger disconnect. Take a look at wage changes versus home price changes over the last two years:

 

[Englewood]

I employ 400 Realtors in California and can guarantee that only the best Realtors will take home $100k+ consistently. Don't believe everything you see on TV. The agents who bring home 6 figures work really hard and treat it like a true business.

Rarely does anyone get 6% in SoCal anymore. 5% is the going rate.

At a national brokerage, an agent is lucky to see 1% of each sale after taxes, broker splits, board fees, advertising, etc.

 

[wsuwrhr]

I recall asking about this when I was in the market as I felt the same after doing it a couple times.

I believe I was told this wasn't even possible without a physical address to purchase.

To me it seemed pretty pointless to put an offer on a house AND THEN do financing, better to tell me what I am approved for and have the money "ready" so my offer was legit and the transaction could be put in process sooner.

Brian

1. A letter of approval from a lender is close to worthless, might as well use it as shit tissue. A client that has gone through complete underwriting with a set loan cap is usually solid.

BPI

 

[Abc123]

L.A. is the most unaffordable housing market in the entire country. Beyond the pretense that everyone is rich and has money stashed in their backyards being guarded by Chihuahuas with cubic zirconia necklaces, most in California are living deep in debt. Those buying homes today are either investors, wealthy foreigners, or locals leveraging to the max for that wonderful crap shack. What makes the LA/OC market the most unaffordable is that wages flat out do not justify current home prices. Since LA is a majority renter county, it is important to look at dynamics in this group. One study from UCLA found that LA renters devote nearly 50 percent of their income to rent. Taco Tuesday isn?t only a baby boomer mainstay, it is a necessity to pay the rent. The disconnect only got more profound over the last two years. Housing prices in the LA/OC area went up by 28 percent while wages went up by 2 percent. Thanks to maximum leverage loans, big investor demand, and low interest rates, people can buy a $700,000 crap shack and pretend they are truly rolling deep in cash. All the data coming out is showing that many are flat out pretending and living paycheck to paycheck, even with expensive budgets.

The big disconnect between wages and home prices

It is good to see more people seeing the disconnect for what it truly is. All we are seeing is more money being siphoned off into the housing industry. The amount of justification now coming out for crap shacks is at levels last seen in 2006 and 2007. Just take a look at the glorious deals you can have and be our guest and plunk down $700,000 for a box that needs major remodeling and lock yourself into 30 years of mortgage payments.

The LA/OC market isn?t the only one seeing this dramatic disconnect. The San Francisco market which is even more bananas than SoCal saw even a larger disconnect. Take a look at wage changes versus home price changes over the last two years:

I strongly believe that we are headed for a major correction. There is only one thing that can drive prices up, income.

If people can't afford homes now, how will they if income continues to decline all while the cost of living goes up (inflation). The ONLY reason why prices rose in 2012-2013 was due to low rates and hedge funds buying bulk sales. Less inventory and lower rates made the prices go up, not the economy. The government should have never got involved and continued to let prices fall to affordable levels. I don't get why Americans have this mentality that prices gong up is a a good thing. It's not! It only means our currency is worthless and that we must work longer and harder for less. How is that a better quality of life for this country?

I talk to people every single day, who think the value of their homes will rise soon. All for a variety of reasons. No one has a crystal ball, but we all should have some level of common sense. What is happening in the market now and in the past 2 decades does not make any sense.

Think about this, if a young couple in LA/OC wants to buy a starter home ($500k), they earn $120k per year combined and want to buy a home with 20% down, that's a $100k down payment. If they're bringing in $10k a month before takes, you figure they have rent, bills and etc, so maybe that leaves them with $1k per month to save (if they are very frugal). That would take them nearly 10 years to save up for a home. That just doesn't make any sense. Which is why the 3.5% down payment crap, which can only have bad repercussions IMO.

I think the next thing wont be REO, it will be mortgage insurance companies liquidating when people go into default as FHA has dominated the loan market over the past decade.

These are all just my opinions.

 

[Tooms22]

L.A. is the most unaffordable housing market in the entire country. Beyond the pretense that everyone is rich and has money stashed in their backyards being guarded by Chihuahuas with cubic zirconia necklaces, most in California are living deep in debt. Those buying homes today are either investors, wealthy foreigners, or locals leveraging to the max for that wonderful crap shack. What makes the LA/OC market the most unaffordable is that wages flat out do not justify current home prices. Since LA is a majority renter county, it is important to look at dynamics in this group. One study from UCLA found that LA renters devote nearly 50 percent of their income to rent. Taco Tuesday isn?t only a baby boomer mainstay, it is a necessity to pay the rent. The disconnect only got more profound over the last two years. Housing prices in the LA/OC area went up by 28 percent while wages went up by 2 percent. Thanks to maximum leverage loans, big investor demand, and low interest rates, people can buy a $700,000 crap shack and pretend they are truly rolling deep in cash. All the data coming out is showing that many are flat out pretending and living paycheck to paycheck, even with expensive budgets.

The big disconnect between wages and home prices

It is good to see more people seeing the disconnect for what it truly is. All we are seeing is more money being siphoned off into the housing industry. The amount of justification now coming out for crap shacks is at levels last seen in 2006 and 2007. Just take a look at the glorious deals you can have and be our guest and plunk down $700,000 for a box that needs major remodeling and lock yourself into 30 years of mortgage payments.

The LA/OC market isn?t the only one seeing this dramatic disconnect. The San Francisco market which is even more bananas than SoCal saw even a larger disconnect. Take a look at wage changes versus home price changes over the last two years:

I thought that's how LA/OC/SF always was?

 

[LargeOrangeFont]

It's just a matter of time. Like stock brokers, realtors will soon be extinct. Top 20% will survive.

100% agree. technology is going to step in and streamline a lot of the process. The top 20% will sell the expensive homes that need a high touch.

Think VRBO and Carmax here, with some LegalZoom mixed in. You go online, fill out your info to list and get assigned a salesman. A dude comes by with a drone and takes cool pictures/3d tours for an uplift fee. Salesman that is paid a salary shows your home at scheduled times. Contracts are fully vetted, etc.

Here is the price, fees etc. Buyer chooses to buy the house or not, and moves forward or on to the next.

 

[LargeOrangeFont]

Think about this, if a young couple in LA/OC wants to buy a starter home ($500k), they earn $120k per year combined and want to buy a home with 20% down, that's a $100k down payment. If they're bringing in $10k a month before takes, you figure they have rent, bills and etc, so maybe that leaves them with $1k per month to save (if they are very frugal). That would take them nearly 10 years to save up for a home. That just doesn't make any sense. Which is why the 3.5% down payment crap, which can only have bad repercussions IMO.

That was me 10 years ago. I put 20% down on my house. Live within your means and save some money. Don't lease cars or buy expensive ones, don't buy boats or other expensive crap. Also be patient and wait for bubbles to pop and be ready to pounce.

The is not how most people in OC/IE and LA live, but then again, not everyone should own a house. If you want to own a house but cant afford it here, your choices are to move elsewhere or perpetually rent.

 

[LargeOrangeFont]

This is why more money rarely solves people's problems, because as soon as they get more, they think of ways to spend it, so then they need another raise, then repeat. It's no wonder why we live in a debt based society.

I always feel better after wiping my tears with my checkbook.

 

[BHC Vic]

I was an electrician and a superintendent. I know what construction is like. Sales is a different kind of hard work. For the most part, mentally. Try going out to dinner without having to step out and take a call or respond to texts. I couldn't tell you how many times I've had to stop the boat and float because I had to take a few calls on a the weekend. I don't have a company that supplies me with a work load, I have to hustle for it. I own a business, you punch a clock, huge difference in responsibilities and stress load. I am not complaining, I love what I do and I'm grateful to not come home at the each of everyday dirty and pissed off. LOL

My point is, lets not play tit for tac, we all work hard in one way or another. As long as your working and not sucking off the system, I have great respect for whatever it is you or anyone else here does.



Agreed. Some of the wealthiest people I know, drive the most basic vehicles and are very frugal. Rule of thumb, the people that look like they have a lot of money are often broke and those who appear to not have a lot of money are often wealthy. When people make more money, they have this tendency to spend it. I once heard a guy from Texas say that out there, they have a term that goes "Big hat, no cattle". When I have a good month or quarter, I think, how could I use this money to ensure my financial safety in the future, how can I use this money to help others (my family), not what can I go buy for me me me. This is why more money rarely solves people's problems, because as soon as they get more, they think of ways to spend it, so then they need another raise, then repeat. It's no wonder why we live in a debt based society.

Now that I'm running work I get those phone calls too. Couldn't get out of California Friday without guys calling me w layout questions. I get home at 730 and look at prints till bed time [emoji4]I wish I had the time to go to dinner. I didn't even make it to church last wed [emoji17]

 

[BHC Vic]

I strongly believe that we are headed for a major correction. There is only one thing that can drive prices up, income.

If people can't afford homes now, how will they if income continues to decline all while the cost of living goes up (inflation). The ONLY reason why prices rose in 2012-2013 was due to low rates and hedge funds buying bulk sales. Less inventory and lower rates made the prices go up, not the economy. The government should have never got involved and continued to let prices fall to affordable levels. I don't get why Americans have this mentality that prices gong up is a a good thing. It's not! It only means our currency is worthless and that we must work longer and harder for less. How is that a better quality of life for this country?

I talk to people every single day, who think the value of their homes will rise soon. All for a variety of reasons. No one has a crystal ball, but we all should have some level of common sense. What is happening in the market now and in the past 2 decades does not make any sense.

Think about this, if a young couple in LA/OC wants to buy a starter home ($500k), they earn $120k per year combined and want to buy a home with 20% down, that's a $100k down payment. If they're bringing in $10k a month before takes, you figure they have rent, bills and etc, so maybe that leaves them with $1k per month to save (if they are very frugal). That would take them nearly 10 years to save up for a home. That just doesn't make any sense. Which is why the 3.5% down payment crap, which can only have bad repercussions IMO.

I think the next thing wont be REO, it will be mortgage insurance companies liquidating when people go into default as FHA has dominated the loan market over the past decade.

These are all just my opinions.

I agree the 3.5% is asking for trouble. We bought our first home like that and had a huge payment. When we bought chino we went conventional 20%.

 

[Singleton]

I agree the 3.5% is asking for trouble. We bought our first home like that and had a huge payment. When we bought chino we went conventional 20%.

Same. First house was purchased 3.5 down back in 2010. Mortgage Insurance was almost 1k a month. Refinanced in 2014 and got a lower rate and had the equity to get mortgage insurance removed.
When homes in SD started at 600k in 2010 (north county coastal - Carlsbad), no way 20% was going to work. I did not want to kill my entire savings account to buy a house, still wanted a safety net.

 

[LargeOrangeFont]

Same. First house was purchased 3.5 down back in 2010. Mortgage Insurance was almost 1k a month. Refinanced in 2014 and got a lower rate and had the equity to get mortgage insurance removed.
When homes in SD started at 600k in 2010 (north county coastal - Carlsbad), no way 20% was going to work. I did not want to kill my entire savings account to buy a house, still wanted a safety net.

Nice pick up.