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Yeah, we have a pretty good amount of equity. We bought back in 98 when the housing market here in So Cal was still manageable. We got lucky in that respect. The market could tank and literally split in half value wise and we'd still be ok. Again, got lucky when we bought when we did.
I don't know how much longer the prices for homes can stay high here. They are dropping a bit, but not much. I pay a lot of attention to the housing market here.
These interest rates are really at some point going to force people to start lowering their asking prices, I don't know how young people are supposed to get ahead living here in So Cal. Feels like the American dream is falling apart for many young people.
Saddens me, add in the investment firms buying up properties too. Going to be a lot of permanent renters in the future, I fear.
I think Klaus and his cronies are right, we'll own nothing and be happy about it.
We have a lot of equity too and I figured that we could put a nice down payment on a different house closer to a couple of the kids and put some money in the bank as well. But I am not spending more money on a crappier house than I have now (we totally renovated it to our liking) for more than double the interest rate. Makes no sense to do so.
Now that business has dried up, the mortgage company wants its money back. He said it fired him one month shy of the date when it could no longer ask for the bonus back, then demanded the money. Guaranteed Rate and its affiliates are also telling hundreds of other former employees that they have to return their signing bonuses, people familiar with the matter said.
“It seems like they realize they aren’t making money in their mortgage business, so the way to get income is to claw back the payments,” said Siegel, who is based in New Jersey.
Guaranteed Rate wouldn’t comment on individual employees. But its general counsel, Anwar Shatat, said, “We are not going to be apologetic about exercising our legal rights to recover our money.”
So which is it? Is the company asking, or does it have a right to the money?
One month shy, is one month shy. Sucks, but it is what it is.
Mr. Siegel needs to give the money back or face the legal consequences.
Couldn't open the article so not sure if it went into more detail about the specifics of the contract. In most cases like this, generally if you leave on your own the company would be able to get their money back, but if they let you go the company generally can't outside of gross misconduct or something along those lines on part of the employee. With that said, without knowing the specifics of the contract regarding termination it is hard to know.
One month shy, is one month shy. Sucks, but it is what it is.
Mr. Siegel needs to give the money back or face the legal consequences.
Legally and morally are different here.
Legally, they may have to return it. Morally, firing someone right before a bonus vests because the bonus is about to vest is not acceptable and the impacted employees are 100% justified in doing everything they can within the law to retain the money and create consequences for the firm and executives involved. Given that and the amounts involved it's a consult-with-a-lawyer situation.
It's also a reminder that if you are taking a job because of a signing bonus to read and negotiate the language to make this not possible and not take the offer if they stand firm on being legally entitled to do this unless you'd be willing to take the job without the bonus.
These interest rates are really at some point going to force people to start lowering their asking prices, I don't know how young people are supposed to get ahead living here in So Cal. Feels like the American dream is falling apart for many young people.
Saddens me, add in the investment firms buying up properties too. Going to be a lot of permanent renters in the future, I fear.
I think Klaus and his cronies are right, we'll own nothing and be happy about it.
The only way for young people to get ahead in California:
*Move to the Inland Empire or other more rural areas of the state.
*Move out of the state entirely.
I've seen one study suggesting SoCal is going to look more and more geriatric in the future.
It's not about giving them back. It's about contracts and how they are worded. Market conditions with current rates make it much harder to meet performance metrics than when times were easy. After repeated failures and warnings to meet performance metrics, under performers are fired. They're paid to get results they aren't getting, not to make excuses about why they can't get results. If it's a signing bonus that requires two years with the company and you don't stay for two years, it's standard to have a clawback provision. These aren't stones that the company cannot bleed. Things can always be negotiated for a partial return of the unearned signing bonus but otherwise, yeah. They'll go through the required arbitration and lose and give the money back. Or they'll contest in court and waste a lot of money on attorneys and lose. Either way the employees are on the hook for returning the signing bonuses if they're under a clawback as that's the contract they agreed to.
I have to disagree with the bolded. While the high rates of today don't impact those with fixed rates of years back, but in the real world, there are life changes and the needs of homeowners change over time. Many are 'stuck', so to speak, because if they sell and they need to finance a their new home, it's basically become unattainable due to 30 year rates touching 8% today.
So this puts added pressure on the supply in many markets. People that are trapped with their low rate locked in, are very reluctant to even consider making a move.
This is the situation that we are in. We made a quick move in 2021 and got a superlow rate. We can't make a lateral move at the current rates so we are stuck.
I'm in this boat right now - I'd love to sell my single-family home and purchase a condo (I'm done with yard work!). With 12 years left on my current mortgage, I could pay the balance off right now from my bank account, but why would I unless I absolutely had to when my current rate 3.65%?
....
Sounds like if you really want to sell your home and get a condo, you can pull this off by paying cash for the condo, assuming the condo won't cost more than your current home.
Basically a whole bunch of people are totally screwed, and a whole bunch are not.
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