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Oh, I never stopped paying my mortgage. Just the student loans. But my mortgage was never put into forbearance and I refused to opt into the programs that allowed you to temporarily stop paying your mortgage, which would have added years onto your payment obligation period.
Gotcha. Interesting because I know that’s an option for some people. Forbearance on student loans and mortgage, while simultaneously collecting enhanced unemployment. I’m curious to see what’s going to happen when the music stops and all that becomes due at once.
Gotcha. Interesting because I know that’s an option for some people. Forbearance on student loans and mortgage, while simultaneously collecting enhanced unemployment. I’m curious to see what’s going to happen when the music stops and all that becomes due at once.
It won’t. They learned from 2008. However this means more inflation
The For Sale sign doesn't mean the house is still on the market. Many agents leave them up until after escrow closes because it is good advertising for them and they will get phone calls and new clients off that sign.
My son bought a house with a long escrow and even though the house was already sold, the listing agent left the ad up for the entire four months showing that they had the house available. They must have received hundreds of calls inquiring about that house and could convert some of those callers into clients (Sorry, that one is no longer a available but I have another one I can show you). My son bought that house before it even hit the listing service, so it was never available, but the listing agent got four months of advertising off of it anyway.
That should be against the law. It is false advertising which is intended to lure customers with a product that is no longer for sale. I'm pretty sure that the law cracked down on car dealers doing that stuff many years ago. Even if not illegal, it's unethical as hell.
Now if they post a "Sale Pending" sign, that's a different story, but to leave up a For Sale sign for 4 months is totally unethical if not outright illegal.
Massive inflation will come before any sort of housing crash
If we define "inflation" to mean an increase in price for the same item(s), then we've already had "massive inflation" in the housing market in most places in the past year.
If we define "inflation" to mean an increase in price for the same item(s), then we've already had "massive inflation" in the housing market in most places in the past year.
Because they’d rather devalue the dollar than allow another crash.
I don't think people are well served by a crazy market that encourages overbidding and waiving of inspections.
But I don't see anything that resembles 2008, at all.
In 2008 we had banks qualifying questionable buyers, sometimes without proper documentation of the buyer's creditworthiness or income.
What's happening now is different. Now we have real local buyers who need financing to buy their first home getting pushed out of the market by buyers from more expensive areas coming in and outbidding them AND PAYING CASH.
If that blows up on us, it won't be because they're upside down in their mortgage. If they end up upside down in their house, it's because they overbid on a house in Podunk when they were fleeing the city during riots and covid, who eventually will have to go back to work in the city. I'm a little afraid we may end up with a glut of rural homes on the market next year because working from home didn't end up being as permanent as people thought.
But only a little upset, hopefully we will be able to get those first time buyers in on some good deals then. There's very few good deals to be found for them now.
I do wonder if anyone rushed to buy a house in a rural area only to find out they don't have reliable internet.
My hubby went remote right before Covid appeared and the deal was we could live anywhere as long as he had hard wired cable. Cell, or satellite would not do.
This is not 2008 and there are numerous articles stating the reasons why not. Keep dreaming.
Anyone hoping for a repeat of 2008 is crazy. People were losing their jobs or afraid they might. My husband's company stopped cost of living increases and 401K matching. There were a few lay offs.. It was nerve-wracking to say the least. Who wants to buy a home on such shaky ground?
While the loan simulator has some issues right now, this is exactly how I've been doing things. I have north of $233k in loans (principle and interest) remaining, primarily consisting of law school debt. I'm enrolled in an income driven repayment plan. Being military, only my base pay is considered as income for tax/loan repayment purposes; the generous monthly tax free housing and sustenance payments are not counted as income. Thus, my repayments have been much less than they would have been for someone taking home a similar amount of money after taxes.
When I bought my place back in 2016, my lender didn't take the principle balance into account much, but rather the monthly payment, which was around $220 . . . thus, in my experience, this isn't a new thing. For context, I qualified for a $600k loan at the time and bought a condo for $469k. The fact that I haven't been making payments on my loans for over a year due to the Covid-pause notwithstanding, my current payment obligation is around $320 a month.
Note, I'm enrolled in the Public Service Loan Forgiveness program, so only expect to continue making loan payments until the Fall of 2025, which will be here before you know it. In other words, considering that the current Covid-pause in loan repayment runs through September of 2021, I'll have less than 4 years of income driven payments to make until my loans are forgiven.
As long as the income driven repayment plan is a thing, I do think that lenders should continue to take how much your monthly payment obligation actually is into account as opposed to how much you owe when deciding whether to give you a mortgage.
How is your mortgage $320 a month on a $469k house? My house was cheaper then that, our mortgage is a few thousand a month.
Quote:
Originally Posted by prospectheightsresident
Oh, I never stopped paying my mortgage. Just the student loans. But my mortgage was never put into forbearance and I refused to opt into the programs that allowed you to temporarily stop paying your mortgage, which would have added years onto your payment obligation period.
That's not how it's working out. You may have missed that we had to pause ours for a few months, Bank of America did not add it to the back of the loan, they broke it up into payments that have to be paid back on top of the mortgage payment.
How is your mortgage $320 a month on a $469k house? My house was cheaper then that, our mortgage is a few thousand a month.
Sorry for not being clearer, but that $320 figure was for my monthly student loan obligation. I wrote about my mortgage amount to give context to how my special tax situation (a good chunk of my military pay not being taxed) qualifies me for lower student loan monthly repayments. The mortgage amount was meant to emphasize that, even though my overall after tax salary and allowances qualified me for a particular mortgage amount, I don't pay anywhere close to what people would expect me to pay on that same after tax and allowance pay for my monthly student loans.
Quote:
Originally Posted by Roselvr
That's not how it's working out. You may have missed that we had to pause ours for a few months, Bank of America did not add it to the back of the loan, they broke it up into payments that have to be paid back on top of the mortgage payment.
Oh wow, I was not tracking that's how things were operating. That really can have made for painful experiences for many.
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