Comments on: Where did the option ARMs go? Cheaper to pay modified loan than paying market rents. Subsidizing the housing market through shadow finance. Interest only payment 10 percent cheaper than market rents.

By: caboy

caboy — Sat, 17 Jul 2010 01:09:01 +0000

Japan redux.

By: PRCalDude

PRCalDude — Fri, 16 Jul 2010 22:44:59 +0000

This seems like it’s just going to clobber the demand side by keeping prices artificially high when there are falling wages and structurally high unemployment. I don’t see it fixing anything.

By: Carol

Carol — Fri, 16 Jul 2010 16:45:39 +0000

The new city manager (John Nachbar) for Culver City comes from Overland Park Ks. As a resident of Overland Park I can testify that it was impossible to get him on the phone. Under his stewardship, ordinances were not for the whole city but to protect the favored few. Violations were swept under the carpet and the complainer told not to complain anymore–they didn’t want to hear it. Good luck with him, Culver City!

By: pd_quick

pd_quick — Fri, 16 Jul 2010 05:19:45 +0000

995,000 balance….reduced to 829,000
Interest only loan for 5 years. Ramped up interest rate starting at 5.25…ending at 6.5 after 7 years

By: Lyle

Lyle — Fri, 16 Jul 2010 04:20:16 +0000

But there is a difference between renting and this situation. Its more like a lease with the leasee assuming repairs and the like. I.E. if the house needs a new roof the owner pays for it. There is also no 3.5% per year depreciation on the house for the land lord. So to really compare the situation take an average repair budget for the house and subtract from the rent, and how do these compare?