Comments on: Why the Housing Market Has Failed You. 5 Major Failures of the Housing Market http://www.doctorhousingbubble.com/why-the-housing-market-has-failed-you-5-major-failures-of-the-housing-market/ How I Learned to Love Southern California and Forget the Housing Bubble Sat, 22 Nov 2008 08:37:59 +0000 http://wordpress.org/?v=2.2.2 By: Argonaut http://www.doctorhousingbubble.com/why-the-housing-market-has-failed-you-5-major-failures-of-the-housing-market/#comment-1620 Argonaut Wed, 08 Aug 2007 18:58:00 +0000 http://www.doctorhousingbubble.com/why-the-housing-market-has-failed-you-5-major-failures-of-the-housing-market/#comment-1620 Adam Said<br/><b><br/>Going into a home with a 'put' option is essentially gambling that it will appreciate: the buyer could then gamble without needing to use any of their OWN money. If it appreciates, then fine. If it fails to appreciate, they just walk away, losing only the I/O payments they've mailed in to cover rent (which can be LESS than rent).<br/><br/>So they mail the keys back to the lender, since they have no "skin in the game". So what about damaged credit? In case you haven't noticed, one's FICO or credit score means nothing nowadays<br/></b><br/><br/>I think a lot of these speculators are going to find out the hard way that it is not that easy to walk away as the IRS will come after them for the difference between their purchase & the REO sale that they speculator will be 1099'd on.<br/><br/>The IRS will quickly garnish any legitimate (ie reported) wages. If these people couldn't do a simple cost benefit analysis in the first place I doubt many are going to run the numbers to find out what is more painful in the short and long term. <br/><br/>Depending on their tax bracket an original 500K purchase price REO'd at 400k will result in a 100k 1099; think they've got 20K to 35K plus the possible interest and penalties laying around to feed Uncle Sam (and we all know how much that obese bastard eats)? In a case like that a short sale might be a less painful option in the long term.<br/><br/>"and this too shall pass" Adam Said

Going into a home with a ‘put’ option is essentially gambling that it will appreciate: the buyer could then gamble without needing to use any of their OWN money. If it appreciates, then fine. If it fails to appreciate, they just walk away, losing only the I/O payments they’ve mailed in to cover rent (which can be LESS than rent).

So they mail the keys back to the lender, since they have no “skin in the game”. So what about damaged credit? In case you haven’t noticed, one’s FICO or credit score means nothing nowadays

I think a lot of these speculators are going to find out the hard way that it is not that easy to walk away as the IRS will come after them for the difference between their purchase & the REO sale that they speculator will be 1099′d on.

The IRS will quickly garnish any legitimate (ie reported) wages. If these people couldn’t do a simple cost benefit analysis in the first place I doubt many are going to run the numbers to find out what is more painful in the short and long term.

Depending on their tax bracket an original 500K purchase price REO’d at 400k will result in a 100k 1099; think they’ve got 20K to 35K plus the possible interest and penalties laying around to feed Uncle Sam (and we all know how much that obese bastard eats)? In a case like that a short sale might be a less painful option in the long term.

“and this too shall pass”

]]> By: daniel http://www.doctorhousingbubble.com/why-the-housing-market-has-failed-you-5-major-failures-of-the-housing-market/#comment-1614 daniel Tue, 07 Aug 2007 18:10:00 +0000 http://www.doctorhousingbubble.com/why-the-housing-market-has-failed-you-5-major-failures-of-the-housing-market/#comment-1614 You got all the info in there for sure. Can't think of anything to add besides a link to a similar report with a little bit of a spin. I think i now i have my PhD in the housing market.<br/><br/><a HREF="http://www.dailyreckoning.com/rpt/HousingReport.html" REL="nofollow"> Home Sales Report: What’s Left? </a><br/><br/>-Cheers! You got all the info in there for sure. Can’t think of anything to add besides a link to a similar report with a little bit of a spin. I think i now i have my PhD in the housing market.

Home Sales Report: What’s Left?

-Cheers!

]]> By: Anonymous http://www.doctorhousingbubble.com/why-the-housing-market-has-failed-you-5-major-failures-of-the-housing-market/#comment-1282 Anonymous Sat, 07 Jul 2007 00:46:00 +0000 http://www.doctorhousingbubble.com/why-the-housing-market-has-failed-you-5-major-failures-of-the-housing-market/#comment-1282 What's going on with the real estate market is only one part of the larger picture. <br/> <br/>Because of rampant GREED, corruption, corporations doing anything and everything to increase the bottom line for "shareholders" and HUGE CEO compensation packages .... the U.S. is in a downward freefall.<br/><br/>The hard cold reality is life is only going to get uglier. Most americans are preoccupied with celebrity nonsense, shopping and what's on T.V. Oh well. Enjoy the good things while they last !!!! What’s going on with the real estate market is only one part of the larger picture.

Because of rampant GREED, corruption, corporations doing anything and everything to increase the bottom line for “shareholders” and HUGE CEO compensation packages …. the U.S. is in a downward freefall.

The hard cold reality is life is only going to get uglier. Most americans are preoccupied with celebrity nonsense, shopping and what’s on T.V. Oh well. Enjoy the good things while they last !!!!

]]> By: Anonymous http://www.doctorhousingbubble.com/why-the-housing-market-has-failed-you-5-major-failures-of-the-housing-market/#comment-1182 Anonymous Wed, 27 Jun 2007 06:43:00 +0000 http://www.doctorhousingbubble.com/why-the-housing-market-has-failed-you-5-major-failures-of-the-housing-market/#comment-1182 To Bear cave, I checked the solar (free) calculator and found I was wrong. Yes, I put every PENNY I earn (including can recycling) in an interest account or in a conservative NO LOAD investment. My wife actually saves over 75 % of her net and she does the same, collect cans, bottles, etc. (We do have to worry about AMT) I will quit my "main" job as soon as we start getting close to it. That may be in a month or so. Its funny we spend so much time saving, I forget about what we have. Last week I found $15,000 worth of deposits sitting around that I was too cheap to mail (postage stamps are too expensive and the postal service sucks hind booty). No we are not Freegans because WE DO NOT embrace community ( We couldn't give a shit), generosity ( go help yourself), social concern ( only if we can get the Mexicans -illegal aliens out of my town), freedom (YES) , cooperation (hell NO), and sharing (NEVER I would be the first to splash mud on a homeless - I have to work for an asshole- so should they). We are not in opposition to a society based on materialism, moral apathy, competition, conformity, and greed. We don't care. I just don't want Suzie Orman types (BS'ers) getting a penny of any of my money. We just HATE liars, con artists, salesmen, Realtors, CNN, ABC, NBC, CBS, CBN, Bankers, Credit card companies, lawyers, junk mail, SPAM, Bill Gates, Microsoft, politicans, political parties, bean counters, the NAR, preachers, evangelists, hypocrites, illegal aliens, homeless, and whiners. Oh I forget feminazis, feministas, Oprah, Rosie, Bernanke, and Hillary Clinton are also included. WE do LOVE the SAVAGE nation with Michael Savage. Our biggest pleasure is when some smug asshole tries to talk "money" with us and they show off their "toys". We encourage them to spend more, since it only takes away power from them! Last year I encouraged on asshole to "show off" by buying himself a new Viper-custom painted - Later it somehow got scratched by a shopping cart? and the whole front clip went ??? I don't think it looks so good now? Ha It ruined his YEAR! Trash our cars? - who cares? They only eat ARAB gas and cost us insurance - sdcrew cars. OH WE LOVE KRAMER- I'd VOTE FOR HIM FOR PRESIDENT- along with George Costanza as Secretary of State! <br/><br/>We pay cash and GET the BEST deals on everything. Food shopping (no other shopping - I get toilet paper for free - I like mine with George W's face on it. Last month I bought 70 pounds of bacon because I got it at only 68cents /pound ( Bacon is not my favorite- but I am a MEATATARIAN- IF its red and bloody YUMMO---I like to piss off the Vegans. Today, I bought 3 gallons of fresh (not frozen) Florida orange juice for 33 cents/gal. Three pounds of carrots for 78 cents. I get my fresh roasted Arabica beans for $25 / 120 pounds. NO, we are not optimists, but we HAVE FREEDOM...REAL FREEDOM. I can tell anyone -including my asshole boss to go to hell. I just did, after sucking every penny I could out of 401 K contributions of $15,500 the first few months this year. I found a 5 dollar mistake and warned him I would sue. They sent me $2,800 to shut up! YESS! I do not give a shit! I have three jobs and my wife has three jobs. I try to keep the "in go" going and the "out go" only to us. I JUST DONT WANT THE ASSHOLES to make a profit on it nor touch it! I saw a politician spewing pucky on TV about the "illegal alien bailout -amnesty bill". I immediately called his office and told HIM, if I ever found he supported that bill in any way, I would imnmediately donate big bucks into anyone who opposed him. They listened...they really did! Damn politicians. I have done some muckraking in my day. Several big names- OUT GET A REAL JOB. AND QUIT COSTING ME MONEY! They pissed me off! Thats what we live for ---> FREEDOM from BS. To Bear cave, I checked the solar (free) calculator and found I was wrong. Yes, I put every PENNY I earn (including can recycling) in an interest account or in a conservative NO LOAD investment. My wife actually saves over 75 % of her net and she does the same, collect cans, bottles, etc. (We do have to worry about AMT) I will quit my “main” job as soon as we start getting close to it. That may be in a month or so. Its funny we spend so much time saving, I forget about what we have. Last week I found $15,000 worth of deposits sitting around that I was too cheap to mail (postage stamps are too expensive and the postal service sucks hind booty). No we are not Freegans because WE DO NOT embrace community ( We couldn’t give a shit), generosity ( go help yourself), social concern ( only if we can get the Mexicans -illegal aliens out of my town), freedom (YES) , cooperation (hell NO), and sharing (NEVER I would be the first to splash mud on a homeless - I have to work for an asshole- so should they). We are not in opposition to a society based on materialism, moral apathy, competition, conformity, and greed. We don’t care. I just don’t want Suzie Orman types (BS’ers) getting a penny of any of my money. We just HATE liars, con artists, salesmen, Realtors, CNN, ABC, NBC, CBS, CBN, Bankers, Credit card companies, lawyers, junk mail, SPAM, Bill Gates, Microsoft, politicans, political parties, bean counters, the NAR, preachers, evangelists, hypocrites, illegal aliens, homeless, and whiners. Oh I forget feminazis, feministas, Oprah, Rosie, Bernanke, and Hillary Clinton are also included. WE do LOVE the SAVAGE nation with Michael Savage. Our biggest pleasure is when some smug asshole tries to talk “money” with us and they show off their “toys”. We encourage them to spend more, since it only takes away power from them! Last year I encouraged on asshole to “show off” by buying himself a new Viper-custom painted - Later it somehow got scratched by a shopping cart? and the whole front clip went ??? I don’t think it looks so good now? Ha It ruined his YEAR! Trash our cars? - who cares? They only eat ARAB gas and cost us insurance - sdcrew cars. OH WE LOVE KRAMER- I’d VOTE FOR HIM FOR PRESIDENT- along with George Costanza as Secretary of State!

We pay cash and GET the BEST deals on everything. Food shopping (no other shopping - I get toilet paper for free - I like mine with George W’s face on it. Last month I bought 70 pounds of bacon because I got it at only 68cents /pound ( Bacon is not my favorite- but I am a MEATATARIAN- IF its red and bloody YUMMO—I like to piss off the Vegans. Today, I bought 3 gallons of fresh (not frozen) Florida orange juice for 33 cents/gal. Three pounds of carrots for 78 cents. I get my fresh roasted Arabica beans for $25 / 120 pounds. NO, we are not optimists, but we HAVE FREEDOM…REAL FREEDOM. I can tell anyone -including my asshole boss to go to hell. I just did, after sucking every penny I could out of 401 K contributions of $15,500 the first few months this year. I found a 5 dollar mistake and warned him I would sue. They sent me $2,800 to shut up! YESS! I do not give a shit! I have three jobs and my wife has three jobs. I try to keep the “in go” going and the “out go” only to us. I JUST DONT WANT THE ASSHOLES to make a profit on it nor touch it! I saw a politician spewing pucky on TV about the “illegal alien bailout -amnesty bill”. I immediately called his office and told HIM, if I ever found he supported that bill in any way, I would imnmediately donate big bucks into anyone who opposed him. They listened…they really did! Damn politicians. I have done some muckraking in my day. Several big names- OUT GET A REAL JOB. AND QUIT COSTING ME MONEY! They pissed me off! Thats what we live for —> FREEDOM from BS.

]]> By: Anonymous http://www.doctorhousingbubble.com/why-the-housing-market-has-failed-you-5-major-failures-of-the-housing-market/#comment-1179 Anonymous Wed, 27 Jun 2007 03:55:00 +0000 http://www.doctorhousingbubble.com/why-the-housing-market-has-failed-you-5-major-failures-of-the-housing-market/#comment-1179 Excellent blog! Dead-on - thanks for putting everything I've been telling friends and family for many months into a neat 'middle class' vocabulary. They will all (hopefully) be reading this soon! Excellent blog! Dead-on - thanks for putting everything I’ve been telling friends and family for many months into a neat ‘middle class’ vocabulary. They will all (hopefully) be reading this soon!

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