So it is a mortgage without the protection of a mortgage or the tax deductions.

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Dec 14, 2019
12:42:25pm

Baron AKA "Dear Leader"

So it is a mortgage without the protection of a mortgage or the tax deductions.

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Baron

Previous username: jarocho
Bio page: Baron
Joined: Sep 1, 2006
Last login: Jun 15, 2024
Total posts: 95,260 (33,180 FO)

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Messages

Author

Time

LA company planning to help consumers buy homes without a mortgage

RexIdaCoug

12/14/19 12:38pm

Is it a mortgage

Cougforgood

12/14/19 12:40pm

I think this exists elsewhere. When I read the details in the past it helped get people in a home but was clearly skewed

Tokolosh

12/14/19 12:42pm

IMO this will help consumers the same way a payday loan company helps a consumer.

Baron

12/14/19 12:44pm

I'm curious to see how much the premium is

RexIdaCoug

12/14/19 12:56pm

It will be hugely predatory IMO. Basically, it is for people who can't afford a home but want one

Baron

12/14/19 12:59pm

So it is a mortgage without the protection of a mortgage or the tax deductions.

Baron

12/14/19 12:42pm

Yeah--joint ownership / tenancy in the home with other parties?

ebv

12/14/19 1:03pm

Assumes consistent rising value. If there's a bursting bubble, those people will be in deep trouble.

Soupie

12/14/19 12:43pm

There's the same risk for mortgage borrowers too.

RexIdaCoug

12/14/19 12:53pm

Sure but banks protect the investment by making sure certain financial criteria are met.

Soupie

12/14/19 12:58pm

I remember a company trying to do this like 8 years ago. They failed.

cheezedawg

12/14/19 12:49pm

<< Deleted >>

12/14/19 1:00pm

I have a client investing in one of these type of companies (not this one) and I

Pasadena

12/14/19 2:24pm

That's expensive. Better to buy it upfront.

Baron

12/14/19 2:39pm

I think it's for people who don't have money for a down payment.

Pasadena

12/14/19 2:43pm

It is a very small market. Not much room for growth. It is only valuable to people with new high income but

Baron

12/14/19 2:46pm

So most young professionals in California?

Pasadena

12/14/19 2:48pm

No not most young professionals in CA.

Baron

12/14/19 2:50pm

Your saying most young professionals have enough savings to buy a house in CA?

Pasadena

12/14/19 2:54pm

I am saying most young professionals don't have enough money to pay the large cost of the fees you listed.

Baron

12/14/19 2:55pm

I guess I don't follow. The only actual fee is $20k. Most young professionals

Pasadena

12/14/19 3:08pm

The fee and the rent. The option fee is as much as FHA downpayment or more on cheaper homes.

Baron

12/14/19 3:16pm

FHA loan is not even remotely possible. We are talking about markets where 1000

Pasadena

12/14/19 3:57pm

It is possible on the low end homes like you mentioned. And if you can afford home in the range it won't take long

Baron

12/14/19 4:06pm

I think you missed the entire point of the program. In two years, the home in

Pasadena

12/14/19 11:43pm

That makes sense on paper but still a gamble. Wouldn't have worked in '08.

Soupie

12/14/19 11:51pm

Your example proves why it is a bad investment. The company makes next to nothing and loses

Baron

12/15/19 5:27am

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