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

Sign up, and you'll be able to ignore users whose posts you don't want to see. Sign up

Report problem with this ad

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.

Report problem with this ad

Baron

Previous username: jarocho
Bio page: Baron
Joined: Sep 1, 2006
Last login: Apr 23, 2024
Total posts: 93,904 (32,659 FO)

Report problem with this ad

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

Report problem with this ad

Posting on CougarBoard

In order to post, you will need to either sign up or log in.

Report problem with this ad