Comments on: The Flip Side of the Sub-Prime Story http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/ Seattle's Leading Resource for Real Estate Information Sun, 08 Nov 2009 01:47:42 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: ARDELL http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-343206 ARDELL Tue, 29 Sep 2009 22:05:43 +0000 http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-343206 Hi Alan, I tried to email you about the one word change, but the email was returned. It is an interesting story, as the short sale went on from September of 2008 (at a much higher price) to the actual closing almost a year later at the lower price. Since the story involves not only me, but the buyer, I am not sure how much detail I can reveal without violating the buyers' right to privacy. I will think about that. In the meantime people can continue to comment, and I will only interject if there are errors or it impacts the buyer in some way. Hi Alan,

I tried to email you about the one word change, but the email was returned. It is an interesting story, as the short sale went on from September of 2008 (at a much higher price) to the actual closing almost a year later at the lower price. Since the story involves not only me, but the buyer, I am not sure how much detail I can reveal without violating the buyers’ right to privacy. I will think about that.

In the meantime people can continue to comment, and I will only interject if there are errors or it impacts the buyer in some way.

]]> By: Alan http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-343205 Alan Tue, 29 Sep 2009 21:53:08 +0000 http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-343205 Correction: It looks like her house was sold to a private individual before it made it to the auction block. Correction: It looks like her house was sold to a private individual before it made it to the auction block.

]]> By: ARDELL http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-343204 ARDELL Tue, 29 Sep 2009 21:50:01 +0000 http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-343204 Hi Alan, I was able to let your comment stand by changing just one word that was in error. Email me if you have any questions on that. Hi Alan,

I was able to let your comment stand by changing just one word that was in error. Email me if you have any questions on that.

]]> By: Alan http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-343203 Alan Tue, 29 Sep 2009 21:44:44 +0000 http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-343203 As a epilogue to this article: Ardell's house was sold in August 2009. The sales price was recorded at $550k down from the purchase price of $850k. Feel free to delete this comment if you feel it is in bad taste. I would love to read a followup article about Ardell's experience. As a epilogue to this article: Ardell’s house was sold in August 2009. The sales price was recorded at $550k down from the purchase price of $850k.

Feel free to delete this comment if you feel it is in bad taste. I would love to read a followup article about Ardell’s experience.

]]> By: Joel http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-343199 Joel Tue, 29 Sep 2009 17:27:29 +0000 http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-343199 Congratulations on no longer being sub-prime! Congratulations on no longer being sub-prime!

]]> By: Real Estate…………………. A Blog About It » Blog Archive » Get A Lender That Can Help http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-257880 Real Estate…………………. A Blog About It » Blog Archive » Get A Lender That Can Help Thu, 07 Feb 2008 05:20:29 +0000 http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-257880 [...] 1– Click here for “The Flip Side of the Sub-Prime Story” by Ardell DellaLoggia: [...] [...] 1– Click here for “The Flip Side of the Sub-Prime Story” by Ardell DellaLoggia: [...]

]]> By: Real Estate…………………. A Blog About It » Blog Archive » Chapter One - The Most Current Magnificent 7 http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-256512 Real Estate…………………. A Blog About It » Blog Archive » Chapter One - The Most Current Magnificent 7 Tue, 05 Feb 2008 06:39:33 +0000 http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-256512 [...] 1– Click here for “The Flip Side of the Sub-Prime Story” by Ardell DellaLoggia: [...] [...] 1– Click here for “The Flip Side of the Sub-Prime Story” by Ardell DellaLoggia: [...]

]]> By: RealEstateUndressed » Blog Archive » Sub Prime May For Sure Be Dead http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-228135 RealEstateUndressed » Blog Archive » Sub Prime May For Sure Be Dead Sun, 16 Dec 2007 04:16:07 +0000 http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-228135 [...] The counter point to those of us in this camp, is that in some cases it was a blessing. Example Here: [...] [...] The counter point to those of us in this camp, is that in some cases it was a blessing. Example Here: [...]

]]> By: RealEstateUndressed » Blog Archive » Here They Are: September Magnificent 7 Round 1 Nominees http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-189030 RealEstateUndressed » Blog Archive » Here They Are: September Magnificent 7 Round 1 Nominees Fri, 05 Oct 2007 01:34:33 +0000 http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-189030 [...] The Flip Side of the Sub-Prime Story by Ardell [...] [...] The Flip Side of the Sub-Prime Story by Ardell [...]

]]> By: ARDELL http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-184023 ARDELL Sun, 23 Sep 2007 15:40:04 +0000 http://raincityguide.com/2007/09/17/the-flip-side-of-the-sub-prime-story/#comment-184023 Rhonda, I think there are many legitimate uses for "stated" income. One is for hourly employees whose hourly wage increased dramatically due to a promotion. When a salaried persons's income increases, lenders count it after the first paystub or two. When an hourly person's wages increase by the same amount, they have to earn at that rate for two years before lenders count the higher amount. Doesn't seem fair, but that's how it is. So the hourly person would end up as stated to be on an even keel with the salaried earner. A very good use of a two year arm using stated income would be that scenario. There will continue to be good reasons why people use stated vs. full doc loans and lower payment start points. My plan was to pay off the second in it's entirety before I refied the first, and to do that by the time I was eligible for my bank pension and my alimony was over in 2009. So far my plan is still on track. Given the changes in the mortgage industry, I may convert to a 90% first with PMI and then pay the first down to 78% to get rid of the PMI. Still weighing my options and I do think interest rates will be lower in 4 months or so. I didn't use a low start rate loan, so a $200 increase per month is clearly doable for now. The bigger issue for me is managing 2008. I think we will all have to stay on our toes, and work extra hard and smarter, to keep our incomes steady through 2008. Rhonda,

I think there are many legitimate uses for “stated” income. One is for hourly employees whose hourly wage increased dramatically due to a promotion. When a salaried persons’s income increases, lenders count it after the first paystub or two. When an hourly person’s wages increase by the same amount, they have to earn at that rate for two years before lenders count the higher amount.

Doesn’t seem fair, but that’s how it is. So the hourly person would end up as stated to be on an even keel with the salaried earner. A very good use of a two year arm using stated income would be that scenario.

There will continue to be good reasons why people use stated vs. full doc loans and lower payment start points. My plan was to pay off the second in it’s entirety before I refied the first, and to do that by the time I was eligible for my bank pension and my alimony was over in 2009. So far my plan is still on track.

Given the changes in the mortgage industry, I may convert to a 90% first with PMI and then pay the first down to 78% to get rid of the PMI. Still weighing my options and I do think interest rates will be lower in 4 months or so. I didn’t use a low start rate loan, so a $200 increase per month is clearly doable for now. The bigger issue for me is managing 2008. I think we will all have to stay on our toes, and work extra hard and smarter, to keep our incomes steady through 2008.

]]>