Free markets and banks?

That's so quaint. Rekday thinks that banks are part of a "free market".

He's like an innocent little puppy sometimes.

 

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The cost of housing in my hometown (where my friend lives) has gone up a ton over the last 20 years or so because of all the (relatively) wealthy people moving up from California in addition to the inflation experienced already. Like I said, their house was for 7 people, it's not like they had game lounges and an indoor swimming pool. That's fairly average for a middle class home in that area.

Where in California do you live? I have some friends in the northern part of the state who are trying to sell a house rather than renting it and the figures she quoted me seemed pretty absurd but I guess are the norm there.

 

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If they purchased @$275k, and owe $250k, they are definitely underwater right now. Even the best housing markets have seen a 10% decline in property value in the last two years. If he lived near me, his home would now be worth ~$220k.

 

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tards buying mcmansions caused this mess

 

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So you're living in a townhome in some dumpy part of Waukegan? Because I doubt you're talking about home prices in the vast majority of suburban communities north of Chicago.


For reference, http://www.realtor.org/research/research/metroprice


Try the pdf links, the 2010 median price for Chicago-Naperville-Joliet was $191.4

From that same link though, median price for Boise City-Nampa was $153.8 in 2009 and $136.2 in 2010 and $115.4 in 2011


$275 doesn't sound that expensive to me, but homes in the burbs around me still cost that kinda scratch.


This is kinda cool too: http://www.chicagotribune.com/classified/realestate/transactions/


Too bad all that data is median data

 

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In a lot of states if you can come up with the missing cash they can't foreclose on you. Maybe not in an ass state like Idaho.


But something about the story makes no sense. Unless there is a really strange confluence of variables the bank is going to take a bath on the home in the current market. If your friend can come up with the missing payments and keep paying along the schedule otherwise there is no reason I can possibly think of that the bank would rather foreclose.

Which regulation(s) is it which requires lenders to use an outside shop to service their mortgage and requires them to choose one who will not act in the best interests of the total return on the note?


Take your time.

Rereading, maybe what you were trying to say is that your friend skipped out on two mortgage payments and now wants to restructure the loan so they don't have to repay those two payments and can just go on paying each month, and the bank told them ok, but to do that it's gonna raise your monthly payment a little bit and over the remaining 25 years it's gonna end up cost you 20k more. Which doesn't seem all that unreasonable.

I call BS, please show me a nice place close to DC for that amount, and not int he boonies. I live 35mins outside of DC and nothing is close to that unless you are looking for a condo.

 

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Really, you can't buy an actual CLOSET in D.C. for anything close to 275k? A CLOSET???? Or maybe your reading comprehension is just that bad.

Oh, and by the way, I find it hard to believe that a closet would cost as much as a whole condo since a whole condo has several closets. Or do you buy the condo for like 1.5 mill then sublet the closets for 275k each, osmenthe?

 

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