B of A to bail out $3.5 billion to California homeowners

NEW -> Contingent Buyer Assistance Program
[quote author="asianinvasian" date=1223544145][quote author="WestparkRenter" date=1223542518]

I just found out that people in my neighborhood bought a home for $680K to rent to UCI students for $2300/month. This is too crazy!</blockquote>


At 3% interest rate, that $680k will earn him roughly $15,300 annually after taxes. At $2300/month rental, he will earn roughly $27,600 annually tax-free. That is crazy!!</blockquote>
What about insurance? Property tax? Mello Roos? HOA? And liability. For example, one of my neighbors threatened to sue my landlord because the UCI kids he rented to caused a lot of trouble to the neighborhood.



Also how do you know this person income to claim that they pay $15300 after tax?

I think this person put down $230K, borrowed $450K, so payment must be at least $3,354.23. So they paid $40K to get $27K worth of income.
 
[quote author="WestparkRenter" date=1223544645][quote author="asianinvasian" date=1223544145][quote author="WestparkRenter" date=1223542518]

I just found out that people in my neighborhood bought a home for $680K to rent to UCI students for $2300/month. This is too crazy!</blockquote>


At 3% interest rate, that $680k will earn him roughly $15,300 annually after taxes. At $2300/month rental, he will earn roughly $27,600 annually tax-free. That is crazy!!</blockquote>
What about insurance? Property tax? Mello Roos? And liability. One of my neighbors threatened to sue my landlord because the UCI kids he rented to caused a lot of trouble to the neighborhood. Also How do you know this person income to claim that they pay $15300 after tax?</blockquote>


Daedalus beat us both WPR. Just another instance of asianinv posting some whacky, incorrect, thoughtless stuff... Par for the course.
 
[quote author="ipoplaya" date=1223545035][quote author="WestparkRenter" date=1223544645][quote author="asianinvasian" date=1223544145][quote author="WestparkRenter" date=1223542518]

I just found out that people in my neighborhood bought a home for $680K to rent to UCI students for $2300/month. This is too crazy!</blockquote>


At 3% interest rate, that $680k will earn him roughly $15,300 annually after taxes. At $2300/month rental, he will earn roughly $27,600 annually tax-free. That is crazy!!</blockquote>
What about insurance? Property tax? Mello Roos? And liability. One of my neighbors threatened to sue my landlord because the UCI kids he rented to caused a lot of trouble to the neighborhood. Also How do you know this person income to claim that they pay $15300 after tax?</blockquote>


Daedalus beat us both WPR. Just another instance of asianinv posting some whacky, incorrect, thoughtless stuff... Par for the course.</blockquote>


Yup, chalk up another one to the dumbest things ever posted by AI and/or his aliases. Paging acmpe for an update for that thread.
 
[quote author="WestparkRenter" date=1223542518][quote author="stepping_up" date=1223527473]I may be wrong on this, but I was under the impression that equilibrium should be around rental parity. If this is the case, then overcorrection would be when it is cheaper to buy than it is to rent. And yes, I agree that there should be no free lunches.</blockquote>


I just found out that people in my neighborhood bought a home for $680K to rent to UCI students for $2300/month. This is too crazy!</blockquote>


That is truly insane, especially since if you can afford a $680K property then your income must be too high to even qualify for the tax break on the rental loss. They must believe that the place is going to appreciate considerably.
 
[quote author="trrenter" date=1223358521]<strong>"Some borrowers stuck with Countrywide customers might qualify for having to pay nothing but interest for a decade. Even people who can't afford to keep their homes with such changes will be able to get help moving to a new home."</strong>



http://money.cnn.com/news/newsfeeds/articles/apwire/6fc9f0fd3dd296c8c325a327ac1b11a7.htm</blockquote>


Looks like a win for the bank and a lose for the home owners.



Seriously. The bank will give you the privilege of renting the home you are likely already upside down on for the next ten years where as a renter, you, can't move unless you pay off the balance, get to do all your own maintenance, are on the hook for taxes, Mello-roos and HOA fees.



Let's face it, in ten years, the people that bought in 2005/2006 might just be getting back to even...



and they'll still owe the full balance.
 
[quote author="stepping_up" date=1223588485][quote author="WestparkRenter" date=1223542518][quote author="stepping_up" date=1223527473]I may be wrong on this, but I was under the impression that equilibrium should be around rental parity. If this is the case, then overcorrection would be when it is cheaper to buy than it is to rent. And yes, I agree that there should be no free lunches.</blockquote>


I just found out that people in my neighborhood bought a home for $680K to rent to UCI students for $2300/month. This is too crazy!</blockquote>


That is truly insane, especially since if you can afford a $680K property then your income must be too high to even qualify for the tax break on the rental loss. They must believe that the place is going to appreciate considerably.</blockquote>


Asian grandparents - nuff said
 
[quote author="asianinvasian" date=1223544145][quote author="WestparkRenter" date=1223542518]

I just found out that people in my neighborhood bought a home for $680K to rent to UCI students for $2300/month. This is too crazy!</blockquote>


At 3% interest rate, that $680k will earn him roughly $15,300 annually after taxes. At $2300/month rental, he will earn roughly $27,600 annually tax-free. That is crazy!!</blockquote>


where do you get a 3% interest rate these days ?
 
[quote author="flmgrip" date=1223596669][quote author="asianinvasian" date=1223544145][quote author="WestparkRenter" date=1223542518]

I just found out that people in my neighborhood bought a home for $680K to rent to UCI students for $2300/month. This is too crazy!</blockquote>


At 3% interest rate, that $680k will earn him roughly $15,300 annually after taxes. At $2300/month rental, he will earn roughly $27,600 annually tax-free. That is crazy!!</blockquote>


where do you get a 3% interest rate these days ?</blockquote>
From banks that are in danger of going under due to lack of capital :) eTrade's complete savings is 3.3%.
 
[quote author="stepping_up" date=1223596896][quote author="flmgrip" date=1223596669][quote author="asianinvasian" date=1223544145][quote author="WestparkRenter" date=1223542518]

I just found out that people in my neighborhood bought a home for $680K to rent to UCI students for $2300/month. This is too crazy!</blockquote>


At 3% interest rate, that $680k will earn him roughly $15,300 annually after taxes. At $2300/month rental, he will earn roughly $27,600 annually tax-free. That is crazy!!</blockquote>


where do you get a 3% interest rate these days ?</blockquote>
From banks that are in danger of going under due to lack of capital :) eTrade's complete savings is 3.3%.</blockquote>
My credit union pays 4.0 (9 months) and 4.5 (20 months)
 
[quote author="flmgrip" date=1223596669][quote author="asianinvasian" date=1223544145][quote author="WestparkRenter" date=1223542518]

I just found out that people in my neighborhood bought a home for $680K to rent to UCI students for $2300/month. This is too crazy!</blockquote>


At 3% interest rate, that $680k will earn him roughly $15,300 annually after taxes. At $2300/month rental, he will earn roughly $27,600 annually tax-free. That is crazy!!</blockquote>


where do you get a 3% interest rate these days ?</blockquote>


Wamu/Chase was offering 4% on their online savings account but apparently they dropped it to 3% without even the courtesy of an email, letter, telegram... Bastards.
 
<blockquote>Wamu/Chase was offering 4% on their online savings account but apparently they dropped it to 3% without even the courtesy of an email, letter, telegram? Bastards. </blockquote>
I know. I find this aggravating. I have to continually check my accounts to see what interest rate I'm getting. It's a different rate every time I check. Of course, I wouldn't mind as much if the rates went up - but lately the rates are always down. :shut:
 
[quote author="stepping_up" date=1223596896][quote author="flmgrip" date=1223596669][quote author="asianinvasian" date=1223544145][quote author="WestparkRenter" date=1223542518]

I just found out that people in my neighborhood bought a home for $680K to rent to UCI students for $2300/month. This is too crazy!</blockquote>


At 3% interest rate, that $680k will earn him roughly $15,300 annually after taxes. At $2300/month rental, he will earn roughly $27,600 annually tax-free. That is crazy!!</blockquote>


where do you get a 3% interest rate these days ?</blockquote>
From banks that are in danger of going under due to lack of capital :) eTrade's complete savings is 3.3%.</blockquote>


upps, i was speed reading... i thought he was talking about a mortgage interest rate of 3%...
 
<a href="http://www.corusbank.com/">Corus Bank</a> 3.85% APY (need 10k for it to be no fee)

[urlhttps://www.onbank.com/]OnBank[/url] 3.6 APY
 
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