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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Scenario....
Would you buy a $500k house (or even be LOOKING at a $500k house) if you had $0 to put down (not even had $5k to put into escrow when you sign contracts) AND asked for a sellers concession for your closing costs????
I would feel soooooo uneasy about that kind of a monthly mortgage! Especially if i had nothing saved as a backup for emergencies!
Message edited 10/10/2007 11:53:46 AM.
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Posted 10/10/07 11:53 AM  |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Scenario....
as a seller I wouldn't entertain the offer because they don't seem stable. I would be afraid that they would back out because they couldn't afford it and that the bank wouldn't give them a mortgage.
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| Posted 10/10/07 11:54 AM |
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funtime
LIF Infant
Member since 10/06 373 total posts
Name:
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Re: Scenario....
Nope, there's no point because even if you do like the house and the seller has an option of taking your offer or someone else's, they would probably not take you....
Mortgage companies might not consider you either if you're doing 100% financing...too much of a risk....then you end up paying PMI and a lot more than you should.
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| Posted 10/10/07 11:55 AM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Scenario....
Posted by Blu-ize
as a seller I wouldn't entertain the offer because they don't seem stable. I would be afraid that they would back out because they couldn't afford it and that the bank wouldn't give them a mortgage.
THANK YOU! can you come over and please explain that to my buyer in layman's terms! she doesnt believe me!!!!
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| Posted 10/10/07 12:03 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Scenario....
No, I would not.
If they are making enough $$ to be able to afford that kind of a payment, then they should be able to save for a downpayment and/or escrow amt. fairly quickly.
I don't see any seller or their attorney accepting less than 5K escrow on a house that is 500K or more.
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| Posted 10/10/07 12:07 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Scenario....
Posted by SweetTooth
No, I would not.
If they are making enough $$ to be able to afford that kind of a payment, then they should be able to save for a downpayment and/or escrow amt. fairly quickly.
I don't see any seller or their attorney accepting less than 5K escrow on a house that is 500K or more.
and at that rate, $5k is only 1%! i've never heard of an attorney accepting 1% to hold in escrow!
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| Posted 10/10/07 12:16 PM |
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Mrs-D-Girl
Love my fur baby
Member since 8/07 5183 total posts
Name:
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Re: Scenario....
Never, not for me. I would wait to buy a house till I am financially ready to.
IMO, that is playing with Fire
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| Posted 10/10/07 12:31 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Scenario....
I have good friends who are doing this - buying a $600k house with 0% down because they have no savings. It's contingent on selling their own house, which they will take a loss on because they bought it at the height of the market.
I tried to reason with them, particularly because they have TWO children in daycare, and are leasing two brand new cars, but according to my friend, they are hell bent on buying a place that will "wow their friends" 
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| Posted 10/10/07 12:44 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: Scenario....
Posted by Bxgell2
I have good friends who are doing this - buying a $600k house with 0% down because they have no savings. It's contingent on selling their own house, which they will take a loss on because they bought it at the height of the market.
I tried to reason with them, particularly because they have TWO children in daycare, and are leasing two brand new cars, but according to my friend, they are hell bent on buying a place that will "wow their friends"
People never cease to amaze me. I wonder if their friends will be saying "WOW" if they get foreclosed on. I'm sorry but sometimes people look for problems!
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| Posted 10/10/07 1:00 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Scenario....
Posted by Bxgell2
I have good friends who are doing this - buying a $600k house with 0% down because they have no savings. It's contingent on selling their own house, which they will take a loss on because they bought it at the height of the market.
I tried to reason with them, particularly because they have TWO children in daycare, and are leasing two brand new cars, but according to my friend, they are hell bent on buying a place that will "wow their friends"
this is the same situation as my buyers. they have a brand new porsche but have no money saved for a rainy day? thats nuts to me!
i feel like telling them, "you cant live in the porsche"!
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| Posted 10/10/07 1:17 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Scenario....
sell the porsche..get some money in the bank.
Banks are not just giving away loans anymore like they used to.
How is their credit?
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| Posted 10/10/07 1:55 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Scenario....
Posted by Blu-ize
sell the porsche..get some money in the bank.
Banks are not just giving away loans anymore like they used to.
How is their credit?
780 credit score. they think that having a high credit score will mean they can borrow as much as they want.
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| Posted 10/10/07 2:00 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Scenario....
what is their income? Is it high enough?
I think this is a bad idea...
I wouldn't entertain it as a seller at all.
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| Posted 10/10/07 2:09 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Scenario....
Posted by Blu-ize
what is their income? Is it high enough?
I think this is a bad idea...
I wouldn't entertain it as a seller at all.
they make alot from what they tell me. so i'm just at a loss here.
i told them i cannot in good conscience present an offer that has no money down. i work for the seller and this would in no way be a good deal for him. if they want to go directly to the listing agent thats fine, but i'm not risking getting reported for not representing the seller as i stated i was when i showed them the house.
i cant even deal anymore!
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| Posted 10/10/07 2:17 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Scenario....
No way. If I had the salary to be able to afford the mortgage payments that would amount to, then I'd have enough money int he bank for at least 5% down.
As a seller, I'd never entertain an offer where they couldn't put $5k (honestly, more like $10k) in escrow at contract. I'd be too afraid of them backing out and then losing all that time showing and marketing the house.
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| Posted 10/10/07 2:25 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Scenario....
Posted by alnem
Posted by Blu-ize
what is their income? Is it high enough?
I think this is a bad idea...
I wouldn't entertain it as a seller at all.
they make alot from what they tell me. so i'm just at a loss here.
i told them i cannot in good conscience present an offer that has no money down. i work for the seller and this would in no way be a good deal for him. if they want to go directly to the listing agent thats fine, but i'm not risking getting reported for not representing the seller as i stated i was when i showed them the house.
i cant even deal anymore!
Edited b/c I thought you were the listing agent. DUUUUUUHHHHHHHH!
Message edited 10/10/2007 2:33:55 PM.
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| Posted 10/10/07 2:27 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Scenario....
Posted by jacquig
Posted by Bxgell2
I have good friends who are doing this - buying a $600k house with 0% down because they have no savings. It's contingent on selling their own house, which they will take a loss on because they bought it at the height of the market.
I tried to reason with them, particularly because they have TWO children in daycare, and are leasing two brand new cars, but according to my friend, they are hell bent on buying a place that will "wow their friends"
People never cease to amaze me. I wonder if their friends will be saying "WOW" if they get foreclosed on. I'm sorry but sometimes people look for problems!
No kidding. She makes a decent living as an attorney at a big firm, but hubby is a music teacher, so their combined income is not enough to support daycare, new cars and a $600k mortgage. She's banking on making partner in a few years, which is a huge risk.
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| Posted 10/10/07 2:28 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Scenario....
Posted by Bxgell2
Posted by jacquig
Posted by Bxgell2
I have good friends who are doing this - buying a $600k house with 0% down because they have no savings. It's contingent on selling their own house, which they will take a loss on because they bought it at the height of the market.
I tried to reason with them, particularly because they have TWO children in daycare, and are leasing two brand new cars, but according to my friend, they are hell bent on buying a place that will "wow their friends"
People never cease to amaze me. I wonder if their friends will be saying "WOW" if they get foreclosed on. I'm sorry but sometimes people look for problems!
No kidding. She makes a decent living as an attorney at a big firm, but hubby is a music teacher, so their combined income is not enough to support daycare, new cars and a $600k mortgage. She's banking on making partner in a few years, which is a huge risk.
ENORMOUS risk. Is she unaware of the buy in to partnership? That first year can be rough...
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| Posted 10/10/07 2:31 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Scenario....
Posted by alnem
Posted by Blu-ize
what is their income? Is it high enough?
I think this is a bad idea...
I wouldn't entertain it as a seller at all.
they make alot from what they tell me. so i'm just at a loss here.
i told them i cannot in good conscience present an offer that has no money down. i work for the seller and this would in no way be a good deal for him. if they want to go directly to the listing agent thats fine, but i'm not risking getting reported for not representing the seller as i stated i was when i showed them the house.
i cant even deal anymore!
OOOOOHHHHHH you're working for the buyers!! NM my last post. I'll go delete it. Sorry - I apparently can't read for comprehension!!!
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| Posted 10/10/07 2:33 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Scenario....
Posted by Blu-ize
sell the porsche..get some money in the bank.
Banks are not just giving away loans anymore like they used to.
How is their credit?
I agree....
If they make that much money they really should have $ to put down, or at least pay closing costs!
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| Posted 10/10/07 2:48 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Scenario....
Are they preapproved or is their insanity entirely of their own minds?
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| Posted 10/10/07 2:52 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Scenario....
Posted by Kara
Posted by Bxgell2
Posted by jacquig
Posted by Bxgell2
I have good friends who are doing this - buying a $600k house with 0% down because they have no savings. It's contingent on selling their own house, which they will take a loss on because they bought it at the height of the market.
I tried to reason with them, particularly because they have TWO children in daycare, and are leasing two brand new cars, but according to my friend, they are hell bent on buying a place that will "wow their friends"
People never cease to amaze me. I wonder if their friends will be saying "WOW" if they get foreclosed on. I'm sorry but sometimes people look for problems!
No kidding. She makes a decent living as an attorney at a big firm, but hubby is a music teacher, so their combined income is not enough to support daycare, new cars and a $600k mortgage. She's banking on making partner in a few years, which is a huge risk.
ENORMOUS risk. Is she unaware of the buy in to partnership? That first year can be rough...
I told her that but she's not listening. SHe's also not taking into consideration the other costs associated with a bigger house - when we moved from our 1800 square foot to 3100 square foot home our energy bill shot up from about $150 a month to $500 a month!  Not to mention, she meets her billable requirement, but JUST so - she bills exactly 2000 a month. That's not going to cut it for partnership at a big firm like hers.
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| Posted 10/10/07 3:08 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Scenario....
Posted by Bxgell2
Posted by Kara
Posted by Bxgell2
Posted by jacquig
Posted by Bxgell2
I have good friends who are doing this - buying a $600k house with 0% down because they have no savings. It's contingent on selling their own house, which they will take a loss on because they bought it at the height of the market.
I tried to reason with them, particularly because they have TWO children in daycare, and are leasing two brand new cars, but according to my friend, they are hell bent on buying a place that will "wow their friends"
People never cease to amaze me. I wonder if their friends will be saying "WOW" if they get foreclosed on. I'm sorry but sometimes people look for problems!
No kidding. She makes a decent living as an attorney at a big firm, but hubby is a music teacher, so their combined income is not enough to support daycare, new cars and a $600k mortgage. She's banking on making partner in a few years, which is a huge risk.
ENORMOUS risk. Is she unaware of the buy in to partnership? That first year can be rough...
I told her that but she's not listening. SHe's also not taking into consideration the other costs associated with a bigger house - when we moved from our 1800 square foot to 3100 square foot home our energy bill shot up from about $150 a month to $500 a month! Not to mention, she meets her billable requirement, but JUST so - she bills exactly 2000 a month. That's not going to cut it for partnership at a big firm like hers.
I think you mean 2,000 a year -- and billing is only a small part of what it takes to make partner at big firm. It's really not a total numbers game as so many think. (And yes, I work for a big firm, too)  I know many associates who had been billing 1500-3000 a year and were passed up for partnership in favor of 2,000-hr billers with better client skils and better ability to bring in business to the firm. Then again, at the same time, I'd think someone THAT focused on partnership would be billing more... In that respect, I see your point...
Regardless, still a craps shoot! What year associate is she? They usually give you an indication around your 7th / 8th year whether you are on the partnership track, but even then it's no guarantee!
Message edited 10/10/2007 4:12:19 PM.
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| Posted 10/10/07 3:21 PM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
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Re: Scenario....
Posted by Bxgell2
I have good friends who are doing this - buying a $600k house with 0% down because they have no savings. It's contingent on selling their own house, which they will take a loss on because they bought it at the height of the market.
I tried to reason with them, particularly because they have TWO children in daycare, and are leasing two brand new cars, but according to my friend, they are hell bent on buying a place that will "wow their friends"
yup I know a couple that bought a 500k house with an ARM I/O, she was pregnant & they needed a house quick. Overpaid for it, she doesn't work since the baby. They bought all new furniture & maxed out all their cards. The husbands industry has come to a screeching halt so they've been living off what little savings they had, because he's earning almost nothing. Their interest rate resets next year, they admit they can't swing the new payment(they were counting on nonstop double digit appreciation so they could refi), they just turned in their luxury car at the end of its lease, bought an economy SUV. He crashed his car & they don't have $$ for another payment-so they've only got one car. And some of the interest & payments on the furniture loans are coming due at the end of the year.
They would have to sell the house for a minium of 75k LESS than they paid in this market.
I have no idea what they were thinking when they got into this mess. They pretty much need a winning mega millions ticket to get out.
Some people are dumbasses.
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| Posted 10/10/07 3:25 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Scenario....
Posted by Kara
Are they preapproved or is their insanity entirely of their own minds?
yes they were approved for 100% financing 4 months ago so today i call their mortgage broker (who is a complete dumbazz btw) and he says "oh yes they can do 106% financing since their credit it so good". i said thats great but now they want a sellers concession and dont have money to put into escrow. he says "well i dont know anything about the real estate end, just the financing part. you would know more than i would about whats required". helloooooo???? then dont go telling people that they can do these things without full knowledge of how the industry works!!!! he just made my job 10x harder!!!!!
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| Posted 10/10/07 3:54 PM |
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