Recent posts

#1

Off-Topic / Re: Mortgage Payments should b...

Last post by kernals12 - Today at 08:27:38 PM

The current system is rather one-sided. If a borrower is underwater and gets foreclosed on, they still owe the difference between the sales price and the value of the loan, but it is extremely unlikely that the borrower will ever be able to pay that debt. On the other hand, if the sales price is higher than the value of the loan, the borrower gets to pocket the surplus. This asymmetry means all borrowers have to pay a higher interest rate.

Yes. The risk is on the buyer. If you don't want to deal with that risk, you can always rent.

Our tax code privileges homeowners over renters.

Almost as though it is intended to incentivize home ownership or something.

There is no rational reason for it.

#2

Northeast / Re: Pennsylvania

Last post by oscar - Today at 08:12:43 PM

It looks like they replaced an old rickety one-lane bridge with a new look-alike one-lane bridge.

One word: SHPO.  And, one lane is all that's needed.

Does the "HP" in "SHPO" stand for "Historic Preservation"?

#3

Northeast / Re: New Jersey

Last post by SignBridge - Today at 08:12:32 PM

Although I too dislike the "1-9" shield, that's not as bad as the ones that display "1&9" which as you approach it looks like "189" creating more confusion. Separate shields should be used.

#4

Northeast / Re: New York

Last post by SignBridge - Today at 08:08:43 PM

Like vdeane said, it's fed aid eligible.  I'd bet HSIP was used.  Region 3 has soured on HAWKs; wonder if Region 4's RTE was like, "Whatever, it's MUTCD compliant..."

Why would Region 3 (only) have soured on HAWKS? Did they come their senses regarding the fact that dark signals are actually prohibited by the MUTCD??

#5

Off-Topic / Re: Mortgage Payments should b...

Last post by Max Rockatansky - Today at 07:54:03 PM

The current system is rather one-sided. If a borrower is underwater and gets foreclosed on, they still owe the difference between the sales price and the value of the loan, but it is extremely unlikely that the borrower will ever be able to pay that debt. On the other hand, if the sales price is higher than the value of the loan, the borrower gets to pocket the surplus. This asymmetry means all borrowers have to pay a higher interest rate.

Yes. The risk is on the buyer. If you don't want to deal with that risk, you can always rent.

Our tax code privileges homeowners over renters.

Almost as though it is intended to incentivize home ownership or something.

#6

Off-Topic / Re: Mortgage Payments should b...

Last post by michravera - Today at 07:51:47 PM

The current system is rather one-sided. If a borrower is underwater and gets foreclosed on, they still owe the difference between the sales price and the value of the loan, but it is extremely unlikely that the borrower will ever be able to pay that debt. On the other hand, if the sales price is higher than the value of the loan, the borrower gets to pocket the surplus. This asymmetry means all borrowers have to pay a higher interest rate.

Yes. The risk is on the buyer. If you don't want to deal with that risk, you can always rent.

That's actually not true, in California and other "Title Theory" states.

What does Title Theory mean?

Look it up! Basically, under Title Theory, if a borrower defaults, there are no deficiency judgements. The lender can have the house or have the money. They can't have both.

#7

Northeast / Re: NYC Roads

Last post by vdeane - Today at 07:48:35 PM

If all of the New York Bridges and Tunnels were tolled, the only way to shunpike would be to take transit. If the upcoming congestion pricing plan is considered successful, it may spread to other parts of New York City, although I'm sure plenty here would not want that to happen.

You'd need separate zones otherwise you might defeat the point.

#8

Off-Topic / Re: Mortgage Payments should b...

Last post by SEWIGuy - Today at 07:39:42 PM

The current system is rather one-sided. If a borrower is underwater and gets foreclosed on, they still owe the difference between the sales price and the value of the loan, but it is extremely unlikely that the borrower will ever be able to pay that debt. On the other hand, if the sales price is higher than the value of the loan, the borrower gets to pocket the surplus. This asymmetry means all borrowers have to pay a higher interest rate.

Yes. The risk is on the buyer. If you don't want to deal with that risk, you can always rent.

Our tax code privileges homeowners over renters.

Huh. Are you catching on yet?

#9

Off-Topic / Re: Mortgage Payments should b...

Last post by kernals12 - Today at 07:32:07 PM

The current system is rather one-sided. If a borrower is underwater and gets foreclosed on, they still owe the difference between the sales price and the value of the loan, but it is extremely unlikely that the borrower will ever be able to pay that debt. On the other hand, if the sales price is higher than the value of the loan, the borrower gets to pocket the surplus. This asymmetry means all borrowers have to pay a higher interest rate.

Yes. The risk is on the buyer. If you don't want to deal with that risk, you can always rent.

Our tax code privileges homeowners over renters.

#10

Off-Topic / Re: Mortgage Payments should b...

Last post by kalvado - Today at 07:27:30 PM

Birthrate declines will be more than made up by net immigration.

This nation might not be able to take the immigration factor for granted much longer.

For the past 50 years all of America's net increases in population have been made possible by immigration. In the early 1970's the total fertility rate of American-born women of all races fell to an average near 2.1 children per female, which is equal to the replacement level. TFR hovered near that level until the mid 2000's and has been steadily dropping since. Immigrants who come to America now are also having fewer children.

Currently there is a lot of anti-immigrant hysteria present in our country. The possibility of mass deportations following the November election could dramatically reduce all types of immigration. The free and open nature of our society helps attract a great deal of high skilled legal immigrants. If America's government turns into a dictatorship of some type that sort of immigration will be greatly reduced. Finally, if America's economy tanks itself that will also reduce immigration. A bunch of this nation's wealth is tied up in the housing market. If future generations are suddenly much smaller that will lead to a far smaller pool of future home buyers.

There will not be "mass deportations" no matter who wins in November. And there will still be plenty who want to come here.

Economy is certainly a big factor for immigration. When/if significant problems would occur, an outflow instead of inflow is pretty much expected.