Parsons Realty

Full Service - Low Flat Fee

  • Home
  • Real Estate Search
  • Buyers
  • Blog
  • Contact Us
You are here: Home / Blog / Time To Sell, NOW!

Time To Sell, NOW!

November 5, 2008 By

 

My sister asked my opinion of home values in Redding about three years ago.  At that time I suggested, “sell your home now and rent before the financial markets crash”.  Needless to say, no one in my family followed my advice.  The subject has come up again and I just sent my sister an email with my thoughts, see below.

Hello Sue and Uncle Tom,

Well, actually this is your second chance to sell your home (if you have equity).  There will be a window of opportunity between now and when Obama’s plans go into play.  We are already headed down a perilous financial path and the election of Obama pretty much guarantees financial suicide.  However, his plan could possibly work out, more on that in a minute.

If you have equity in your home, sell now and find a nice rental.  If you don’t have much equity in your home and the economy gets worse, as I expect, stay put as I can show you how to stay in your house without paying the mortgage for at least 9 – 10 months.  I’m currently averaging 9 – 10 months with my clients now.  The time span could be greater in the future.  When I do a short sale for my clients we can often times keep them in their home for a year, MORTGAGE FREE.

Now here’s the best part.  After my clients have lived in their house mortgage free, the lender offers them cash to move out.  When the lender forecloses on the house they typically offer a certain dollar amount to the previous homeowner in exchange for the house keys.  In the trade, this is known as “cash for keys” or CFK.  If the previous homeowner moves out and hands over the keys, they receive a check from the lender.  The dollar amount of the check is typically $3,500.00 or more!  There’s your first month’s rent for your new place.

Another strategy involves skipping a few house payments and then have us contact your lender to do a “loan modification”.  Right now we are negotiating loan modifications with APR rates between 2-4%.  Don’t try to obtain these rates if you are a customer in good standing, it won’t happen.  The lowest mortgage rates are strictly reserved for only the worst customers!

You will get the best loan modification if I do the negotiating for you.  Most homeowners don’t stand a chance dealing with ruthless loss mitigators.  I guarantee they’ll trick you into singing unsecured notes or modify your loan from bad to toxic.  When they are done with you, bankruptcy will begin to look attractive (providing you qualify).  They will take advantage of you in a heartbeat!  But wait, there’s more!  For a limited time if you act fast (within the next 10 months or so) we’ll throw in a principal reduction too.  Really, I’m not kidding.  With some good negotiating, I have been very successful in getting the lender to lop off an additional $30-$50 thousand dollars or more.  This is a principal reduction, you never have to pay it back, it’ yours to keep just for trying my services.

Your credit rating will suffer using these techniques but we are finding credit card companies and even lenders are becoming understanding of these unfortunate circumstances.  They’re already explaining the situation away by saying “oh, that was late 2007 or early ’08 when the mortgage meltdown occurred, it’s really not your fault.”

By now I suspect you think I am being facetious.  Well, I’m not.  I’m dead serious.  This is how I have earned my living the last three years.  I’m having my best year ever at the expense of the lenders and the tax payers bailout money!  Oh, thank you GOD!

Now here’s why Obama’s plan could work.  Things are already pretty bad and we could be facing a full-on depression, even without Obama’s help.  If Obama is successful in crashing the economy (and I think he will be) the destruction will happen very fast.  Just like tearing a bandage off a wound.  It’s very painful but it’s over fast.  

By crashing the economy, everything will become more affordable.  As an example, I’m already able to sell homes to first time homebuyers again.  Prices will fall across the board including health care.  Thus, the burden on Social Security and Medicare etc. could actually become affordable again.  And, if you sold your house, you’ll have cash to pick-up most anything you want for pennies on the dollar.  Remember, cash is king during recessions or even survival in a great depression.

By collapsing the economy we will effectively “spread the wealth” by making affordable the things that only the middle class and wealthy could afford in the past.  And…the economic cycle starts over again.  Typically, the biggest hoarders of wealth are older individuals and they will be too old to do anything about it and will be dead in 15 years or less anyway.  Problem solved!

Well, maybe.  There are many things I can’t foresee and the plan could definitely backfire.  Such as; the biggest contributors to today’s society, the top 3 percent of the population are rich enough to take a financial hit and still continue their comfortable lifestyle.  However, when you do this to the top producers of the economy you also take away their incentive to do anything more.  Therefore, since they are typically older individuals anyway, they could simply take their bat and ball and go home.  And…enjoy the rest of their life while the masses fight over the diminishing handouts.  If this scenario actually happens, you and I have little to worry about because it won’t get real bad until you and I are pushing up daisies.

In my opinion, the real losers will be the people that are currently under 48 years old while the young people, those under 23 years old will possibly end up with the best deal.  That is…if the plan works.  Unfortunately, it’s my opinion the plan will experience a wholesale failure for at least a generation or more.  To guess what this scenario would look like you have to look no further than any third world country of your choice.

-Bill

Filed Under: Blog, Financing, Foreclosure Help, selling, short sales Tagged With: redding, Short

Comments

  1. Pam says

    November 6, 2008 at 1:43 am

    Hey Bill,

    Tell your sister what Obama is proposing now.

    It looks like we could all be paying higher mortgage interest rates to bail out the dead beats.

    Wow, what ever happened to contract law?

    Imagine if you loaned money to someone and had the borrower sign a contract promising to repay the money. Then, out of the blue, the Government tells the borrower they don’t have to pay all of the money back. Why in the hell would any bank or private individual loan money to anyone?

    Is this America? Does anyone consider this a free society when the Government can change the rules on the fly?

    Sorry, but I think we are in for a shit load of problems.

    I got this off of CNN:

    Obama has called for a change to the bankruptcy law that would let bankruptcy judges reduce mortgage principals for bankruptcy filers. Proponents say such a change would encourage (read force) lenders to modify more loans for troubled borrowers rather than risk the loan being rewritten by a judge. Opponents say the change could cause a rise in interest rates because mortgage investors would price in the risk of new loan terms.

    God Bless America!

Trackbacks

  1. HAFA Goverment Short Sale Program | Parsons Realty says:
    March 23, 2010 at 12:53 pm

    […] couldn’t be a better time to walk away from your house!  As a refresher, see my blog post from  November 5th 2008 regarding the short sale process and the “Cash For Keys” some lenders offer homeowners as an […]

530-222-1818
1171 Hilltop Dr
Redding CA 96003

Latest News

  • The Five Most Expensive Homes For Sale In Redding, CA
  • Homes For Sale In Redding, CA Under $300,000
  • Redding Homes For Sale – Inventory Starting to Climb
  • Redding Weekly Real Estate Report: April 8 2013
  • Palo Cedro Home Sales – February 2013

Custom Home Search

  • Golf Course Homes
  • Homes with a Pool
  • Luxury Homes For Sale
  • Waterfront Properties

Subscribe

We have new properties coming. Get the latest updates delivered to your inbox in an easy to read email presentation. Imagine finding your next home tomorrow. It happens. Please subscribe below.

We respect and value your privacy. We will only deliver property updates to your email address.

Redding Properties

167 Listings
4059 Acadia Place, Redding, CA 96001

$749,800 4 beds  3 baths  2,378 sqft 4059 Acadia Place
Redding, CA 96001

IDX
83 Tidmore Ln, Redding, CA 96003

$319,900 3 beds  2 baths  1,300 sqft 83 Tidmore Ln
Redding, CA 96003

IDX
722 South St, Redding, CA 96001

$269,999 3 beds  2 baths  1,585 sqft 722 South St
Redding, CA 96001

IDX
716 Collyer Dr, Redding, CA 96003

$549,900 3 beds  3 baths  2,333 sqft 716 Collyer Dr
Redding, CA 96003

IDX
16467 /16436 Sky Ln, Redding, CA 96001

$1,100,000 6 beds  5.5 baths  3,652 sqft 16467 /16436 Sky Ln
Redding, CA 96001

IDX
2815 Howard Dr, Redding, CA 96001

$389,000 4 beds  2 baths  1,843 sqft 2815 Howard Dr
Redding, CA 96001

IDX
3611 Scorpius Way, Redding, CA 96002

$100,000 3 beds  1 baths  936 sqft 3611 Scorpius Way
Redding, CA 96002

IDX
35 Rose Ln, Redding, CA 96003

$285,000 3 beds  2 baths  1,152 sqft 35 Rose Ln
Redding, CA 96003

IDX
This wonderful rancher offers great curb appeal!

$449,900 3 beds  2 baths  1,650 sqft 12922 Moody Creek Dr.
Redding, CA 96003

IDX
1973 Balzac Ct, Redding, CA 96003

$435,000 3 beds  2 baths  1,901 sqft 1973 Balzac Ct
Redding, CA 96003

IDX
previous next

IDX MLS IDX Listing Disclosure © 2021

Information deemed reliable but not guaranteed.

Social Media

  • Facebook
  • Instagram

© Copyright 2021 Parsons Realty · Lic# 01312921 · All Rights Reserved · Powered by steelbridge.io