Real Estate Crash thread

[Danno]

Just got cleared to close the first week of January. Psyched that I will miss 2 mortgage payments, I could use the cash flow (and yes, I know that I am still "paying" those 2 months, they're just rolled into the loan).

Those 2 months plus the escrow refund will keep me afloat a little longer. And I still save almost $100/mo on the new loan.

[Skidog]

Just got cleared to close the first week of January. Psyched that I will miss 2 mortgage payments, I could use the cash flow (and yes, I know that I am still "paying" those 2 months, they're just rolled into the loan).

Those 2 months plus the escrow refund will keep me afloat a little longer. And I still save almost $100/mo on the new loan.

same result here. Cashed the overage check the other day, expect an escrow overage in Jan. Then Tax return, and the missing Dec and Jan payments. Like you said, nice to have a little "extra" cashflow, but in my case some other shoe always falls. Just when I think im out, they pull me back in.

[Kevo]

I'm still waiting on an escrow refund from the sale of my house in early October. I've spent probably 25 hours on the phone trying to track down ~$3k. Wait times have averaged 1 hour each time. Every time I talk to someone they tell me the check will be sent out the next week, but it never comes. I've filed a CFPB complaint against the servicer. I've sent secure emails through the online portal. I called again today (4th time this month) and was told basically the same thing they always say.

I've moved out of state and I'm pretty sure the mortgage servicer knows that in order to sue them I'd need to file in CO where the house was located and that there is a massive backlog of small claims cases due to covid, so they have no fear of legal action and no interest in paying me the escrow refund.

[AdironRider]

That is pretty fucked up, but my understanding is that is a pretty tightly regulated industry and even if they weren't afraid of losing in small claims, there are licenses and such involved and they could lose their ability to service loans. Seems like they'd be risking a lot over 3 grand, but then again, I think the whole industry is basically a sham (mostly realtors and escrow people) so who knows.

[sirbumpsalot]

Just got cleared to close the first week of January. Psyched that I will miss 2 mortgage payments, I could use the cash flow (and yes, I know that I am still "paying" those 2 months, they're just rolled into the loan).

Those 2 months plus the escrow refund will keep me afloat a little longer. And I still save almost $100/mo on the new loan.

Congrats....I close today and fund Tuesday on my refi. I miss Jan payment but Dec interest is part of the payoff and took a lower loan amount to count for the Jan principle payment. Even at 2.5% its better to keep paying down principle. After rates rise that will change and I will be less likely to pay down principle any faster.

[Toadman]

I'm still waiting on an escrow refund from the sale of my house in early October. I've spent probably 25 hours on the phone trying to track down ~$3k. Wait times have averaged 1 hour each time. Every time I talk to someone they tell me the check will be sent out the next week, but it never comes. I've filed a CFPB complaint against the servicer. I've sent secure emails through the online portal. I called again today (4th time this month) and was told basically the same thing they always say.

I've moved out of state and I'm pretty sure the mortgage servicer knows that in order to sue them I'd need to file in CO where the house was located and that there is a massive backlog of small claims cases due to covid, so they have no fear of legal action and no interest in paying me the escrow refund.

Speaking from experience, it's really nice to see that escrow check show up in the bank account. Especially when it's just a little bit more than was projected.

[RootSkier]

I'm not a Colorado attorney and I don't play one on a tv but in that case I would be seriously tempted to file a lawsuit alleging violations of the Colorado consumer protection act, which appears to allow for treble damages and attorney fees. Lately, in cases involving lenders who aren't being responsive with issues like that, we have been filing lawsuits to get anything done because usually the bad actor immediately does what they are supposed to do when they get served.

Whether that is worth hiring an attorney for is an open question.

[Benny Profane]

Mortgage rates hit a record-low for the 15th time this year the week of December 10. But in many cities, homeownership is still unaffordable.

Home prices rose faster than wages in 53 out of the top 100 largest cities in the U.S. over the past decade, according to a new study by Point2, a Santa Barbara, Calif.-based real estate search portal owned by Yardi System.

“More and more cities in America are becoming unaffordable,” said Monica Alistar, a communications strategist at Point2. “The most important takeaway is that despite mortgage rates being at a low point right now, home prices and wages can’t keep up.”

In five cities — North Las Vegas, Nev., Las Vegas, Paradise, Nev., Aurora, Colo., and Stockton, Calif. — there was more than a 50% difference between rises in home prices (89%-104% growth) and income (20%-44% growth). For instance, in North Las Vegas, home prices rose 104%, while wages increased only 29%, according to the study.

“Mortgages are becoming less affordable and buyers are becoming more cost burdened than they were 10 years ago,” said Alistar.

In 2020, housing costs represented more than 30% of income (the threshold for being considered cost burdened) in 15 top U.S. cities, up from only 13 cities in 2010, according to the study. Three cities in California — San Francisco, Fremont and San Jose — joined the list of housing-burdened cities in 2020, while Newark, N.J., left the list.

Most cost-burdened cities are on the West Coast. In 2020, Americans spent the highest percentage of their income on housing costs in Honolulu (41%), Los Angeles (41%), Oakland, Calif. (39%), San Francisco (39%) and New York (39%).

That's not really fair using the price rise in Vegas and other Nevada "cities" over the last decade to illustrate their point. Vegas and Reno were some of the worst hit markets in the housing crash. Of course they bounced back from nothing.

[bigdude2468]

I understand the angst but the only reason the home values in these areas are rising is someone has the money and the desire is live there. If you are a homeowner and want to sell and perhaps move to a less costly area you feel like you just won the lottery.

[goldenboy]

I'm not a Colorado attorney and I don't play one on a tv but in that case I would be seriously tempted to file a lawsuit alleging violations of the Colorado consumer protection act, which appears to allow for treble damages and attorney fees. Lately, in cases involving lenders who aren't being responsive with issues like that, we have been filing lawsuits to get anything done because usually the bad actor immediately does what they are supposed to do when they get served.

Whether that is worth hiring an attorney for is an open question.

Yeah, if that's the case, Kevo, send a nicely written letter explaining that they might be liable for treble damages via certified mail. I bet you get a check immediately.

One of my proudest moments was in college when a landlord tried to keep all our security deposit without justifying why. We sent a nice letter, referencing the Boulder code that allowed for treble damages, via certified mail. We got our 3X check in days. He probably thought we were just dumb rich college kids that would let that shit slide. Nope.

[Danno]

I'm not a Colorado attorney and I don't play one on a tv but in that case I would be seriously tempted to file a lawsuit alleging violations of the Colorado consumer protection act, which appears to allow for treble damages and attorney fees. Lately, in cases involving lenders who aren't being responsive with issues like that, we have been filing lawsuits to get anything done because usually the bad actor immediately does what they are supposed to do when they get served.

Whether that is worth hiring an attorney for is an open question.

Yeah, if that's the case, Kevo, send a nicely written letter explaining that they might be liable for treble damages via certified mail. I bet you get a check immediately.

One of my proudest moments was in college when a landlord tried to keep all our security deposit without justifying why. We sent a nice letter, referencing the Boulder code that allowed for treble damages, via certified mail. We got our 3X check in days. He probably thought we were just dumb rich college kids that would let that shit slide. Nope.

Agreed. A firmly written demand letter referencing the statute and treble damages is usually enough to get action. If Kevo has an attorney friend willing to put it on his letterhead, all the better (but not necessary).

I had a similar issue with my landlord when I moved after buying my house. The letter got me a check in no time at all.

[Kevo]

Thanks for the advice everyone.

Any CO legal mags want to take the case an pursue 3x damages? I'm happy to pay for representation.

[SKIP IN7RO]

Considering you made a shit-ton of money on your Golden property, maybe just take a few laps and forget about it.

[Danno]

Considering you made a shit-ton of money on your Golden property, maybe just take a few laps and forget about it.

Seriously? No way should he let the mortgage servicer just keep his escrow money, fuck that.

[SKIP IN7RO]

I would have been out after 25 hours on the phone, and the thought of having to get lawyers involved.

[SKIP IN7RO]

Relax. Look around. Make a call.

[SKIP IN7RO]

This one is better. "A good leader does not get bogged down in the minutia of a tactical problem at the expense of strategic success.”

[MakersTeleMark]

https://www.vaildaily.com/news/eagle...lion-in-sales/

[goldenboy]

https://www.vaildaily.com/news/eagle...lion-in-sales/

It's been crazy in every mountain town. Crested Butte went from $225M in '19 to $402M last year.

[Benny Profane]

It's an easy portfolio asset to justify, especially with that appreciation.

[m2711c]

easy for everybody but you, apparently....

[Benny Profane]

Are you back to stalking me in a creepy way, again?

[m2711c]

sure.

[Mazderati]

Is there anything that stops the continued run up in real estate? Seems like it has to end eventually but sure doesn't look like it right now.

[m2711c]

the return of reasonable interest rates should at least slow it down.....