Montana Jones

It's the economy...

He:

you know the big media outlets. ABC, NBC, FOX, CBS, and so on. You know those guys.

Me:

Yeah.

He:

Well, they have successfully predicted 40 of the last two recessions.

He:

The mortgage crisis is not dying off, it is only going to get worse. You know all those international investors that bought the subprime mortgages, well, they are going to start suing. They were sold unsecured loans as though they were secure loans. They are going to sue the middle men banks to get their money back. These banks are going to get screwed from defaulted home loans on one side and get screwed by lawsuits from international investors on the other. There are some banks that will not exist anymore in a year.

He:

Keep an eye on the real estate markets this year. Around June things will start shaking out and it might be a good time to buy that house you want.

Me:

I have been watching. I was doing a search last night in fact. I am starting to see the cracks in the ice. Six months ago I was seeing the $600,000 houses drop price to $500,000.

He:

Big woopty.

Me:

Yeah, not very useful. But just now in the past couple weeks I have started seeing the $250,000 house drop to $200,000. There are even a handful for less than $200,000 come onto the market. We might just see the starter houses become affordable again this year.

He:

That is what we need. Get those $250,000 houses back down to $175,000 and people might be able to afford to live here again.

He:

I can't believe how short peoples memories are. I still remember what happened right after Vietnam. The economy was in the shitter. LBJ spent all our money in Vietnam and there was nothing left for ourselves. The same thing is happening in Iraq.

Me:

Only more so.

He:

Yeah, more so. George is throwing money away in spades. Do you remember what happened back in the 70s? Back in 1978 and 1979?

Me:

Not much economically. The word stagflation comes to mind.

He:

In 1979 the interest rate was 16%. No one could borrow any money without these incredible fees on it. The government had to do it, they had to charge these huge interest rates to try to make back some of the money that was thrown away in Vietnam.

He:

I'm starting to change my mind about switching banks?

Me:

Oh?

He:

The big question right now is which banks are going to still be here in a year. Ever wonder how Glacier Bank got so big so fast? I bet they were dealing in those shady loans. If so, they are going to take it hard too. So I want to wait and figure out who is going to buy out whom and which banks will be left standing in a year.

Labels: affordable, bank, conversation, economy, mortgage, real estate, recession

Posted by: Montana Jones / 9:07 AM 0 comments

From my outbox

Interestingly enough, the mortgage guy I used to double check the bank called me back after hearing my news. He started singing the praises of interest only loans and other novel ways to make the rates affordable for me. Made me clutch my wallet in fear. I might 'accidentally' loose his business card.

Yes, this has been a learning experience. One of the things learned is how professionals (bankers, brokers, et al.) that you hire to watch your interests really just watch their own.

MJ

Labels: bank, email, interest, learning, loan, money, mortgage, outbox, real estate

Posted by: Montana Jones / 8:40 AM 0 comments

Buying and selling

Me:

Well, the radon test results are now a moot point. My financing has been shot down.

Dad:

Uh-oh.

Me:

Yeah, I'm pretty bitter about that. I have some options, but I am angry right now so I'm not gonna make any decisions until I've cooled off.

Dad:

So what did R have to say about it?

Me:

Not much. She did give me the name for a different mortgage guy but she was thought the problems I have with the bank I will have everywhere.

Dad:

What about a down payment? You can probably change the numbers in your favor with a larger down payment.

Me:

The few thousand dollars I have to throw at it won't make enough of a difference. To get the bankers to pay attention I will need about 10 to 20 percent of the asking price.

Dad:

You should try to find out what the minimum down payment you need is. The bank of mom might be able to help.

Me:

Hmmm Okay, I will look into that.

Dad:

Does the bank have any other options?

Me:

Yeah, but not good ones. They have a higher interest rate that I can't afford. Funny how my income is too high for the affordable housing people, to low for the board of housing people, and the first thing the bank can suggest is a bigger cut for themselves and a higher payment I can't afford.

Dad:

Welcome to being in the middle.

Me:

I would never have gotten into this process if it wasn't for the bank giving me a good faith estimate that I could afford this thing. Two of them even. Now it feels like a bait and switch. The banks good faith estimates are loosing credibility with me. Did I mention I am pretty angry about this?

Labels: angry, bait and switch, bank, buy, conversation, dad, financing, money, real estate

Posted by: Montana Jones / 8:12 AM 1 comments

Something about old dogs and new tricks

OD:

I'm not sure about that bank merger. We'll have to see how they handle their accounts.

Me:

The teller lady today told me that account numbers and things will stay the same, only the name will change. We just use up our existing checks and when we get new ones they will have a new name on them.

OD:

They sent me a new credit card too, but I don't think I can activate it. They are going to make me go to an ATM.

Me:

Last time I got a new card I just called an 800 number to activate it.

OD:

Well the instructions say I have to go to an ATM. Here, right here it says that. They have this 800 number for questions but it doesn't say you can activate with that.

Me:

Well, go to an ATM.

OD:

I have issues with ATM's. I don't use them; they cost too much. I shouldn't have to pay to use my own money. I don't even know my pin number. Don't have one. Something that does not exist can't be stolen.

Me:

Just try the 800 number. I bet it will work.

OD:

And if they try to tell me I have to use an ATM I will just go to another bank. I'm the one loaning them money. If they don't do things the way I like, I will go find another bank and loan my money to them instead. Ain't no one can force me to use an ATM if I don't want to.

Labels: ATM, bank, change, conversation, credit card, money

Posted by: Montana Jones / 8:21 AM 0 comments