F**ked Borrower (Car Lease Version)

I can never figure out why there are so many people on Craigslist who try to find people take over their car leases after 2, 3 and sometimes much longer of usage.
Do they not understand that unless you put down a hefty downpayment, chances are that leases are designed such that the leasees are in debt from day one.
There is never a point in the whole lease term that the car is worth more than the debt.

Just look at the examples on CL.

2005 VW Touareg V8 - Take over my lease - $700 (san rafael)

Reply to: sale-246103281@craigslist.org
Date: 2006-12-08, 1:34PM PST

Ladies and Gentlemen,

This car was leased from Sonnen in Marin from a close friend who gave me a great deal. I paid $500 over invoice for the car. Therefore the lease is just shy of $700 per month. My wife and I decided we need a larger SUV so we need to let it go. We are upside down on the lease so it is not worth trading in, but if you want one, this is the way to go. The car has two years left on the lease and has approximately 13,000 miles on it. The car is Silver on Gray. It is relatively loaded with options including navigation.

Email me if you are interested.

Of course you are upside down you dumba**. There is never a point you can have equity in your car.
Here's another idiot trying to sell a

Are you kidding? The car is worth over 30k right now.

Why would anyone pay you 15k to takeover the lease.

No thanks.

--- Anthony Yee <smyee@yahoo.com> wrote:

> Wow!! 7 year lease! Sure it was fun while it lasted.

>

> The car is barely worth $20K and it will probably down to $12K after

> two years.

>

> My offer would be you pay me $15K upfront to take over the lease.

>

>

>

> Let me know if that sounds good to you.

>

>

>

>

> Takeover Lease Mercedes CLK 430 - $490

> 2002 Mercedes CLK 430 Coupe - Take Over LeaseTake Over Lease or Buy the Car!!!!
> 27 Months Remaining on the lease
> Monthly Payment $490 + tax
> Current Buyout $33k
> Residual $19k
> Mileage allowance - 15,000
>
> Mercedes-Benz CLK 430 Coupe - V8
> Year: 2002

> Black Exterior, Grey Interior

> AMG Wheels

> Mileage: 47k

> Condition: Excellent - No dents, Very Clean Bose System Power Windows,

> Door, Mirrors, Seating Cruise Control SmartKey Remote

>

> e=CLK350C&preClassCode=06_CLK&preAccClassCode=CLK>

>

&preModelCode=CLK350C&preClassCode=06_CLK&preAccClassCode=CLK

>

>

> Lease:

> The lease is fully assumable - meaning lease will be transferred to

> your name You can buy out the car any time during the lease or lease

> it to someone else.

> After the lease ends: return the car or buy it out (buyout price is

> around

> 19k)

>

> Lease Process - Very Simple

> You must have a good credit score

> Reason for giving up the lease - Moving and won't need a car.

>

> Serious Inquiry Only.

> Email if you would like to test drive the car.

Mortgage-Backed Securities Index - ABX

Bloomberg.com: U.S.
The index [ABX] tracks 20 asset-backed securities that contain loans rated BBB-, the lowest level of investment grade debt. Based on the index, it costs an investor $267,000 to protect $10 million of bonds against default for five years, up from $205,000 in August. The investor would get face value for the bonds in exchange for the securities should a borrower fail to adhere to the debt agreements.

Here’s a very interesting
report done on ABX constituents by Nomura.

It is quite shocking to me that MASTR (one of the 20 constituent deals) backed by UBS has the highest concentration in the West with over 73% and also the highest concentration of IO with, read this, 100%.
"Unsurprisingly, the UBS/MASTR deal again tops this list with
77% of its active loans having been underwritten with low documentation."

Message Boards: Your Money with Personal Finance columnist Liz Pulliam Weston - MSN Money

Message Boards: Your Money with Personal Finance columnist Liz Pulliam Weston - MSN Money

cbs5.com - Liar Loans

cbs5.com - Liar Loans

Hopeful Glimmers in the Housing Slump

Hopeful Glimmers in the Housing Slump: "Time to punch that pulsing-red panic button? Not yet. Because several other pieces of news in the Realtors report were better than expected, indicating that the housing downturn may not be quite as bad as some fear. For example:

• The decline in the number of existing homes sold was less than economists expected. It fell 0.5% to 6.3 million. There was no change at all in the number of single-family homes sold in August. The decrease was entirely in the category of condominiums and cooperative apartments.

• The inventory of unsold homes, albeit the highest in terms of months' supply since April, 1993, increased from July to August by a modest 1.5%, the smallest amount so far in 2006. If inventories start to top out, it will be a good sign for housing.

• According to an analysis by JPMorgan Chase (JPM), the inflow of 'new offers'—that is, existing homes coming onto the market—held steady in August and was down 5% from a year earlier. (Those numbers are not seasonally adjusted.) This shows the market is adjusting to reality."

If "they" only spent 1 week in my office... - SDCIA Message Board

If "they" only spent 1 week in my office... - SDCIA Message Board: "Let me tell you about just one borrower from today:

* Husband and wife
* Husband on fixed income military retirement $1800/mo
* Wife makes $9500/mo as a registered nurse
* 5 properties with $3,400,000 in mortgages
* All mortgages currently have prepays
* 8 interest-only mortgages
* 1 option ARM deferring $3500/mo
* 3 in Chula Vista and 2 in Escondido
* No more than $75,000 equity in any of the homes (verified by comp checks with 3 appraisers)
* All properties with front end LTV over 90%
* $65,000 credit card debt $672 Mercedes payment
* One property had 3 mortgages, one of them hard money
* 621 mid FICO
* 2x30 in the past 12 months
* Not a dime in the bank

They have been making mortgage payments with their credit cards and refinancing to pay off the credit cards. They are at the end of their rope, but refuse to throw in the towel.



This is not even an 'extreme' example. I could show you dozens of these every single week.



I just wish the experts would see what I see. I think the statistics released would be different."

Desperate sellers in BA

Do you think this flipper can get what he/she wants? I found his monologue quite amusing. On one hand, he put so much emphasis that the sale is about life change and not desperate and yet a $2200 windows job strains his/her fund.

http://tinyurl.com/hxpn2
$1097000 4 Bedroom 2 Bath Single Family House (burlingame)
10/11/2005: $957,000

“for sale by owner. this is a serious offer for a great house for a nice family that will appreciate it. stop playing the multiple offer game. I’m a single parent and it’s just too much responsiblity for me. I need to simplfy my life. but I am not in foreclosure. this is not a fire sale. I can afford this house. I’ve just decided I need to simplify my life, so want to lower my expenses and rent for a while. but I’m not desperate and will not sell it for under its value. this house has a ton of potential. why buy a small “starter home” when you can buy this big house and stay here for many years and raise your family here? If you have a little vision and a creative bone on your body, this could be the house for you and your family. Caveat: if you drive by the house now, don’t be disheartened. I will put in the windows and frame them. It will look like a totally normal house when this happens. Yes, it looks bad now, but we’re only talking about $2200 worth of windows and a couple days to get it done. My funds are limited right now, so it’s a slow process, but if you buy the house, I will make it a priority and get it done within a few weeks, before escrow closes.

650-455-7278 for more information ** NO AGENTS or INVESTORS (don’t Call Me - I will be rude to you) “

Here's another one:

http://tinyurl.com/kowk3

1864 Cannon Drive, Walnut Creek, CA 94597

Asking: $450,000 Percentage Loss: 5.3%
11/23/2004: $475,000

We're desperate to sell and so we're offering our home to a buyer without an agent for $50,000 below market value. There are several other townhomes for sale in our community and ours is the nicest by far and now is also the cheapest (until we have to list it on 9/1 and the price will be $499, because we'll have to pay the brokers comm.) If you want to do a drive by, the address is 1864 Cannon Drive - Call if you want to see inside - it's empty, clean, upgraded to the max (read below) and ready for you to move in.
Give me a call if you'd like to see it
(925) 946-9109
I'm serious, this is truly a great, great deal for someone who isn't yet working with a buying broker.

Ultra-POS. The Worst House Ever

=BubbleTrack= Your Best Source For The Least Housing Bubble Bull

Funny!

A BULL, A BEAR AND THE BUBBLE / What's ahead for the real estate market? Two respected analysts -- and now authors -- hold markedly different views

A BULL, A BEAR AND THE BUBBLE / What's ahead for the real estate market? Two respected analysts -- and now authors -- hold markedly different views:

"Because of the above factors, Talbott predicts a wave of loan defaults and foreclosures. Bank presidents will be fired for making so many risky loans. The new presidents, wanting to clean up the mess, will unload the properties at a loss, perhaps for 40 to 60 cents on the dollar. This will flood the market and deflate home prices further."

Ben Stein, on the money - ours as well as his

Ben Stein, on the money - ours as well as his:

"QBen Bernanke took the helm as Fed chairman Tuesday and raised interest rates a quarter of a point. How do you think he'll fare as fed chief and what kind of actions do you think he'll take in the coming year?

A Any time there's inflation, raise interest rates aggressively until the demon goes back into his cage. I think he will succeed. But we have such a strong economy and such a labor shortage that it may take more increases than people are predicting.

QWhat are your economic predictions for 2006?

AI think the housing market will continue to decline. We're coming off the biggest housing boom in 15 years. I think we're way overbuilt and overpriced. Everything is ripe for a fall. There's already been a substantial decline in many parts of the country and a dramatic rise in inventory, including in South Florida.

QWill it be like a bubble bursting? Or a slow deflation?

AThe signs are there for a prolonged slowdown. Whether they'll be a bursting like in the early 1990s, that's hard to say. That was interest rates accompanied by a severe recession. This time around I don't see recession in the cards. The fact is, there will be a correction; at this point you can't avoid it."

s.f. bayarea forums - craigslist

s.f. bayarea forums - craigslist
Sold over asking!!!!!!!!!!!!!!!!!!!!!!!!!!!! < --- > 03/30 22:35:59

These have closed recently in San Francisco...

17.12% over asking - 42 Cole, sold for $725,000
12.82% over asking - 747 Lyon, sold for $2,200,000
17.66% over asking - 307-309A Duncan, sold for $1,706,000
0.67% over asking - 2577-2579 Pose, sold for $1,500,000
4.22% over asking - 1839 Laguna, sold for $3,335,000
11.63% over asking - 29-31 Hattie, sold for $1,200,000
1.00% over asking - 1730 Broderick, #11, sold for $403,000
4.07% over asking - 4216 Balboa, sold for $1,560,000
11.01% over asking - 627-631 Lyon, sold for $1,886,000
5.21% over asking - 1039-1041 Cabrillo, sold for $1,050,000
21.29% over asking - 1378 Hayes, sold for $940,000
8.46% over asking - 1770 Fell, #4, sold for $910,000
5.81% over asking - 1980 Sutter, #317, sold for $820,000
10.76% over asking - 1730 Fell, sold for $885,000
22.39% over asking - 1073-1075 14th St, sold for $1,585,000
6.24% over asking - 1548 Leavenworth, sold for $1,328,000

s.f. bayarea forums - craigslist
Wow, 1730 #11 Broderick for 403K!?! < TheEconomist > 03/30 23:06:24

Exact same size condo, on a lower floor (#3) sold for 511K almost a year ago. That's down 20% for a lower floor. The very same condo sold for 325K in 2003. If they did a kitchen and bath remodel, that shot all of their "gain". They would have been better off renting, because they paid more to own. The realtor commission was probably $20K, so even if they did nothing at all to the place, they made a whopping $58K, minus their closing costs (points on the loan, etc.). The property tax and homeowners fee they paid was probably half of the 58K and the closing costs probably 1 quarter of what was left.

I hope everyone gets my point here. % over asking is meaningless because the asking price is pulled out of the air. The only meaningful statistic is the % UNDER the prior comps. The trend is distubingly down. #3 sold for more money last year. #11 really made nothing at all.

http://www.zillow.com/search/Search.z?addrstrthood=1730%20Broderick%20St&citystatezip=San%20Francisco%2C%20CA%2094115&mode=units

I suspect a similar analysis on the other ones will yield similar results: the trend is down and most of the talk of real estate being some sort of cash machine is largely just realtors pumping up the possibilities. Most of the time that I do an analysis like this, I find the homeowner didn't make much at all, and the comps were higher last year.

In the end: the realtor and mortgage banker made more money than the homeowner, and someone who bought last year is underwater already.

http://forums.craigslist.org/?ID=410545

Drink the Poole-Aid | Piggington's Econo-Almanac | Southern California Housing Bubble News and Analysis

Drink the Poole-Aid | Piggington's Econo-Almanac | Southern California Housing Bubble News and Analysis

patrick.net » Blog Archive » Favorite Realt-whore Cliches

patrick.net » Blog Archive » Favorite Realt-whore Cliches: "spazzer Says:
March 5th, 2006 at 5:44 pm

I love this one… GO GO GO!

Here’s a house that I used to drive by on my way home from work occasionally:

http://www.ehomes-usa.com/homes1/asp/listing2_om.asp?KEY=40103418&realtor=dwelzien&link=

Check out the status: SOLD!

Here’s some crappy cellphone pix I took on 9/27/05:

http://home.comcast.net/~spazzer/517dolores.jpg
http://home.comcast.net/~spazzer/517dolores2.jpg

Long story short, saw a price reduction to $649k then off the market, until I saw this last week:
http://tinyurl.com/s5rgs

Interesting, I thought it was sold!"