Here's the choice:
1) Lose $1,000+ per month in negative cash flow on an asset rapidly declining in value that cannot be sold as there are no more buyers
2) Burn the place to the ground and collect an insurance payout at the falsely over-appraised value, and walk away with a tidy profit
Hmmm... wonder what some of these flippers (and even regular folks) are conjuring up today...
Anyone know if burning it down will help though? Do they have to rebuild, or can they take the cash (the appraised value) and do something else? And how about if they burn down a condo complex?
April 14, 2006
Simple question - will upside-down housing investors start torching their houses?
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This certainly will not happen in Boulder.
We Realtors@ have worked extremely hard for both our clients and the Boulder community...and this will pay off by way of stability and upward price appreciation. Boulderites would never burn themselves out of such a wonderful housing situation. Did I happen to mention our strong local economy and great scenery?
C'mon Osman, we'll see just how strong your local economy is when our Asian masters start jerking the credit leash. Just watch all those Boulder jogging stores and coffee-huts start going belly-up.
And you can't eat scenery.
In Boulder, we don't resort to torching houses. We recycle them for their thermal content.
There have been some fires down here on the beach in Miami (well Sunny Isles). One of the new condo developments caught fire just after they finished the front facade.
Yesterday an old beachfront hotel had a fire on the roof. Could be "Jewish Lightning" as my recently arrived Israeli accountant calls it, or maybe its just bad luck.
Hey guys,
That's not oSman, that's oZman. He's using sarcasm. Just incase some didn't get it. Nice one oZman. oSman however, should change his name to Ass-Man.
There's always been Jews in the Middle East. However, most of the Israelis there now are immigrants from Europe and Africa. There are a few hundred thousand that were expelled from North Africa and other parts of the Arab world post-WWII
Wouldn't surprise me to see a bunch of homes go up in flames as this thing runs it's course.
Some people do crazy things once they actually wake up and see they were duped by their realtor, their friends, their family, their co-workers, and everyone else who stupidly believed that real estate only goes up. Of course the only person that won't be blamed in this sitatuion is THEMSELVES and since the house has completely ruinied their financial future (instead of them runing it via a house), the house will be burned at the stake.
I’m an insurance agent in California.
Short and sweet:
The insurance co will indemnify a claimant. Indemnify means to make a claimant whole as they were prior to the incident. It doesn’t mean they will pay off the mortgage.
They simply repace the contents and rebuild the dwelling.
Once again, Keith's tendency to post sensationalism without even a basic level of understanding is evident. To point; several knowledgeable comments explaining how homeowners insurance actually works.
Hardly rocket science or brain surgery, yet Keith didn't get it. Anybody surprised?
I thought you actually owned a home Keith. Did you really think you could just light a match and walk away?
Oh well, let's talk about Israel. Why not...
p.s. oZman, pick a slightly more distinguishing name. Your sarcasm might be more effective. Clearly some people can't tell the difference.
I think oZman sounds a lot more intellectual and less crybaby than osman, or more like ass-man.
My apologies.
I certainly meant no disrespect toward the hard-working Realtors@ who are helping common folks achieve the American dream....
Of course, what is a combined 120 hours/week for 30 years when one can own such an embellished pile of 2x4s, plastic siding, cheap carpet, and asphalt shingles..with a life expectancy of about 7.5 year before the structure screams out in anguish for renovation and refitting.
Realtors are no more guilty of this housing insanity than anyone else in the RE mega-machine. One can hardly expect realtors to commit professional suicide because RE values are in outer space. They do, however, convince buyers that all is well and that risk is minimal at a time when such is not the case.
As for me, I will be out there buying pretty soon. Maybe a nice foreclosed 4-plex or a block of townhouses. A low-ball offer on well-built duplex would fit the bill. No McMansions tho...
Burn the house down? That’s great! Compound your problems by being arrested for arson, still having to pay the mortgage, the head aches of getting the home rebuilt, filing for bankruptcy so forth and so on. I love this blog as it gives me a good laugh in the AM to get me going.
Has anyone noticed that some say there is no problem and some say the sky is falling like Chicken Little? Well the pendulum most likely has not swung to either extreme.
This was 'standar operating procedure' in areas of NJ like East Orange during the 70s. Those homes are still charcoal boxes... it is really quite a scene... you can see from the NJ Transit train window.
Anonymous @ 12:36
I'd love to hear your East Orange, NJ stories. I've heard many similar stories, but haven't ever found any hard info on it. Heck, I've actually gone so far as to plot local arson rates against median home prices to see if arson increased during the last housing market collapse in the Northeast.
grim
Northern NJ Real Estate Bubble
I guess god told these "real Israelis" to shoot and kill arabs throwing stones at armored vehicles. Most Iraelis are scam artists with dual citizenship that are involved in the finance industry. There has also been an increase in narcotics trafficing emanating from Israel, spefically the drug Ectasy, but the media will not inform you of that, I wonder why. Has anyone asked, why have the Jews been oppressed by some many nations throughout history. Why have they been thrown out of so many coutries. Why are they always, as they claim, "scapedgoated". Maybe we're missing something, but if so many people despise Jews, there must be a tiny shred of credibility to the hatred that they possess for the Jews. If you think that this is off topic for this board, then ask yourself who are the leaders of the banking industry. That same banking industry internationally, that has been permitting "bad" loans for the past five years.
Ok, with the antisemitism, bigotry, and other such nonsense, clearly this blog is going off the deep end.
I'm out...
Tho somebody drop me an email when people start posting about aliens. I could use a good laugh.
Nice work Keith.
"If you think that this is off topic for this board, then ask yourself who are the leaders of the banking industry. That same banking industry internationally, that has been permitting "bad" loans for the past five years."
Hmm. Good question.
Answer?
Republicans!
So now the housing bubble is the fault of Republicans and Jews. Does anyone else have any wacko conspiracy theories? Maybe the reptile people from Mars are responsible for it.
Slightly off the topic but an interesting arson story I read somewhere on a web page about crazy/funny court cases.
Gentleman purchases a box of 24 expensive foreign cigars. He insures them $24,000 for FIRE and theft(you can see where this is heading.) About a year later he files a claim with his insurance company stating that "in accordance with the normal,accepted, and non abusive enjoyment of his property, 24 small fires occured which destroyed his property" and asked the insurance co. to pay up.
Ins.Co. said :"Bull Shit, you smoked em!" He takes ins.co. to court.
Judge rules that anybody that would insure cigars for FIRE loss has to be nuts and orders the insurer to pay. I can only assume
policy was not properly worded.
Happy winner is met down at the end of the courthouse aisle by two sherriffs deputies and the assistant D.A. The insurance company did their homework. It seems that in his state its illegal to deliberately set fire to insured property. Result :TWENTY FOUR arrest warrents for felony arson. He is marched back up the aisle to the same judge and his lawyers cop a plea for one count of arson($25000) plus court costs.
I laughed my butt off!
Anti-semites on the internet...come on REALLY?
Mind you these are the same people who also think the Earth is 6000 years old, the Illuminati run everything, and Ronald Reagan was the Anti Christ.
I'm sorry I made the observation about my accountant earlier. Clearly some nutjobs have taken that as an invitation to rant about things they don't understand.
Hey Mr. Klan guy: "Jewish Lighting" is a joke. Kind of like you, its best if you don't take it seriously.
Now don't you have something important to be doing, like lighting a cross on fire, or prancing around the countryside in a bed sheet, with a pillow case on your head? Perhaps you can wear a confederate flag T-shirt, celebrate a defeated way of life and catch some Nascar on TV.
Why do you guys dress that way? Are you wearing women's clothes underneath?
Whatever they do and however they do it is not relevant. They will get caught anyhow. If they were stupid enough to buy they are still stupid.
The earth is 4.5 billion years old. The state of Israel is 58 years old.
I find the so-called anti-semite
statements on this blog far less offensive than the anti-Islam and anti-Arab statements that frequently appear here.
Personally I think they are all a bunch of cultists that use their ethnic/religious persecution stories to drive a wedge between their ethnic/religious group and "outsiders". Oldest trick in the book to maintain cohesiveness of the cult.
Comment above this one is very well put.
Thank you.
I wrote the comment being described as anti-semitic. I have a new question, how many innocent arab women and children has Israel murdered in the name of self-preservation. If any other nation had murdered half the amount of women and children that Israel has, the UN would be seeking sanctions. And no, the Republicans don't run the financial sectors of this country and many others, jews do. Yes, many jews are Republicans, so I guess your response about republicans running the financial sector is half truth. jews know how to manipulate money, it is why so many nations how thrown them out. I don't hate jews, {I'v got lots of jewish friends :-) }. Anyway, can someone tell me why so many nations have ousted the jews throughout history? I'm sure I'll be told that it's because they didn't like the way they dressed or something else silly like that. The answer certainly won't be that they (jews) are master manipulators of finances and eventually have led to the economic or near economic desmise of many nations. Let me finish by saying that obviously, not all jews are perpetrators of this, just like not all illegal immigrants are "real" criminals. Many jews have built this nation, my anger is directed at those who are in the finance industry and who have manipulated this nations economy. Also my anger is directed at Israel, a puppet nation of our country.
the same people who also think the Earth is 6000 years old
You mean like Dubya's good buddies Jerry and Pat? Come to think of it, I think they claim Jews are headed to the big BBQ if they don't accept JC, so you might be on to something. But they don't think Reagan was the anti-Christ. Maybe Hillary.
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