Everyone should go re-read it.

I didn’t get any responses with posting the link at OCR’s blog. Oh well.

I think j6p is having bubble fatigue.

We have this ATM system out there. What happens as lender start to collapse?

I think you run from your wells fargo ATM to the bank of America ATM and grab some emergency cash. BOA doesn’t realize that WF is in the flusher so they give you your money.

Just thinking how the run on banks can spread through the ATM/debit system.

Wow. Could be nifty systemic fault.

Mmmmm…..

If the value crashes then the bank takes the loss when you walk away. I was just wondering about the leagal ramifications.

I guess you would get hit with the 1099 gains for forgiveness of debt… Still might be better than a 50% hair cut.

http://www.socalbubble.com/200.....house.html

While I would do it myself, I would never recommend anyone else to do it. There are too many legal complications to advising someone to time the market. Why do you think noone tells anyone else to time it? Because for every one person that can time it correctly, there are 99 who cannot.

There’s a joke I learned from an old Wall street buddy of mine:

What do you call someone who bought at the exact bottom and sold at the exact top?

Answer:

LIAR

Just looking over at BMIT at some of the HELOC to forclosure tracks.

If you held one of these properties and wanted to protect your paper gains; the best course of action would be to HELOC the thing to the max with an ARM with a teaser rate (get a low pre-payment penalty) and run the debt through the roof. You take the money and put it in to investments.

If the values really crash you send in the keys.

Is this legal to game the system this way?

Just wondering how many people planned for this kind of thing.

Basically if values crash hard enough you can buy back in with cash where ever you chose.