Tommy, buy a piece of land w/a home already on it; finance it; tear down the home that's on it and rebuild when you're ready.

ARM's had their place - they had their reason. If you were intelligent, and business savvy, investor oriented, you could have made them work for you. However, if you took the ARM just to have extra money to blow on your Mercedes, Lexus, or Jewelry collection - then fuck you for helping ruin our economy.

IE: I setup an ARM for an investor of mine, and it was something like this: He owned 13 properties, of which 5 of them were financed. He was not covering all the expenses on all 5 properties with the rental income from the 5 properties. So we opted for an ARM mortgage, and got him to reduce his monthly expenses drastically. So drastically in fact, that he was able to - through the course of the 3 years of the lowest interest rate, and minimum payments that he had been making - that he was able to actually purchase a 14th property during that 3 year time-frame, and also was cash-flowing his 5 properties now. After the 3 years expired, he simply refinanced them, and now with the extra property added to his monthly income, all 5 other homes refinanced back into a traditional mortgage, he is all set, and fat and happy with his 14 properties

 

I'm loving the foreclosures. Makes the market nice for those of us looking for a home. Sad thing is alot of them are really in poor condition.

 

Graves, if you're in need of work to be done to a home that you're looking at buying, it's always great to get an estimate from a professional before moving forward with writing an offer. I use a guy on this forum for most of my handyman work, and have no problem refering him to you if you're interested.

Also, not sure how far along on the process you are in buying, but if you haven't already, you can sign up for free emails on new listings from my company at www.tampabayreo.com - and you'll also need to be Pre-Approved or have your Proof of Funds (bank statement, bank letter, etc) before most REO property managers will even show you the property(ies).

HTH mang.

 

ARM are sad. As my dads mortgage has increased drastically over the last 1 year. It was under $600 and is now nearing the point of $1000

 

I wish mine was a G' and I have a fixed rate

 

Your dad's financial education is what is/was sad, unfortunately. He obviously jumped in feet first without first educating himself on the adjustments of the ARM, the details of said adjustments, how to invest during the time of the "introductory interest rate" so that when the rate adjusted he would be prepared to cover the increased monthly expense(s). Etc, etc, etc.

ARM's were a great program, for SAVVY people. Unfortunately, Mortgage Broker's got PAID - a shit ton - on the back end (yield spread) by the Banks for selling the ARM program docs to retail customers - therefore the Mortgage Broker's simply told buyer's the "good" and buyer's ate it up, and now the entire economy is experiencing the "bad" and everyone is blaming someone else.

USA and it's citizens needs to quit pointing fingers and accept responsibility for their own actions, own decisions, and own investment choices, mistakes, etc.

 

Foreclosed homes bring down the neighborhood price average. Also if your home is now worth less becuase of houses that have sold this year, you will see it on next years taxes. They appraise them annually. If you think your taxes should be lowered, you can call your county tax appraiser and have them look at it.

 

According to what Midiablo posted, I wont see a decrease based on forclosures... As far as home value being down already seen decrease last year. I paid 254k and tax accessments last year appraised at 186k..Sucks ass.
Seriously considering short selling this place and buy in the same neighborhood for 160-180k

 

only used an ARM for when we first got into the new house up here to get around PMI
10% down
10% financed using an ARM (roughly 20k)
80% fixed..
Once we had the equity in the house, we refi'd and rolled it in.. but even if we would've left it, the amount that it would've changed on 20k was minimal due to the amount.

 

I'm from south lousianna, after all the hurricanes i could probably build a house by hand lol. found 2 nice ones here i am applying for. time to see how a VA loan works lol.