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Man suing 2200 speaks up and yen based loans

By April 16, 2007

If you do not read the comments here are two recent cautionary comments worth noting.

The first from Jerry, the man suing Vulcan over 2200, speaks up:

Some of the issues evident from an early walk through of my unit included the fire sprinklers being installed above the framing for the ceiling (which would have required an expensive reconstruction of the sprinkler system in the unit), a vent pipe that protruded from a wall below the ceiling, crossing a hallway and then re-entering the ceiling area, a poured concrete deck which appeared to slope into the unit (evidenced by a note from the contractor taped to the sliding door warning everyone to leave the slider closed so as to prevent leaks into the apartment below). Additionally, the anodized metal frame structures on the exterior which included the deck railing, windows and door frames, all were so badly damaged as to need replacement. This would have involved damaging and then repairing the concrete exterior around my unit in order to accomplish a permanent repair of these structural elements (read, I don’t want to live in a leaking unit).

Also in the comments, EconE, explains why you should be weary of the financing offered by Why Pay Double, a site promising 2% loans for condo investors:

We’re currently pushing 120 on the yen even as the USDX has been falling. If the yen “hypothetically” slips to 60 over a long period (30 years is a long time) then the principal also rises…Imagine the person who takes the I/O Yen loan and then finds that not only does the interest rate hikes (The BOJ can’t really lower it much from .5) and a potentially strengthening Yen affect the quarterly payments…but in the end…the 500k balloon payment will actually be 1M while the payments have increased the whole time.