San Diego Housing Bubble News and Analysis

BobS
This guy is performing a worthwhile service by helping the market to correct to its true value. Will hasten the necessary flushing out of the system so that people who should never have become owners will again become renters and will live within their monthly income.

Hi HLS,

Where can I find the list of loans from servicers as mentioned in the story? Can anybody bid on those loans?

Since you are in these kind of business, if you start a company doing this, I would be interested in participating.

Quite frankly,, that's what I'd like to know too!!

I have been aware of "bulk purchases" by large institutions that were buying hundreds of loans at a time for lenders to clear their books, but we're talking into the tens of millions of dollars at a time, and they had to take the good with the bad.

Before posting this, I had never seen a story on an individual that could pick and choose single loans at anywhere near 20c on the dollar.
This seems to good to be true...

Perhaps someone knows this guy around town ??
Seeme like there would be more than he can handle.

I would think that calling a lender and saying that I want to buy a few non performing loans for 20c on the dollar would get laughed at BUT what do I know....

I'd do it in a heartbeat if I knew who to call...

I'd totally agree. If only there's some way average Joe like us can take advantage of this, but it seems like only hedge funds w/ a lot of cash can pull these kind of things off. It just sound too good to be true.

I was intrigued by the "bottom-feeder" story! Does this mean that it would be possible for the federal "bailout" plan to be structured such that it implements this "bottom-feeding" process on a large scale?

It would create some jobs in the slumping economy, and it would help to get the "shadow inventory" clearing faster, the price correction to occur more rapidly, the banks to get some liquidity back into their system, the house-"owners" to either move on with a little cash in their pocket or pay a mortgage they can actually afford, all the while not costing taxpayers too much since the operation is actually profitable.

I normally never believe in anything Bush says, and as usual I sneered when he said he didn't support the bailout bill because it would cost taxpayers. It seemed like one might oppose bailout as a matter of principle, but to complain a particular version of the bailout as costing taxpayers' money! But maybe he actually has some suave financial adviser who sees the possibility of bottom-feeding on a large scale?

The biggest danger is a REAL collapse in prices, to the order of 50%-70%, when tens of thousands of "homeowners" with high credit scores say screw it, my score isn't worth the $300,000-$500,000 that I am upside down.

NON-recourse debt for primary residences has been extended nationwide to refi's if no cash was taken out as well as purchase loans.
Presidente signed the bill right before Christmas, but it got little coverage. It encourages FC's ~!!

Call it immoral, call it moral hazard, call it what you want. Banks are writing down (and off) BILLIONS, and Paulsen tells FB's to honor their loans ??
WHAT A SNAKE..protecting his buddies...

There is little that will cause prices to rise rapidly over the next 10+ years, and prices by 2015 are unlikely to be back to 2005 levels IMO. (in bubble areas)

The trading of mortgages at a discount DOESN'T affect the selling price of a house... On the rolls, a house that was purchased for 700,000 will show that as last sale, but few will know that the mortgage was sold for 50c on the dollar. (or less) and the borrower's payment was cut 40%, still a good return for the bottom feeder..

Whatever the govt can do to keep people in homes and paying is their goal. It's one less FC that will be empty and trade hands at a greatly reduced amount, which reduces the number of comps etc.

Better to keep people in that house and paying with an artificial propped up value, than having to admit it's value is 30%-40% less, affecting entire neighborhoods and dragging down property tax income as well....

To avoid having to "mark to market" homes is the goal, and avoid millions from walking away becuse it just makes sense.

I'd totally agree. If only there's some way average Joe like us can take advantage of this, but it seems like only hedge funds w/ a lot of cash can pull these kind of things off. It just sound too good to be true.

Anyone what to form a Piggington hedge fund to collectively compete with the bigger institutions? I think I can find my rebate check somewhere here.

:)

selfportrait

----- Sour grapes for everyone!

FLU - I'm in on that. My rebate check is burning a hole in my pocket. :)

Anyone what to form a Piggington hedge fund to collectively compete with the bigger institutions? I think I can find my rebate check somewhere here.

Sounds like a great opportunity for a start-up!

Basically create a broker that specializes in matching buyers with distressed sellers. Create something like RealtyTrac where a buyer can select a zip code and then an intermediary (like the guy in OP) that works with the lenders and sees whats available. Charge a small commission on completed sales.

I work with a consulting group that out-sources IT development overseas and could get the web stuff taken care of fairly easily.

If this guy's story is true, it is the kind of thing that will drive the market to the bottom quickly, expecially if industrial investors pick up on the tactic.