TG good deal. I was kind of half asleep this morning posting so buying the REO as opposed to dealing with the trustee sale is smart. Lowballing is frustrating but in the end those with persistence and patience will win the game.
HLS – Not sure where the 10 year will end up in the next few months. However as you may recall back in 03 when it dumped to the low/mid 3’s that the resulting bounce back up was staggering and there were even a few originators caught in the upswing. I don’t envision that here but to think that it will not normalize to the 4.5-4.75 range is not out of norm. So to propose that through the spring that rates will be 3/8-1/2 higher then now is at least a 50/50 proposal. Just as saying that the 10 year could go down by the same amount as well. Like you said, most buyers are not aware of the volatility in the mortgage rates. Also that the window of opportunity is MUCH more narrow when the 10 year dumps then when it moves up. (That is mortgage rates adjust IMMEDIATELY when the 10 year moves up but they are quite sticky when it moves down)
