The new comp levels aren’t just for lending.

The new comp levels aren’t just for lending.

I showed someone the 45% drop in Eastlake home and he commented to a third party that its below the market rate and no one would sell for that, its only because of a foreclosure and commented to me that I would never live in THAT place. Many foreclosures in that hood at that price, but DENIAL is still strong and is surging. Acknowledgment of the drop would mean the loss of security and stability and frankly if you are a patriot, you wouldn’t let the bad guys win.

I showed someone the 45% drop in Eastlake home and he commented to a third party that its below the market rate and no one would sell for that, its only because of a foreclosure and commented to me that I would never live in THAT place. Many foreclosures in that hood at that price, but DENIAL is still strong and is surging. Acknowledgment of the drop would mean the loss of security and stability and frankly if you are a patriot, you wouldn’t let the bad guys win.

I showed someone the 45% drop in Eastlake home and he commented to a third party that its below the market rate and no one would sell for that, its only because of a foreclosure and commented to me that I would never live in THAT place. Many foreclosures in that hood at that price, but DENIAL is still strong and is surging. Acknowledgment of the drop would mean the loss of security and stability and frankly if you are a patriot, you wouldn’t let the bad guys win.

When I’m looking at a property and 7 out of the 8 most recent and similar closed sales were sold by banks then at that point the banks are the typical seller; and their “must sell” situation is the typical motivation.

“The drop” is there whether a property owner is compelled to book the loss or not. Whether they choose to acknowledge it or not doesn’t change a thing.

They can’t sell and they can’t leave without booking the loss; all they can do is continue to make their payments and hope that the next economic cycle brings their position back into the black. At this point there’s no rational reason to believe that the next cycle will restore those losses.

The principle rule in real estate is that you make your money when you buy, not when you sell. The people who bought high are now paying for their foolishness.

When I’m looking at a property and 7 out of the 8 most recent and similar closed sales were sold by banks then at that point the banks are the typical seller; and their “must sell” situation is the typical motivation.

“The drop” is there whether a property owner is compelled to book the loss or not. Whether they choose to acknowledge it or not doesn’t change a thing.

They can’t sell and they can’t leave without booking the loss; all they can do is continue to make their payments and hope that the next economic cycle brings their position back into the black. At this point there’s no rational reason to believe that the next cycle will restore those losses.

The principle rule in real estate is that you make your money when you buy, not when you sell. The people who bought high are now paying for their foolishness.