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  • March 19, 2009 at 3:44 AM #15329
    aldante
    Participant

    For all of you who think that housing it at its bottom, please tell me why you are willing to tell your cusomter/clients to buy homes almost 100k more the the “bulk buyers” are paying.

    Here is a story in todays NCT

    HOUSING: Banks selling properties in bulk for cheap
    Trends opens field for ‘flippers’
    By ZACH FOX – Staff Writer | Wednesday, March 18, 2009 6:25 PM PDT ∞

    Lenders have become so overwhelmed by the foreclosure crisis that they are starting to unload properties in bulk to investor groups at steep discounts.

    Investors then flip the properties for a profit without necessarily improving the home.

    For example, a unit of Citigroup, the troubled financial giant, sold a foreclosure in Temecula to an Arizona investment firm for $139,000 when comparable homes in the area were selling for $240,000 to $260,000.

    The firm listed the home for $249,000, received multiple offers and the property has entered escrow, said Amber Schlieder, the real estate agent who handled the listing.

    Why is the $139k not the new comp????????????

    March 19, 2009 at 3:56 AM #369626
    jpinpb
    Participant

    This is such BS. I’m so infuriated over this. And WTF!! Why are people submitted multiple bids when that’s what the market is bearing? Are people that desparate to buy?

    I just want to barf a hairball now.

    March 19, 2009 at 3:56 AM #369913
    jpinpb
    Participant

    This is such BS. I’m so infuriated over this. And WTF!! Why are people submitted multiple bids when that’s what the market is bearing? Are people that desparate to buy?

    I just want to barf a hairball now.

    March 19, 2009 at 3:56 AM #370080
    jpinpb
    Participant

    This is such BS. I’m so infuriated over this. And WTF!! Why are people submitted multiple bids when that’s what the market is bearing? Are people that desparate to buy?

    I just want to barf a hairball now.

    March 19, 2009 at 3:56 AM #370121
    jpinpb
    Participant

    This is such BS. I’m so infuriated over this. And WTF!! Why are people submitted multiple bids when that’s what the market is bearing? Are people that desparate to buy?

    I just want to barf a hairball now.

    March 19, 2009 at 3:56 AM #370236
    jpinpb
    Participant

    This is such BS. I’m so infuriated over this. And WTF!! Why are people submitted multiple bids when that’s what the market is bearing? Are people that desparate to buy?

    I just want to barf a hairball now.

    March 19, 2009 at 4:09 AM #369631
    peterb
    Participant

    The appraisers use the MLS for comps, I believe. So a bulk purchase would not register. Actually, I think any sales contract can stipulate that the sales price not be made public. It may be at the country recorders office, though. Not sure.
    But the bottom line is that REO buying specialists and bulk buyers are getting houses at 30% of their outstanding debt…or lower. This is dangerous for all those who are taking advantage of the 3% down FHA deals to buy from these guys.

    March 19, 2009 at 4:09 AM #369918
    peterb
    Participant

    The appraisers use the MLS for comps, I believe. So a bulk purchase would not register. Actually, I think any sales contract can stipulate that the sales price not be made public. It may be at the country recorders office, though. Not sure.
    But the bottom line is that REO buying specialists and bulk buyers are getting houses at 30% of their outstanding debt…or lower. This is dangerous for all those who are taking advantage of the 3% down FHA deals to buy from these guys.

    March 19, 2009 at 4:09 AM #370085
    peterb
    Participant

    The appraisers use the MLS for comps, I believe. So a bulk purchase would not register. Actually, I think any sales contract can stipulate that the sales price not be made public. It may be at the country recorders office, though. Not sure.
    But the bottom line is that REO buying specialists and bulk buyers are getting houses at 30% of their outstanding debt…or lower. This is dangerous for all those who are taking advantage of the 3% down FHA deals to buy from these guys.

    March 19, 2009 at 4:09 AM #370126
    peterb
    Participant

    The appraisers use the MLS for comps, I believe. So a bulk purchase would not register. Actually, I think any sales contract can stipulate that the sales price not be made public. It may be at the country recorders office, though. Not sure.
    But the bottom line is that REO buying specialists and bulk buyers are getting houses at 30% of their outstanding debt…or lower. This is dangerous for all those who are taking advantage of the 3% down FHA deals to buy from these guys.

    March 19, 2009 at 4:09 AM #370241
    peterb
    Participant

    The appraisers use the MLS for comps, I believe. So a bulk purchase would not register. Actually, I think any sales contract can stipulate that the sales price not be made public. It may be at the country recorders office, though. Not sure.
    But the bottom line is that REO buying specialists and bulk buyers are getting houses at 30% of their outstanding debt…or lower. This is dangerous for all those who are taking advantage of the 3% down FHA deals to buy from these guys.

    March 19, 2009 at 4:12 AM #369636
    waterboy
    Participant

    Could the bank made a little more money….maybe? I think it is most important for them to move these properties off their books right away and if a bulk investor group can do it than great. Those investors are still taking on risk and I’m not so sure they always have this attractive of an outcome.

    Banks get screwed some of the time when they list hwith realtors anyway, because some just get sold to those realtors friends at a low bid. Others are priced to high at first and have to chase back down for a few months thus having the carrying costs. Did I mention the time it takes some banks to even get the home listed…its not an efficient system for most banks.

    Are the investors purchasing a bulk of properties are are spread out, or newer homes that are all in one development? How many do you have to purchase at a time to be considered bulk investor?

    March 19, 2009 at 4:12 AM #369923
    waterboy
    Participant

    Could the bank made a little more money….maybe? I think it is most important for them to move these properties off their books right away and if a bulk investor group can do it than great. Those investors are still taking on risk and I’m not so sure they always have this attractive of an outcome.

    Banks get screwed some of the time when they list hwith realtors anyway, because some just get sold to those realtors friends at a low bid. Others are priced to high at first and have to chase back down for a few months thus having the carrying costs. Did I mention the time it takes some banks to even get the home listed…its not an efficient system for most banks.

    Are the investors purchasing a bulk of properties are are spread out, or newer homes that are all in one development? How many do you have to purchase at a time to be considered bulk investor?

    March 19, 2009 at 4:12 AM #370090
    waterboy
    Participant

    Could the bank made a little more money….maybe? I think it is most important for them to move these properties off their books right away and if a bulk investor group can do it than great. Those investors are still taking on risk and I’m not so sure they always have this attractive of an outcome.

    Banks get screwed some of the time when they list hwith realtors anyway, because some just get sold to those realtors friends at a low bid. Others are priced to high at first and have to chase back down for a few months thus having the carrying costs. Did I mention the time it takes some banks to even get the home listed…its not an efficient system for most banks.

    Are the investors purchasing a bulk of properties are are spread out, or newer homes that are all in one development? How many do you have to purchase at a time to be considered bulk investor?

    March 19, 2009 at 4:12 AM #370131
    waterboy
    Participant

    Could the bank made a little more money….maybe? I think it is most important for them to move these properties off their books right away and if a bulk investor group can do it than great. Those investors are still taking on risk and I’m not so sure they always have this attractive of an outcome.

    Banks get screwed some of the time when they list hwith realtors anyway, because some just get sold to those realtors friends at a low bid. Others are priced to high at first and have to chase back down for a few months thus having the carrying costs. Did I mention the time it takes some banks to even get the home listed…its not an efficient system for most banks.

    Are the investors purchasing a bulk of properties are are spread out, or newer homes that are all in one development? How many do you have to purchase at a time to be considered bulk investor?

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