[quote=pemeliza] . . .
3.) Most of today’s buyers are looking for cream-puff properties (can you blame them?). They realize that regardless of the market that finding a special house in SD county has always been difficult and they are out looking just in case they can find that elusive combination of killer property and killer price.[/quote]
This is the reason why these buyers are all still on the sidelines after X amount of years, pem. Many seem to be under the assumption that traditional sale “creampuff” properties can be stolen. If they run across an REO that is “near-creampuff,” because a bank cleaned it up a little, there is typically too much crazy competition on it driving the price up. When these buyers have to stand in line to purchase and their offer is repeatedly rejected, they become discouraged and sit out longer. That’s why the few big mortgage lenders are holding off foreclosing on their delinquent shadow inventory, to squeeze top dollar out of the REO’s they (or another lender) are currently marketing in the same subdivision.
As an example, I know of ONE STREET in 91915 (2300-3500 sf homes) that currently has NO LESS THAN FIVE PROPERTIES behind in payments 8 months or more. ALL these delinquent trustors are still occupying and none of these properties are currently on the market. One bank has filed a substitution of trustee after an NOS was filed and no sale took place. THE OTHER LENDERS HAVEN’T EVEN FILED AN NOD YET! There are two properties currently active and two of these delinquent properties have the SAME FLOOR PLAN as the current market actives. By allowing the delinquent trustors to stay mortgage-free, these lenders don’t have to maintain the properties and don’t have the City of Chula Vista breathing down their necks to drain the pool, mow and fix broken fences, windows, etc. When the current active properties sell, the substituted trustee will refile an NOS and one or two NOD’s will trickle from the block. The lenders are massaging the REO market to benefit themselves and IMO, the buyers of these properties aren’t really getting a “good deal” on them, based upon today’s value.
[quote=jstoetz]I think people are moaning and groaning, because they do not want to wait. They are willing, but frustrated that we can not just get this over with like some kind of monetary band-aid to be ripped off. On top of that the uncertainty is brutal, I think prices will go down, but WHEN will I be able to afford to live like my peer group and not be saddled with enormous debt (unlike my peer group).[/quote]
jstoetz, the solution to the dilemma you bring up here is buying up properties like the recent sold comp pemeliza just dug up. This type of property only costs =<$300K in other parts of the county. WHO CARES if most or all the neighbors on the block are >=55 years of age??
You CAN “live like your peer group” now or soon and not be saddled with enormous debt, like most of them are, if you widen your horizons when looking at properties and become willing to do some work upon taking title. I don’t know if you are already a homeowner or how old you are, but you CAN find a good deal but it WILL NOT be in new construction projects and WILL NOT be in competition with a dozen + other bidders for a *newish* “REO.”
