Bank REO

[SD Realtor]

Actually that someone may have been me. Alot of people are mad because our govt has decided to punish those who were scrupulous by enacting policies that bailout institutions who lent to people who should not have been lent to, and individuals who frankly spent more then they could ever afford. Now we have a crappy inventory situation and artificially supported pricing. It is horrible. So you are now feeling that buy now or forever not get a decent home or watch prices move upward. I don’t buy into that. I do buy into the fact that yes, you did miss a local bottom and it may take quite awhile to get back there. Yes there will always be other homes, they may take a week to come out they may take another 2 years to come out. It is frustrating but they always come out.

[sreeb]

I have bought two REO condos and made offers on about 10.

From what I can determine, the listing prices I looked at represented a lowest acceptable price with the bank basically conducting a reverse auction, lowering the price every 2 weeks until they had an acceptable offer. If the initial price is “right”, it will get bid up. Low offers didn’t even get a response, never mind a counter. Obviously some will work differently.

I used a buyers agent and thought most of sellers agents were on the up and up. There was one that sold for less than my cash offer though…

The one thing that the sellers agents seemed to want was confidence that I could and would actually complete the sale quickly and with a minimum effort on their part. Appraisals are a big unknown. It may be hard to compete with borrowed money and you can’t go too high or it won’t appraise.

You need to decide if you want to get the best deal or the best house for you to live in. In the long run, paying a few % extra is no big deal if you get a house that really works for you. If you just want the best deal, start writing offers you would be happy with on everything you think you could live in,

I don’t think you need to be in any hurry.

[sreeb]

I have bought two REO condos and made offers on about 10.

From what I can determine, the listing prices I looked at represented a lowest acceptable price with the bank basically conducting a reverse auction, lowering the price every 2 weeks until they had an acceptable offer. If the initial price is “right”, it will get bid up. Low offers didn’t even get a response, never mind a counter. Obviously some will work differently.

I used a buyers agent and thought most of sellers agents were on the up and up. There was one that sold for less than my cash offer though…

The one thing that the sellers agents seemed to want was confidence that I could and would actually complete the sale quickly and with a minimum effort on their part. Appraisals are a big unknown. It may be hard to compete with borrowed money and you can’t go too high or it won’t appraise.

You need to decide if you want to get the best deal or the best house for you to live in. In the long run, paying a few % extra is no big deal if you get a house that really works for you. If you just want the best deal, start writing offers you would be happy with on everything you think you could live in,

I don’t think you need to be in any hurry.

[sreeb]

I have bought two REO condos and made offers on about 10.

From what I can determine, the listing prices I looked at represented a lowest acceptable price with the bank basically conducting a reverse auction, lowering the price every 2 weeks until they had an acceptable offer. If the initial price is “right”, it will get bid up. Low offers didn’t even get a response, never mind a counter. Obviously some will work differently.

I used a buyers agent and thought most of sellers agents were on the up and up. There was one that sold for less than my cash offer though…

The one thing that the sellers agents seemed to want was confidence that I could and would actually complete the sale quickly and with a minimum effort on their part. Appraisals are a big unknown. It may be hard to compete with borrowed money and you can’t go too high or it won’t appraise.

You need to decide if you want to get the best deal or the best house for you to live in. In the long run, paying a few % extra is no big deal if you get a house that really works for you. If you just want the best deal, start writing offers you would be happy with on everything you think you could live in,

I don’t think you need to be in any hurry.

[sreeb]

I have bought two REO condos and made offers on about 10.

From what I can determine, the listing prices I looked at represented a lowest acceptable price with the bank basically conducting a reverse auction, lowering the price every 2 weeks until they had an acceptable offer. If the initial price is “right”, it will get bid up. Low offers didn’t even get a response, never mind a counter. Obviously some will work differently.

I used a buyers agent and thought most of sellers agents were on the up and up. There was one that sold for less than my cash offer though…

The one thing that the sellers agents seemed to want was confidence that I could and would actually complete the sale quickly and with a minimum effort on their part. Appraisals are a big unknown. It may be hard to compete with borrowed money and you can’t go too high or it won’t appraise.

You need to decide if you want to get the best deal or the best house for you to live in. In the long run, paying a few % extra is no big deal if you get a house that really works for you. If you just want the best deal, start writing offers you would be happy with on everything you think you could live in,

I don’t think you need to be in any hurry.

[sreeb]

I have bought two REO condos and made offers on about 10.

From what I can determine, the listing prices I looked at represented a lowest acceptable price with the bank basically conducting a reverse auction, lowering the price every 2 weeks until they had an acceptable offer. If the initial price is “right”, it will get bid up. Low offers didn’t even get a response, never mind a counter. Obviously some will work differently.

I used a buyers agent and thought most of sellers agents were on the up and up. There was one that sold for less than my cash offer though…

The one thing that the sellers agents seemed to want was confidence that I could and would actually complete the sale quickly and with a minimum effort on their part. Appraisals are a big unknown. It may be hard to compete with borrowed money and you can’t go too high or it won’t appraise.

You need to decide if you want to get the best deal or the best house for you to live in. In the long run, paying a few % extra is no big deal if you get a house that really works for you. If you just want the best deal, start writing offers you would be happy with on everything you think you could live in,

I don’t think you need to be in any hurry.

[outtamojo]

[quote=LittleMissPiggy]”There will ALWAYS be more homes available.”

Do you really think so? There are not many houses on sale in San Diego right now. That “shadow inventory” is so elusive, that I lost hope for it ever showing up in MLS. Rates are not going to be as low for long.
As someone said in another thread people who were scrupulous and did not buy during the bubble are screwed and mad as hell. I see people throwing money like crazy to get in a property now. It feels like we the pigs already lost the waiting game.[/quote]

I’m with SDR on this one- more distress to work through still, more inventory to churn. The economy/housing won’t recover in a straight line,there will be hiccups. With every hiccup, out will come the doomsayers and their I told you the world was gonna end and this was unsustainable diatribes.This will put fear into some-will you be frozen too when your dream house comes up at a decent price?

[outtamojo]

[quote=LittleMissPiggy]”There will ALWAYS be more homes available.”

Do you really think so? There are not many houses on sale in San Diego right now. That “shadow inventory” is so elusive, that I lost hope for it ever showing up in MLS. Rates are not going to be as low for long.
As someone said in another thread people who were scrupulous and did not buy during the bubble are screwed and mad as hell. I see people throwing money like crazy to get in a property now. It feels like we the pigs already lost the waiting game.[/quote]

I’m with SDR on this one- more distress to work through still, more inventory to churn. The economy/housing won’t recover in a straight line,there will be hiccups. With every hiccup, out will come the doomsayers and their I told you the world was gonna end and this was unsustainable diatribes.This will put fear into some-will you be frozen too when your dream house comes up at a decent price?

[outtamojo]

[quote=LittleMissPiggy]”There will ALWAYS be more homes available.”

Do you really think so? There are not many houses on sale in San Diego right now. That “shadow inventory” is so elusive, that I lost hope for it ever showing up in MLS. Rates are not going to be as low for long.
As someone said in another thread people who were scrupulous and did not buy during the bubble are screwed and mad as hell. I see people throwing money like crazy to get in a property now. It feels like we the pigs already lost the waiting game.[/quote]

I’m with SDR on this one- more distress to work through still, more inventory to churn. The economy/housing won’t recover in a straight line,there will be hiccups. With every hiccup, out will come the doomsayers and their I told you the world was gonna end and this was unsustainable diatribes.This will put fear into some-will you be frozen too when your dream house comes up at a decent price?

[outtamojo]

[quote=LittleMissPiggy]”There will ALWAYS be more homes available.”

Do you really think so? There are not many houses on sale in San Diego right now. That “shadow inventory” is so elusive, that I lost hope for it ever showing up in MLS. Rates are not going to be as low for long.
As someone said in another thread people who were scrupulous and did not buy during the bubble are screwed and mad as hell. I see people throwing money like crazy to get in a property now. It feels like we the pigs already lost the waiting game.[/quote]

I’m with SDR on this one- more distress to work through still, more inventory to churn. The economy/housing won’t recover in a straight line,there will be hiccups. With every hiccup, out will come the doomsayers and their I told you the world was gonna end and this was unsustainable diatribes.This will put fear into some-will you be frozen too when your dream house comes up at a decent price?

[outtamojo]

[quote=LittleMissPiggy]”There will ALWAYS be more homes available.”

Do you really think so? There are not many houses on sale in San Diego right now. That “shadow inventory” is so elusive, that I lost hope for it ever showing up in MLS. Rates are not going to be as low for long.
As someone said in another thread people who were scrupulous and did not buy during the bubble are screwed and mad as hell. I see people throwing money like crazy to get in a property now. It feels like we the pigs already lost the waiting game.[/quote]

I’m with SDR on this one- more distress to work through still, more inventory to churn. The economy/housing won’t recover in a straight line,there will be hiccups. With every hiccup, out will come the doomsayers and their I told you the world was gonna end and this was unsustainable diatribes.This will put fear into some-will you be frozen too when your dream house comes up at a decent price?

[JC]

Just thought this was pertinent to this thread…

Notices of default up 24% in county
Analyst says February numbers might be fluke
By Roger Showley, UNION-TRIBUNE STAFF WRITER
Friday, March 19, 2010 at 9:11 p.m.

Homeowners in San Diego County defaulted at their highest monthly rate in more than a year in February, MDA DataQuick reported Friday.

Defaults totaled 2,166, up 24.4 percent from January’s 1,741, the biggest one-month jump since the figure jumped 121.3 percent from November to December 2008.

Meanwhile, there were 973 foreclosures, down from 986 in January in the sixth month-to-month decline in the past year. The number was down 21 percent from year-ago levels.

More notices of default normally signal spreading distress in the housing market. As owners fall three months or more behind in their monthly payments, lenders usually file this first formal action that often leads to foreclosure. The number spiked a year ago, when lenders were catching up on a backlog of defaults delayed through extended noticing requirements and moratoriums.

DataQuick analyst Andrew LePage said the default rise last month might be a fluke.

“You can’t just read too much into a single month,” he said. “There’s been a very irregular (pattern) of notice-of-default filings.”

But LePage said he detected a similar uptick in counties throughout the state.

“The bulk was in the areas hit hardest” by economic and housing distress, he said, and did not reflect problems spreading to higher-priced properties as many analysts have been predicting.

“That’s not the way it shaped up,” LePage said. “It was more of the same.”

In his ZIP code breakdown of defaults in the county, LePage reported high percentage increases from January in several higher-priced neighborhoods. The actual numbers remained relatively low.

For example, Del Mar defaults were up 250 percent, but the increase was only from two to seven defaults; Solana Beach was up 120 percent, from five to 11; La Jolla was up 54.5 percent, from 11 to 17.

Meanwhile, some lower-cost areas continued to exhibit greater distress in absolute numbers. Nestor in the South Bay had 83 default notices, up from 53 in January and the highest of any ZIP code, followed by Spring Valley with 70, up from 44, and Encanto at 58, up from 53. All three had median home prices of $240,000 or less in the past 12 months.

LePage said it is possible that defaults will continue rising, given the high number of delinquencies that have been reported in recent months.

But Dustin Hobbs, spokesman for the California Mortgage Bankers Association, said a new program to speed up short sales — homes sold for less than the outstanding mortgage balance — may forestall many defaults as well as foreclosures.

“No one’s walking around with rose-colored glasses thinking it’s the silver bullet,” Hobbs said. “Certainly, it’ll be useful tool.”

He said the market is still unsettled because of the so-called “shadow inventory” of distressed homes that are delinquent or in default.

“It would be catastrophic if all of a sudden they all went to foreclosure,” Hobbs said. “We would have a huge, downward impact on home values, and no one wants that.”

In another report Friday, HomeGain, a Web site based in Emeryville that lists estimated home valuations, said real estate agents nationally are somewhat more optimistic about the market than a year ago.

Twenty-nine percent of industry professionals responding to a survey said prices are likely to decrease in the next six months, compared with 53 percent expecting a decline a year ago.

California was one of 10 states where more agents think prices will go up than down in the next six months.

The breakdown: 42 percent think prices will be unchanged, 36 percent think they will rise and 22 percent think they will fall.

[JC]

Just thought this was pertinent to this thread…

Notices of default up 24% in county
Analyst says February numbers might be fluke
By Roger Showley, UNION-TRIBUNE STAFF WRITER
Friday, March 19, 2010 at 9:11 p.m.

Homeowners in San Diego County defaulted at their highest monthly rate in more than a year in February, MDA DataQuick reported Friday.

Defaults totaled 2,166, up 24.4 percent from January’s 1,741, the biggest one-month jump since the figure jumped 121.3 percent from November to December 2008.

Meanwhile, there were 973 foreclosures, down from 986 in January in the sixth month-to-month decline in the past year. The number was down 21 percent from year-ago levels.

More notices of default normally signal spreading distress in the housing market. As owners fall three months or more behind in their monthly payments, lenders usually file this first formal action that often leads to foreclosure. The number spiked a year ago, when lenders were catching up on a backlog of defaults delayed through extended noticing requirements and moratoriums.

DataQuick analyst Andrew LePage said the default rise last month might be a fluke.

“You can’t just read too much into a single month,” he said. “There’s been a very irregular (pattern) of notice-of-default filings.”

But LePage said he detected a similar uptick in counties throughout the state.

“The bulk was in the areas hit hardest” by economic and housing distress, he said, and did not reflect problems spreading to higher-priced properties as many analysts have been predicting.

“That’s not the way it shaped up,” LePage said. “It was more of the same.”

In his ZIP code breakdown of defaults in the county, LePage reported high percentage increases from January in several higher-priced neighborhoods. The actual numbers remained relatively low.

For example, Del Mar defaults were up 250 percent, but the increase was only from two to seven defaults; Solana Beach was up 120 percent, from five to 11; La Jolla was up 54.5 percent, from 11 to 17.

Meanwhile, some lower-cost areas continued to exhibit greater distress in absolute numbers. Nestor in the South Bay had 83 default notices, up from 53 in January and the highest of any ZIP code, followed by Spring Valley with 70, up from 44, and Encanto at 58, up from 53. All three had median home prices of $240,000 or less in the past 12 months.

LePage said it is possible that defaults will continue rising, given the high number of delinquencies that have been reported in recent months.

But Dustin Hobbs, spokesman for the California Mortgage Bankers Association, said a new program to speed up short sales — homes sold for less than the outstanding mortgage balance — may forestall many defaults as well as foreclosures.

“No one’s walking around with rose-colored glasses thinking it’s the silver bullet,” Hobbs said. “Certainly, it’ll be useful tool.”

He said the market is still unsettled because of the so-called “shadow inventory” of distressed homes that are delinquent or in default.

“It would be catastrophic if all of a sudden they all went to foreclosure,” Hobbs said. “We would have a huge, downward impact on home values, and no one wants that.”

In another report Friday, HomeGain, a Web site based in Emeryville that lists estimated home valuations, said real estate agents nationally are somewhat more optimistic about the market than a year ago.

Twenty-nine percent of industry professionals responding to a survey said prices are likely to decrease in the next six months, compared with 53 percent expecting a decline a year ago.

California was one of 10 states where more agents think prices will go up than down in the next six months.

The breakdown: 42 percent think prices will be unchanged, 36 percent think they will rise and 22 percent think they will fall.

[JC]

Just thought this was pertinent to this thread…

Notices of default up 24% in county
Analyst says February numbers might be fluke
By Roger Showley, UNION-TRIBUNE STAFF WRITER
Friday, March 19, 2010 at 9:11 p.m.

Homeowners in San Diego County defaulted at their highest monthly rate in more than a year in February, MDA DataQuick reported Friday.

Defaults totaled 2,166, up 24.4 percent from January’s 1,741, the biggest one-month jump since the figure jumped 121.3 percent from November to December 2008.

Meanwhile, there were 973 foreclosures, down from 986 in January in the sixth month-to-month decline in the past year. The number was down 21 percent from year-ago levels.

More notices of default normally signal spreading distress in the housing market. As owners fall three months or more behind in their monthly payments, lenders usually file this first formal action that often leads to foreclosure. The number spiked a year ago, when lenders were catching up on a backlog of defaults delayed through extended noticing requirements and moratoriums.

DataQuick analyst Andrew LePage said the default rise last month might be a fluke.

“You can’t just read too much into a single month,” he said. “There’s been a very irregular (pattern) of notice-of-default filings.”

But LePage said he detected a similar uptick in counties throughout the state.

“The bulk was in the areas hit hardest” by economic and housing distress, he said, and did not reflect problems spreading to higher-priced properties as many analysts have been predicting.

“That’s not the way it shaped up,” LePage said. “It was more of the same.”

In his ZIP code breakdown of defaults in the county, LePage reported high percentage increases from January in several higher-priced neighborhoods. The actual numbers remained relatively low.

For example, Del Mar defaults were up 250 percent, but the increase was only from two to seven defaults; Solana Beach was up 120 percent, from five to 11; La Jolla was up 54.5 percent, from 11 to 17.

Meanwhile, some lower-cost areas continued to exhibit greater distress in absolute numbers. Nestor in the South Bay had 83 default notices, up from 53 in January and the highest of any ZIP code, followed by Spring Valley with 70, up from 44, and Encanto at 58, up from 53. All three had median home prices of $240,000 or less in the past 12 months.

LePage said it is possible that defaults will continue rising, given the high number of delinquencies that have been reported in recent months.

But Dustin Hobbs, spokesman for the California Mortgage Bankers Association, said a new program to speed up short sales — homes sold for less than the outstanding mortgage balance — may forestall many defaults as well as foreclosures.

“No one’s walking around with rose-colored glasses thinking it’s the silver bullet,” Hobbs said. “Certainly, it’ll be useful tool.”

He said the market is still unsettled because of the so-called “shadow inventory” of distressed homes that are delinquent or in default.

“It would be catastrophic if all of a sudden they all went to foreclosure,” Hobbs said. “We would have a huge, downward impact on home values, and no one wants that.”

In another report Friday, HomeGain, a Web site based in Emeryville that lists estimated home valuations, said real estate agents nationally are somewhat more optimistic about the market than a year ago.

Twenty-nine percent of industry professionals responding to a survey said prices are likely to decrease in the next six months, compared with 53 percent expecting a decline a year ago.

California was one of 10 states where more agents think prices will go up than down in the next six months.

The breakdown: 42 percent think prices will be unchanged, 36 percent think they will rise and 22 percent think they will fall.

[JC]

Just thought this was pertinent to this thread…

Notices of default up 24% in county
Analyst says February numbers might be fluke
By Roger Showley, UNION-TRIBUNE STAFF WRITER
Friday, March 19, 2010 at 9:11 p.m.

Homeowners in San Diego County defaulted at their highest monthly rate in more than a year in February, MDA DataQuick reported Friday.

Defaults totaled 2,166, up 24.4 percent from January’s 1,741, the biggest one-month jump since the figure jumped 121.3 percent from November to December 2008.

Meanwhile, there were 973 foreclosures, down from 986 in January in the sixth month-to-month decline in the past year. The number was down 21 percent from year-ago levels.

More notices of default normally signal spreading distress in the housing market. As owners fall three months or more behind in their monthly payments, lenders usually file this first formal action that often leads to foreclosure. The number spiked a year ago, when lenders were catching up on a backlog of defaults delayed through extended noticing requirements and moratoriums.

DataQuick analyst Andrew LePage said the default rise last month might be a fluke.

“You can’t just read too much into a single month,” he said. “There’s been a very irregular (pattern) of notice-of-default filings.”

But LePage said he detected a similar uptick in counties throughout the state.

“The bulk was in the areas hit hardest” by economic and housing distress, he said, and did not reflect problems spreading to higher-priced properties as many analysts have been predicting.

“That’s not the way it shaped up,” LePage said. “It was more of the same.”

In his ZIP code breakdown of defaults in the county, LePage reported high percentage increases from January in several higher-priced neighborhoods. The actual numbers remained relatively low.

For example, Del Mar defaults were up 250 percent, but the increase was only from two to seven defaults; Solana Beach was up 120 percent, from five to 11; La Jolla was up 54.5 percent, from 11 to 17.

Meanwhile, some lower-cost areas continued to exhibit greater distress in absolute numbers. Nestor in the South Bay had 83 default notices, up from 53 in January and the highest of any ZIP code, followed by Spring Valley with 70, up from 44, and Encanto at 58, up from 53. All three had median home prices of $240,000 or less in the past 12 months.

LePage said it is possible that defaults will continue rising, given the high number of delinquencies that have been reported in recent months.

But Dustin Hobbs, spokesman for the California Mortgage Bankers Association, said a new program to speed up short sales — homes sold for less than the outstanding mortgage balance — may forestall many defaults as well as foreclosures.

“No one’s walking around with rose-colored glasses thinking it’s the silver bullet,” Hobbs said. “Certainly, it’ll be useful tool.”

He said the market is still unsettled because of the so-called “shadow inventory” of distressed homes that are delinquent or in default.

“It would be catastrophic if all of a sudden they all went to foreclosure,” Hobbs said. “We would have a huge, downward impact on home values, and no one wants that.”

In another report Friday, HomeGain, a Web site based in Emeryville that lists estimated home valuations, said real estate agents nationally are somewhat more optimistic about the market than a year ago.

Twenty-nine percent of industry professionals responding to a survey said prices are likely to decrease in the next six months, compared with 53 percent expecting a decline a year ago.

California was one of 10 states where more agents think prices will go up than down in the next six months.

The breakdown: 42 percent think prices will be unchanged, 36 percent think they will rise and 22 percent think they will fall.

[Author]

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