BofA Reductions

[Nor-LA-SD-guy]

[quote=Arraya]
The are fearful of the whole western world’s banking system collapsing.[/quote]

Inflation, unfortunately the Powers that be can’t figure out how to put money into the hand of ordinary people,

I say they should just stop pretending and do a 1 for 10 dollar split.

Just do it over a Sunday, On Monday you would earn 10 times more, but everything would cost 10 times more, and your bank account would have 10 times as much etc…

That would get things going for awhile.

Plus it would have the added benifit of burning drug dealers etc..

OK there would be some issue with debt holders, but we would need to find a balence there.

[bearishgurl]

[quote=Arraya]So you are saying if we released 40,000 homes to the SD market it would be cleared up in a few months with just a little dip. Now I have not followed local RE numbers in about 2 years, but I seem to remember that being a little more that a few months supply

Coupled with an anemic job market I think you may be down playing the severity of the correction.[/quote]

Arraya, are you SURE there are 40,000 properties in SD County where a NOS has been filed and a sale on the courthouse steps is imminent?

Are you sure you’re not counting squatters where no NOD was ever filed, perpetually postponed filings of NOS or postponed foreclosure sales where a sale was delayed (perhaps due to a BK filing)?

I think it’s more like 10,000-15,000 and that would be spread out over multiple zips with some zips getting the lion’s share. Since a non-judicial foreclosure has a predictable cycle (exc. for a “20-30 day blip” to release the stay in the case of a BK filing), if the lenders exercised their timely right here, the REOs would appear on the market in waves and most would be quickly snapped up by buyers that don’t necessarily need a “job” to acquire these properties. You might want to ask a Pigg that lists REOs for lenders but IMO, in the better areas, trustees deeds and REOs are purchased with cash and rehabbed with cash. Some of the buyers are or have relatives that are . . . general contractors. I don’t know what the percentage is that buy distressed property with all cash, but would guess it’s >30%.

Another big chunk of distressed-property buyers may have >20% downpayment. A lower-income or self-employed loan applicant might not be as scrutinized by a lender if they are making a substantial downpayment combined with purchasing a property in a good area at a “distressed” price.

All downward or upward pressure on prices is a “micro” phenomenon, esp. in CA. In other words, if one-quarter of Otay Ranch residents were evicted in the next 30 days, this would have no bearing on Coronado housing prices.

Yes, I agree that your global “downward projection” could occur and cause a lot of pain in heavily overbuilt markets such as Florida, Arizona and Nevada or even inland CA, if several thousand REO’s were dumped on a particular metro market at once. Not so in CA “coastal communities,” i.e. < 5 mi. from the coast. I don't see the high unemployment rate here as a deterrent to anyone who wants to sweep up some REO's to fix up for family or rentals. Most potential buyers who work 40+ hr. weeks and/or have a lot of child-related duties DO NOT want to buy an REO unless they are relatively modernized because most need more work than they can physically or financially manage. In other words, most of the REO buyers are different animals than your garden-variety working parent and child(ren) family.

[bearishgurl]

[quote=Arraya]So you are saying if we released 40,000 homes to the SD market it would be cleared up in a few months with just a little dip. Now I have not followed local RE numbers in about 2 years, but I seem to remember that being a little more that a few months supply

Coupled with an anemic job market I think you may be down playing the severity of the correction.[/quote]

Arraya, are you SURE there are 40,000 properties in SD County where a NOS has been filed and a sale on the courthouse steps is imminent?

Are you sure you’re not counting squatters where no NOD was ever filed, perpetually postponed filings of NOS or postponed foreclosure sales where a sale was delayed (perhaps due to a BK filing)?

I think it’s more like 10,000-15,000 and that would be spread out over multiple zips with some zips getting the lion’s share. Since a non-judicial foreclosure has a predictable cycle (exc. for a “20-30 day blip” to release the stay in the case of a BK filing), if the lenders exercised their timely right here, the REOs would appear on the market in waves and most would be quickly snapped up by buyers that don’t necessarily need a “job” to acquire these properties. You might want to ask a Pigg that lists REOs for lenders but IMO, in the better areas, trustees deeds and REOs are purchased with cash and rehabbed with cash. Some of the buyers are or have relatives that are . . . general contractors. I don’t know what the percentage is that buy distressed property with all cash, but would guess it’s >30%.

Another big chunk of distressed-property buyers may have >20% downpayment. A lower-income or self-employed loan applicant might not be as scrutinized by a lender if they are making a substantial downpayment combined with purchasing a property in a good area at a “distressed” price.

All downward or upward pressure on prices is a “micro” phenomenon, esp. in CA. In other words, if one-quarter of Otay Ranch residents were evicted in the next 30 days, this would have no bearing on Coronado housing prices.

Yes, I agree that your global “downward projection” could occur and cause a lot of pain in heavily overbuilt markets such as Florida, Arizona and Nevada or even inland CA, if several thousand REO’s were dumped on a particular metro market at once. Not so in CA “coastal communities,” i.e. < 5 mi. from the coast. I don't see the high unemployment rate here as a deterrent to anyone who wants to sweep up some REO's to fix up for family or rentals. Most potential buyers who work 40+ hr. weeks and/or have a lot of child-related duties DO NOT want to buy an REO unless they are relatively modernized because most need more work than they can physically or financially manage. In other words, most of the REO buyers are different animals than your garden-variety working parent and child(ren) family.

[bearishgurl]

[quote=Arraya]So you are saying if we released 40,000 homes to the SD market it would be cleared up in a few months with just a little dip. Now I have not followed local RE numbers in about 2 years, but I seem to remember that being a little more that a few months supply

Coupled with an anemic job market I think you may be down playing the severity of the correction.[/quote]

Arraya, are you SURE there are 40,000 properties in SD County where a NOS has been filed and a sale on the courthouse steps is imminent?

Are you sure you’re not counting squatters where no NOD was ever filed, perpetually postponed filings of NOS or postponed foreclosure sales where a sale was delayed (perhaps due to a BK filing)?

I think it’s more like 10,000-15,000 and that would be spread out over multiple zips with some zips getting the lion’s share. Since a non-judicial foreclosure has a predictable cycle (exc. for a “20-30 day blip” to release the stay in the case of a BK filing), if the lenders exercised their timely right here, the REOs would appear on the market in waves and most would be quickly snapped up by buyers that don’t necessarily need a “job” to acquire these properties. You might want to ask a Pigg that lists REOs for lenders but IMO, in the better areas, trustees deeds and REOs are purchased with cash and rehabbed with cash. Some of the buyers are or have relatives that are . . . general contractors. I don’t know what the percentage is that buy distressed property with all cash, but would guess it’s >30%.

Another big chunk of distressed-property buyers may have >20% downpayment. A lower-income or self-employed loan applicant might not be as scrutinized by a lender if they are making a substantial downpayment combined with purchasing a property in a good area at a “distressed” price.

All downward or upward pressure on prices is a “micro” phenomenon, esp. in CA. In other words, if one-quarter of Otay Ranch residents were evicted in the next 30 days, this would have no bearing on Coronado housing prices.

Yes, I agree that your global “downward projection” could occur and cause a lot of pain in heavily overbuilt markets such as Florida, Arizona and Nevada or even inland CA, if several thousand REO’s were dumped on a particular metro market at once. Not so in CA “coastal communities,” i.e. < 5 mi. from the coast. I don't see the high unemployment rate here as a deterrent to anyone who wants to sweep up some REO's to fix up for family or rentals. Most potential buyers who work 40+ hr. weeks and/or have a lot of child-related duties DO NOT want to buy an REO unless they are relatively modernized because most need more work than they can physically or financially manage. In other words, most of the REO buyers are different animals than your garden-variety working parent and child(ren) family.

[bearishgurl]

[quote=Arraya]So you are saying if we released 40,000 homes to the SD market it would be cleared up in a few months with just a little dip. Now I have not followed local RE numbers in about 2 years, but I seem to remember that being a little more that a few months supply

Coupled with an anemic job market I think you may be down playing the severity of the correction.[/quote]

Arraya, are you SURE there are 40,000 properties in SD County where a NOS has been filed and a sale on the courthouse steps is imminent?

Are you sure you’re not counting squatters where no NOD was ever filed, perpetually postponed filings of NOS or postponed foreclosure sales where a sale was delayed (perhaps due to a BK filing)?

I think it’s more like 10,000-15,000 and that would be spread out over multiple zips with some zips getting the lion’s share. Since a non-judicial foreclosure has a predictable cycle (exc. for a “20-30 day blip” to release the stay in the case of a BK filing), if the lenders exercised their timely right here, the REOs would appear on the market in waves and most would be quickly snapped up by buyers that don’t necessarily need a “job” to acquire these properties. You might want to ask a Pigg that lists REOs for lenders but IMO, in the better areas, trustees deeds and REOs are purchased with cash and rehabbed with cash. Some of the buyers are or have relatives that are . . . general contractors. I don’t know what the percentage is that buy distressed property with all cash, but would guess it’s >30%.

Another big chunk of distressed-property buyers may have >20% downpayment. A lower-income or self-employed loan applicant might not be as scrutinized by a lender if they are making a substantial downpayment combined with purchasing a property in a good area at a “distressed” price.

All downward or upward pressure on prices is a “micro” phenomenon, esp. in CA. In other words, if one-quarter of Otay Ranch residents were evicted in the next 30 days, this would have no bearing on Coronado housing prices.

Yes, I agree that your global “downward projection” could occur and cause a lot of pain in heavily overbuilt markets such as Florida, Arizona and Nevada or even inland CA, if several thousand REO’s were dumped on a particular metro market at once. Not so in CA “coastal communities,” i.e. < 5 mi. from the coast. I don't see the high unemployment rate here as a deterrent to anyone who wants to sweep up some REO's to fix up for family or rentals. Most potential buyers who work 40+ hr. weeks and/or have a lot of child-related duties DO NOT want to buy an REO unless they are relatively modernized because most need more work than they can physically or financially manage. In other words, most of the REO buyers are different animals than your garden-variety working parent and child(ren) family.

[bearishgurl]

[quote=Arraya]So you are saying if we released 40,000 homes to the SD market it would be cleared up in a few months with just a little dip. Now I have not followed local RE numbers in about 2 years, but I seem to remember that being a little more that a few months supply

Coupled with an anemic job market I think you may be down playing the severity of the correction.[/quote]

Arraya, are you SURE there are 40,000 properties in SD County where a NOS has been filed and a sale on the courthouse steps is imminent?

Are you sure you’re not counting squatters where no NOD was ever filed, perpetually postponed filings of NOS or postponed foreclosure sales where a sale was delayed (perhaps due to a BK filing)?

I think it’s more like 10,000-15,000 and that would be spread out over multiple zips with some zips getting the lion’s share. Since a non-judicial foreclosure has a predictable cycle (exc. for a “20-30 day blip” to release the stay in the case of a BK filing), if the lenders exercised their timely right here, the REOs would appear on the market in waves and most would be quickly snapped up by buyers that don’t necessarily need a “job” to acquire these properties. You might want to ask a Pigg that lists REOs for lenders but IMO, in the better areas, trustees deeds and REOs are purchased with cash and rehabbed with cash. Some of the buyers are or have relatives that are . . . general contractors. I don’t know what the percentage is that buy distressed property with all cash, but would guess it’s >30%.

Another big chunk of distressed-property buyers may have >20% downpayment. A lower-income or self-employed loan applicant might not be as scrutinized by a lender if they are making a substantial downpayment combined with purchasing a property in a good area at a “distressed” price.

All downward or upward pressure on prices is a “micro” phenomenon, esp. in CA. In other words, if one-quarter of Otay Ranch residents were evicted in the next 30 days, this would have no bearing on Coronado housing prices.

Yes, I agree that your global “downward projection” could occur and cause a lot of pain in heavily overbuilt markets such as Florida, Arizona and Nevada or even inland CA, if several thousand REO’s were dumped on a particular metro market at once. Not so in CA “coastal communities,” i.e. < 5 mi. from the coast. I don't see the high unemployment rate here as a deterrent to anyone who wants to sweep up some REO's to fix up for family or rentals. Most potential buyers who work 40+ hr. weeks and/or have a lot of child-related duties DO NOT want to buy an REO unless they are relatively modernized because most need more work than they can physically or financially manage. In other words, most of the REO buyers are different animals than your garden-variety working parent and child(ren) family.

[Nor-LA-SD-guy]

Well if there is one thing the banks have learned in the last 3 or so years is that Nothing begets foreclosures like foreclosures .

I would guess there will be no Tsunami , it’s not in the banks interest, and it’s not in the gov’s interests.

[Nor-LA-SD-guy]

Well if there is one thing the banks have learned in the last 3 or so years is that Nothing begets foreclosures like foreclosures .

I would guess there will be no Tsunami , it’s not in the banks interest, and it’s not in the gov’s interests.

[Nor-LA-SD-guy]

Well if there is one thing the banks have learned in the last 3 or so years is that Nothing begets foreclosures like foreclosures .

I would guess there will be no Tsunami , it’s not in the banks interest, and it’s not in the gov’s interests.

[Nor-LA-SD-guy]

Well if there is one thing the banks have learned in the last 3 or so years is that Nothing begets foreclosures like foreclosures .

I would guess there will be no Tsunami , it’s not in the banks interest, and it’s not in the gov’s interests.

[Nor-LA-SD-guy]

Well if there is one thing the banks have learned in the last 3 or so years is that Nothing begets foreclosures like foreclosures .

I would guess there will be no Tsunami , it’s not in the banks interest, and it’s not in the gov’s interests.

[briansd1]

[quote=Arraya]

The have not pledged 24 trillion dollars to this fiasco because they think it would be a minor dip in prices and quickly cleaned up. Or because of political pressure. The are fearful of the whole western world’s banking system collapsing.[/quote]

I agree with you as to the reasons for the bailouts.

You say our system is unsustainable and irresponsible. But what is the alternative to propping up our system to keep economic activity going?

I think the alternative is to change priorities and consume only what we need and find happiness not in consumption but leisure and free time. But who will be satisfied with free time but no money?

Oh, the following weekend, on my free time, I want to go out and buy the new iPhone that’s coming out. 😉

[briansd1]

[quote=Arraya]

The have not pledged 24 trillion dollars to this fiasco because they think it would be a minor dip in prices and quickly cleaned up. Or because of political pressure. The are fearful of the whole western world’s banking system collapsing.[/quote]

I agree with you as to the reasons for the bailouts.

You say our system is unsustainable and irresponsible. But what is the alternative to propping up our system to keep economic activity going?

I think the alternative is to change priorities and consume only what we need and find happiness not in consumption but leisure and free time. But who will be satisfied with free time but no money?

Oh, the following weekend, on my free time, I want to go out and buy the new iPhone that’s coming out. 😉

[briansd1]

[quote=Arraya]

The have not pledged 24 trillion dollars to this fiasco because they think it would be a minor dip in prices and quickly cleaned up. Or because of political pressure. The are fearful of the whole western world’s banking system collapsing.[/quote]

I agree with you as to the reasons for the bailouts.

You say our system is unsustainable and irresponsible. But what is the alternative to propping up our system to keep economic activity going?

I think the alternative is to change priorities and consume only what we need and find happiness not in consumption but leisure and free time. But who will be satisfied with free time but no money?

Oh, the following weekend, on my free time, I want to go out and buy the new iPhone that’s coming out. 😉

[briansd1]

[quote=Arraya]

The have not pledged 24 trillion dollars to this fiasco because they think it would be a minor dip in prices and quickly cleaned up. Or because of political pressure. The are fearful of the whole western world’s banking system collapsing.[/quote]

I agree with you as to the reasons for the bailouts.

You say our system is unsustainable and irresponsible. But what is the alternative to propping up our system to keep economic activity going?

I think the alternative is to change priorities and consume only what we need and find happiness not in consumption but leisure and free time. But who will be satisfied with free time but no money?

Oh, the following weekend, on my free time, I want to go out and buy the new iPhone that’s coming out. 😉

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