buying houses and the foreclosure situation

[kev374]

Due to the upcoming wave of foreclosures it makes sense to think that a lot of the properties available after all is said and done with this market will be REOs. So, is there anything special we should know about buying REOs that is different from regular purchases?

[CAwireman]

Foreclosures purchased on the courthouse steps may not allow for inspections that could otherwise turn up significant deficiencies….

HiggyBaby

[CAwireman]

Foreclosures purchased on the courthouse steps may not allow for inspections that could otherwise turn up significant deficiencies….

HiggyBaby

[CAwireman]

Foreclosures purchased on the courthouse steps may not allow for inspections that could otherwise turn up significant deficiencies….

HiggyBaby

[The OC Scam]

kev374

I believe currently there is a very unique situation in the housing REO market! This is from my own experience currently working with my Agent who specializes in REOs.
Most old timers that have been in the industry for 20 some odd years have a train of thought that Short sales are better deals and allow bigger discounts but this is not completely true from what we are experiencing. Currently the banks after failed auctions are on life support!
Today foreclosure market is flooded I repeat FLOODED with foreclosures mostly purchased with subprime and most at peak prices which I know you already know from reading your previous posts.
The homes being listed right now after auctions failing are coming back on the market lower than the failed attempt at the court house at a discount rate about 35-25% below the first loan taken out on the subCrime loan. We currently have purchased a rental property for 29% below current comps after negotiating for a month as the only offer submitted. The bank needs to sell! They don’t want the property sitting so they are the most desperate position and have bigger pockets then your neighbor’s home purchase in 2003 – 2006.
Currently there is a home that we have fallen in love with that we intend to live in for the next 10 years is a week away from being accepted at 32% percent below current comps. With these homes there absolutely not home warranty included and completely sold as is so a very good home inspection is a life and death decision for us. Also it is very difficult to find an agent who understands the REO process and also there is a chance for the agent to not get the commission they are looking for! Hence the reasons they are avoiding showing them to their buyers.
If you really want to work with an Agent who understands the REO market Google Leo Nordine out if southern CA. This guy understands where the REOs should be priced before the haggling starts. Read his comments in the LA times recently in August about the market.
He recently told me are you sure you want to buy right now? That’s a good listing agent!!

[The OC Scam]

kev374

I believe currently there is a very unique situation in the housing REO market! This is from my own experience currently working with my Agent who specializes in REOs.
Most old timers that have been in the industry for 20 some odd years have a train of thought that Short sales are better deals and allow bigger discounts but this is not completely true from what we are experiencing. Currently the banks after failed auctions are on life support!
Today foreclosure market is flooded I repeat FLOODED with foreclosures mostly purchased with subprime and most at peak prices which I know you already know from reading your previous posts.
The homes being listed right now after auctions failing are coming back on the market lower than the failed attempt at the court house at a discount rate about 35-25% below the first loan taken out on the subCrime loan. We currently have purchased a rental property for 29% below current comps after negotiating for a month as the only offer submitted. The bank needs to sell! They don’t want the property sitting so they are the most desperate position and have bigger pockets then your neighbor’s home purchase in 2003 – 2006.
Currently there is a home that we have fallen in love with that we intend to live in for the next 10 years is a week away from being accepted at 32% percent below current comps. With these homes there absolutely not home warranty included and completely sold as is so a very good home inspection is a life and death decision for us. Also it is very difficult to find an agent who understands the REO process and also there is a chance for the agent to not get the commission they are looking for! Hence the reasons they are avoiding showing them to their buyers.
If you really want to work with an Agent who understands the REO market Google Leo Nordine out if southern CA. This guy understands where the REOs should be priced before the haggling starts. Read his comments in the LA times recently in August about the market.
He recently told me are you sure you want to buy right now? That’s a good listing agent!!

[The OC Scam]

kev374

I believe currently there is a very unique situation in the housing REO market! This is from my own experience currently working with my Agent who specializes in REOs.
Most old timers that have been in the industry for 20 some odd years have a train of thought that Short sales are better deals and allow bigger discounts but this is not completely true from what we are experiencing. Currently the banks after failed auctions are on life support!
Today foreclosure market is flooded I repeat FLOODED with foreclosures mostly purchased with subprime and most at peak prices which I know you already know from reading your previous posts.
The homes being listed right now after auctions failing are coming back on the market lower than the failed attempt at the court house at a discount rate about 35-25% below the first loan taken out on the subCrime loan. We currently have purchased a rental property for 29% below current comps after negotiating for a month as the only offer submitted. The bank needs to sell! They don’t want the property sitting so they are the most desperate position and have bigger pockets then your neighbor’s home purchase in 2003 – 2006.
Currently there is a home that we have fallen in love with that we intend to live in for the next 10 years is a week away from being accepted at 32% percent below current comps. With these homes there absolutely not home warranty included and completely sold as is so a very good home inspection is a life and death decision for us. Also it is very difficult to find an agent who understands the REO process and also there is a chance for the agent to not get the commission they are looking for! Hence the reasons they are avoiding showing them to their buyers.
If you really want to work with an Agent who understands the REO market Google Leo Nordine out if southern CA. This guy understands where the REOs should be priced before the haggling starts. Read his comments in the LA times recently in August about the market.
He recently told me are you sure you want to buy right now? That’s a good listing agent!!

[SD Realtor]

kev –

I would by no means call my self an expert at foreclosures. I would say though that in my experiences right now with short sales they are by far more of a pain in the -ss then simply purchasing an reo property. The response time from the lenders are just to much to deal with. Additionally in SOME CASES the list price on the MLS for short sales does not really seem to correlate with the reality of what the lender will accept. I think that once the property does finally become an REO that there is much more motivation by the lender.

With regards to an REO note that any REO you purchase will pretty much be exempt from any and all disclosure. Lenders have never lived in or occupied the home so they have no knowledge of any existing problems. They will also have a pretty hefty release of liability for you to accept. There is nothing wrong or abnormal about this. It just merits that you do as thorough a job as possible performing your own diligence. Whil eyou do have the right to ask for a termite clearance and request any repairs you find during the due diligence period, it is best to assume the lender will not remedy any requests made.. they may credit you some money, they may not. It never hurts to ask right?

At any rate, the final question is how do you think the market will do in the future AND to be more specific in your target area? Do you think there will be further depreciation? Do you envision foreclosures in that target market? The answer is most likely yes in both cases. So hanging out and waiting a few more years may be the best strategy.

Again though, the main point is with the REO properties, just do a very thorough job with your due diligence and you can save alot of money.

Also do not confuse an REO or private auction with a trustee sale. The trustee sale is an auction of sorts where you can purchase properties but the vast majority of trustee sales end up with the property going back to the lender.
SD Realtor

[rocket science]

Oddly enough there was an article associated with this on the front page of the LA Times today.

 http://www.latimes.com/business/la-fi-foreclose27oct27,0,5892547.story?coll=la-home-business 

In addition to implying that the foreclosure activity trend is creeping into affluent communities it included a couple of other interesting points:

 The mortgage deals driving those high prices proved too good to be true, DataQuick President Marshall Prentice said. "We know now, in emerging detail, that a lot of these loans shouldn't have been made," Prentice said. We know now?????? 

And despite Enorah’s prediction back in July

http://piggington.com/the_tipping_point_is_here

We are lead to believe that we have not reached a tipping point.

 As foreclosures multiply in Los Angeles and Orange counties, it is too early to gauge the effect these properties will have on home values there, said Patrick Veling, president of Real Data Strategies Inc., a Brea real estate consulting firm. "Is there a tipping point?" he asked. "I don't know, but we haven't reached it yet." 

It is unfortunate the online story doesn’t come with the graph with the vertical line of foreclosure data.

rs

[SD Realtor]

Pretty funny you brought up Enorahs post… I recall it well because I personally poo pood all over it and like a few days later the credit crunch hit the fan…and I looked like the idiot… not the first time either…

I don’t really see any tipping point… just a slide down that will be uneven throughout the next 3-4 years.

SD Realtor

[JC]

OC Scam, Can I ask you a favor?

Can you elaborate on your experience buying a foreclosed property? Did you get it before it went back on the MLS? (I have my eye on a property that has gone back to the bank, but has not hit the MLS again yet).

Also, can you explain “chance for the agent to not get the commission they are looking for!”

I have a terrific agent and want to make sure that they get their commission once I finally buy.

Thank you!

[patientlywaiting]

Thanks for reviving Enorah post. It’s fun to go back in time revisit the past sometimes.

I’m going to repeat JWM’s post here. It was dead on and still is. The macro picture is what’s most important. I don’t care about the number of pendings is this week… The macro picture is so bad that most of them won’t close.

*

Submitted by JWM in SD on July 26, 2007 – 12:20pm.

SD Realtor,

If your perspective is only from that of the housing market you may have point, but there definitely has been a tipping point with regard to the credit market and that is undeniable as of this week. The fact that the housing market is intrinsically tied to the credit though makes this debateable in my opinion.

The posters here need to stop looking at this from the prism of SD home prices and start looking at the macro picture instead. It is scary, but it will give you the confidenced needed to steer clear of bad advice right now.

Anyone looking to buy a house right whether they can afford it or not is making a bad financial decision given the economic circumstances that we are headed into at the moment.

[patientlywaiting]

Thanks for reviving Enorah post. It’s fun to go back in time revisit the past sometimes.

I’m going to repeat JWM’s post here. It was dead on and still is. The macro picture is what’s most important. I don’t care about the number of pendings is this week… The macro picture is so bad that most of them won’t close.

*

Submitted by JWM in SD on July 26, 2007 – 12:20pm.

SD Realtor,

If your perspective is only from that of the housing market you may have point, but there definitely has been a tipping point with regard to the credit market and that is undeniable as of this week. The fact that the housing market is intrinsically tied to the credit though makes this debateable in my opinion.

The posters here need to stop looking at this from the prism of SD home prices and start looking at the macro picture instead. It is scary, but it will give you the confidenced needed to steer clear of bad advice right now.

Anyone looking to buy a house right whether they can afford it or not is making a bad financial decision given the economic circumstances that we are headed into at the moment.

[patientlywaiting]

Thanks for reviving Enorah post. It’s fun to go back in time revisit the past sometimes.

I’m going to repeat JWM’s post here. It was dead on and still is. The macro picture is what’s most important. I don’t care about the number of pendings is this week… The macro picture is so bad that most of them won’t close.

*

Submitted by JWM in SD on July 26, 2007 – 12:20pm.

SD Realtor,

If your perspective is only from that of the housing market you may have point, but there definitely has been a tipping point with regard to the credit market and that is undeniable as of this week. The fact that the housing market is intrinsically tied to the credit though makes this debateable in my opinion.

The posters here need to stop looking at this from the prism of SD home prices and start looking at the macro picture instead. It is scary, but it will give you the confidenced needed to steer clear of bad advice right now.

Anyone looking to buy a house right whether they can afford it or not is making a bad financial decision given the economic circumstances that we are headed into at the moment.

[patientlywaiting]

Thanks for reviving Enorah post. It’s fun to go back in time revisit the past sometimes.

I’m going to repeat JWM’s post here. It was dead on and still is. The macro picture is what’s most important. I don’t care about the number of pendings is this week… The macro picture is so bad that most of them won’t close.

*

Submitted by JWM in SD on July 26, 2007 – 12:20pm.

SD Realtor,

If your perspective is only from that of the housing market you may have point, but there definitely has been a tipping point with regard to the credit market and that is undeniable as of this week. The fact that the housing market is intrinsically tied to the credit though makes this debateable in my opinion.

The posters here need to stop looking at this from the prism of SD home prices and start looking at the macro picture instead. It is scary, but it will give you the confidenced needed to steer clear of bad advice right now.

Anyone looking to buy a house right whether they can afford it or not is making a bad financial decision given the economic circumstances that we are headed into at the moment.

[patientlywaiting]

Thanks for reviving Enorah post. It’s fun to go back in time revisit the past sometimes.

I’m going to repeat JWM’s post here. It was dead on and still is. The macro picture is what’s most important. I don’t care about the number of pendings is this week… The macro picture is so bad that most of them won’t close.

*

Submitted by JWM in SD on July 26, 2007 – 12:20pm.

SD Realtor,

If your perspective is only from that of the housing market you may have point, but there definitely has been a tipping point with regard to the credit market and that is undeniable as of this week. The fact that the housing market is intrinsically tied to the credit though makes this debateable in my opinion.

The posters here need to stop looking at this from the prism of SD home prices and start looking at the macro picture instead. It is scary, but it will give you the confidenced needed to steer clear of bad advice right now.

Anyone looking to buy a house right whether they can afford it or not is making a bad financial decision given the economic circumstances that we are headed into at the moment.

[JC]

OC Scam, Can I ask you a favor?

Can you elaborate on your experience buying a foreclosed property? Did you get it before it went back on the MLS? (I have my eye on a property that has gone back to the bank, but has not hit the MLS again yet).

Also, can you explain “chance for the agent to not get the commission they are looking for!”

I have a terrific agent and want to make sure that they get their commission once I finally buy.

Thank you!

[JC]

OC Scam, Can I ask you a favor?

Can you elaborate on your experience buying a foreclosed property? Did you get it before it went back on the MLS? (I have my eye on a property that has gone back to the bank, but has not hit the MLS again yet).

Also, can you explain “chance for the agent to not get the commission they are looking for!”

I have a terrific agent and want to make sure that they get their commission once I finally buy.

Thank you!

[JC]

OC Scam, Can I ask you a favor?

Can you elaborate on your experience buying a foreclosed property? Did you get it before it went back on the MLS? (I have my eye on a property that has gone back to the bank, but has not hit the MLS again yet).

Also, can you explain “chance for the agent to not get the commission they are looking for!”

I have a terrific agent and want to make sure that they get their commission once I finally buy.

Thank you!

[JC]

OC Scam, Can I ask you a favor?

Can you elaborate on your experience buying a foreclosed property? Did you get it before it went back on the MLS? (I have my eye on a property that has gone back to the bank, but has not hit the MLS again yet).

Also, can you explain “chance for the agent to not get the commission they are looking for!”

I have a terrific agent and want to make sure that they get their commission once I finally buy.

Thank you!

[Enorah]

Submitted by SD Realtor on October 27, 2007 – 7:16pm.

Pretty funny you brought up Enorahs post… I recall it well because I personally poo pood all over it and like a few days later the credit crunch hit the fan…and I looked like the idiot… not the first time either…

I don’t really see any tipping point… just a slide down that will be uneven throughout the next 3-4 years.

SD Realtor

You did?

LOL

I’m going to have to go look at it again.

[Enorah]

Submitted by SD Realtor on October 27, 2007 – 7:16pm.

Pretty funny you brought up Enorahs post… I recall it well because I personally poo pood all over it and like a few days later the credit crunch hit the fan…and I looked like the idiot… not the first time either…

I don’t really see any tipping point… just a slide down that will be uneven throughout the next 3-4 years.

SD Realtor

You did?

LOL

I’m going to have to go look at it again.

[Enorah]

Submitted by SD Realtor on October 27, 2007 – 7:16pm.

Pretty funny you brought up Enorahs post… I recall it well because I personally poo pood all over it and like a few days later the credit crunch hit the fan…and I looked like the idiot… not the first time either…

I don’t really see any tipping point… just a slide down that will be uneven throughout the next 3-4 years.

SD Realtor

You did?

LOL

I’m going to have to go look at it again.

[Enorah]

Submitted by SD Realtor on October 27, 2007 – 7:16pm.

Pretty funny you brought up Enorahs post… I recall it well because I personally poo pood all over it and like a few days later the credit crunch hit the fan…and I looked like the idiot… not the first time either…

I don’t really see any tipping point… just a slide down that will be uneven throughout the next 3-4 years.

SD Realtor

You did?

LOL

I’m going to have to go look at it again.

[Enorah]

Submitted by SD Realtor on October 27, 2007 – 7:16pm.

Pretty funny you brought up Enorahs post… I recall it well because I personally poo pood all over it and like a few days later the credit crunch hit the fan…and I looked like the idiot… not the first time either…

I don’t really see any tipping point… just a slide down that will be uneven throughout the next 3-4 years.

SD Realtor

You did?

LOL

I’m going to have to go look at it again.

[SD Realtor]

Pretty funny you brought up Enorahs post… I recall it well because I personally poo pood all over it and like a few days later the credit crunch hit the fan…and I looked like the idiot… not the first time either…

I don’t really see any tipping point… just a slide down that will be uneven throughout the next 3-4 years.

SD Realtor

[SD Realtor]

Pretty funny you brought up Enorahs post… I recall it well because I personally poo pood all over it and like a few days later the credit crunch hit the fan…and I looked like the idiot… not the first time either…

I don’t really see any tipping point… just a slide down that will be uneven throughout the next 3-4 years.

SD Realtor

[rocket science]

Oddly enough there was an article associated with this on the front page of the LA Times today.

 http://www.latimes.com/business/la-fi-foreclose27oct27,0,5892547.story?coll=la-home-business 

In addition to implying that the foreclosure activity trend is creeping into affluent communities it included a couple of other interesting points:

 The mortgage deals driving those high prices proved too good to be true, DataQuick President Marshall Prentice said. "We know now, in emerging detail, that a lot of these loans shouldn't have been made," Prentice said. We know now?????? 

And despite Enorah’s prediction back in July

http://piggington.com/the_tipping_point_is_here

We are lead to believe that we have not reached a tipping point.

 As foreclosures multiply in Los Angeles and Orange counties, it is too early to gauge the effect these properties will have on home values there, said Patrick Veling, president of Real Data Strategies Inc., a Brea real estate consulting firm. "Is there a tipping point?" he asked. "I don't know, but we haven't reached it yet." 

It is unfortunate the online story doesn’t come with the graph with the vertical line of foreclosure data.

rs

[rocket science]

Oddly enough there was an article associated with this on the front page of the LA Times today.

 http://www.latimes.com/business/la-fi-foreclose27oct27,0,5892547.story?coll=la-home-business 

In addition to implying that the foreclosure activity trend is creeping into affluent communities it included a couple of other interesting points:

 The mortgage deals driving those high prices proved too good to be true, DataQuick President Marshall Prentice said. "We know now, in emerging detail, that a lot of these loans shouldn't have been made," Prentice said. We know now?????? 

And despite Enorah’s prediction back in July

http://piggington.com/the_tipping_point_is_here

We are lead to believe that we have not reached a tipping point.

 As foreclosures multiply in Los Angeles and Orange counties, it is too early to gauge the effect these properties will have on home values there, said Patrick Veling, president of Real Data Strategies Inc., a Brea real estate consulting firm. "Is there a tipping point?" he asked. "I don't know, but we haven't reached it yet." 

It is unfortunate the online story doesn’t come with the graph with the vertical line of foreclosure data.

rs

[SD Realtor]

kev –

I would by no means call my self an expert at foreclosures. I would say though that in my experiences right now with short sales they are by far more of a pain in the -ss then simply purchasing an reo property. The response time from the lenders are just to much to deal with. Additionally in SOME CASES the list price on the MLS for short sales does not really seem to correlate with the reality of what the lender will accept. I think that once the property does finally become an REO that there is much more motivation by the lender.

With regards to an REO note that any REO you purchase will pretty much be exempt from any and all disclosure. Lenders have never lived in or occupied the home so they have no knowledge of any existing problems. They will also have a pretty hefty release of liability for you to accept. There is nothing wrong or abnormal about this. It just merits that you do as thorough a job as possible performing your own diligence. Whil eyou do have the right to ask for a termite clearance and request any repairs you find during the due diligence period, it is best to assume the lender will not remedy any requests made.. they may credit you some money, they may not. It never hurts to ask right?

At any rate, the final question is how do you think the market will do in the future AND to be more specific in your target area? Do you think there will be further depreciation? Do you envision foreclosures in that target market? The answer is most likely yes in both cases. So hanging out and waiting a few more years may be the best strategy.

Again though, the main point is with the REO properties, just do a very thorough job with your due diligence and you can save alot of money.

Also do not confuse an REO or private auction with a trustee sale. The trustee sale is an auction of sorts where you can purchase properties but the vast majority of trustee sales end up with the property going back to the lender.
SD Realtor

[SD Realtor]

kev –

I would by no means call my self an expert at foreclosures. I would say though that in my experiences right now with short sales they are by far more of a pain in the -ss then simply purchasing an reo property. The response time from the lenders are just to much to deal with. Additionally in SOME CASES the list price on the MLS for short sales does not really seem to correlate with the reality of what the lender will accept. I think that once the property does finally become an REO that there is much more motivation by the lender.

With regards to an REO note that any REO you purchase will pretty much be exempt from any and all disclosure. Lenders have never lived in or occupied the home so they have no knowledge of any existing problems. They will also have a pretty hefty release of liability for you to accept. There is nothing wrong or abnormal about this. It just merits that you do as thorough a job as possible performing your own diligence. Whil eyou do have the right to ask for a termite clearance and request any repairs you find during the due diligence period, it is best to assume the lender will not remedy any requests made.. they may credit you some money, they may not. It never hurts to ask right?

At any rate, the final question is how do you think the market will do in the future AND to be more specific in your target area? Do you think there will be further depreciation? Do you envision foreclosures in that target market? The answer is most likely yes in both cases. So hanging out and waiting a few more years may be the best strategy.

Again though, the main point is with the REO properties, just do a very thorough job with your due diligence and you can save alot of money.

Also do not confuse an REO or private auction with a trustee sale. The trustee sale is an auction of sorts where you can purchase properties but the vast majority of trustee sales end up with the property going back to the lender.
SD Realtor

[shaggydoo]

A thorough I mean thorough inspection because of the release the bank makes you sign. These REOs were owned by people completely in over their heads financially, so don’t trust their judgement one iota when it comes to maintenace or doing something crazy on the way out.

[shaggydoo]

A thorough I mean thorough inspection because of the release the bank makes you sign. These REOs were owned by people completely in over their heads financially, so don’t trust their judgement one iota when it comes to maintenace or doing something crazy on the way out.

[shaggydoo]

A thorough I mean thorough inspection because of the release the bank makes you sign. These REOs were owned by people completely in over their heads financially, so don’t trust their judgement one iota when it comes to maintenace or doing something crazy on the way out.

[shaggydoo]

A thorough I mean thorough inspection because of the release the bank makes you sign. These REOs were owned by people completely in over their heads financially, so don’t trust their judgement one iota when it comes to maintenace or doing something crazy on the way out.

[shaggydoo]

A thorough I mean thorough inspection because of the release the bank makes you sign. These REOs were owned by people completely in over their heads financially, so don’t trust their judgement one iota when it comes to maintenace or doing something crazy on the way out.

[Coronita]

Can someone kindly provide a cliff notes version to the book "Buying an REO for Dummies" or point to a good link/book?

Not that I would right now, just curious about the details of the process. 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[nostradamus]

Here you go flu.

http://www.youtube.com/watch?v=eYDv2K-N_8g

[Coronita]

Here you go flu.

http://www.youtube.com/watch?v=eYDv2K-N_8g

 

lol 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Here you go flu.

http://www.youtube.com/watch?v=eYDv2K-N_8g

 

lol 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Here you go flu.

http://www.youtube.com/watch?v=eYDv2K-N_8g

 

lol 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Here you go flu.

http://www.youtube.com/watch?v=eYDv2K-N_8g

 

lol 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Here you go flu.

http://www.youtube.com/watch?v=eYDv2K-N_8g

 

lol 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[nostradamus]

Here you go flu.

http://www.youtube.com/watch?v=eYDv2K-N_8g

[nostradamus]

Here you go flu.

http://www.youtube.com/watch?v=eYDv2K-N_8g

[nostradamus]

Here you go flu.

http://www.youtube.com/watch?v=eYDv2K-N_8g

[nostradamus]

Here you go flu.

http://www.youtube.com/watch?v=eYDv2K-N_8g

[Coronita]

Can someone kindly provide a cliff notes version to the book "Buying an REO for Dummies" or point to a good link/book?

Not that I would right now, just curious about the details of the process. 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Can someone kindly provide a cliff notes version to the book "Buying an REO for Dummies" or point to a good link/book?

Not that I would right now, just curious about the details of the process. 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Can someone kindly provide a cliff notes version to the book "Buying an REO for Dummies" or point to a good link/book?

Not that I would right now, just curious about the details of the process. 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Can someone kindly provide a cliff notes version to the book "Buying an REO for Dummies" or point to a good link/book?

Not that I would right now, just curious about the details of the process. 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Deal Hunter]

REO Buyer Beware

You can’t do a full inspection on a property on the auction block. It’s better to look into short sale. You will be allowed to do a full inspection on the property and even use the list of repairs as a negotiating tool to get the lowest possible price.

Just as a sampling, most of the post-auction listed REOs we look at here in Vegas are STRIPPED of absolutely everything. They take everything, even light fixtures, closet doors, toilets, faucets and waterheaters. One house had all the carpeting pulled out (it was one of those that was bought new from the builder and never lived in).

We joked once that the next thing to be missing from these REO’s would be the granite countertops. I have a feeling that won’t be just a joke soon.

[SD Realtor]

Hi Enorah…

Yeah don’t you remember I kind of did pooh pooh on it… Of course that was right before the August credit events…Anyways like I said, your feeling was petty well timed. Not sure prices did a full tilt but it was the initiation of some of the credit problems really coming to light.

*****

Dealhunter I have seen alot of REO’s akin to what you stated and I have seen others in surprisingly good shape. I am not sure the OP really meant to actually purchase a home at a trustee sale. More likely at one of the REDC auctions or even an MLS REO.

The biggest misconception people have about buying an REO is the liability release. However if you know what you are getting into, and get ALL of your diligence done you can do pretty well pricewise.

SD Realtor

[SD Realtor]

Hi Enorah…

Yeah don’t you remember I kind of did pooh pooh on it… Of course that was right before the August credit events…Anyways like I said, your feeling was petty well timed. Not sure prices did a full tilt but it was the initiation of some of the credit problems really coming to light.

*****

Dealhunter I have seen alot of REO’s akin to what you stated and I have seen others in surprisingly good shape. I am not sure the OP really meant to actually purchase a home at a trustee sale. More likely at one of the REDC auctions or even an MLS REO.

The biggest misconception people have about buying an REO is the liability release. However if you know what you are getting into, and get ALL of your diligence done you can do pretty well pricewise.

SD Realtor

[SD Realtor]

Hi Enorah…

Yeah don’t you remember I kind of did pooh pooh on it… Of course that was right before the August credit events…Anyways like I said, your feeling was petty well timed. Not sure prices did a full tilt but it was the initiation of some of the credit problems really coming to light.

*****

Dealhunter I have seen alot of REO’s akin to what you stated and I have seen others in surprisingly good shape. I am not sure the OP really meant to actually purchase a home at a trustee sale. More likely at one of the REDC auctions or even an MLS REO.

The biggest misconception people have about buying an REO is the liability release. However if you know what you are getting into, and get ALL of your diligence done you can do pretty well pricewise.

SD Realtor

[SD Realtor]

Hi Enorah…

Yeah don’t you remember I kind of did pooh pooh on it… Of course that was right before the August credit events…Anyways like I said, your feeling was petty well timed. Not sure prices did a full tilt but it was the initiation of some of the credit problems really coming to light.

*****

Dealhunter I have seen alot of REO’s akin to what you stated and I have seen others in surprisingly good shape. I am not sure the OP really meant to actually purchase a home at a trustee sale. More likely at one of the REDC auctions or even an MLS REO.

The biggest misconception people have about buying an REO is the liability release. However if you know what you are getting into, and get ALL of your diligence done you can do pretty well pricewise.

SD Realtor

[SD Realtor]

Hi Enorah…

Yeah don’t you remember I kind of did pooh pooh on it… Of course that was right before the August credit events…Anyways like I said, your feeling was petty well timed. Not sure prices did a full tilt but it was the initiation of some of the credit problems really coming to light.

*****

Dealhunter I have seen alot of REO’s akin to what you stated and I have seen others in surprisingly good shape. I am not sure the OP really meant to actually purchase a home at a trustee sale. More likely at one of the REDC auctions or even an MLS REO.

The biggest misconception people have about buying an REO is the liability release. However if you know what you are getting into, and get ALL of your diligence done you can do pretty well pricewise.

SD Realtor

[Deal Hunter]

REO Buyer Beware

You can’t do a full inspection on a property on the auction block. It’s better to look into short sale. You will be allowed to do a full inspection on the property and even use the list of repairs as a negotiating tool to get the lowest possible price.

Just as a sampling, most of the post-auction listed REOs we look at here in Vegas are STRIPPED of absolutely everything. They take everything, even light fixtures, closet doors, toilets, faucets and waterheaters. One house had all the carpeting pulled out (it was one of those that was bought new from the builder and never lived in).

We joked once that the next thing to be missing from these REO’s would be the granite countertops. I have a feeling that won’t be just a joke soon.

[Deal Hunter]

REO Buyer Beware

You can’t do a full inspection on a property on the auction block. It’s better to look into short sale. You will be allowed to do a full inspection on the property and even use the list of repairs as a negotiating tool to get the lowest possible price.

Just as a sampling, most of the post-auction listed REOs we look at here in Vegas are STRIPPED of absolutely everything. They take everything, even light fixtures, closet doors, toilets, faucets and waterheaters. One house had all the carpeting pulled out (it was one of those that was bought new from the builder and never lived in).

We joked once that the next thing to be missing from these REO’s would be the granite countertops. I have a feeling that won’t be just a joke soon.

[Deal Hunter]

REO Buyer Beware

You can’t do a full inspection on a property on the auction block. It’s better to look into short sale. You will be allowed to do a full inspection on the property and even use the list of repairs as a negotiating tool to get the lowest possible price.

Just as a sampling, most of the post-auction listed REOs we look at here in Vegas are STRIPPED of absolutely everything. They take everything, even light fixtures, closet doors, toilets, faucets and waterheaters. One house had all the carpeting pulled out (it was one of those that was bought new from the builder and never lived in).

We joked once that the next thing to be missing from these REO’s would be the granite countertops. I have a feeling that won’t be just a joke soon.

[Deal Hunter]

REO Buyer Beware

You can’t do a full inspection on a property on the auction block. It’s better to look into short sale. You will be allowed to do a full inspection on the property and even use the list of repairs as a negotiating tool to get the lowest possible price.

Just as a sampling, most of the post-auction listed REOs we look at here in Vegas are STRIPPED of absolutely everything. They take everything, even light fixtures, closet doors, toilets, faucets and waterheaters. One house had all the carpeting pulled out (it was one of those that was bought new from the builder and never lived in).

We joked once that the next thing to be missing from these REO’s would be the granite countertops. I have a feeling that won’t be just a joke soon.

[Anonymous]

SD Realtor or anybody else “in the know”

Everybody always comments that short sales take a long time to get a response from the lender. My understanding is that this is intentional. There is often very little incentive for the lender to respond. If the loan has PMI, the lender must foreclose to get reimbursed via the insurer. If they accept a short sale, the lender must eat the whole amount up front. No PMI claim payable. So, in reality, short sales are a waste of time for most sellers and buyers. However, when it becomes an REO, the lender response is significantly quicker. REO is the way to go. I think clearing up the short sale mysteries will be very beneficial to all. Feedback appreciated.

[SD Realtor]

Peak Debt –

It may be intentional but not for the reasons you state at all. Think about it in this manner…. Loan servicing organizations and such have been losing money in a big way in the past few years right? So they are getting hammered on the books AND they have exponentially more work for departments that used to be pretty much miniscule correct? So they don’t have enough staff, nor do they have money or time to staff up these departments. They have already laid off loan processors during the transitional period a few years ago when the business slowed but the deluge of foreclosures began. So the end result is they are ill equipped to handle the volume.

Finally there are not many loans insured by PMI when compared to the overall volume. Also I am not so sure that a PMI claim will be denied on a short sale. I am not an expert in the field but someone who actually works in a loss mitigation group would be well suited to comment.

Actually there is no mystery about a short sale. They can be a boon to any buyer but most buyers are not prepared to deal with them both emotionally and practically. Most people do not understand that you cannot just find a short sale, make an offer on it and get into escrow. Nothing actually starts on a short sale until your offer is accepted by the lender. Once accepted then things start however that acceptance takes anywhere from a few weeks (rarely) to a few months (much more common). I have a short sale listing that god willing will close in a few weeks and another short sale where I am representing the buyer that also will hopefully close in a few weeks. Both have been quite a burden.

Now there is NO DOUBT AT ALL, that an REO is much quicker and alot less work. Short sales are more work but no they are not a complete waste of time.

SD Realtor

[temeculaguy]

I often read about people fearing that they cannot inspect homes they buy on the courthouse steps. Who the heck would buy a house at that stage, that is just a ceremony, required by law where someone can buy the place for the amount of the debt. If the value was more than or equal to the debt, the owner would have sold proir to the procedure, those courthouse step trustee sales are almost always well above today’s market value in our current declining price scenario. Once the bank gets it back and after the courthouse step procedure it will end up on the MLS and you will have the opportunity to view with your realtor and bring a private inspector along on a subsequent visit before making an offer. The risk is the lack of warranty and inability to sue for non disclosure in case you missed something, making the private inspection even more vital. The reward can be a lower price and even more leverage in negotiations. Even if you avoid the REO’s, you benefit from their comp lowering. Sometimes the shorts and the refurbs are worse than the repos because they try to hide the problems, doing everything on the cheap, I’d rather they leave it alone and I’ll do it right.

Dealhunter, i’ve seen the granite removed on more than one occasion and many times all of the kitchen cabinets, in fact I saw one stripped and saw the ad on craigslist from the person that stripped it because they used pictures from when it was in place.

[temeculaguy]

I often read about people fearing that they cannot inspect homes they buy on the courthouse steps. Who the heck would buy a house at that stage, that is just a ceremony, required by law where someone can buy the place for the amount of the debt. If the value was more than or equal to the debt, the owner would have sold proir to the procedure, those courthouse step trustee sales are almost always well above today’s market value in our current declining price scenario. Once the bank gets it back and after the courthouse step procedure it will end up on the MLS and you will have the opportunity to view with your realtor and bring a private inspector along on a subsequent visit before making an offer. The risk is the lack of warranty and inability to sue for non disclosure in case you missed something, making the private inspection even more vital. The reward can be a lower price and even more leverage in negotiations. Even if you avoid the REO’s, you benefit from their comp lowering. Sometimes the shorts and the refurbs are worse than the repos because they try to hide the problems, doing everything on the cheap, I’d rather they leave it alone and I’ll do it right.

Dealhunter, i’ve seen the granite removed on more than one occasion and many times all of the kitchen cabinets, in fact I saw one stripped and saw the ad on craigslist from the person that stripped it because they used pictures from when it was in place.

[temeculaguy]

I often read about people fearing that they cannot inspect homes they buy on the courthouse steps. Who the heck would buy a house at that stage, that is just a ceremony, required by law where someone can buy the place for the amount of the debt. If the value was more than or equal to the debt, the owner would have sold proir to the procedure, those courthouse step trustee sales are almost always well above today’s market value in our current declining price scenario. Once the bank gets it back and after the courthouse step procedure it will end up on the MLS and you will have the opportunity to view with your realtor and bring a private inspector along on a subsequent visit before making an offer. The risk is the lack of warranty and inability to sue for non disclosure in case you missed something, making the private inspection even more vital. The reward can be a lower price and even more leverage in negotiations. Even if you avoid the REO’s, you benefit from their comp lowering. Sometimes the shorts and the refurbs are worse than the repos because they try to hide the problems, doing everything on the cheap, I’d rather they leave it alone and I’ll do it right.

Dealhunter, i’ve seen the granite removed on more than one occasion and many times all of the kitchen cabinets, in fact I saw one stripped and saw the ad on craigslist from the person that stripped it because they used pictures from when it was in place.

[temeculaguy]

I often read about people fearing that they cannot inspect homes they buy on the courthouse steps. Who the heck would buy a house at that stage, that is just a ceremony, required by law where someone can buy the place for the amount of the debt. If the value was more than or equal to the debt, the owner would have sold proir to the procedure, those courthouse step trustee sales are almost always well above today’s market value in our current declining price scenario. Once the bank gets it back and after the courthouse step procedure it will end up on the MLS and you will have the opportunity to view with your realtor and bring a private inspector along on a subsequent visit before making an offer. The risk is the lack of warranty and inability to sue for non disclosure in case you missed something, making the private inspection even more vital. The reward can be a lower price and even more leverage in negotiations. Even if you avoid the REO’s, you benefit from their comp lowering. Sometimes the shorts and the refurbs are worse than the repos because they try to hide the problems, doing everything on the cheap, I’d rather they leave it alone and I’ll do it right.

Dealhunter, i’ve seen the granite removed on more than one occasion and many times all of the kitchen cabinets, in fact I saw one stripped and saw the ad on craigslist from the person that stripped it because they used pictures from when it was in place.

[temeculaguy]

I often read about people fearing that they cannot inspect homes they buy on the courthouse steps. Who the heck would buy a house at that stage, that is just a ceremony, required by law where someone can buy the place for the amount of the debt. If the value was more than or equal to the debt, the owner would have sold proir to the procedure, those courthouse step trustee sales are almost always well above today’s market value in our current declining price scenario. Once the bank gets it back and after the courthouse step procedure it will end up on the MLS and you will have the opportunity to view with your realtor and bring a private inspector along on a subsequent visit before making an offer. The risk is the lack of warranty and inability to sue for non disclosure in case you missed something, making the private inspection even more vital. The reward can be a lower price and even more leverage in negotiations. Even if you avoid the REO’s, you benefit from their comp lowering. Sometimes the shorts and the refurbs are worse than the repos because they try to hide the problems, doing everything on the cheap, I’d rather they leave it alone and I’ll do it right.

Dealhunter, i’ve seen the granite removed on more than one occasion and many times all of the kitchen cabinets, in fact I saw one stripped and saw the ad on craigslist from the person that stripped it because they used pictures from when it was in place.

[SD Realtor]

Peak Debt –

It may be intentional but not for the reasons you state at all. Think about it in this manner…. Loan servicing organizations and such have been losing money in a big way in the past few years right? So they are getting hammered on the books AND they have exponentially more work for departments that used to be pretty much miniscule correct? So they don’t have enough staff, nor do they have money or time to staff up these departments. They have already laid off loan processors during the transitional period a few years ago when the business slowed but the deluge of foreclosures began. So the end result is they are ill equipped to handle the volume.

Finally there are not many loans insured by PMI when compared to the overall volume. Also I am not so sure that a PMI claim will be denied on a short sale. I am not an expert in the field but someone who actually works in a loss mitigation group would be well suited to comment.

Actually there is no mystery about a short sale. They can be a boon to any buyer but most buyers are not prepared to deal with them both emotionally and practically. Most people do not understand that you cannot just find a short sale, make an offer on it and get into escrow. Nothing actually starts on a short sale until your offer is accepted by the lender. Once accepted then things start however that acceptance takes anywhere from a few weeks (rarely) to a few months (much more common). I have a short sale listing that god willing will close in a few weeks and another short sale where I am representing the buyer that also will hopefully close in a few weeks. Both have been quite a burden.

Now there is NO DOUBT AT ALL, that an REO is much quicker and alot less work. Short sales are more work but no they are not a complete waste of time.

SD Realtor

[SD Realtor]

Peak Debt –

It may be intentional but not for the reasons you state at all. Think about it in this manner…. Loan servicing organizations and such have been losing money in a big way in the past few years right? So they are getting hammered on the books AND they have exponentially more work for departments that used to be pretty much miniscule correct? So they don’t have enough staff, nor do they have money or time to staff up these departments. They have already laid off loan processors during the transitional period a few years ago when the business slowed but the deluge of foreclosures began. So the end result is they are ill equipped to handle the volume.

Finally there are not many loans insured by PMI when compared to the overall volume. Also I am not so sure that a PMI claim will be denied on a short sale. I am not an expert in the field but someone who actually works in a loss mitigation group would be well suited to comment.

Actually there is no mystery about a short sale. They can be a boon to any buyer but most buyers are not prepared to deal with them both emotionally and practically. Most people do not understand that you cannot just find a short sale, make an offer on it and get into escrow. Nothing actually starts on a short sale until your offer is accepted by the lender. Once accepted then things start however that acceptance takes anywhere from a few weeks (rarely) to a few months (much more common). I have a short sale listing that god willing will close in a few weeks and another short sale where I am representing the buyer that also will hopefully close in a few weeks. Both have been quite a burden.

Now there is NO DOUBT AT ALL, that an REO is much quicker and alot less work. Short sales are more work but no they are not a complete waste of time.

SD Realtor

[SD Realtor]

Peak Debt –

It may be intentional but not for the reasons you state at all. Think about it in this manner…. Loan servicing organizations and such have been losing money in a big way in the past few years right? So they are getting hammered on the books AND they have exponentially more work for departments that used to be pretty much miniscule correct? So they don’t have enough staff, nor do they have money or time to staff up these departments. They have already laid off loan processors during the transitional period a few years ago when the business slowed but the deluge of foreclosures began. So the end result is they are ill equipped to handle the volume.

Finally there are not many loans insured by PMI when compared to the overall volume. Also I am not so sure that a PMI claim will be denied on a short sale. I am not an expert in the field but someone who actually works in a loss mitigation group would be well suited to comment.

Actually there is no mystery about a short sale. They can be a boon to any buyer but most buyers are not prepared to deal with them both emotionally and practically. Most people do not understand that you cannot just find a short sale, make an offer on it and get into escrow. Nothing actually starts on a short sale until your offer is accepted by the lender. Once accepted then things start however that acceptance takes anywhere from a few weeks (rarely) to a few months (much more common). I have a short sale listing that god willing will close in a few weeks and another short sale where I am representing the buyer that also will hopefully close in a few weeks. Both have been quite a burden.

Now there is NO DOUBT AT ALL, that an REO is much quicker and alot less work. Short sales are more work but no they are not a complete waste of time.

SD Realtor

[SD Realtor]

Peak Debt –

It may be intentional but not for the reasons you state at all. Think about it in this manner…. Loan servicing organizations and such have been losing money in a big way in the past few years right? So they are getting hammered on the books AND they have exponentially more work for departments that used to be pretty much miniscule correct? So they don’t have enough staff, nor do they have money or time to staff up these departments. They have already laid off loan processors during the transitional period a few years ago when the business slowed but the deluge of foreclosures began. So the end result is they are ill equipped to handle the volume.

Finally there are not many loans insured by PMI when compared to the overall volume. Also I am not so sure that a PMI claim will be denied on a short sale. I am not an expert in the field but someone who actually works in a loss mitigation group would be well suited to comment.

Actually there is no mystery about a short sale. They can be a boon to any buyer but most buyers are not prepared to deal with them both emotionally and practically. Most people do not understand that you cannot just find a short sale, make an offer on it and get into escrow. Nothing actually starts on a short sale until your offer is accepted by the lender. Once accepted then things start however that acceptance takes anywhere from a few weeks (rarely) to a few months (much more common). I have a short sale listing that god willing will close in a few weeks and another short sale where I am representing the buyer that also will hopefully close in a few weeks. Both have been quite a burden.

Now there is NO DOUBT AT ALL, that an REO is much quicker and alot less work. Short sales are more work but no they are not a complete waste of time.

SD Realtor

[Anonymous]

SD Realtor or anybody else “in the know”

Everybody always comments that short sales take a long time to get a response from the lender. My understanding is that this is intentional. There is often very little incentive for the lender to respond. If the loan has PMI, the lender must foreclose to get reimbursed via the insurer. If they accept a short sale, the lender must eat the whole amount up front. No PMI claim payable. So, in reality, short sales are a waste of time for most sellers and buyers. However, when it becomes an REO, the lender response is significantly quicker. REO is the way to go. I think clearing up the short sale mysteries will be very beneficial to all. Feedback appreciated.

[Anonymous]

SD Realtor or anybody else “in the know”

Everybody always comments that short sales take a long time to get a response from the lender. My understanding is that this is intentional. There is often very little incentive for the lender to respond. If the loan has PMI, the lender must foreclose to get reimbursed via the insurer. If they accept a short sale, the lender must eat the whole amount up front. No PMI claim payable. So, in reality, short sales are a waste of time for most sellers and buyers. However, when it becomes an REO, the lender response is significantly quicker. REO is the way to go. I think clearing up the short sale mysteries will be very beneficial to all. Feedback appreciated.

[Anonymous]

SD Realtor or anybody else “in the know”

Everybody always comments that short sales take a long time to get a response from the lender. My understanding is that this is intentional. There is often very little incentive for the lender to respond. If the loan has PMI, the lender must foreclose to get reimbursed via the insurer. If they accept a short sale, the lender must eat the whole amount up front. No PMI claim payable. So, in reality, short sales are a waste of time for most sellers and buyers. However, when it becomes an REO, the lender response is significantly quicker. REO is the way to go. I think clearing up the short sale mysteries will be very beneficial to all. Feedback appreciated.

[Anonymous]

SD Realtor or anybody else “in the know”

Everybody always comments that short sales take a long time to get a response from the lender. My understanding is that this is intentional. There is often very little incentive for the lender to respond. If the loan has PMI, the lender must foreclose to get reimbursed via the insurer. If they accept a short sale, the lender must eat the whole amount up front. No PMI claim payable. So, in reality, short sales are a waste of time for most sellers and buyers. However, when it becomes an REO, the lender response is significantly quicker. REO is the way to go. I think clearing up the short sale mysteries will be very beneficial to all. Feedback appreciated.

[Anonymous]

Thanks SDR. If PMI is NOT involved, then things are indeed different. Here is another agent’s thoughts on why short sales can be unproductive for many, but not all.

Short Sales Are "Fake Listings." Only 5% Close!

How different is the short sale process in CA versus other states that had big gains this decade?

[JC]

Patientlywaiting, thanks for pulling up JWM’s post. May I ask an opinion? Would you still think this was the wrong time to buy if one could get something at a 2001 price and it was at an affordability level for a person that they could still save a decent amount? Also, if the 2001 amount was at the current rental amount in that particular area? (I do realize rents could come down in the future).

Also, does anyone know anything about OC Scam’s comment about realtors not getting thier commission on REOs? As I mentioned, I have an awesome realtor and I don’t want this to happen to them. Is this something to address directly with one’s realtor?

Thank you!

[patientlywaiting]

JC, I think that temeculaguy said it best on another thread. There is no reason to buy when you see prices dropping every month, even if you can comfortably afford the house.

http://piggington.com/we_are_richer_when_house_prices_go_down?page=2

On his example, if you had bought in Jan 2008 thinking that that the Spring 2008 bounce was about to kick in and that we had reached a bottom, you would have lost $30,000. How long does it take you to save $30,000? Couldn’t you do something better with the money? So why give it to the seller?

Oct 02, 2007 $580,000
Oct 17, 2007 $575,000
Oct 30, 2007 $565,000
Nov 05, 2007 $545,000
Nov 09, 2007 $535,000
Nov 19, 2007 $500,000
Dec 11, 2007 $450,000
Jan 02, 2008 $435,000
Jan 11, 2008 $420,000
Jan 16, 2008 $390,000
Jan 25, 2008 $380,000
Feb 25, 2008 $350,000

Watch the macro picture and don’t fixate on specific houses per se. Look at inventory, foreclosures, loan resets, unemployment, the economy, etc….

We are far from bottom. If owning give you psychological satisfaction then buy. Otherwise, buying now (foreclosure or whatever) is catching the falling knife, in my opinion.

[patientlywaiting]

JC, I think that temeculaguy said it best on another thread. There is no reason to buy when you see prices dropping every month, even if you can comfortably afford the house.

http://piggington.com/we_are_richer_when_house_prices_go_down?page=2

On his example, if you had bought in Jan 2008 thinking that that the Spring 2008 bounce was about to kick in and that we had reached a bottom, you would have lost $30,000. How long does it take you to save $30,000? Couldn’t you do something better with the money? So why give it to the seller?

Oct 02, 2007 $580,000
Oct 17, 2007 $575,000
Oct 30, 2007 $565,000
Nov 05, 2007 $545,000
Nov 09, 2007 $535,000
Nov 19, 2007 $500,000
Dec 11, 2007 $450,000
Jan 02, 2008 $435,000
Jan 11, 2008 $420,000
Jan 16, 2008 $390,000
Jan 25, 2008 $380,000
Feb 25, 2008 $350,000

Watch the macro picture and don’t fixate on specific houses per se. Look at inventory, foreclosures, loan resets, unemployment, the economy, etc….

We are far from bottom. If owning give you psychological satisfaction then buy. Otherwise, buying now (foreclosure or whatever) is catching the falling knife, in my opinion.

[patientlywaiting]

JC, I think that temeculaguy said it best on another thread. There is no reason to buy when you see prices dropping every month, even if you can comfortably afford the house.

http://piggington.com/we_are_richer_when_house_prices_go_down?page=2

On his example, if you had bought in Jan 2008 thinking that that the Spring 2008 bounce was about to kick in and that we had reached a bottom, you would have lost $30,000. How long does it take you to save $30,000? Couldn’t you do something better with the money? So why give it to the seller?

Oct 02, 2007 $580,000
Oct 17, 2007 $575,000
Oct 30, 2007 $565,000
Nov 05, 2007 $545,000
Nov 09, 2007 $535,000
Nov 19, 2007 $500,000
Dec 11, 2007 $450,000
Jan 02, 2008 $435,000
Jan 11, 2008 $420,000
Jan 16, 2008 $390,000
Jan 25, 2008 $380,000
Feb 25, 2008 $350,000

Watch the macro picture and don’t fixate on specific houses per se. Look at inventory, foreclosures, loan resets, unemployment, the economy, etc….

We are far from bottom. If owning give you psychological satisfaction then buy. Otherwise, buying now (foreclosure or whatever) is catching the falling knife, in my opinion.

[patientlywaiting]

JC, I think that temeculaguy said it best on another thread. There is no reason to buy when you see prices dropping every month, even if you can comfortably afford the house.

http://piggington.com/we_are_richer_when_house_prices_go_down?page=2

On his example, if you had bought in Jan 2008 thinking that that the Spring 2008 bounce was about to kick in and that we had reached a bottom, you would have lost $30,000. How long does it take you to save $30,000? Couldn’t you do something better with the money? So why give it to the seller?

Oct 02, 2007 $580,000
Oct 17, 2007 $575,000
Oct 30, 2007 $565,000
Nov 05, 2007 $545,000
Nov 09, 2007 $535,000
Nov 19, 2007 $500,000
Dec 11, 2007 $450,000
Jan 02, 2008 $435,000
Jan 11, 2008 $420,000
Jan 16, 2008 $390,000
Jan 25, 2008 $380,000
Feb 25, 2008 $350,000

Watch the macro picture and don’t fixate on specific houses per se. Look at inventory, foreclosures, loan resets, unemployment, the economy, etc….

We are far from bottom. If owning give you psychological satisfaction then buy. Otherwise, buying now (foreclosure or whatever) is catching the falling knife, in my opinion.

[patientlywaiting]

JC, I think that temeculaguy said it best on another thread. There is no reason to buy when you see prices dropping every month, even if you can comfortably afford the house.

http://piggington.com/we_are_richer_when_house_prices_go_down?page=2

On his example, if you had bought in Jan 2008 thinking that that the Spring 2008 bounce was about to kick in and that we had reached a bottom, you would have lost $30,000. How long does it take you to save $30,000? Couldn’t you do something better with the money? So why give it to the seller?

Oct 02, 2007 $580,000
Oct 17, 2007 $575,000
Oct 30, 2007 $565,000
Nov 05, 2007 $545,000
Nov 09, 2007 $535,000
Nov 19, 2007 $500,000
Dec 11, 2007 $450,000
Jan 02, 2008 $435,000
Jan 11, 2008 $420,000
Jan 16, 2008 $390,000
Jan 25, 2008 $380,000
Feb 25, 2008 $350,000

Watch the macro picture and don’t fixate on specific houses per se. Look at inventory, foreclosures, loan resets, unemployment, the economy, etc….

We are far from bottom. If owning give you psychological satisfaction then buy. Otherwise, buying now (foreclosure or whatever) is catching the falling knife, in my opinion.

[SD Realtor]

Generally there are commissions involved in both REO and short sales. However I have found them to be a 50/50 split at about 4.5% which is 2.25 per side. This is only on some of the cases I have been involved in so please do not generalize. JC if you like the job your realtor has done then I would assume your realtor is experienced and will make sure that there is a coop commission offered, especially if that realtor is doing a foreclosure search for you.

As for the other topic about short sales not being worth the time, for the most part there are alot of short sales that are priced very low indeed simply to get the paperwork in and start the process without much intent for the lender to actually accept the offer. However more and more of them are indeed getting accepted.

One thing that experienced hunters know is that it takes time and patience. If you are truly serious about trying to save alot of money or get a screaming deal, then be prepared to try as many avenues as you can. Submit a hundred lowballs and you will most likely get a hundred no thank yous. However if you don’t try you will absolutely get nothing.

Personally I don’t think they are a waste of time. You just have to try and if they say no then check back in a few months.

Disclaimer – this is not an it is time to buy posting. It is just addressing that short sales, while frustrating and mostly tough to deal with, can indeed yield a deal in some cases.

SD Realtor

[temeculaguy]

JC, 2001 priced homes are not that common and they tend to sell quickly, if you’ve found one and would be happy with it, can afford it and it costs you the same as rent, you will lose a little sleep thinking about it because it does make sense for a number of reasons, we will each find our time, just be sure you aren’t talking yourself into something and being honest about the 2001 prices, rents and your ability to afford it because we are in the early or middle innings, there will be no price appreciation for years and you need to be prepared to stay put and have fixed rate payments that you can truly afford.

patiently, thanks for cutting and pasting me, that post was so late in that thread I didn’t think anyone read it and felix never responded, it felt like I screamed in that room and everyone stopped talking afterwards. It wasn’t really a single case scenario, I can throw those up all day long and i firmly believe that in six months I will still be able to, in fact it should be easier and more dramatic.

[JC]

First, thank you all so much for the great input.

Second, I was hoping to get some feedback on a potentially stupid question.

When attempting to purchase a REO, do you think the lender would look more favorably on a downpayment of 25%? Would that difference be too small to matter and/or is their primary focus solely on the purchase price?

Sorry for the very basic question, but I’m new to all of this…

[recordsclerk]

In my little experience trying to buy a REO, I’ve found that there are a lot of restrictions on buying REOs. You would have to do a pre-inspection prior to making an offer, so if you are planing on making a low-ball offer you would probably be wasting money on the inspection. On some of the properties there won’t be any electricity for you to check the appliances and lighting. This would include the gas stoves/ovens. Most of the properties have running water so you can at least run the faucets, flush toilets, check draining. You also have to pre-qual with their preferred lender and even in some cases get a loan commitment letter from a lender. This is something that bothers me because you will need to have your credit pulled each time you make an offer. Properties that are well priced usually have multiple offers. So it’s not that easy just to go out and make a bunch of low ball offers on a bunch of properties. The way I see it you have to wait and find a property you really like and are willing to pay full asking price or more if there are multiple offers. Then you would do a pre-inspection and pre-qual in order to submit an offer.
As far as loans go, most lenders would prefer 20% down regardless of what type of home you buy (REO, Short, Regular)as long as the appraisal falls in line with the asking price. I have made several offers and have yet to buy a home. My offers have either been too low and rejected or when I’ve made full price offers, I’ve been on the losing end of a bidding war. Another stragety that I use is look at homes that are little more then what I’m willing to pay and wait for price reductions until I’m satisfied with the asking price and immediately make an offer at/near asking price.
I believe that prices are still coming down, but there are some deals out there in distressed neighborhoods. If you are planing to buy in a more desired area or areas that have held up pretty good, I would wait at least till the end of this year if not longer. I’ve been shopping in Chula Vista for the last 5 months and 90% of the REO homes that I looked at have gone pending and a lot of them have failed to close escrow and ended up being re-listed. I’m in the market for 3000+sqft under 800K.

[JC]

recordsclerk,

Thanks for the response. So, I think you are saying that the downpayment needs to be at 20%, but that increasing it to 25% or more does not really improve your chances of getting an offer accepted, correct?

[jpinpb]

Peak Debt – My understanding, some properties don’t have PMI. People took out seconds for 20% to get around it.

About buying on court steps. No one addressed this, or at least I didn’t see it. Isn’t it true that you have to find out everything that is owed on the house, seconds, property taxes, HOA defaults, any liens, mechanic’s lien, e.g., judgements, IRS liens, etc. The court step may be just selling the first trust deed. You would be responsible for anything else that is owed. You assume their debt. Am I wrong on that?

[jpinpb]

Peak Debt – My understanding, some properties don’t have PMI. People took out seconds for 20% to get around it.

About buying on court steps. No one addressed this, or at least I didn’t see it. Isn’t it true that you have to find out everything that is owed on the house, seconds, property taxes, HOA defaults, any liens, mechanic’s lien, e.g., judgements, IRS liens, etc. The court step may be just selling the first trust deed. You would be responsible for anything else that is owed. You assume their debt. Am I wrong on that?

[jpinpb]

Peak Debt – My understanding, some properties don’t have PMI. People took out seconds for 20% to get around it.

About buying on court steps. No one addressed this, or at least I didn’t see it. Isn’t it true that you have to find out everything that is owed on the house, seconds, property taxes, HOA defaults, any liens, mechanic’s lien, e.g., judgements, IRS liens, etc. The court step may be just selling the first trust deed. You would be responsible for anything else that is owed. You assume their debt. Am I wrong on that?

[jpinpb]

Peak Debt – My understanding, some properties don’t have PMI. People took out seconds for 20% to get around it.

About buying on court steps. No one addressed this, or at least I didn’t see it. Isn’t it true that you have to find out everything that is owed on the house, seconds, property taxes, HOA defaults, any liens, mechanic’s lien, e.g., judgements, IRS liens, etc. The court step may be just selling the first trust deed. You would be responsible for anything else that is owed. You assume their debt. Am I wrong on that?

[jpinpb]

Peak Debt – My understanding, some properties don’t have PMI. People took out seconds for 20% to get around it.

About buying on court steps. No one addressed this, or at least I didn’t see it. Isn’t it true that you have to find out everything that is owed on the house, seconds, property taxes, HOA defaults, any liens, mechanic’s lien, e.g., judgements, IRS liens, etc. The court step may be just selling the first trust deed. You would be responsible for anything else that is owed. You assume their debt. Am I wrong on that?

[recordsclerk]

20% is pretty much the standard for the loan, but the banks that own the REOs are looking for the best offer with the best possibility to close escrow. I lost a bid to a cash offer for the same amount. I think the more money you have going into a deal puts you in a better position, but it’s not necessary in order to get the loan.

[recordsclerk]

20% is pretty much the standard for the loan, but the banks that own the REOs are looking for the best offer with the best possibility to close escrow. I lost a bid to a cash offer for the same amount. I think the more money you have going into a deal puts you in a better position, but it’s not necessary in order to get the loan.

[recordsclerk]

20% is pretty much the standard for the loan, but the banks that own the REOs are looking for the best offer with the best possibility to close escrow. I lost a bid to a cash offer for the same amount. I think the more money you have going into a deal puts you in a better position, but it’s not necessary in order to get the loan.

[recordsclerk]

20% is pretty much the standard for the loan, but the banks that own the REOs are looking for the best offer with the best possibility to close escrow. I lost a bid to a cash offer for the same amount. I think the more money you have going into a deal puts you in a better position, but it’s not necessary in order to get the loan.

[recordsclerk]

20% is pretty much the standard for the loan, but the banks that own the REOs are looking for the best offer with the best possibility to close escrow. I lost a bid to a cash offer for the same amount. I think the more money you have going into a deal puts you in a better position, but it’s not necessary in order to get the loan.

[Anonymous]

JC,
You present yourself as a stronger buyer with the more money that you have down. So, if you can put down %25 then you will be looked upon by the seller(the Bank in an REO listing)as less of a risk. Usually, in an REO sale the bank looks at what the bottom line is first, but they also want to make sure the sale closes and they get the property off their books. So if there are multiple offers on the property that are pretty close, it will definitely make your offer look stronger(lower risk) even if the bottom line of your offer is a little lower than your competition that doesn’t have as much cash down.

[Anonymous]

JC,
You present yourself as a stronger buyer with the more money that you have down. So, if you can put down %25 then you will be looked upon by the seller(the Bank in an REO listing)as less of a risk. Usually, in an REO sale the bank looks at what the bottom line is first, but they also want to make sure the sale closes and they get the property off their books. So if there are multiple offers on the property that are pretty close, it will definitely make your offer look stronger(lower risk) even if the bottom line of your offer is a little lower than your competition that doesn’t have as much cash down.

[Anonymous]

JC,
You present yourself as a stronger buyer with the more money that you have down. So, if you can put down %25 then you will be looked upon by the seller(the Bank in an REO listing)as less of a risk. Usually, in an REO sale the bank looks at what the bottom line is first, but they also want to make sure the sale closes and they get the property off their books. So if there are multiple offers on the property that are pretty close, it will definitely make your offer look stronger(lower risk) even if the bottom line of your offer is a little lower than your competition that doesn’t have as much cash down.

[Anonymous]

JC,
You present yourself as a stronger buyer with the more money that you have down. So, if you can put down %25 then you will be looked upon by the seller(the Bank in an REO listing)as less of a risk. Usually, in an REO sale the bank looks at what the bottom line is first, but they also want to make sure the sale closes and they get the property off their books. So if there are multiple offers on the property that are pretty close, it will definitely make your offer look stronger(lower risk) even if the bottom line of your offer is a little lower than your competition that doesn’t have as much cash down.

[Anonymous]

JC,
You present yourself as a stronger buyer with the more money that you have down. So, if you can put down %25 then you will be looked upon by the seller(the Bank in an REO listing)as less of a risk. Usually, in an REO sale the bank looks at what the bottom line is first, but they also want to make sure the sale closes and they get the property off their books. So if there are multiple offers on the property that are pretty close, it will definitely make your offer look stronger(lower risk) even if the bottom line of your offer is a little lower than your competition that doesn’t have as much cash down.

[JC]

recordsclerk,

Thanks for the response. So, I think you are saying that the downpayment needs to be at 20%, but that increasing it to 25% or more does not really improve your chances of getting an offer accepted, correct?

[JC]

recordsclerk,

Thanks for the response. So, I think you are saying that the downpayment needs to be at 20%, but that increasing it to 25% or more does not really improve your chances of getting an offer accepted, correct?

[JC]

recordsclerk,

Thanks for the response. So, I think you are saying that the downpayment needs to be at 20%, but that increasing it to 25% or more does not really improve your chances of getting an offer accepted, correct?

[JC]

recordsclerk,

Thanks for the response. So, I think you are saying that the downpayment needs to be at 20%, but that increasing it to 25% or more does not really improve your chances of getting an offer accepted, correct?

[recordsclerk]

In my little experience trying to buy a REO, I’ve found that there are a lot of restrictions on buying REOs. You would have to do a pre-inspection prior to making an offer, so if you are planing on making a low-ball offer you would probably be wasting money on the inspection. On some of the properties there won’t be any electricity for you to check the appliances and lighting. This would include the gas stoves/ovens. Most of the properties have running water so you can at least run the faucets, flush toilets, check draining. You also have to pre-qual with their preferred lender and even in some cases get a loan commitment letter from a lender. This is something that bothers me because you will need to have your credit pulled each time you make an offer. Properties that are well priced usually have multiple offers. So it’s not that easy just to go out and make a bunch of low ball offers on a bunch of properties. The way I see it you have to wait and find a property you really like and are willing to pay full asking price or more if there are multiple offers. Then you would do a pre-inspection and pre-qual in order to submit an offer.
As far as loans go, most lenders would prefer 20% down regardless of what type of home you buy (REO, Short, Regular)as long as the appraisal falls in line with the asking price. I have made several offers and have yet to buy a home. My offers have either been too low and rejected or when I’ve made full price offers, I’ve been on the losing end of a bidding war. Another stragety that I use is look at homes that are little more then what I’m willing to pay and wait for price reductions until I’m satisfied with the asking price and immediately make an offer at/near asking price.
I believe that prices are still coming down, but there are some deals out there in distressed neighborhoods. If you are planing to buy in a more desired area or areas that have held up pretty good, I would wait at least till the end of this year if not longer. I’ve been shopping in Chula Vista for the last 5 months and 90% of the REO homes that I looked at have gone pending and a lot of them have failed to close escrow and ended up being re-listed. I’m in the market for 3000+sqft under 800K.

[recordsclerk]

In my little experience trying to buy a REO, I’ve found that there are a lot of restrictions on buying REOs. You would have to do a pre-inspection prior to making an offer, so if you are planing on making a low-ball offer you would probably be wasting money on the inspection. On some of the properties there won’t be any electricity for you to check the appliances and lighting. This would include the gas stoves/ovens. Most of the properties have running water so you can at least run the faucets, flush toilets, check draining. You also have to pre-qual with their preferred lender and even in some cases get a loan commitment letter from a lender. This is something that bothers me because you will need to have your credit pulled each time you make an offer. Properties that are well priced usually have multiple offers. So it’s not that easy just to go out and make a bunch of low ball offers on a bunch of properties. The way I see it you have to wait and find a property you really like and are willing to pay full asking price or more if there are multiple offers. Then you would do a pre-inspection and pre-qual in order to submit an offer.
As far as loans go, most lenders would prefer 20% down regardless of what type of home you buy (REO, Short, Regular)as long as the appraisal falls in line with the asking price. I have made several offers and have yet to buy a home. My offers have either been too low and rejected or when I’ve made full price offers, I’ve been on the losing end of a bidding war. Another stragety that I use is look at homes that are little more then what I’m willing to pay and wait for price reductions until I’m satisfied with the asking price and immediately make an offer at/near asking price.
I believe that prices are still coming down, but there are some deals out there in distressed neighborhoods. If you are planing to buy in a more desired area or areas that have held up pretty good, I would wait at least till the end of this year if not longer. I’ve been shopping in Chula Vista for the last 5 months and 90% of the REO homes that I looked at have gone pending and a lot of them have failed to close escrow and ended up being re-listed. I’m in the market for 3000+sqft under 800K.

[recordsclerk]

In my little experience trying to buy a REO, I’ve found that there are a lot of restrictions on buying REOs. You would have to do a pre-inspection prior to making an offer, so if you are planing on making a low-ball offer you would probably be wasting money on the inspection. On some of the properties there won’t be any electricity for you to check the appliances and lighting. This would include the gas stoves/ovens. Most of the properties have running water so you can at least run the faucets, flush toilets, check draining. You also have to pre-qual with their preferred lender and even in some cases get a loan commitment letter from a lender. This is something that bothers me because you will need to have your credit pulled each time you make an offer. Properties that are well priced usually have multiple offers. So it’s not that easy just to go out and make a bunch of low ball offers on a bunch of properties. The way I see it you have to wait and find a property you really like and are willing to pay full asking price or more if there are multiple offers. Then you would do a pre-inspection and pre-qual in order to submit an offer.
As far as loans go, most lenders would prefer 20% down regardless of what type of home you buy (REO, Short, Regular)as long as the appraisal falls in line with the asking price. I have made several offers and have yet to buy a home. My offers have either been too low and rejected or when I’ve made full price offers, I’ve been on the losing end of a bidding war. Another stragety that I use is look at homes that are little more then what I’m willing to pay and wait for price reductions until I’m satisfied with the asking price and immediately make an offer at/near asking price.
I believe that prices are still coming down, but there are some deals out there in distressed neighborhoods. If you are planing to buy in a more desired area or areas that have held up pretty good, I would wait at least till the end of this year if not longer. I’ve been shopping in Chula Vista for the last 5 months and 90% of the REO homes that I looked at have gone pending and a lot of them have failed to close escrow and ended up being re-listed. I’m in the market for 3000+sqft under 800K.

[recordsclerk]

In my little experience trying to buy a REO, I’ve found that there are a lot of restrictions on buying REOs. You would have to do a pre-inspection prior to making an offer, so if you are planing on making a low-ball offer you would probably be wasting money on the inspection. On some of the properties there won’t be any electricity for you to check the appliances and lighting. This would include the gas stoves/ovens. Most of the properties have running water so you can at least run the faucets, flush toilets, check draining. You also have to pre-qual with their preferred lender and even in some cases get a loan commitment letter from a lender. This is something that bothers me because you will need to have your credit pulled each time you make an offer. Properties that are well priced usually have multiple offers. So it’s not that easy just to go out and make a bunch of low ball offers on a bunch of properties. The way I see it you have to wait and find a property you really like and are willing to pay full asking price or more if there are multiple offers. Then you would do a pre-inspection and pre-qual in order to submit an offer.
As far as loans go, most lenders would prefer 20% down regardless of what type of home you buy (REO, Short, Regular)as long as the appraisal falls in line with the asking price. I have made several offers and have yet to buy a home. My offers have either been too low and rejected or when I’ve made full price offers, I’ve been on the losing end of a bidding war. Another stragety that I use is look at homes that are little more then what I’m willing to pay and wait for price reductions until I’m satisfied with the asking price and immediately make an offer at/near asking price.
I believe that prices are still coming down, but there are some deals out there in distressed neighborhoods. If you are planing to buy in a more desired area or areas that have held up pretty good, I would wait at least till the end of this year if not longer. I’ve been shopping in Chula Vista for the last 5 months and 90% of the REO homes that I looked at have gone pending and a lot of them have failed to close escrow and ended up being re-listed. I’m in the market for 3000+sqft under 800K.

[JC]

First, thank you all so much for the great input.

Second, I was hoping to get some feedback on a potentially stupid question.

When attempting to purchase a REO, do you think the lender would look more favorably on a downpayment of 25%? Would that difference be too small to matter and/or is their primary focus solely on the purchase price?

Sorry for the very basic question, but I’m new to all of this…

[JC]

First, thank you all so much for the great input.

Second, I was hoping to get some feedback on a potentially stupid question.

When attempting to purchase a REO, do you think the lender would look more favorably on a downpayment of 25%? Would that difference be too small to matter and/or is their primary focus solely on the purchase price?

Sorry for the very basic question, but I’m new to all of this…

[JC]

First, thank you all so much for the great input.

Second, I was hoping to get some feedback on a potentially stupid question.

When attempting to purchase a REO, do you think the lender would look more favorably on a downpayment of 25%? Would that difference be too small to matter and/or is their primary focus solely on the purchase price?

Sorry for the very basic question, but I’m new to all of this…

[JC]

First, thank you all so much for the great input.

Second, I was hoping to get some feedback on a potentially stupid question.

When attempting to purchase a REO, do you think the lender would look more favorably on a downpayment of 25%? Would that difference be too small to matter and/or is their primary focus solely on the purchase price?

Sorry for the very basic question, but I’m new to all of this…

[temeculaguy]

JC, 2001 priced homes are not that common and they tend to sell quickly, if you’ve found one and would be happy with it, can afford it and it costs you the same as rent, you will lose a little sleep thinking about it because it does make sense for a number of reasons, we will each find our time, just be sure you aren’t talking yourself into something and being honest about the 2001 prices, rents and your ability to afford it because we are in the early or middle innings, there will be no price appreciation for years and you need to be prepared to stay put and have fixed rate payments that you can truly afford.

patiently, thanks for cutting and pasting me, that post was so late in that thread I didn’t think anyone read it and felix never responded, it felt like I screamed in that room and everyone stopped talking afterwards. It wasn’t really a single case scenario, I can throw those up all day long and i firmly believe that in six months I will still be able to, in fact it should be easier and more dramatic.

[temeculaguy]

JC, 2001 priced homes are not that common and they tend to sell quickly, if you’ve found one and would be happy with it, can afford it and it costs you the same as rent, you will lose a little sleep thinking about it because it does make sense for a number of reasons, we will each find our time, just be sure you aren’t talking yourself into something and being honest about the 2001 prices, rents and your ability to afford it because we are in the early or middle innings, there will be no price appreciation for years and you need to be prepared to stay put and have fixed rate payments that you can truly afford.

patiently, thanks for cutting and pasting me, that post was so late in that thread I didn’t think anyone read it and felix never responded, it felt like I screamed in that room and everyone stopped talking afterwards. It wasn’t really a single case scenario, I can throw those up all day long and i firmly believe that in six months I will still be able to, in fact it should be easier and more dramatic.

[temeculaguy]

JC, 2001 priced homes are not that common and they tend to sell quickly, if you’ve found one and would be happy with it, can afford it and it costs you the same as rent, you will lose a little sleep thinking about it because it does make sense for a number of reasons, we will each find our time, just be sure you aren’t talking yourself into something and being honest about the 2001 prices, rents and your ability to afford it because we are in the early or middle innings, there will be no price appreciation for years and you need to be prepared to stay put and have fixed rate payments that you can truly afford.

patiently, thanks for cutting and pasting me, that post was so late in that thread I didn’t think anyone read it and felix never responded, it felt like I screamed in that room and everyone stopped talking afterwards. It wasn’t really a single case scenario, I can throw those up all day long and i firmly believe that in six months I will still be able to, in fact it should be easier and more dramatic.

[temeculaguy]

JC, 2001 priced homes are not that common and they tend to sell quickly, if you’ve found one and would be happy with it, can afford it and it costs you the same as rent, you will lose a little sleep thinking about it because it does make sense for a number of reasons, we will each find our time, just be sure you aren’t talking yourself into something and being honest about the 2001 prices, rents and your ability to afford it because we are in the early or middle innings, there will be no price appreciation for years and you need to be prepared to stay put and have fixed rate payments that you can truly afford.

patiently, thanks for cutting and pasting me, that post was so late in that thread I didn’t think anyone read it and felix never responded, it felt like I screamed in that room and everyone stopped talking afterwards. It wasn’t really a single case scenario, I can throw those up all day long and i firmly believe that in six months I will still be able to, in fact it should be easier and more dramatic.

[SD Realtor]

Generally there are commissions involved in both REO and short sales. However I have found them to be a 50/50 split at about 4.5% which is 2.25 per side. This is only on some of the cases I have been involved in so please do not generalize. JC if you like the job your realtor has done then I would assume your realtor is experienced and will make sure that there is a coop commission offered, especially if that realtor is doing a foreclosure search for you.

As for the other topic about short sales not being worth the time, for the most part there are alot of short sales that are priced very low indeed simply to get the paperwork in and start the process without much intent for the lender to actually accept the offer. However more and more of them are indeed getting accepted.

One thing that experienced hunters know is that it takes time and patience. If you are truly serious about trying to save alot of money or get a screaming deal, then be prepared to try as many avenues as you can. Submit a hundred lowballs and you will most likely get a hundred no thank yous. However if you don’t try you will absolutely get nothing.

Personally I don’t think they are a waste of time. You just have to try and if they say no then check back in a few months.

Disclaimer – this is not an it is time to buy posting. It is just addressing that short sales, while frustrating and mostly tough to deal with, can indeed yield a deal in some cases.

SD Realtor

[SD Realtor]

Generally there are commissions involved in both REO and short sales. However I have found them to be a 50/50 split at about 4.5% which is 2.25 per side. This is only on some of the cases I have been involved in so please do not generalize. JC if you like the job your realtor has done then I would assume your realtor is experienced and will make sure that there is a coop commission offered, especially if that realtor is doing a foreclosure search for you.

As for the other topic about short sales not being worth the time, for the most part there are alot of short sales that are priced very low indeed simply to get the paperwork in and start the process without much intent for the lender to actually accept the offer. However more and more of them are indeed getting accepted.

One thing that experienced hunters know is that it takes time and patience. If you are truly serious about trying to save alot of money or get a screaming deal, then be prepared to try as many avenues as you can. Submit a hundred lowballs and you will most likely get a hundred no thank yous. However if you don’t try you will absolutely get nothing.

Personally I don’t think they are a waste of time. You just have to try and if they say no then check back in a few months.

Disclaimer – this is not an it is time to buy posting. It is just addressing that short sales, while frustrating and mostly tough to deal with, can indeed yield a deal in some cases.

SD Realtor

[SD Realtor]

Generally there are commissions involved in both REO and short sales. However I have found them to be a 50/50 split at about 4.5% which is 2.25 per side. This is only on some of the cases I have been involved in so please do not generalize. JC if you like the job your realtor has done then I would assume your realtor is experienced and will make sure that there is a coop commission offered, especially if that realtor is doing a foreclosure search for you.

As for the other topic about short sales not being worth the time, for the most part there are alot of short sales that are priced very low indeed simply to get the paperwork in and start the process without much intent for the lender to actually accept the offer. However more and more of them are indeed getting accepted.

One thing that experienced hunters know is that it takes time and patience. If you are truly serious about trying to save alot of money or get a screaming deal, then be prepared to try as many avenues as you can. Submit a hundred lowballs and you will most likely get a hundred no thank yous. However if you don’t try you will absolutely get nothing.

Personally I don’t think they are a waste of time. You just have to try and if they say no then check back in a few months.

Disclaimer – this is not an it is time to buy posting. It is just addressing that short sales, while frustrating and mostly tough to deal with, can indeed yield a deal in some cases.

SD Realtor

[SD Realtor]

Generally there are commissions involved in both REO and short sales. However I have found them to be a 50/50 split at about 4.5% which is 2.25 per side. This is only on some of the cases I have been involved in so please do not generalize. JC if you like the job your realtor has done then I would assume your realtor is experienced and will make sure that there is a coop commission offered, especially if that realtor is doing a foreclosure search for you.

As for the other topic about short sales not being worth the time, for the most part there are alot of short sales that are priced very low indeed simply to get the paperwork in and start the process without much intent for the lender to actually accept the offer. However more and more of them are indeed getting accepted.

One thing that experienced hunters know is that it takes time and patience. If you are truly serious about trying to save alot of money or get a screaming deal, then be prepared to try as many avenues as you can. Submit a hundred lowballs and you will most likely get a hundred no thank yous. However if you don’t try you will absolutely get nothing.

Personally I don’t think they are a waste of time. You just have to try and if they say no then check back in a few months.

Disclaimer – this is not an it is time to buy posting. It is just addressing that short sales, while frustrating and mostly tough to deal with, can indeed yield a deal in some cases.

SD Realtor

[JC]

Patientlywaiting, thanks for pulling up JWM’s post. May I ask an opinion? Would you still think this was the wrong time to buy if one could get something at a 2001 price and it was at an affordability level for a person that they could still save a decent amount? Also, if the 2001 amount was at the current rental amount in that particular area? (I do realize rents could come down in the future).

Also, does anyone know anything about OC Scam’s comment about realtors not getting thier commission on REOs? As I mentioned, I have an awesome realtor and I don’t want this to happen to them. Is this something to address directly with one’s realtor?

Thank you!

[JC]

Patientlywaiting, thanks for pulling up JWM’s post. May I ask an opinion? Would you still think this was the wrong time to buy if one could get something at a 2001 price and it was at an affordability level for a person that they could still save a decent amount? Also, if the 2001 amount was at the current rental amount in that particular area? (I do realize rents could come down in the future).

Also, does anyone know anything about OC Scam’s comment about realtors not getting thier commission on REOs? As I mentioned, I have an awesome realtor and I don’t want this to happen to them. Is this something to address directly with one’s realtor?

Thank you!

[JC]

Patientlywaiting, thanks for pulling up JWM’s post. May I ask an opinion? Would you still think this was the wrong time to buy if one could get something at a 2001 price and it was at an affordability level for a person that they could still save a decent amount? Also, if the 2001 amount was at the current rental amount in that particular area? (I do realize rents could come down in the future).

Also, does anyone know anything about OC Scam’s comment about realtors not getting thier commission on REOs? As I mentioned, I have an awesome realtor and I don’t want this to happen to them. Is this something to address directly with one’s realtor?

Thank you!

[JC]

Patientlywaiting, thanks for pulling up JWM’s post. May I ask an opinion? Would you still think this was the wrong time to buy if one could get something at a 2001 price and it was at an affordability level for a person that they could still save a decent amount? Also, if the 2001 amount was at the current rental amount in that particular area? (I do realize rents could come down in the future).

Also, does anyone know anything about OC Scam’s comment about realtors not getting thier commission on REOs? As I mentioned, I have an awesome realtor and I don’t want this to happen to them. Is this something to address directly with one’s realtor?

Thank you!

[Deal Hunter]

"How different is the short sale process in CA versus other states that had big gains this decade?"

Speaking for my neck of the woods (Las Vegas), here is an example of a short sale I'm doing this weekend:

Stonebrook Subdivision (by Centex)
Lot 17 (New from builder): $199K after incentives
Lot 48 REO/Bankowned: Listed on MLS for $213K
Lot 21: my Short Sale: $169K offer awaiting lender approval.

Note:  Lot 17, 48, & 21 are all the same floorplan, all in the same subdivision.

[Deal Hunter]

"How different is the short sale process in CA versus other states that had big gains this decade?"

Speaking for my neck of the woods (Las Vegas), here is an example of a short sale I'm doing this weekend:

Stonebrook Subdivision (by Centex)
Lot 17 (New from builder): $199K after incentives
Lot 48 REO/Bankowned: Listed on MLS for $213K
Lot 21: my Short Sale: $169K offer awaiting lender approval.

Note:  Lot 17, 48, & 21 are all the same floorplan, all in the same subdivision.

[Deal Hunter]

"How different is the short sale process in CA versus other states that had big gains this decade?"

Speaking for my neck of the woods (Las Vegas), here is an example of a short sale I'm doing this weekend:

Stonebrook Subdivision (by Centex)
Lot 17 (New from builder): $199K after incentives
Lot 48 REO/Bankowned: Listed on MLS for $213K
Lot 21: my Short Sale: $169K offer awaiting lender approval.

Note:  Lot 17, 48, & 21 are all the same floorplan, all in the same subdivision.

[Deal Hunter]

"How different is the short sale process in CA versus other states that had big gains this decade?"

Speaking for my neck of the woods (Las Vegas), here is an example of a short sale I'm doing this weekend:

Stonebrook Subdivision (by Centex)
Lot 17 (New from builder): $199K after incentives
Lot 48 REO/Bankowned: Listed on MLS for $213K
Lot 21: my Short Sale: $169K offer awaiting lender approval.

Note:  Lot 17, 48, & 21 are all the same floorplan, all in the same subdivision.

[Deal Hunter]

"How different is the short sale process in CA versus other states that had big gains this decade?"

Speaking for my neck of the woods (Las Vegas), here is an example of a short sale I'm doing this weekend:

Stonebrook Subdivision (by Centex)
Lot 17 (New from builder): $199K after incentives
Lot 48 REO/Bankowned: Listed on MLS for $213K
Lot 21: my Short Sale: $169K offer awaiting lender approval.

Note:  Lot 17, 48, & 21 are all the same floorplan, all in the same subdivision.

[Anonymous]

Thanks SDR. If PMI is NOT involved, then things are indeed different. Here is another agent’s thoughts on why short sales can be unproductive for many, but not all.

Short Sales Are "Fake Listings." Only 5% Close!

How different is the short sale process in CA versus other states that had big gains this decade?

[Anonymous]

Thanks SDR. If PMI is NOT involved, then things are indeed different. Here is another agent’s thoughts on why short sales can be unproductive for many, but not all.

Short Sales Are "Fake Listings." Only 5% Close!

How different is the short sale process in CA versus other states that had big gains this decade?

[Anonymous]

Thanks SDR. If PMI is NOT involved, then things are indeed different. Here is another agent’s thoughts on why short sales can be unproductive for many, but not all.

Short Sales Are "Fake Listings." Only 5% Close!

How different is the short sale process in CA versus other states that had big gains this decade?

[Anonymous]

Thanks SDR. If PMI is NOT involved, then things are indeed different. Here is another agent’s thoughts on why short sales can be unproductive for many, but not all.

Short Sales Are "Fake Listings." Only 5% Close!

How different is the short sale process in CA versus other states that had big gains this decade?

[Author]

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