INFLATION, THE DOLLAR AND HOME PRICES

[kewp]

I think some funds just bought some tranches for about 5% to 22% of their marked value.

Give the man a dollar!

Indeed, private equity firms are already purchasing non-performing assets for pennies on the dollar. From what I’ve heard most of these are domestic outfits, as they have a better understanding of the local markets here.

I expect this trend to pick up and foreign equity to get involved soon.

Something else to look for; our government granting citizenship in exchange for purchasing distressed properties at some fixed minimum.

[socrattt]

Esmith I didn’t ask for a sarcastic comment, I just tried to point an idea out that may affect the market. You ask what difference does it make to me? Well, for one a lot less inventory would obviously change housing prices and secondly I would guess that international investors would have some creative ways of selling or renting these homes.

Then for your second brainless answer as to an REO getting 94 cents on the dollar. The banks can’t sell homes right now if they tried. Many homes are overpriced and sitting on the market. With time, expenses and many other attributing factors chances are they wouldn’t even get 85 cents on the dollar. It’s just common sense!

[socrattt]

Esmith I didn’t ask for a sarcastic comment, I just tried to point an idea out that may affect the market. You ask what difference does it make to me? Well, for one a lot less inventory would obviously change housing prices and secondly I would guess that international investors would have some creative ways of selling or renting these homes.

Then for your second brainless answer as to an REO getting 94 cents on the dollar. The banks can’t sell homes right now if they tried. Many homes are overpriced and sitting on the market. With time, expenses and many other attributing factors chances are they wouldn’t even get 85 cents on the dollar. It’s just common sense!

[socrattt]

Esmith I didn’t ask for a sarcastic comment, I just tried to point an idea out that may affect the market. You ask what difference does it make to me? Well, for one a lot less inventory would obviously change housing prices and secondly I would guess that international investors would have some creative ways of selling or renting these homes.

Then for your second brainless answer as to an REO getting 94 cents on the dollar. The banks can’t sell homes right now if they tried. Many homes are overpriced and sitting on the market. With time, expenses and many other attributing factors chances are they wouldn’t even get 85 cents on the dollar. It’s just common sense!

[socrattt]

Esmith I didn’t ask for a sarcastic comment, I just tried to point an idea out that may affect the market. You ask what difference does it make to me? Well, for one a lot less inventory would obviously change housing prices and secondly I would guess that international investors would have some creative ways of selling or renting these homes.

Then for your second brainless answer as to an REO getting 94 cents on the dollar. The banks can’t sell homes right now if they tried. Many homes are overpriced and sitting on the market. With time, expenses and many other attributing factors chances are they wouldn’t even get 85 cents on the dollar. It’s just common sense!

[socrattt]

Esmith I didn’t ask for a sarcastic comment, I just tried to point an idea out that may affect the market. You ask what difference does it make to me? Well, for one a lot less inventory would obviously change housing prices and secondly I would guess that international investors would have some creative ways of selling or renting these homes.

Then for your second brainless answer as to an REO getting 94 cents on the dollar. The banks can’t sell homes right now if they tried. Many homes are overpriced and sitting on the market. With time, expenses and many other attributing factors chances are they wouldn’t even get 85 cents on the dollar. It’s just common sense!

[Anonymous]

Well, for one a lot less inventory would obviously change housing prices

Why would there be a lot less inventory? The investment group will want to sell it, so it moves from the banks must-sell inventory to the investors must sell inventory.

They may want to rent them out, which could lower inventory, but it would do other things. It would put downwards pressure on rents, with a flood of new rentals making other investors less likely to buy. More potential buyers will rent instead, reducing the pool of buyers. Either way, unless foreign investors are purchasing San Diego vacation homes for personal use I don’t see what impact they’d have on prices.

[Anonymous]

Well, for one a lot less inventory would obviously change housing prices

Why would there be a lot less inventory? The investment group will want to sell it, so it moves from the banks must-sell inventory to the investors must sell inventory.

They may want to rent them out, which could lower inventory, but it would do other things. It would put downwards pressure on rents, with a flood of new rentals making other investors less likely to buy. More potential buyers will rent instead, reducing the pool of buyers. Either way, unless foreign investors are purchasing San Diego vacation homes for personal use I don’t see what impact they’d have on prices.

[Anonymous]

Well, for one a lot less inventory would obviously change housing prices

Why would there be a lot less inventory? The investment group will want to sell it, so it moves from the banks must-sell inventory to the investors must sell inventory.

They may want to rent them out, which could lower inventory, but it would do other things. It would put downwards pressure on rents, with a flood of new rentals making other investors less likely to buy. More potential buyers will rent instead, reducing the pool of buyers. Either way, unless foreign investors are purchasing San Diego vacation homes for personal use I don’t see what impact they’d have on prices.

[Anonymous]

Well, for one a lot less inventory would obviously change housing prices

Why would there be a lot less inventory? The investment group will want to sell it, so it moves from the banks must-sell inventory to the investors must sell inventory.

They may want to rent them out, which could lower inventory, but it would do other things. It would put downwards pressure on rents, with a flood of new rentals making other investors less likely to buy. More potential buyers will rent instead, reducing the pool of buyers. Either way, unless foreign investors are purchasing San Diego vacation homes for personal use I don’t see what impact they’d have on prices.

[Anonymous]

Well, for one a lot less inventory would obviously change housing prices

Why would there be a lot less inventory? The investment group will want to sell it, so it moves from the banks must-sell inventory to the investors must sell inventory.

They may want to rent them out, which could lower inventory, but it would do other things. It would put downwards pressure on rents, with a flood of new rentals making other investors less likely to buy. More potential buyers will rent instead, reducing the pool of buyers. Either way, unless foreign investors are purchasing San Diego vacation homes for personal use I don’t see what impact they’d have on prices.

[peterb]

If some fund just bought your mortgage at 5% face value, they could offer you a 50% discount and still make lots of money. Your mortgage was $400K, they paid $20K for it,and resell it to you for $200K. Thus avoiding tons of transactional fees. Oh, but wait a second….you still have to figure out where you’re gonna get that $200k??!!

[peterb]

If some fund just bought your mortgage at 5% face value, they could offer you a 50% discount and still make lots of money. Your mortgage was $400K, they paid $20K for it,and resell it to you for $200K. Thus avoiding tons of transactional fees. Oh, but wait a second….you still have to figure out where you’re gonna get that $200k??!!

[peterb]

If some fund just bought your mortgage at 5% face value, they could offer you a 50% discount and still make lots of money. Your mortgage was $400K, they paid $20K for it,and resell it to you for $200K. Thus avoiding tons of transactional fees. Oh, but wait a second….you still have to figure out where you’re gonna get that $200k??!!

[peterb]

If some fund just bought your mortgage at 5% face value, they could offer you a 50% discount and still make lots of money. Your mortgage was $400K, they paid $20K for it,and resell it to you for $200K. Thus avoiding tons of transactional fees. Oh, but wait a second….you still have to figure out where you’re gonna get that $200k??!!

[Author]

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