Investing in foreclosures

[zk]

[quote=FormerSanDiegan]Yes, when we start talking about housing stagnating at a permanently lower plateau because of retiring baby boomers or some other reason, that’s when you should jump in.[/quote]

I agree that measuring the psychology is an important part of trying to locate the bottom. As far as the data side of the equation, our hero Rich will be closely listened to. I subscribe to Robert Campbell’s newsletter, and I find that helpful. Any other reccomendations for market timing would be appreciated.

[SD Realtor]

zk if you can learn as much as possible about the trustee sale process I believe this is where the true value will lie for those who can use cash for purchases. I am hearing more isolated cases of trustee sales where the winning bid is BELOW the default amount of the first mortgage. As the depreciation cycle continues I would expect more and more of this to happen. Not saying it happens all the time but there certainly are cases of it happening and we will see more of them.

[SD Realtor]

zk if you can learn as much as possible about the trustee sale process I believe this is where the true value will lie for those who can use cash for purchases. I am hearing more isolated cases of trustee sales where the winning bid is BELOW the default amount of the first mortgage. As the depreciation cycle continues I would expect more and more of this to happen. Not saying it happens all the time but there certainly are cases of it happening and we will see more of them.

[SD Realtor]

zk if you can learn as much as possible about the trustee sale process I believe this is where the true value will lie for those who can use cash for purchases. I am hearing more isolated cases of trustee sales where the winning bid is BELOW the default amount of the first mortgage. As the depreciation cycle continues I would expect more and more of this to happen. Not saying it happens all the time but there certainly are cases of it happening and we will see more of them.

[SD Realtor]

zk if you can learn as much as possible about the trustee sale process I believe this is where the true value will lie for those who can use cash for purchases. I am hearing more isolated cases of trustee sales where the winning bid is BELOW the default amount of the first mortgage. As the depreciation cycle continues I would expect more and more of this to happen. Not saying it happens all the time but there certainly are cases of it happening and we will see more of them.

[SD Realtor]

zk if you can learn as much as possible about the trustee sale process I believe this is where the true value will lie for those who can use cash for purchases. I am hearing more isolated cases of trustee sales where the winning bid is BELOW the default amount of the first mortgage. As the depreciation cycle continues I would expect more and more of this to happen. Not saying it happens all the time but there certainly are cases of it happening and we will see more of them.

[urbanrealtor]

[quote=SD Realtor]zk if you can learn as much as possible about the trustee sale process I believe this is where the true value will lie for those who can use cash for purchases. I am hearing more isolated cases of trustee sales where the winning bid is BELOW the default amount of the first mortgage. As the depreciation cycle continues I would expect more and more of this to happen. Not saying it happens all the time but there certainly are cases of it happening and we will see more of them.[/quote]

Yoda is on to something here.
I have been hearing the same things actually.
Don’t really know how accurate any of it is of course.

The one caution I would give is that buying for “less than default” is not a good (or bad) thing unless it is also substantially less than market.

Trustee sales do not permit any contingencies or inspection so you should get a pretty sizable discount (from market comps) for buying what is essentially site unseen. Just saying.

[urbanrealtor]

[quote=SD Realtor]zk if you can learn as much as possible about the trustee sale process I believe this is where the true value will lie for those who can use cash for purchases. I am hearing more isolated cases of trustee sales where the winning bid is BELOW the default amount of the first mortgage. As the depreciation cycle continues I would expect more and more of this to happen. Not saying it happens all the time but there certainly are cases of it happening and we will see more of them.[/quote]

Yoda is on to something here.
I have been hearing the same things actually.
Don’t really know how accurate any of it is of course.

The one caution I would give is that buying for “less than default” is not a good (or bad) thing unless it is also substantially less than market.

Trustee sales do not permit any contingencies or inspection so you should get a pretty sizable discount (from market comps) for buying what is essentially site unseen. Just saying.

[urbanrealtor]

[quote=SD Realtor]zk if you can learn as much as possible about the trustee sale process I believe this is where the true value will lie for those who can use cash for purchases. I am hearing more isolated cases of trustee sales where the winning bid is BELOW the default amount of the first mortgage. As the depreciation cycle continues I would expect more and more of this to happen. Not saying it happens all the time but there certainly are cases of it happening and we will see more of them.[/quote]

Yoda is on to something here.
I have been hearing the same things actually.
Don’t really know how accurate any of it is of course.

The one caution I would give is that buying for “less than default” is not a good (or bad) thing unless it is also substantially less than market.

Trustee sales do not permit any contingencies or inspection so you should get a pretty sizable discount (from market comps) for buying what is essentially site unseen. Just saying.

[urbanrealtor]

[quote=SD Realtor]zk if you can learn as much as possible about the trustee sale process I believe this is where the true value will lie for those who can use cash for purchases. I am hearing more isolated cases of trustee sales where the winning bid is BELOW the default amount of the first mortgage. As the depreciation cycle continues I would expect more and more of this to happen. Not saying it happens all the time but there certainly are cases of it happening and we will see more of them.[/quote]

Yoda is on to something here.
I have been hearing the same things actually.
Don’t really know how accurate any of it is of course.

The one caution I would give is that buying for “less than default” is not a good (or bad) thing unless it is also substantially less than market.

Trustee sales do not permit any contingencies or inspection so you should get a pretty sizable discount (from market comps) for buying what is essentially site unseen. Just saying.

[urbanrealtor]

[quote=SD Realtor]zk if you can learn as much as possible about the trustee sale process I believe this is where the true value will lie for those who can use cash for purchases. I am hearing more isolated cases of trustee sales where the winning bid is BELOW the default amount of the first mortgage. As the depreciation cycle continues I would expect more and more of this to happen. Not saying it happens all the time but there certainly are cases of it happening and we will see more of them.[/quote]

Yoda is on to something here.
I have been hearing the same things actually.
Don’t really know how accurate any of it is of course.

The one caution I would give is that buying for “less than default” is not a good (or bad) thing unless it is also substantially less than market.

Trustee sales do not permit any contingencies or inspection so you should get a pretty sizable discount (from market comps) for buying what is essentially site unseen. Just saying.

[SD Realtor]

In reference to a posting about trustee sales (auctions) made less then two weeks ago:

Submitted by urbanrealtor on July 31, 2008 – 11:20pm.

Not to be a tool but why would anyone want to?

I have not been to one but really, it has been my understanding that generally the bidding starts at the price of the defaulted loan.

Unless a place is truly right side up (which seems rare these days), most auctions seem like a bad idea. There is no title insurance that I am aware of or any inspection regarding liens or condition.

Let me know if I am wrong. This is just my understanding.

************

Apparently you have changed your mind about things in the last 11 days.

************

zk – regarding trustee sales. Most of the people involved with them are professionals. Market value is an easy determination. Obviously lenders are starting initial bids below default amounts because of depreciating market values. Trickier aspects to the trustee sales involve issues with title. Here is where you need to do most of your homework and it pays for you to work with a title officer to dig up all the information you can with regards to title. Other risks may be mitigated with alot of legwork. Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence. Never be afraid to go to the home you are interested and knock on the door to try to make contact with the owner. If they are still there you may want to offer them a small fee in order to procure some time to set up some inspections. Maybe it happens, maybe it does not. If they are not there, then trying to have your title officer help you get in touch with the lender or contact who can get you in is something to try as well. Again, no rush here, you have a few years to polish your skills. Alot of diligence and legwork can score you a good deal.

[SD Realtor]

In reference to a posting about trustee sales (auctions) made less then two weeks ago:

Submitted by urbanrealtor on July 31, 2008 – 11:20pm.

Not to be a tool but why would anyone want to?

I have not been to one but really, it has been my understanding that generally the bidding starts at the price of the defaulted loan.

Unless a place is truly right side up (which seems rare these days), most auctions seem like a bad idea. There is no title insurance that I am aware of or any inspection regarding liens or condition.

Let me know if I am wrong. This is just my understanding.

************

Apparently you have changed your mind about things in the last 11 days.

************

zk – regarding trustee sales. Most of the people involved with them are professionals. Market value is an easy determination. Obviously lenders are starting initial bids below default amounts because of depreciating market values. Trickier aspects to the trustee sales involve issues with title. Here is where you need to do most of your homework and it pays for you to work with a title officer to dig up all the information you can with regards to title. Other risks may be mitigated with alot of legwork. Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence. Never be afraid to go to the home you are interested and knock on the door to try to make contact with the owner. If they are still there you may want to offer them a small fee in order to procure some time to set up some inspections. Maybe it happens, maybe it does not. If they are not there, then trying to have your title officer help you get in touch with the lender or contact who can get you in is something to try as well. Again, no rush here, you have a few years to polish your skills. Alot of diligence and legwork can score you a good deal.

[SD Realtor]

In reference to a posting about trustee sales (auctions) made less then two weeks ago:

Submitted by urbanrealtor on July 31, 2008 – 11:20pm.

Not to be a tool but why would anyone want to?

I have not been to one but really, it has been my understanding that generally the bidding starts at the price of the defaulted loan.

Unless a place is truly right side up (which seems rare these days), most auctions seem like a bad idea. There is no title insurance that I am aware of or any inspection regarding liens or condition.

Let me know if I am wrong. This is just my understanding.

************

Apparently you have changed your mind about things in the last 11 days.

************

zk – regarding trustee sales. Most of the people involved with them are professionals. Market value is an easy determination. Obviously lenders are starting initial bids below default amounts because of depreciating market values. Trickier aspects to the trustee sales involve issues with title. Here is where you need to do most of your homework and it pays for you to work with a title officer to dig up all the information you can with regards to title. Other risks may be mitigated with alot of legwork. Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence. Never be afraid to go to the home you are interested and knock on the door to try to make contact with the owner. If they are still there you may want to offer them a small fee in order to procure some time to set up some inspections. Maybe it happens, maybe it does not. If they are not there, then trying to have your title officer help you get in touch with the lender or contact who can get you in is something to try as well. Again, no rush here, you have a few years to polish your skills. Alot of diligence and legwork can score you a good deal.

[SD Realtor]

In reference to a posting about trustee sales (auctions) made less then two weeks ago:

Submitted by urbanrealtor on July 31, 2008 – 11:20pm.

Not to be a tool but why would anyone want to?

I have not been to one but really, it has been my understanding that generally the bidding starts at the price of the defaulted loan.

Unless a place is truly right side up (which seems rare these days), most auctions seem like a bad idea. There is no title insurance that I am aware of or any inspection regarding liens or condition.

Let me know if I am wrong. This is just my understanding.

************

Apparently you have changed your mind about things in the last 11 days.

************

zk – regarding trustee sales. Most of the people involved with them are professionals. Market value is an easy determination. Obviously lenders are starting initial bids below default amounts because of depreciating market values. Trickier aspects to the trustee sales involve issues with title. Here is where you need to do most of your homework and it pays for you to work with a title officer to dig up all the information you can with regards to title. Other risks may be mitigated with alot of legwork. Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence. Never be afraid to go to the home you are interested and knock on the door to try to make contact with the owner. If they are still there you may want to offer them a small fee in order to procure some time to set up some inspections. Maybe it happens, maybe it does not. If they are not there, then trying to have your title officer help you get in touch with the lender or contact who can get you in is something to try as well. Again, no rush here, you have a few years to polish your skills. Alot of diligence and legwork can score you a good deal.

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