Is this fraud?

[cr]

Maybe I should start a new topic, but I’m wondering who is buying out there these days, maybe the Realtors can comment.

Is it first time buyers? Are people moving up, moving down? Foreigners? And how are they paying for it these days? 20% down?

I tend to think we are in a transitional phase where people might be moving into something more affordable, but then there’s the issue of how they sell what they currently own and can’t afford. I’ve read of people fraudulently claiming rental income on a house they own only to foreclose on it once they close on the new one. Seen that?

[urbanrealtor]

[quote=cooprider]Maybe I should start a new topic, but I’m wondering who is buying out there these days, maybe the Realtors can comment.

Is it first time buyers?[/quote]
Many of them.

[quote=cooprider] Are people moving up, moving down? [/quote]Very few that involve people also selling so usually an additional place or a first home or a first investment property.
[quote=cooprider] Foreigners? [/quote]
Piles of them. Lots of people who have seen their US net worth increase 20% and now want something with a beach that has nice weather and a zoo.
[quote=cooprider] And how are they paying for it these days? 20% down?[/quote]
This part really varies. Generally foreigners bring as large a cash component as possible. People buying a first home generally dont need a lot down because in many places purchase carrying cost at 90-97% financed is about the same as market rent.

[quote=cooprider]

I tend to think we are in a transitional phase where people might be moving into something more affordable, but then there’s the issue of how they sell what they currently own and can’t afford. I’ve read of people fraudulently claiming rental income on a house they own only to foreclose on it once they close on the new one. Seen that?[/quote]
I have heard of it but not actually seen it.
This only has some utility because (and people don’t realize this part) many of the loans don’t stop with foreclosure. The banks will sometimes follow you for the money after. The only loans that are immune to this are original purchase money loans.

[urbanrealtor]

[quote=cooprider]Maybe I should start a new topic, but I’m wondering who is buying out there these days, maybe the Realtors can comment.

Is it first time buyers?[/quote]
Many of them.

[quote=cooprider] Are people moving up, moving down? [/quote]Very few that involve people also selling so usually an additional place or a first home or a first investment property.
[quote=cooprider] Foreigners? [/quote]
Piles of them. Lots of people who have seen their US net worth increase 20% and now want something with a beach that has nice weather and a zoo.
[quote=cooprider] And how are they paying for it these days? 20% down?[/quote]
This part really varies. Generally foreigners bring as large a cash component as possible. People buying a first home generally dont need a lot down because in many places purchase carrying cost at 90-97% financed is about the same as market rent.

[quote=cooprider]

I tend to think we are in a transitional phase where people might be moving into something more affordable, but then there’s the issue of how they sell what they currently own and can’t afford. I’ve read of people fraudulently claiming rental income on a house they own only to foreclose on it once they close on the new one. Seen that?[/quote]
I have heard of it but not actually seen it.
This only has some utility because (and people don’t realize this part) many of the loans don’t stop with foreclosure. The banks will sometimes follow you for the money after. The only loans that are immune to this are original purchase money loans.

[urbanrealtor]

[quote=cooprider]Maybe I should start a new topic, but I’m wondering who is buying out there these days, maybe the Realtors can comment.

Is it first time buyers?[/quote]
Many of them.

[quote=cooprider] Are people moving up, moving down? [/quote]Very few that involve people also selling so usually an additional place or a first home or a first investment property.
[quote=cooprider] Foreigners? [/quote]
Piles of them. Lots of people who have seen their US net worth increase 20% and now want something with a beach that has nice weather and a zoo.
[quote=cooprider] And how are they paying for it these days? 20% down?[/quote]
This part really varies. Generally foreigners bring as large a cash component as possible. People buying a first home generally dont need a lot down because in many places purchase carrying cost at 90-97% financed is about the same as market rent.

[quote=cooprider]

I tend to think we are in a transitional phase where people might be moving into something more affordable, but then there’s the issue of how they sell what they currently own and can’t afford. I’ve read of people fraudulently claiming rental income on a house they own only to foreclose on it once they close on the new one. Seen that?[/quote]
I have heard of it but not actually seen it.
This only has some utility because (and people don’t realize this part) many of the loans don’t stop with foreclosure. The banks will sometimes follow you for the money after. The only loans that are immune to this are original purchase money loans.

[urbanrealtor]

[quote=cooprider]Maybe I should start a new topic, but I’m wondering who is buying out there these days, maybe the Realtors can comment.

Is it first time buyers?[/quote]
Many of them.

[quote=cooprider] Are people moving up, moving down? [/quote]Very few that involve people also selling so usually an additional place or a first home or a first investment property.
[quote=cooprider] Foreigners? [/quote]
Piles of them. Lots of people who have seen their US net worth increase 20% and now want something with a beach that has nice weather and a zoo.
[quote=cooprider] And how are they paying for it these days? 20% down?[/quote]
This part really varies. Generally foreigners bring as large a cash component as possible. People buying a first home generally dont need a lot down because in many places purchase carrying cost at 90-97% financed is about the same as market rent.

[quote=cooprider]

I tend to think we are in a transitional phase where people might be moving into something more affordable, but then there’s the issue of how they sell what they currently own and can’t afford. I’ve read of people fraudulently claiming rental income on a house they own only to foreclose on it once they close on the new one. Seen that?[/quote]
I have heard of it but not actually seen it.
This only has some utility because (and people don’t realize this part) many of the loans don’t stop with foreclosure. The banks will sometimes follow you for the money after. The only loans that are immune to this are original purchase money loans.

[urbanrealtor]

[quote=cooprider]Maybe I should start a new topic, but I’m wondering who is buying out there these days, maybe the Realtors can comment.

Is it first time buyers?[/quote]
Many of them.

[quote=cooprider] Are people moving up, moving down? [/quote]Very few that involve people also selling so usually an additional place or a first home or a first investment property.
[quote=cooprider] Foreigners? [/quote]
Piles of them. Lots of people who have seen their US net worth increase 20% and now want something with a beach that has nice weather and a zoo.
[quote=cooprider] And how are they paying for it these days? 20% down?[/quote]
This part really varies. Generally foreigners bring as large a cash component as possible. People buying a first home generally dont need a lot down because in many places purchase carrying cost at 90-97% financed is about the same as market rent.

[quote=cooprider]

I tend to think we are in a transitional phase where people might be moving into something more affordable, but then there’s the issue of how they sell what they currently own and can’t afford. I’ve read of people fraudulently claiming rental income on a house they own only to foreclose on it once they close on the new one. Seen that?[/quote]
I have heard of it but not actually seen it.
This only has some utility because (and people don’t realize this part) many of the loans don’t stop with foreclosure. The banks will sometimes follow you for the money after. The only loans that are immune to this are original purchase money loans.

[SD Realtor]

CA no it did not look like fraud to me either.

Coop out of 5 buyer side closings in the past 5 weeks, the breakdown is as follows, one that is keeping the existing home and simply wanted another one in a neighborhood where they have been looking at for a long time, one who has owned in other states and has now purchased out here. That person does live here and has been out here awhile, one who has owned property before and currently owns a home been who has downsized, one who has relocated from Atlanta and has previously owned a home out there and one buyer who has previously owned a home in Sacramento and who now lives out here as well.

CA one last thing, you also may sometimes see price bumps on short sales because the initial offer was processed by the negotiator and declined and the negotiator said we will not even look at something under x$. Now, I have also heard of listing agents be very diligent push back on the negotiators and show them comps that do not justify the negotiators position. Sometimes the lender gives in and sometimes they do not.

[SD Realtor]

CA no it did not look like fraud to me either.

Coop out of 5 buyer side closings in the past 5 weeks, the breakdown is as follows, one that is keeping the existing home and simply wanted another one in a neighborhood where they have been looking at for a long time, one who has owned in other states and has now purchased out here. That person does live here and has been out here awhile, one who has owned property before and currently owns a home been who has downsized, one who has relocated from Atlanta and has previously owned a home out there and one buyer who has previously owned a home in Sacramento and who now lives out here as well.

CA one last thing, you also may sometimes see price bumps on short sales because the initial offer was processed by the negotiator and declined and the negotiator said we will not even look at something under x$. Now, I have also heard of listing agents be very diligent push back on the negotiators and show them comps that do not justify the negotiators position. Sometimes the lender gives in and sometimes they do not.

[SD Realtor]

CA no it did not look like fraud to me either.

Coop out of 5 buyer side closings in the past 5 weeks, the breakdown is as follows, one that is keeping the existing home and simply wanted another one in a neighborhood where they have been looking at for a long time, one who has owned in other states and has now purchased out here. That person does live here and has been out here awhile, one who has owned property before and currently owns a home been who has downsized, one who has relocated from Atlanta and has previously owned a home out there and one buyer who has previously owned a home in Sacramento and who now lives out here as well.

CA one last thing, you also may sometimes see price bumps on short sales because the initial offer was processed by the negotiator and declined and the negotiator said we will not even look at something under x$. Now, I have also heard of listing agents be very diligent push back on the negotiators and show them comps that do not justify the negotiators position. Sometimes the lender gives in and sometimes they do not.

[SD Realtor]

CA no it did not look like fraud to me either.

Coop out of 5 buyer side closings in the past 5 weeks, the breakdown is as follows, one that is keeping the existing home and simply wanted another one in a neighborhood where they have been looking at for a long time, one who has owned in other states and has now purchased out here. That person does live here and has been out here awhile, one who has owned property before and currently owns a home been who has downsized, one who has relocated from Atlanta and has previously owned a home out there and one buyer who has previously owned a home in Sacramento and who now lives out here as well.

CA one last thing, you also may sometimes see price bumps on short sales because the initial offer was processed by the negotiator and declined and the negotiator said we will not even look at something under x$. Now, I have also heard of listing agents be very diligent push back on the negotiators and show them comps that do not justify the negotiators position. Sometimes the lender gives in and sometimes they do not.

[SD Realtor]

CA no it did not look like fraud to me either.

Coop out of 5 buyer side closings in the past 5 weeks, the breakdown is as follows, one that is keeping the existing home and simply wanted another one in a neighborhood where they have been looking at for a long time, one who has owned in other states and has now purchased out here. That person does live here and has been out here awhile, one who has owned property before and currently owns a home been who has downsized, one who has relocated from Atlanta and has previously owned a home out there and one buyer who has previously owned a home in Sacramento and who now lives out here as well.

CA one last thing, you also may sometimes see price bumps on short sales because the initial offer was processed by the negotiator and declined and the negotiator said we will not even look at something under x$. Now, I have also heard of listing agents be very diligent push back on the negotiators and show them comps that do not justify the negotiators position. Sometimes the lender gives in and sometimes they do not.

[CA renter]

Thanks for responding! 🙂

Just seems odd that prices would be bumped up and then sold right away during these times. As you all know, this was the M.O. of the fraudsters, so am always suspicious.

If it’s low, and they are getting multiple bids, why not just take the high bid. There doesn’t seem to be a need to raise the price…bird in the hand, and all.

[CA renter]

Thanks for responding! 🙂

Just seems odd that prices would be bumped up and then sold right away during these times. As you all know, this was the M.O. of the fraudsters, so am always suspicious.

If it’s low, and they are getting multiple bids, why not just take the high bid. There doesn’t seem to be a need to raise the price…bird in the hand, and all.

[CA renter]

Thanks for responding! 🙂

Just seems odd that prices would be bumped up and then sold right away during these times. As you all know, this was the M.O. of the fraudsters, so am always suspicious.

If it’s low, and they are getting multiple bids, why not just take the high bid. There doesn’t seem to be a need to raise the price…bird in the hand, and all.

[CA renter]

Thanks for responding! 🙂

Just seems odd that prices would be bumped up and then sold right away during these times. As you all know, this was the M.O. of the fraudsters, so am always suspicious.

If it’s low, and they are getting multiple bids, why not just take the high bid. There doesn’t seem to be a need to raise the price…bird in the hand, and all.

[Author]

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