Home › Forums › Closed Forums › Buying and Selling RE › When should we buy new home in 4S Ranch?
- This topic has 36 replies, 12 voices, and was last updated 16 years, 9 months ago by lendingbubblecontinues.
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July 23, 2007 at 3:55 PM #67332July 23, 2007 at 3:55 PM #67269gnParticipant
The reason that banks don’t want to rent out REOs:
The rental income is much lower than the interests that banks can earn on the money being tied to the house.
Think about it, if you were to go out & buy a house today & rent it out. The rental income would not be enough to cover the mortgage & taxes. You would have a large negative cashflow every month.
Why would banks want to put themselves in that position ?
July 23, 2007 at 3:55 PM #67334gnParticipantThe reason that banks don’t want to rent out REOs:
The rental income is much lower than the interests that banks can earn on the money being tied to the house.
Think about it, if you were to go out & buy a house today & rent it out. The rental income would not be enough to cover the mortgage & taxes. You would have a large negative cashflow every month.
Why would banks want to put themselves in that position ?
July 23, 2007 at 4:04 PM #67271fromnjParticipantDear PerryChase
Your comment made sense perfectly. I did not know such regulation existed. Actually, it makes sense that those foreclosed houses should not be a really fixed asset for the bank, but should return to the hands of people so that it can fulfill the objective of its existence.
Thanks,
July 23, 2007 at 4:04 PM #67336fromnjParticipantDear PerryChase
Your comment made sense perfectly. I did not know such regulation existed. Actually, it makes sense that those foreclosed houses should not be a really fixed asset for the bank, but should return to the hands of people so that it can fulfill the objective of its existence.
Thanks,
July 23, 2007 at 4:50 PM #67281lendingbubblecontinuesParticipant4spotentialbuyer-
Buy now or be priced out forever, er, and be priced in forever- that’s it.
July 23, 2007 at 4:50 PM #67346lendingbubblecontinuesParticipant4spotentialbuyer-
Buy now or be priced out forever, er, and be priced in forever- that’s it.
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