[AK]

Fast forward to December 2008 … There are now three listings in that complex … Asking prices range from the REO fixer at $165K to the end unit that “needs TLC” for $185K.

Looks like we’ve hit 2000-2001 pricing here. Perrychase predicted things would bottom out around 2001 prices, which suggests he’s the winner so far … unless things drop even more, in which case Masayako might win with his prediction of 1999 pricing.

Bugs wrote a detailed cost analysis that stated, in part: “I think this unit could end up below $200k in an undervalued market … At $175k it would be just under 50% of the peak pricing for this puppy, which would put it back into line for the long term pricing trend.”

If/when the REO pipeline starts flowing again early next year I think this Pigg of modest means will be in buying mode.

[AK]

Economist’s View:

http://economistsview.typepad.com/

Incidentally, I had a conversation over lunch at work that would’ve been unthinkable a few years ago: a discussion of when the real estate market would bottom out. I said: “You guys must all be reading the same blogs I do.” Two or three people answered in unison: “Piggington?”

[AK]

Economist’s View:

http://economistsview.typepad.com/

Incidentally, I had a conversation over lunch at work that would’ve been unthinkable a few years ago: a discussion of when the real estate market would bottom out. I said: “You guys must all be reading the same blogs I do.” Two or three people answered in unison: “Piggington?”

[AK]

Economist’s View:

http://economistsview.typepad.com/

Incidentally, I had a conversation over lunch at work that would’ve been unthinkable a few years ago: a discussion of when the real estate market would bottom out. I said: “You guys must all be reading the same blogs I do.” Two or three people answered in unison: “Piggington?”

[AK]

Economist’s View:

http://economistsview.typepad.com/

Incidentally, I had a conversation over lunch at work that would’ve been unthinkable a few years ago: a discussion of when the real estate market would bottom out. I said: “You guys must all be reading the same blogs I do.” Two or three people answered in unison: “Piggington?”

[AK]

Economist’s View:

http://economistsview.typepad.com/

Incidentally, I had a conversation over lunch at work that would’ve been unthinkable a few years ago: a discussion of when the real estate market would bottom out. I said: “You guys must all be reading the same blogs I do.” Two or three people answered in unison: “Piggington?”

[AK]

I’d read in other threads that 95% LTV was available in theory, but that PMI was hard to come by in declining markets.

FHA/VA might still have advantages for >95% LTV. I’ve seen annual PMI premiums running in the 1% range for high LTV loans, while FHA premiums seem to max out at 0.55%.

The upfront FHA mortgage insurance fee still seems a bit punitive … 1.75% for purchase loans … for a while I think it was as low as 1.25% for high FICO scores but I guess risk-based pricing was politically unpalatable. Or maybe FICO scores had nothing to do with actual risk 🙂

[AK]

I’d read in other threads that 95% LTV was available in theory, but that PMI was hard to come by in declining markets.

FHA/VA might still have advantages for >95% LTV. I’ve seen annual PMI premiums running in the 1% range for high LTV loans, while FHA premiums seem to max out at 0.55%.

The upfront FHA mortgage insurance fee still seems a bit punitive … 1.75% for purchase loans … for a while I think it was as low as 1.25% for high FICO scores but I guess risk-based pricing was politically unpalatable. Or maybe FICO scores had nothing to do with actual risk 🙂

[AK]

I’d read in other threads that 95% LTV was available in theory, but that PMI was hard to come by in declining markets.

FHA/VA might still have advantages for >95% LTV. I’ve seen annual PMI premiums running in the 1% range for high LTV loans, while FHA premiums seem to max out at 0.55%.

The upfront FHA mortgage insurance fee still seems a bit punitive … 1.75% for purchase loans … for a while I think it was as low as 1.25% for high FICO scores but I guess risk-based pricing was politically unpalatable. Or maybe FICO scores had nothing to do with actual risk 🙂

[AK]

I’d read in other threads that 95% LTV was available in theory, but that PMI was hard to come by in declining markets.

FHA/VA might still have advantages for >95% LTV. I’ve seen annual PMI premiums running in the 1% range for high LTV loans, while FHA premiums seem to max out at 0.55%.

The upfront FHA mortgage insurance fee still seems a bit punitive … 1.75% for purchase loans … for a while I think it was as low as 1.25% for high FICO scores but I guess risk-based pricing was politically unpalatable. Or maybe FICO scores had nothing to do with actual risk 🙂

[AK]

I’d read in other threads that 95% LTV was available in theory, but that PMI was hard to come by in declining markets.

FHA/VA might still have advantages for >95% LTV. I’ve seen annual PMI premiums running in the 1% range for high LTV loans, while FHA premiums seem to max out at 0.55%.

The upfront FHA mortgage insurance fee still seems a bit punitive … 1.75% for purchase loans … for a while I think it was as low as 1.25% for high FICO scores but I guess risk-based pricing was politically unpalatable. Or maybe FICO scores had nothing to do with actual risk 🙂

[AK]

Rustico:

Sorry to threadjack, but I thought that was a very interesting link you posted there on short sales.

If what he says is true for the SD area as well, that explains a lot of things about market conditions.

[quote]
Advice for Sellers Facing Foreclosure

1. Watch out for the bank tricks to “keep paying.” Talk to a lawyer that specializes in bankruptcy to help guide you. They MIGHT recommend stopping payments immediately and saving it up for a rental.
2. Use an agent that has completed (as in CLOSED, not listed) at least 1 Short Sale.
3. If you have mortgage insurance, be extra careful, the bank might prefer that you foreclose.
4. Get bank approval for your list price before listing it. Put in the listing remarks “List Price approved.” Otherwise you will get lumped into all the other Fake Listings and ignored by smart buyer agents.

Advice for Buyers looking for a “steal” (see “deals” post)

1. Avoid Short Sales, or expect to wait 2-3 months and expect to put in 5-10 offers on Short Sales before one is accepted. A Short Sale in my building now has 4 offers. He says he is expecting a reply any day now… sorry, but yeah right!
2. Look for Approved Short Sales. Ask if the bank has been contacted and if a price has been approved. Multiply time estimates by 4. Ie. 3 days= 12 days.
3. Consider offering near, full or OVER list. What! Over list! Are you nuts! CNN says this is a BUYER’s Market! I know it sounds crazy, but if you and your agent see the price is well under your other options… I’ve said time and time again, I’d rather you pay $10,000 OVER list on a house that is $50,000 under the competition versus “saving” $50,000 on a home that is overpriced by $100,000. Ignore list price, focus on VALUE.
4. Focus on Bank Owned. These units get replies in a day or two. (See video of Realtor buying a Bank Owned property)
[/quote]

[AK]

Rustico:

Sorry to threadjack, but I thought that was a very interesting link you posted there on short sales.

If what he says is true for the SD area as well, that explains a lot of things about market conditions.

[quote]
Advice for Sellers Facing Foreclosure

1. Watch out for the bank tricks to “keep paying.” Talk to a lawyer that specializes in bankruptcy to help guide you. They MIGHT recommend stopping payments immediately and saving it up for a rental.
2. Use an agent that has completed (as in CLOSED, not listed) at least 1 Short Sale.
3. If you have mortgage insurance, be extra careful, the bank might prefer that you foreclose.
4. Get bank approval for your list price before listing it. Put in the listing remarks “List Price approved.” Otherwise you will get lumped into all the other Fake Listings and ignored by smart buyer agents.

Advice for Buyers looking for a “steal” (see “deals” post)

1. Avoid Short Sales, or expect to wait 2-3 months and expect to put in 5-10 offers on Short Sales before one is accepted. A Short Sale in my building now has 4 offers. He says he is expecting a reply any day now… sorry, but yeah right!
2. Look for Approved Short Sales. Ask if the bank has been contacted and if a price has been approved. Multiply time estimates by 4. Ie. 3 days= 12 days.
3. Consider offering near, full or OVER list. What! Over list! Are you nuts! CNN says this is a BUYER’s Market! I know it sounds crazy, but if you and your agent see the price is well under your other options… I’ve said time and time again, I’d rather you pay $10,000 OVER list on a house that is $50,000 under the competition versus “saving” $50,000 on a home that is overpriced by $100,000. Ignore list price, focus on VALUE.
4. Focus on Bank Owned. These units get replies in a day or two. (See video of Realtor buying a Bank Owned property)
[/quote]

[AK]

Rustico:

Sorry to threadjack, but I thought that was a very interesting link you posted there on short sales.

If what he says is true for the SD area as well, that explains a lot of things about market conditions.

[quote]
Advice for Sellers Facing Foreclosure

1. Watch out for the bank tricks to “keep paying.” Talk to a lawyer that specializes in bankruptcy to help guide you. They MIGHT recommend stopping payments immediately and saving it up for a rental.
2. Use an agent that has completed (as in CLOSED, not listed) at least 1 Short Sale.
3. If you have mortgage insurance, be extra careful, the bank might prefer that you foreclose.
4. Get bank approval for your list price before listing it. Put in the listing remarks “List Price approved.” Otherwise you will get lumped into all the other Fake Listings and ignored by smart buyer agents.

Advice for Buyers looking for a “steal” (see “deals” post)

1. Avoid Short Sales, or expect to wait 2-3 months and expect to put in 5-10 offers on Short Sales before one is accepted. A Short Sale in my building now has 4 offers. He says he is expecting a reply any day now… sorry, but yeah right!
2. Look for Approved Short Sales. Ask if the bank has been contacted and if a price has been approved. Multiply time estimates by 4. Ie. 3 days= 12 days.
3. Consider offering near, full or OVER list. What! Over list! Are you nuts! CNN says this is a BUYER’s Market! I know it sounds crazy, but if you and your agent see the price is well under your other options… I’ve said time and time again, I’d rather you pay $10,000 OVER list on a house that is $50,000 under the competition versus “saving” $50,000 on a home that is overpriced by $100,000. Ignore list price, focus on VALUE.
4. Focus on Bank Owned. These units get replies in a day or two. (See video of Realtor buying a Bank Owned property)
[/quote]

[AK]

Rustico:

Sorry to threadjack, but I thought that was a very interesting link you posted there on short sales.

If what he says is true for the SD area as well, that explains a lot of things about market conditions.

[quote]
Advice for Sellers Facing Foreclosure

1. Watch out for the bank tricks to “keep paying.” Talk to a lawyer that specializes in bankruptcy to help guide you. They MIGHT recommend stopping payments immediately and saving it up for a rental.
2. Use an agent that has completed (as in CLOSED, not listed) at least 1 Short Sale.
3. If you have mortgage insurance, be extra careful, the bank might prefer that you foreclose.
4. Get bank approval for your list price before listing it. Put in the listing remarks “List Price approved.” Otherwise you will get lumped into all the other Fake Listings and ignored by smart buyer agents.

Advice for Buyers looking for a “steal” (see “deals” post)

1. Avoid Short Sales, or expect to wait 2-3 months and expect to put in 5-10 offers on Short Sales before one is accepted. A Short Sale in my building now has 4 offers. He says he is expecting a reply any day now… sorry, but yeah right!
2. Look for Approved Short Sales. Ask if the bank has been contacted and if a price has been approved. Multiply time estimates by 4. Ie. 3 days= 12 days.
3. Consider offering near, full or OVER list. What! Over list! Are you nuts! CNN says this is a BUYER’s Market! I know it sounds crazy, but if you and your agent see the price is well under your other options… I’ve said time and time again, I’d rather you pay $10,000 OVER list on a house that is $50,000 under the competition versus “saving” $50,000 on a home that is overpriced by $100,000. Ignore list price, focus on VALUE.
4. Focus on Bank Owned. These units get replies in a day or two. (See video of Realtor buying a Bank Owned property)
[/quote]

[Author]

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