[Arraya]

I agree, I can’t figure out what most of these developers are thinking. The “months of inventory” per the MLS are dismal and that is not accounting for the numerous units on the market that are not listed.

My MLS tracking is about 12 months of inventory on the market per MLS and probably another 8 months not listed.

http://www.dqnews.com/ZIPSDUT.shtm

49 units sold in June and roughly 590 listed. Out of the units sold a good portion were bought with a loss to the previous owner.

At this point it seems that the sellers and the developers are in the same posistion. Many of both cannot afford carrying costs and are being forced to dramaticlly decrease there “wish” price and take a big lose. (usually the the expense of the lender. The ones that can afford the costs, I’m sure are not happy with there investments, are making plans as we speak to cut there loses before it gets to bad.

I can understand how the “average joe buyer” would be duped into buying at a bad time but I cannot understand how the developers were so short sighted???

Anyway you slice it downtown will be hurt the most…

[Arraya]

I agree, I can’t figure out what most of these developers are thinking. The “months of inventory” per the MLS are dismal and that is not accounting for the numerous units on the market that are not listed.

My MLS tracking is about 12 months of inventory on the market per MLS and probably another 8 months not listed.

http://www.dqnews.com/ZIPSDUT.shtm

49 units sold in June and roughly 590 listed. Out of the units sold a good portion were bought with a loss to the previous owner.

At this point it seems that the sellers and the developers are in the same posistion. Many of both cannot afford carrying costs and are being forced to dramaticlly decrease there “wish” price and take a big lose. (usually the the expense of the lender. The ones that can afford the costs, I’m sure are not happy with there investments, are making plans as we speak to cut there loses before it gets to bad.

I can understand how the “average joe buyer” would be duped into buying at a bad time but I cannot understand how the developers were so short sighted???

Anyway you slice it downtown will be hurt the most…

[Arraya]

The answer is not as simple as did rates go up.

There was not so much of a rate hike but rather a complete restructuring of guidlines for subprime. Nothing over 65% on an arm (no 2 years at all anymore), considering they used to go to 100%…

Fixed there has been a mild rate hike (maybe 20-30 bps across the board) and you can go to LTVs up to 90% still, but reduced per fico score.

On “stated loans” the rates are astronomically higher and LTVs for every fico range reduced dramatically.

On alt-a bigger “hits” for certain situations i.e NOO and second homes also LTV restrictions for fico scores. But not persay a rate hike. Alt-a still follows prime with rates slightly worse per situation.

All changes are lender dependent however there was a good bit of restructuring yesterday across the board. However, it does seem to be a work in progress.

Does that clairify?

[Arraya]

The answer is not as simple as did rates go up.

There was not so much of a rate hike but rather a complete restructuring of guidlines for subprime. Nothing over 65% on an arm (no 2 years at all anymore), considering they used to go to 100%…

Fixed there has been a mild rate hike (maybe 20-30 bps across the board) and you can go to LTVs up to 90% still, but reduced per fico score.

On “stated loans” the rates are astronomically higher and LTVs for every fico range reduced dramatically.

On alt-a bigger “hits” for certain situations i.e NOO and second homes also LTV restrictions for fico scores. But not persay a rate hike. Alt-a still follows prime with rates slightly worse per situation.

All changes are lender dependent however there was a good bit of restructuring yesterday across the board. However, it does seem to be a work in progress.

Does that clairify?

[Arraya]

wow.. great picture!

[Arraya]

wow.. great picture!

[Arraya]

Thus far, subrime has taken considerable guideline and interest rate changes depending on the lender. If they are still around.

Alt A-mild guidline changes but rates still follow the bond like prime.

Conforming-same

[Arraya]

Thus far, subrime has taken considerable guideline and interest rate changes depending on the lender. If they are still around.

Alt A-mild guidline changes but rates still follow the bond like prime.

Conforming-same

[Arraya]

Thank you everybody for you input. I completely agree. If the can go down this far now who knows what another 12-18 months will bring.

BTW, I am new to this site and all the posts are tremendously informative!

Thanks

[Arraya]

Thank you everybody for you input. I completely agree. If the can go down this far now who knows what another 12-18 months will bring.

BTW, I am new to this site and all the posts are tremendously informative!

Thanks

[Arraya]

The property is a 2/1 in north park. I waited until a month before auction to put an offer in. I low balled just for the hell of it several months ago when they listed it and he just laughed at me, ironically the listing agent is also the seller. I’m sure it hurt his ego to get an offer of 200K of his 04 purchase price.

I waited it out and he ended up calling me a month ago trying to strike a comprimise. I submitted the lowest comps I could find and asked for 20% off that all comps we of short sales and fixers. I did an amature appraisal. At this point he decided to work with me, probably frantic about being forclosed on. At first the bank said no and then they changed there tune a week later to which I lowered my offer another 10K. Funny how desperate they are they took it.

Yes it is in a crappy part of north park and it is hard to determine rent. I am most likely going to walk away but thought it was an interesting story for you guys….

[Arraya]

The property is a 2/1 in north park. I waited until a month before auction to put an offer in. I low balled just for the hell of it several months ago when they listed it and he just laughed at me, ironically the listing agent is also the seller. I’m sure it hurt his ego to get an offer of 200K of his 04 purchase price.

I waited it out and he ended up calling me a month ago trying to strike a comprimise. I submitted the lowest comps I could find and asked for 20% off that all comps we of short sales and fixers. I did an amature appraisal. At this point he decided to work with me, probably frantic about being forclosed on. At first the bank said no and then they changed there tune a week later to which I lowered my offer another 10K. Funny how desperate they are they took it.

Yes it is in a crappy part of north park and it is hard to determine rent. I am most likely going to walk away but thought it was an interesting story for you guys….

[Arraya]

That is very stange. First of all if you were going to apprias that today you would come in around the mid to low 600s on paper, don’t let the ridiculous price they paid full you. That still seems very strange for for a bank to discount that much today. I have seen on a few bank owned properties they list at a very discounted price and treat it as an auction. You call the listing agent and he tells you to put you best offer and on such and such a date they would let you know.

I am persuing short sales and bank owned properties at the moment and banks seem at best overly optimistic about there pricing and at worst completely unrealitic.

[Arraya]

That is very stange. First of all if you were going to apprias that today you would come in around the mid to low 600s on paper, don’t let the ridiculous price they paid full you. That still seems very strange for for a bank to discount that much today. I have seen on a few bank owned properties they list at a very discounted price and treat it as an auction. You call the listing agent and he tells you to put you best offer and on such and such a date they would let you know.

I am persuing short sales and bank owned properties at the moment and banks seem at best overly optimistic about there pricing and at worst completely unrealitic.

[Arraya]

On a general purchase contract there is the “loan contigency” clause. That states if for any reason you can not get financing that you should get your deposit back. If you can not appraise at the requested price you can not get financing therefor should be able get your deposit back or a lower price. Lenders will not allow you to buy a home that is not worht the asking price. They do not like people being upside down in there home. I am sure the contractor would not mind however tha bank would block financing in a case like that.

Now that is a general purchase contract, I am not sure how it may work on a new construction contract but I am sure there is a similar provision…

[Author]

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