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kev374
ParticipantFLASH NEWS!! Just reduced to $499k today!
Now it’s $268/sqft. Lots more of these type of reductions to come in the near future folks. You only have to wait!
Participantgreat site Enorah.
I do not believe in renting from Property Management companies. Besides being overpriced they tend to be total jerks because to them you’re just another statistic in the 400 unit complex, they have no incentive to keep you happy. In addition they will rip you off when you leave the place accessing you all sorts of spurious cleaning charges even if the place was left spotless. They have full time lawyers on their payrolls anyway so you’ll be facing an uphill battle if you fight them and they know this.
I’ve had much better experiences dealing with individual owners because the playing field is equal and they have personal interest and attention in their property and their tenants, not to mention they usually price attractively because the cost of staying vacant for them is higher.
ParticipantRegarding the Enron type scandals within the mortgage industry…it will start soon enough most definitely.
ParticipantThis bailout scenario is also a magnet for fraud. There will be tons of people who will conveniently adjust their parameters to qualify for the bailout plan.
As I said I don’t think such a plan is feasible but you can never underestimate the stupidity of our government – remember they are the ones that gave free credit cards to Katrina victims, many of whom promptly went to bars and stripclubs to empty out the balance!
ParticipantThousands lost their retirements at Enron when the company collapsed. Nobody bailed those people out and it wasn’t even their fault. Now some buffoons in our government are suggesting bailout of idiots who made bad choices, speculators who participated in fraud and lenders who were running scams? This is nothing short of an outrage!
Although I don’t think such a ridiculous idea will become a reality. Let’s hope for the sake of this nation that it doesn’t.
ParticipantDENIAL is the first reaction to a bad situation. Many of these homeowners are just unsophisticated and do not understand the markets to know that RE is cyclical and tends to correct downwards almost as much as it goes upwards.
Participantmy portfolio is larely international diversified funds. Last years return was 20%, this year it’s already screaming. When the dollar drops in value these funds should do well.
ParticipantWould also like to add that many LOs are definitely to blame and the industry is fraught with shady practices but I don’t believe for one moment that the consumer wasn’t a willing participant in this scam. Yes, a small minority may be true fraud without the knowledge of the consumer but in most cases the consumer knew something shady was going on but didn’t care to know…they just wanted the lower payment. Now they act like they are the victims and the LO is the bad guy? No, they are BOTH criminals equally!!
If you earn $40,000/yr and the LO is giving you $1200/month payments on a $600,000 home with zero down, does anyone on this earth believe those numbers actually work for the entire life of the loan? There isn’t anything shady in this deal? Or perhaps I am overestimating the intelligence of the American people. Perhaps many in our country don’t even understand basic math! Oh the humanity!!!
ParticipantBorat, I’m in no way suggesting that loan officers are not greedy or predatory. Some definitely are. But the nature of aggressive salesmanship is a factor is all businesses. This is similar to the many foolish people who buy cars above MSRP but who is to blame for that? It’s a tough world out there and if you’re stupid you just don’t survive, end of story..I can’t feel sorry for stupid people!
What I am saying is that the consumer who fell for it is the biggest idiot of all and is in no way accepting that responsibility. A VERY big purchase like a home or a refinance requires VERY careful thought and due diligence by the consumer. Apparently this consumer was completely idiotic and signed whatever was presented in front of them after the loan officer finished with the sweet talking.
Secondly, some (not ALL of course!) loan officers in this business are totally inexperienced (never experienced market declines before) and themselves believe that a NegAm can work due to 10-15% annual appreciation offsetting the negative balance. If homeowners have thought the same way by extracting all their equity why can’t LOs think that way too by suggesting NegAms?
FINALLY, I have personally seen a NegAm contract. The DISCLOSURES ARE VERY CLEAR IN SIMPLE TERMS. This is a Fair lending requirement. You can only be excused for your stupidity if you can’t read English, even then you should’ve got a translator before signing. Most of these morons DIDN’T CARE when they signed, they just wanted the lower payments NOW thinking property will appreciate later. So they have nobody to blame BUT THEMSELVES!!!
Predatory sales is not something new, it’s been around since the dawn of man. It’s individual responsibility to research and guage what is good for them.
[end rant]
ParticipantI’m sick and tired of people not accepting responsibility for their own choices. Yes, it’s a bad loan but she should’ve researched all aspects of it before signing the documents. How difficult is it to read up a little about the different loans possible and which ones to avoid? These stupid lazy people do not want to do any due diligence on their part and now start fingerpoint at everyone else except themselves.
Even if a loan officer tells someone a negAm is a good idea because home prices will appreciate it cannot be construed that he misled anyone because it is possible the loan officer is foolish enough to believe in perpetual appreciation himself!
Participantyes, all of them are to blame but I’d add the consumer also as a willing participant to this fraud on many occassions.
ParticipantIf you ask me *REALLY* bad idea to buy right now. Wait at least 2 more years. Until then rent a nice place for HALF the cost and add the money saved to your downpayment amount and also reap interest on the 70k cash you have now.
If you buy now you’re going to get burned as we are definitely at the very top of the market and it has a long way to go down. You will lose your 70k and perhaps you will be upside down for a long time to come.
BTW, Zillow is so inaccurate it can be safely IGNORED for all practical purposes 😉
Participanthehe, I transferred from ING to ELoan a few months ago. So far it seems to be good. The only thing I dislike about ELoan is that they take about a week to process deposits. ING only took a day or 2, 3 days at most.
Participantnice find, thanks for the link.
Right now the properties aren’t interesting though. Many of them are priced far more or at best equal to comparable properties listed on MLS.
If I buy a foreclosure I expect at a minimum a 40% discount from comparable properties for sale for the hassel of dealing with this type of purchase. Not only does one assume a tremendous amount of risk but many of these need work. I have heard many foreclosures don’t allow inspection.
Unless I get a real STEAL of a deal I am not going to bother and waste my time with the stress of buying a foreclosure!
Pretty good writeup:
Risks of investing in a Foreclosure -
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