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urbanrealtor
Participant[quote=bsrsharma]One more supporter of Rt.66 strategy (who successfully bought a REO recently using that exact logic). Double dipping + high cash (to reduce uncertainty of closing) + few contingencies (+ government/public as the ultimate bag holder in many cases) can work wonders when greed is the basic lubricant. Just remember one other formula: you can reduce purchase price offer almost in proportion to cash you bring to table. Sometimes the proportion can be dramatic, like $ for $ i.e. $400,000 cash = $800,000 loan; A Bird in hand is truly worth two in a Bush for REOs!. That is why all cash offers always win out in the end.[/quote]
I don’t dispute that playing on greed can be effective but I think we would do well to look at some actual examples.
Would any of the supporters of going unrepresented care to share their address and contract details?
My suspicion (though I am not certain) is that the disadvantage of not having professional representation will show.
But I am open to being convinced.
Please share.
Contract PDF’s would be appreciated.Participant[quote=CA renter]
Russell,
If you agree that “sold” comps are meaningful to current/future buyers, then it’s only reasonable that principal reductions be recorded and used as comps as well.
Why? Because loan mods with principal reductions are de facto sales to the current “owner” **at a new price,** and should be used as current comps.[/quote]
No.
There are 2 problems with your argument:1:Modifications are not de facto sales.
What a borrower or a bank is willing to agree to as a temporary (or even permanent) stopgap measure is really pretty different than what a buyer would be willing to pay to purchase.
If I am 100k upside down, I will likely be willing to modify my principal to make me less upside down (say 30k).
However, I would never agree to buy something for 30k over market.2:Modifications can’t currently be used as market information.
A mod is a change to a private contract.
This is not the same as an observable public sale.
There is no common database and the mods are not kept on any public or widely accessible private record system.So to reiterate, they aren’t what you say they are and even if they were, you can’t use them in any reliable way.
Participant[quote=CA renter]
Russell,
If you agree that “sold” comps are meaningful to current/future buyers, then it’s only reasonable that principal reductions be recorded and used as comps as well.
Why? Because loan mods with principal reductions are de facto sales to the current “owner” **at a new price,** and should be used as current comps.[/quote]
No.
There are 2 problems with your argument:1:Modifications are not de facto sales.
What a borrower or a bank is willing to agree to as a temporary (or even permanent) stopgap measure is really pretty different than what a buyer would be willing to pay to purchase.
If I am 100k upside down, I will likely be willing to modify my principal to make me less upside down (say 30k).
However, I would never agree to buy something for 30k over market.2:Modifications can’t currently be used as market information.
A mod is a change to a private contract.
This is not the same as an observable public sale.
There is no common database and the mods are not kept on any public or widely accessible private record system.So to reiterate, they aren’t what you say they are and even if they were, you can’t use them in any reliable way.
Participant[quote=CA renter]
Russell,
If you agree that “sold” comps are meaningful to current/future buyers, then it’s only reasonable that principal reductions be recorded and used as comps as well.
Why? Because loan mods with principal reductions are de facto sales to the current “owner” **at a new price,** and should be used as current comps.[/quote]
No.
There are 2 problems with your argument:1:Modifications are not de facto sales.
What a borrower or a bank is willing to agree to as a temporary (or even permanent) stopgap measure is really pretty different than what a buyer would be willing to pay to purchase.
If I am 100k upside down, I will likely be willing to modify my principal to make me less upside down (say 30k).
However, I would never agree to buy something for 30k over market.2:Modifications can’t currently be used as market information.
A mod is a change to a private contract.
This is not the same as an observable public sale.
There is no common database and the mods are not kept on any public or widely accessible private record system.So to reiterate, they aren’t what you say they are and even if they were, you can’t use them in any reliable way.
Participant[quote=CA renter]
Russell,
If you agree that “sold” comps are meaningful to current/future buyers, then it’s only reasonable that principal reductions be recorded and used as comps as well.
Why? Because loan mods with principal reductions are de facto sales to the current “owner” **at a new price,** and should be used as current comps.[/quote]
No.
There are 2 problems with your argument:1:Modifications are not de facto sales.
What a borrower or a bank is willing to agree to as a temporary (or even permanent) stopgap measure is really pretty different than what a buyer would be willing to pay to purchase.
If I am 100k upside down, I will likely be willing to modify my principal to make me less upside down (say 30k).
However, I would never agree to buy something for 30k over market.2:Modifications can’t currently be used as market information.
A mod is a change to a private contract.
This is not the same as an observable public sale.
There is no common database and the mods are not kept on any public or widely accessible private record system.So to reiterate, they aren’t what you say they are and even if they were, you can’t use them in any reliable way.
Participant[quote=CA renter]
Russell,
If you agree that “sold” comps are meaningful to current/future buyers, then it’s only reasonable that principal reductions be recorded and used as comps as well.
Why? Because loan mods with principal reductions are de facto sales to the current “owner” **at a new price,** and should be used as current comps.[/quote]
No.
There are 2 problems with your argument:1:Modifications are not de facto sales.
What a borrower or a bank is willing to agree to as a temporary (or even permanent) stopgap measure is really pretty different than what a buyer would be willing to pay to purchase.
If I am 100k upside down, I will likely be willing to modify my principal to make me less upside down (say 30k).
However, I would never agree to buy something for 30k over market.2:Modifications can’t currently be used as market information.
A mod is a change to a private contract.
This is not the same as an observable public sale.
There is no common database and the mods are not kept on any public or widely accessible private record system.So to reiterate, they aren’t what you say they are and even if they were, you can’t use them in any reliable way.
November 26, 2009 at 10:32 PM in reply to: Interesting E-mail between National Real Estate Market Financiers/Investors (Gloomy) #487252Participant[quote=jficquette][quote=Russell]Happy Government Cheese Day, John! Oh, and Thanksgiving too.[/quote]
What’s Thanksgiving without Government Cheese? LOL[/quote]
My wife is the only person I know who actually has an opinion on government cheese and its use in cooking.
One of 5 kids to a single mom and a deadbeat ex.
Per her, it makes good sandwiches.
November 26, 2009 at 10:32 PM in reply to: Interesting E-mail between National Real Estate Market Financiers/Investors (Gloomy) #487419Participant[quote=jficquette][quote=Russell]Happy Government Cheese Day, John! Oh, and Thanksgiving too.[/quote]
What’s Thanksgiving without Government Cheese? LOL[/quote]
My wife is the only person I know who actually has an opinion on government cheese and its use in cooking.
One of 5 kids to a single mom and a deadbeat ex.
Per her, it makes good sandwiches.
November 26, 2009 at 10:32 PM in reply to: Interesting E-mail between National Real Estate Market Financiers/Investors (Gloomy) #487799Participant[quote=jficquette][quote=Russell]Happy Government Cheese Day, John! Oh, and Thanksgiving too.[/quote]
What’s Thanksgiving without Government Cheese? LOL[/quote]
My wife is the only person I know who actually has an opinion on government cheese and its use in cooking.
One of 5 kids to a single mom and a deadbeat ex.
Per her, it makes good sandwiches.
November 26, 2009 at 10:32 PM in reply to: Interesting E-mail between National Real Estate Market Financiers/Investors (Gloomy) #487886Participant[quote=jficquette][quote=Russell]Happy Government Cheese Day, John! Oh, and Thanksgiving too.[/quote]
What’s Thanksgiving without Government Cheese? LOL[/quote]
My wife is the only person I know who actually has an opinion on government cheese and its use in cooking.
One of 5 kids to a single mom and a deadbeat ex.
Per her, it makes good sandwiches.
November 26, 2009 at 10:32 PM in reply to: Interesting E-mail between National Real Estate Market Financiers/Investors (Gloomy) #488115Participant[quote=jficquette][quote=Russell]Happy Government Cheese Day, John! Oh, and Thanksgiving too.[/quote]
What’s Thanksgiving without Government Cheese? LOL[/quote]
My wife is the only person I know who actually has an opinion on government cheese and its use in cooking.
One of 5 kids to a single mom and a deadbeat ex.
Per her, it makes good sandwiches.
Participant[quote=bsrsharma]4S Ranch Buyer, See the thread “offer in. now we play the game…(REO)” to see if it makes sense to you. Bottom line: Buyers agent bad for REOs, may not be bad for non-REOs.[/quote]
For this statement to be true, it means:
-that the listing agent is small time and therefore willing to risk the bank relationship in service of a few points on this escrow
-that you can get to the listing agent directly.In smaller towns (eg: temecula, menifee, el centro) these are more likely to be true. In larger cities, it is less likely. In SD, probably the largest reo crew is Weichert Elite (headed by Donna SanFilippo and Erik Weichelt (not the same name as the company)). They used to be San Diego REO’s until Weichert national bought them out. Last time I talked with them, they close more than 50% of their deals with other agents involved. Smaller agents (with only 5-10 listings at a time) are more likely to need that extra few thousand.
Participant[quote=bsrsharma]4S Ranch Buyer, See the thread “offer in. now we play the game…(REO)” to see if it makes sense to you. Bottom line: Buyers agent bad for REOs, may not be bad for non-REOs.[/quote]
For this statement to be true, it means:
-that the listing agent is small time and therefore willing to risk the bank relationship in service of a few points on this escrow
-that you can get to the listing agent directly.In smaller towns (eg: temecula, menifee, el centro) these are more likely to be true. In larger cities, it is less likely. In SD, probably the largest reo crew is Weichert Elite (headed by Donna SanFilippo and Erik Weichelt (not the same name as the company)). They used to be San Diego REO’s until Weichert national bought them out. Last time I talked with them, they close more than 50% of their deals with other agents involved. Smaller agents (with only 5-10 listings at a time) are more likely to need that extra few thousand.
Participant[quote=bsrsharma]4S Ranch Buyer, See the thread “offer in. now we play the game…(REO)” to see if it makes sense to you. Bottom line: Buyers agent bad for REOs, may not be bad for non-REOs.[/quote]
For this statement to be true, it means:
-that the listing agent is small time and therefore willing to risk the bank relationship in service of a few points on this escrow
-that you can get to the listing agent directly.In smaller towns (eg: temecula, menifee, el centro) these are more likely to be true. In larger cities, it is less likely. In SD, probably the largest reo crew is Weichert Elite (headed by Donna SanFilippo and Erik Weichelt (not the same name as the company)). They used to be San Diego REO’s until Weichert national bought them out. Last time I talked with them, they close more than 50% of their deals with other agents involved. Smaller agents (with only 5-10 listings at a time) are more likely to need that extra few thousand.
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