Sharp rise in foreclosures
- Thread starter Will E Worm
- Start date
-
- Tags
- banks foreclosure
Rey C.
Racing is life... anything else is just waiting.
Anyone who has tried to buy a bank REO (real estate owned/foreclosure) from a bank has probably walked away in disgust. The larger banks (Wells Fargo, JP Morgan, and especially Bank of America) take at least a month to even answer an offer. And if they don't accept your offer (anything less than full price or greater), the counter-offer process can take 3-4 months. Only an investor would have that kind of time to dick around trying to buy a house. Once again, banks are their own worst enemy when it comes to straightening out the mess that they had a BIG hand in causing.
Also, here's something else that has been on my mind for awhile. Anyone who wants to address this, please do. I only know what my house is (roughly) valued at because I had to have it appraised when I refinanced a couple of years ago. Other than that, I really wouldn't know... and I really don't care. I built this house to live in, not as an investment. So when I hear people (bankers, Realtors, et al) say that we need to do something for the underwater borrowers, I get confused. I understand that you would have a harder time selling a house if you had to bring money to the table at closing. But unless you're trying to sell, what do you care whether your house is worth less than the mortgage or not??? Make the payment, open the door, walk in, eat your dinner and go to bed. What am I missing? :dunno: If you buy a car on credit, whether it's a Honda or a Jaguar, it probably loses about 20% of its value as soon as you drive it off the lot. But if your intention is to keep it and drive it for some period of time, what do you care? Apart from a sale, why is a house any different???
IMO, the wheels began falling off the wagon when average Americans (not investors) began thinking of their homes as investments, not as dwellings where you live and raise a ******.
Also, here's something else that has been on my mind for awhile. Anyone who wants to address this, please do. I only know what my house is (roughly) valued at because I had to have it appraised when I refinanced a couple of years ago. Other than that, I really wouldn't know... and I really don't care. I built this house to live in, not as an investment. So when I hear people (bankers, Realtors, et al) say that we need to do something for the underwater borrowers, I get confused. I understand that you would have a harder time selling a house if you had to bring money to the table at closing. But unless you're trying to sell, what do you care whether your house is worth less than the mortgage or not??? Make the payment, open the door, walk in, eat your dinner and go to bed. What am I missing? :dunno: If you buy a car on credit, whether it's a Honda or a Jaguar, it probably loses about 20% of its value as soon as you drive it off the lot. But if your intention is to keep it and drive it for some period of time, what do you care? Apart from a sale, why is a house any different???
IMO, the wheels began falling off the wagon when average Americans (not investors) began thinking of their homes as investments, not as dwellings where you live and raise a ******.
I bought a repossessed home. It was a miserable fucking experience. They took 6 weeks to answer my offer, then they "counter offered," meaning they just asked for what the asking price was (which was the price if the house had been perfect, not lived in by crack dealers - the house was nearly totalled). However, I had time, and I ended up getting a house for about 30% of what it was worth. I've put some money into the house, and a LOT of my own time, but I could make several hundred thousand, even if I sold it in the current market.
There are houses that are worth the wait involved in buying from a bank.
There are houses that are worth the wait involved in buying from a bank.
Hey Will E!!!!!
:cedricsfishandchips
That's SIR Cedric's, thank you very much! Cedric didn't get "knighted" for nothing you know.
That's SIR Cedric's, thank you very much! Cedric didn't get "knighted" for nothing you know.
Fair point. Delicious goodness.
Off topic. FTW.
I get a little irritated at the people and groups that bought homes as investments and then didn't like when their investments went south. I feel a lot more sympathy for people that buy a home as an actual residence they want to live in indefinitely when they bought the place and then lose it for some reason, especially if the reason they lost it was greatly out of their control and/or reasonably unforeseeable.
I even hold less sympathy for banks that sold homes to people that wanted them as investments, did a lot of shady things in doing so, and then complained when their investments went south either. Of course the banks were bailed out while normal owners weren't.
I guess the moral of the story is if you are going to buy a home do so because you personally like it and want to live in it. If somebody bought a home because of that, even if it's decreased in value, then they sill have the place they thought was worth it to live there when they bought it and haven't really lost nearly as much.
Will E Worm
Conspiracy...
:wave:
Facetious
Moderated
See
Premium Link
Upgrade
and all of the related laws, acts, revisions and various bureaucracies involved (Contents sample below).... Fuuuck! they multiply like bacterium, one spawns another and another spawns two more until 8 hours later there's a million bacterium! :1orglaugh
Have fun!
ukey:
Furthermore... Do we really need a separate Premium Link Upgrade with more than 1,000 government employees and an annual budget of more than $250 million?... I wonder how many bureaucracies have branched off of this office of thrift supervision and at what cost to the taxpayer? :hammer:
Have fun!
ukey:Furthermore... Do we really need a separate Premium Link Upgrade with more than 1,000 government employees and an annual budget of more than $250 million?... I wonder how many bureaucracies have branched off of this office of thrift supervision and at what cost to the taxpayer? :hammer:
I guess it isn't a problem if you continue making payments towards the mortgage and stay in there, the problem arises if people are ****** to sell as they can end up with negative equity where the sale price is a lot lower than what they paid for it so they could still owe money eventhough the house is no longer theirs. There was a time (last 15-20 years ?) when buying property was a safe investment and as prices were always going up you'd always make money, now that has peaked if you buy a property you'd better hope you don't have to be ****** to sell it as you could end up vastly out of pocket. I know plenty of people who jumped onto the buy-to-let bandwagon with the banks allowing them to put down just 10% deposit and then they rented it to cover the mortgage and assumed they could sell it later for profit, problems arose as interest rates went up the mortgage was higher than what you could get in rent and you ended up paying from your own pocket and if you needed to sell you wouldn't get back the money you paid and would still end up owing the bank money (as your investment was a measly 10%), I have no sympathy for these people because putting down 10% on a home that you won't even live in is a risk you shouldn't be taking unless you have a financial backup.
Foreclosure rates up 14 per cent amid fears home values will plummet again
Read more: Premium Link Upgrade
Rey C.
Racing is life... anything else is just waiting.
For people in the right circumstance, there are some absolutely GREAT deals out there. There was a special on CNBC a couple of years ago which detailed the financial meltdown. As part of one segment, they showed a foreclosed home in Arizona that was on the market for $95K. Just two or three years prior it had been built for nearly $300K. It was very nice. From memory, I believe it was 2 story with about 2800 sq.ft., had a pool, granite counters, stainless steel appliances, etc. It was well above builder grade in every aspect that I could see. $95K! Seemed like a steal at first glance. Then they panned the camera around and probably half the houses on that block were also in foreclosure. But my thinking is, even at full price (let's say it's still on the market), with 20% down and a 30 year mortgage, your principle & interest payment would only be $363/mo. Let's say they have crazy tax rates there and it's $2 on the hundred. So that's $1900/year or another $158/mo. Let's say homeowner's insurance is $400/year or $33/mo. Let's say the HOA dues are $200/mo. Now I think I'm WAAAAY high on everything except for the P&I (there would be no PMI with 20% down). For about $750/mo you'd have what was essentially a "McMansion"!!! The total payments would probably be closer to $650. My house was so far from where I worked that I was paying more than that for a 1 bedroom condo that I was renting outside of D.C. in the 90's.
For people who like heat, sunshine and no change of seasons, I'm sure that Arizona is a great place to live. That's just not me. And I'm past the point that I'm going to move again anyway, unless I just HAVE to. But I often look at various deals around the U.S. And what I detailed above isn't all that unusual. If you believe you're going t be staying put for awhile, with rates now around 4% fixed for 30 years... :drool2:
Values might still go down some more, with the incredible backlog of defaults that exist. But not all areas are in bad shape. Where I live, values have barely budged over the past couple of years. Where most of my friends live (Charlotte, NC), they've been hit hard because it's a banking centric area. Unlike gold, there is a certain amount of intrinsic value in a house. So I'm convinced that in 15-20 years, people will look back on this period as the greatest real estate opportunity in many generations.
Will E Worm
Conspiracy...
Feudalism
