Foreclosures.....

[Mandelon]

Foreclosures......are picking up.
My biz used to only rehab bank foreclosed homes. That's where we got started and rode that train for 5 years. We'd spiff em up with new cosmetics, paint, carpet, appliances, whatever they needed to look nice.
Then the economy got so good the foreclosures all but disappeared..... we've had maybe 3 in the past 5 years. All the agents were busy, but not with REO's. I used to do 20 homes a month.
So far in 2006, well I am amazed that I've had 5 come to us this month so far......now this is San Diego and Riverside counties only. I am sure we are only getting a small portion of the ones that come back to the banks and go to rehab.
Temporary hiccup or a sign of things to come?
Do not live beyond your means......do not live check to check, don't be unemployed and don't dare get behind on those payments cuz they add up quick.....

[rivercrazy]

I'm sure the interest only and adjustable rate loan programs will result in a nice pipeline of new business for your company.

[Blown 472]

Foreclosures......are picking up.
My biz used to only rehab bank foreclosed homes. That's where we got started and rode that train for 5 years. We'd spiff em up with new cosmetics, paint, carpet, appliances, whatever they needed to look nice.
Then the economy got so good the foreclosures all but disappeared..... we've had maybe 3 in the past 5 years. All the agents were busy, but not with REO's. I used to do 20 homes a month.
So far in 2006, well I am amazed that I've had 5 come to us this month so far......now this is San Diego and Riverside counties only. I am sure we are only getting a small portion of the ones that come back to the banks and go to rehab.
Temporary hiccup or a sign of things to come?
Do not live beyond your means......do not live check to check, don't be unemployed and don't dare get behind on those payments cuz they add up quick.....
na, outsourcing jobs is a good thing.

[Ziggy]

Foreclosures......are picking up.
My biz used to only rehab bank foreclosed homes. That's where we got started and rode that train for 5 years. We'd spiff em up with new cosmetics, paint, carpet, appliances, whatever they needed to look nice.
Then the economy got so good the foreclosures all but disappeared..... we've had maybe 3 in the past 5 years. All the agents were busy, but not with REO's. I used to do 20 homes a month.
So far in 2006, well I am amazed that I've had 5 come to us this month so far......now this is San Diego and Riverside counties only. I am sure we are only getting a small portion of the ones that come back to the banks and go to rehab.
Temporary hiccup or a sign of things to come?
Do not live beyond your means......do not live check to check, don't be unemployed and don't dare get behind on those payments cuz they add up quick.....
At least some of those have paid for boats :220v:
There is a slow down everywhere.....it'll be back but some may have a tough time for a while...The golden goose has laid her egg, now she needs to get laid again to make it better.....

[Froggystyle]

Audrey was just showing some homes this weekend, and of the five she showed, five were significantly overpriced. So much so that they will not be able to get appraised. People think that if they throw some crappy granite down in a poorly thought out kitchen that it constitutes a remodel. Quality still counts, and someone still has to pay.
After searching through the tax records, it is obvious that everyone is asking exactly what they owe. One person couldn't even sell at the lowest price of their advertised range because they couldn't cover closing costs if they did. It was what they owed.
I am sitting on my money, waiting for the pop...

[cc322]

Excluding Orange County of course :wink:

[SummitKarl]

Foreclosures......are picking up.
My biz used to only rehab bank foreclosed homes. That's where we got started and rode that train for 5 years. We'd spiff em up with new cosmetics, paint, carpet, appliances, whatever they needed to look nice.
Then the economy got so good the foreclosures all but disappeared..... we've had maybe 3 in the past 5 years. All the agents were busy, but not with REO's. I used to do 20 homes a month.
So far in 2006, well I am amazed that I've had 5 come to us this month so far......now this is San Diego and Riverside counties only. I am sure we are only getting a small portion of the ones that come back to the banks and go to rehab.
Temporary hiccup or a sign of things to come?
Do not live beyond your means......do not live check to check, don't be unemployed and don't dare get behind on those payments cuz they add up quick.....
can you tell if they were risky loans to begin with?
like INT only, or a refi to pull out the equity and buy a boat :rolleyes: or catch up on credit card debt :)
I am going to guess that it's people that made the most risky/DUMB moves

[HM]

can you tell if they were risky loans to begin with?
like INT only, or a refi to pull out the equity and buy a boat :rolleyes: or catch up on credit card debt :)
I am going to guess that it's people that made the most risky/DUMB moves
The loans aren't the trouble. There is a perfectly good fit for everyloan, except only about 1% are used the way they were designed. Unfortunately, the regulators will blame the loan and not the borrower nor the loan officer that committed fraud to get the people into the loan and take away great loans when used properly.
As much as I don't want to see the bubble burst, it is needed to to get all the people out of the industry who couldn't hold a job at mcdonalds out of the loan business and back to what they are really good at, which is stealing money out of their grandmother's wallet.

[OutCole'd]

A friend of mine is in Escrow. He specializes in forclosures. He was living fat 5-6 years ago, but has been struggling these last few years. He said a few weeks ago, he got something like 5 forclosures in one week. He had not seen that many in the last few years combined.
I hope everyone is ready. Some people are going to make money during these times, like my buddy & Mandy, and some peeps won't fare so well.

[79 HUSTLER]

I am sitting on my money, waiting for the pop...
HEHEHEHE, can't wait for that, got plenty aside this time. Wish I had the funds when I bought my first home in 2000. I kick myself all the time for not investing in other homes instead of my toys. I guess that happens when you are 19 at the time.

[Wmc]

The loans aren't the trouble. There is a perfectly good fit for everyloan, except only about 1% are used the way they were designed. Unfortunately, the regulators will blame the loan and not the borrower nor the loan officer that committed fraud to get the people into the loan and take away great loans when used properly.
As much as I don't want to see the bubble burst, it is needed to to get all the people out of the industry who couldn't hold a job at mcdonalds out of the loan business and back to what they are really good at, which is stealing money out of their grandmother's wallet.
I agree with your comment. You have idiot loan officers out there just trying to make a dime off an innocent borrower who isn't educated. My take is this: The borrower who has a 2/28 or 3/27 Interest only payment 100% financed is going to have culture shock when they have to make a full PITI payment. That alone could make them walk. Also those people who took 100% cash out to buy toys or overly upgrade there house in an area that ism't worth the value. Not a good idea. For those of us who have saved money to invest in these upcoming foreclsures (good for us) sorry to the borrower who wasn't educated or given a proper loan.

[SummitKarl]

The loans aren't the trouble. There is a perfectly good fit for everyloan, except only about 1% are used the way they were designed. Unfortunately, the regulators will blame the loan and not the borrower nor the loan officer that committed fraud to get the people into the loan and take away great loans when used properly.
As much as I don't want to see the bubble burst, it is needed to to get all the people out of the industry who couldn't hold a job at mcdonalds out of the loan business and back to what they are really good at, which is stealing money out of their grandmother's wallet.
I see your point, There are plenty of loan officers out there that will do what it takes to get the loan (honest or not) but lets not forget where the REAL Blame is here........The borrower that signed the loan, that didn't do their research, that knew the payment was going to be a squeeze and counted on everything staying perfect in their lives, and a equal amount of blame to the loan officer that was more worried about HIS/HER bottom line than being responciable in their job.
did I get it right? :)

[Wmc]

I see your point, There are plenty of loan officers out there that will do what it takes to get the loan (honest or not) but lets not forget where the REAL Blame is here........The borrower that signed the loan, that didn't do their research, that knew the payment was going to be a squeeze and counted on everything staying perfect in their lives, and a equal amount of blame to the loan officer that was more worried about HIS/HER bottom line than being responciable in their job.
did I get it right? :)
I agree with your statement too!!! Sometimes it is just so hard when you put your trust in the loan officer. I work for a lender and work with brokers everyday, the good, the bad & the ugly.... So many borrowers just want to do whatever it takes to get the house of their dreams. But the time is going to come when the can't afford the new payment and havne't built up the equity to refinance. That is when people can start to invest in foreclosures.

[77charger]

Alot of buyers on interest only and adj apr loans.I agree they have their uses if done so wisely but not for long term.When the rates go up or adjust,principal is due.trouble will loom for those buyers quickly.I just dont see how these buyers can qauify for a house that is 5 times their income.When we bought ours it was little over 2 times our income and 8 percent apr.
With 2 kids,vehichles,ins,taxes,etc we get by but just cant imagine a bigger house payment.We get loan offers all the time we can get enough to live large(or appear to at least)But makin them payments probaly will take its toll.For now i am happy with what i have dont care what anyone else thinks.I'd rather drive my boat vs sit in it parked drinkin a beer pretending i am in the water cause i cant pay the gas for it.

[HM]

I see your point, There are plenty of loan officers out there that will do what it takes to get the loan (honest or not) but lets not forget where the REAL Blame is here........The borrower that signed the loan, that didn't do their research, that knew the payment was going to be a squeeze and counted on everything staying perfect in their lives, and a equal amount of blame to the loan officer that was more worried about HIS/HER bottom line than being responciable in their job.
did I get it right? :)
Once in a while you get it right. :D

[C-2]

No chit?
Will have to call all the REO/UD attorneys and pick their brains.
Do they still have REO depts?

[Ziggy]

I'm predicting Antacids sales will increase :p

[C-2]

It might also be a good time to become a locksmith!

[YeLLowBoaT]

I think there will be alot more repos to come. too many ppl got way over thier heads with homes they can't aford and loan progarms that should not be legal. Lets not forget the fact that the prices went Way overbroad.... Out of all the ppl I went to HS with ( that I knew) not one of them can buy a home unless they were married or they had thier parents sell them thier home/ gave big down payment. The one that could buy if they were married would be skrewed if ether one of them lost thier jobs.

[YeLLowBoaT]

It might also be a good time to become a locksmith!
One a side note Tatto removel will be a big in the years to come.....

[cxr133]

So Mandelon... when are you going to start posting FORCLOSURE deals??

[C-2]

One a side note Tatto removel will be a big in the years to come.....
Nailed that one.
Glad I stopped at my piddly little two. Now if I can just find my OJ knife.......

[djunkie]

Audrey was just showing some homes this weekend, and of the five she showed, five were significantly overpriced. So much so that they will not be able to get appraised. People think that if they throw some crappy granite down in a poorly thought out kitchen that it constitutes a remodel. Quality still counts, and someone still has to pay.
After searching through the tax records, it is obvious that everyone is asking exactly what they owe. One person couldn't even sell at the lowest price of their advertised range because they couldn't cover closing costs if they did. It was what they owed.
I am sitting on my money, waiting for the pop...
I've got my needle in hand for when that balloon comes floating by. I'll be ready. :rollside:

[Flying Tiger]

If you've financed with Countrywide and have a property tax impound account,, make sure they paid it,,,
several friends got delinquent statements, Countrywide never paid it,
,,,and my tax lady said she's had several clients telling her the same,,, including her daughter.

[Red Horse]

Bottom line is never finance a depreciating asset, always put at least 20% down and keep some for a rainy day.
I am waiting for some of these houses to come to market cheap as well. It is amazing what some will do when the money is due and they dont have it.
Interest only loans only work in certain situations. I have an interest only loan on some land in Texas. Costs me 140 a month. But all I want to do is control the land. I can make more investing the 30K than paying the land off. All I wanted to do was take the appreciation. Get into the ladder so to speak.
When there is someone that does not do their homework and gets screwed( for lack of a better word) there is always someone that does do their homework and makes a better choice. That is what makes our a free entreprise system.

[Sportin' Wood]

For what its worth, In the last week I have recieved more invites to bid then ever in the history of the company. (new construction tract plumbing)
I suspect its the chicken running with its head cut off before it lays down to die. I predict 06 will still float, but you better build a life raft for 07. Hard times are comming for some folks.Big builders are allready looking at different markets, Hello baby boomers.. I have two sets of plans with stinkin elevators in a small to mid sized home. Can't wait for you boomers to get the hell of of the job market and get out of my way. Hopefully you boomers invested in more then toys and don't have to eat cat food! :)

[imirsh1]

I have always enjoyed following the "Bubble bursting" threads here on the boards.If you go back and research the other threads lets say 6 mos. ago they are totally the other direction with most stating that it will not change,not burst whatever.My opinion is those are the people who got interest only loans or 2 loans just to get into a house.I sold my house in Irvine almost 3 years ago for $800k and have been leasing for interim.The fact is that $360 billion in adjustable loans will adjust in 06' putting monthly payments out of peoples reach.But just wait until 07' when 1 trillion in loans will adjust and you will be in foreclosure heaven.Yes I have been waiting for this and with liquid money in hand I will take advantage of this.

[framer1]

Can't wait for you boomers to get the hell of of the job market and get out of my way. ]
Come on man give us a few more years, than you can take over :rolleyes:

[Sherpa]

Not to ever wish ill will upon anyone, but I'm poised to take advantage of
when this happens....... it's good to be debt free......
--Sherpa

[phebus]

I have always enjoyed following the "Bubble bursting" threads here on the boards.If you go back and research the other threads lets say 6 mos. ago they are totally the other direction with most stating that it will not change,not burst whatever.My opinion is those are the people who got interest only loans or 2 loans just to get into a house.I sold my house in Irvine almost 3 years ago for $800k and have been leasing for interim.The fact is that $360 billion in adjustable loans will adjust in 06' putting monthly payments out of peoples reach.But just wait until 07' when 1 trillion in loans will adjust and you will be in foreclosure heaven.Yes I have been waiting for this and with liquid money in hand I will take advantage of this.
Just out of curiousity, what is the Irvine home you sold for 800k three years ago, selling for today. Doesn't seem like you timed it right to me. There has been tremendous appreciation in the last three years.

[C-2]

Even if there are foreclosures, it will be a few years before they become brgains. Not until REO inventories peak do they become good deals. If the properties are 100% financed and the value drops, it will be a long, long time.
Everybody watches too many informercials - you can't buy a home below what's owed against it -which is why it becomes "bank owned" - they become the owner as a process of law.

[imirsh1]

Just out of curiousity, what is the Irvine home you sold for 800k three years ago, selling for today. Doesn't seem like you timed it right to me. There has been tremendous appreciation in the last three years.
Actually,just under a $1k now.My wife worked in L.A. while she was pregnant the 1.5 hour drive was too much, so we sold.Now she works in OC and I work in LA. Go figure.

[cdog]

Even if there are foreclosures, it will be a few years before they become brgains. Not until REO inventories peak do they become good deals. If the properties are 100% financed and the value drops, it will be a long, long time.
Everybody watches too many informercials - you can't buy a home below what's owed against it -which is why it becomes "bank owned" - they become the owner as a process of law.
There must be a glut of un sold bank reo's before that happens. On a Mortgage it is possiable for the home to have a low bid below what is owed, these day's the balance can be tacked on to the defaulted previous owner as a collection. That's prob. why the BK laws just changed....Scary :220v:

[prosthogod]

If this doom is coming(and I think it will) why has a lot in havasu continued to rise and now the average is~145K. Those same lots were 40k 2.5 years ago. And yes they are selling, mostly to people from california as a second home.

[cdog]

Lot's of 100,000 airs around here! Waiting for the bubble to pop!

[Havasu Cig]

If this doom is coming(and I think it will) why has a lot in havasu continued to rise and now the average is~145K. Those same lots were 40k 2.5 years ago. And yes they are selling, mostly to people from california as a second home.
There is a lot of stuff sitting now in havasu that a year ago would have been sold in a couple days. Havasu will adjust like the rest of the market, but maybe worse because so many of the houses bought were second homes and people over extended to buy them.
I think it is kind of funny that people were saying I was crazy a year or so ago when I said real estate would come back to reality or maybe even take a big hit because of the creative financing interest only loans. I see more people are starting to see the reality now. I will be waiting when the forclosures come...

[C-2]

There must be a glut of un sold bank reo's before that happens. On a Mortgage it is possiable for the home to have a low bid below what is owed, these day's the balance can be tacked on to the defaulted previous owner as a collection. That's prob. why the BK laws just changed....Scary :220v:
At a trustees sale, the property cannot be sold for less than what's owed against it, plus legal/late fees. In Cali, there are no deficiency judgments. Banks use non-judicial foreclosures (outside of court), and since Cali is a "one action" state, the bank cannot pursue a deficiency judgment via the courts.
That's why it's so inviting for a homeowner to walk away from a house - they cannot be held accountable.
-----------------
Just got off the phone with an lender REO attorney - said yup, more files have crossed his desk in the past two months, as the previous two years. The big guys are firing up their REO departments.
So it appears to be happening - maybe it's simply a seasonal thing, time will tell. But the fact banks are implementing REO procedures is not good.

[totenhosen]

You guys are all crazy! House prices never go down!

[Essex_Sterling]

What about a 30 year loan that is fixed for 10 years and then adjustable beginning in year 11? Especially if the person does not plan on being in the house for the full 10 years?

[ChumpChange]

What about a 30 year loan that is fixed for 10 years and then adjustable beginning in year 11? Especially if the person does not plan on being in the house for the full 10 years?
That's a good loan then. Unless the value of the house is less than the loan amount at the time you sell it. If that is the case, you will need to come up with cash to get out of the house.

[cdog]

A forclosure on a Mortgage is a juducial court action and is sold by sheriff sale. Highest bidder gets title. If at loss to the lender they can persue a dificiency judgement.
A Deed of trust is not judicial. I believe that's what you're refering to.
We call them all Mortgage's but they are two very differant notes.
A deed of trust is the more common note because of the quickness a property can be forclosed on.

[Froggystyle]

I am scared of more than just people not being able to make payments... I am scared about people...
A) Not being able to make payments because...
B) House is overvalued and not able to sell...
C) Have no capital with which to make up the difference...
D) Get forclosed upon..
E) Can't buy another house with a foreclosure record.
I just wish I had some homes to rent out. That is going to be where the money is. People who can't afford to buy a house, but have too much stuff to move into an apartment. When the pop happens, I will be buying rental property in the form of single family homes that can be rented with profit for $1500/month...

[C-2]

A forclosure on a Mortgage is a juducial court action and is sold by sheriff sale. Highest bidder gets title. If at loss to the lender they can persue a dificiency judgement.
A Deed of trust is not judicial. I believe that's what you're refering to.
We call them all Mortgage's but they are two very differant notes.
A deed of trust is the more common note because of the quickness a property can be forclosed on.
Huh,
The common Deed of Trust on residences, not apartment buildings.
That's what we're talking about here, not judicial foreclosures (which are actually thrown into receivership first). You cannot pick one up for less than the amount owed against it at the time of sale. maybe a few years later, but not initially.

[C-2]

I am scared of more than just people not being able to make payments... I am scared about people...
A) Not being able to make payments because...
B) House is overvalued and not able to sell...
C) Have no capital with which to make up the difference...
D) Get forclosed upon..
E) Can't buy another house with a foreclosure record.
I just wish I had some homes to rent out. That is going to be where the money is. People who can't afford to buy a house, but have too much stuff to move into an apartment. When the pop happens, I will be buying rental property in the form of single family homes that can be rented with profit for $1500/month...
What scares me is the hit neighborhood value takes when a home is foreclosed upon. Ouch.

[Mandelon]

When homes go to sale on the courthouse steps the minimum the bank will take is the outstanding loan balance plus costs and fees, basically what they have in it. sometimes they even bid it up a little if they think there is some equity in it.
Then the bank gets the REO dept or a realty agent to check out the house, do an eviction if needed and spiff up the house for resale. there won't be any bargains on Foreclosures unless someone screws up along the way. They hire appraisers to set values and brokers for BPO's, Broker's Price Opinions.
You can find out ahead of time what is going to sale by working with a title insurance agent who can get you the foreclosures scheduled and the NOD's Notices of Default. Sometimes you can get to the owner before the foreclosure goes through.
I had a lady GIVE me her house one time. She quitclaimed it to me for nothing. I brought it current and saved her credit from a foreclosure....I rehabbed the house and sold it for a decent profit. Tougher to do now since we are started back down, instead of turning up like it was a few years ago.
I looked at two more today, and have another set up for 10:00 tomorrow...... these are all so far nice middle class homes, beach condo's and one tear down on two acres in Ramona....gonna look into putting 8 homes on that lot.....

[shueman]

If you've financed with Countrywide and have a property tax impound account,, make sure they paid it,,,
several friends got delinquent statements, Countrywide never paid it,
,,,and my tax lady said she's had several clients telling her the same,,, including her daughter.
This is not good, Mav...

[jbtrailerjim]

Here is more proof that mortgage defaults are on the rise. Too many people are living beyond their means.
Default Notices
2005 fourth quarter, by county:
Riverside: up 43.1 percent
San Bernardino: up 14 percent
Los Angeles: up 10.7 percent
Orange: up 34.2 percent
San Diego: up 34.5 percent
Source: DataQuick Information Systems
Mortgage default notices up in area
HOUSING: As more homeowners struggle to make payments, foreclosures may increase, say experts.
11:21 PM PST on Thursday, February 2, 2006
By LESLIE BERKMAN / The Press-Enterprise
As the once-skyrocketing growth in home values slows, homeowners are failing more often to make their monthly mortgage payments.
Notices of default increased 43 percent in Riverside County in the fourth quarter of 2005 compared to a year earlier, which was the largest percentage gain among Southern California's six counties.
San Bernardino County saw a year-to-year increase of 14 percent, which was slightly less than the 15.6 percent increase statewide, according to the report released Thursday by DataQuick Information Systems.
Notices of default, used as a barometer of foreclosure activity, have been rising from a 14-year-low in the second quarter of 2005 and are still far too few to undermine the health of the real estate market, said DataQuick analyst John Karevoll.
Driving the upward trend in default notices, Karevoll said, is a slower rate of appreciation, which gives homeowners less equity to borrow against when they get into financial trouble.
He said he expects foreclosures will increase by another 50 percent to 70 percent to a historically normal level by late summer or early fall.
He said he does not expect foreclosures will become prevalent enough to lower real estate values unless interest rates rise dramatically.
DataQuick President Marshal Prentice said in a prepared statement that less equity makes more defaults inevitable.
The annual appreciation rate in California hit a high of 22.8 percent in the second quarter of 2004 and dropped to 14.5 percent in the fourth quarter of 2005.
Karevoll said San Bernardino County is simply lagging behind Riverside County in the real estate cycle and will catch up.
Inland economist John Husing said Riverside County's faster growth in defaults might reflect the lower affordability of homes in Riverside County compared to housing in San Bernardino County.
"What that tells you I think is that people in Riverside County are having to make a bigger stretch," Husing said.
In the mid-1990s, Karevoll said, 30 percent of default notices led to foreclosures. As lenders put properties on the market, it created a further drag on prices.
Esmael Adibi, director of the Anderson Center at Chapman University, blamed the rise in default notices on the widespread use of mortgages with adjustable rates that have been ratcheting up over the last year and a half as the Federal Reserve raised short-term rates by 3½ percentage points.
Gary Aguilar, manager of housing counseling for Springboard Nonprofit Consumer Credit Management in Riverside, said he has been getting an increasing number of calls from homeowners struggling to cope with mortgage-rate hikes that can add hundreds of dollars a month to their payments.
However, Karevoll said the high-risk loans used in recent years to qualify home buyers have not as yet significantly added to foreclosure activity.
He said most of the adjustable-rate loans remain at a fixed rate for five to seven years and are not expected to begin showing up in default statistics until the summer.

[AvengerBabe]

Ha! I'm the one that sends a bunch of those loans to foreclosure....

[Dave C]

ha ha... sshhh... your not supposed to give those away..... ;) ;)
good for you, BTW! :D
I had a lady GIVE me her house one time. She quitclaimed it to me for nothing. I brought it current and saved her credit from a foreclosure....I rehabbed the house and sold it for a decent profit. Tougher to do now since we are started back down, instead of turning up like it was a few years ago.
.....

[sorry dog]

You guys are all crazy! House prices never go down!
That's probably true...for the whole US market. It hasn't happened since the Depression 60 years ago.
BTW- 40% of defaults are primarily due to either loss of job or a death in the family.

[shueman]

KNX radio has some dialogue the other day on the current conditions.....some 9,000 loans in default in the SoCal market, up 20% from the last market correction in the '90s.
The last time the market corrected, only 5% of the default owners actually lost the property. The current market could be as high as 40% going into title foreclosure... :220v:

[Havasu Cig]

What scares me is the hit neighborhood value takes when a home is foreclosed upon. Ouch.
My partners father was in the real estate business for 40 years (just retired last year) and owned a large real estate company. He mentioned this as one of the things that creates a snow ball effect as far as driving prices down. He has put most of his money into commercial real estate because it is far more stable.

[Froggystyle]

The reality is, I like my house... enough. I don't love it, but it is worth quite a bit more than I paid, it is certainly large enough and with enough property, and all of these are great things because I think I am going to be in it a while...
Startup business is tough enough. I haven't got the energy for real estate speculation right now...

[cdog]

The reality is, I like my house... enough. I don't love it, but it is worth quite a bit more than I paid, it is certainly large enough and with enough property, and all of these are great things because I think I am going to be in it a while...
Startup business is tough enough. I haven't got the energy for real estate speculation right now...
Hey I saw you on Direct TV HD preview. You had they guy from E-tv on the boat all over the parker strip. Was that laborday weekend?

[locogringo]

Even if there are foreclosures, it will be a few years before they become brgains. Not until REO inventories peak do they become good deals. If the properties are 100% financed and the value drops, it will be a long, long time.
Everybody watches too many informercials - you can't buy a home below what's owed against it -which is why it becomes "bank owned" - they become the owner as a process of law.
err, yes you can, it's called a short sale. I have done 3 this month alone.

[C-2]

err, yes you can, it's called a short sale. I have done 3 this month alone.
At the time of trustees sale.

[locogringo]

At a trustees sale, the property cannot be sold for less than what's owed against it, plus legal/late fees. In Cali, there are no deficiency judgments. Banks use non-judicial foreclosures (outside of court), and since Cali is a "one action" state, the bank cannot pursue a deficiency judgment via the courts.
That's why it's so inviting for a homeowner to walk away from a house - they cannot be held accountable.
-----------------
Just got off the phone with an lender REO attorney - said yup, more files have crossed his desk in the past two months, as the previous two years. The big guys are firing up their REO departments.
So it appears to be happening - maybe it's simply a seasonal thing, time will tell. But the fact banks are implementing REO procedures is not good.
that is on the initial loan. Once the mortgagee has refinanced, then all those bets are off and the bank can come after them like any other state. However, they seldom, if ever do.

[locogringo]

At the time of trustees sale.
Actually, after the NOD has been filed on but before it goes to sale. I work with the people in default to either stop the foreclosure and start a short sale or, if it makes sense, to bring them current and then sell their house or sometimes let them stay in it.
Most people inthis scenario, just want out of the house and deed it over.

[locogringo]

When homes go to sale on the courthouse steps the minimum the bank will take is the outstanding loan balance plus costs and fees, basically what they have in it. sometimes they even bid it up a little if they think there is some equity in it.
Then the bank gets the REO dept or a realty agent to check out the house, do an eviction if needed and spiff up the house for resale. there won't be any bargains on Foreclosures unless someone screws up along the way. They hire appraisers to set values and brokers for BPO's, Broker's Price Opinions.
You can find out ahead of time what is going to sale by working with a title insurance agent who can get you the foreclosures scheduled and the NOD's Notices of Default. Sometimes you can get to the owner before the foreclosure goes through.
I had a lady GIVE me her house one time. She quitclaimed it to me for nothing. I brought it current and saved her credit from a foreclosure....I rehabbed the house and sold it for a decent profit. Tougher to do now since we are started back down, instead of turning up like it was a few years ago.
I looked at two more today, and have another set up for 10:00 tomorrow...... these are all so far nice middle class homes, beach condo's and one tear down on two acres in Ramona....gonna look into putting 8 homes on that lot.....
Mandi, we shold partner up on some if you want.
Once someone gets a NOD, their credit is already ruined. Doesn't really hurt it more if it goes to foreclosure or not. Maybe a little but that is it. If someone deeds their house to me, I will pay to have their credit "legally" repaired (costs $4500) and if they stay current from then on out, they will have A paper again in 6-8 months. Not a pipe dream, reality.

[C-2]

Actually, after the NOD has been filed on but before it goes to sale. I work with the people in default to either stop the foreclosure and start a short sale or, if it makes sense, to bring them current and then sell their house or sometimes let them stay in it.
Most people inthis scenario, just want out of the house and deed it over.
You are in the industry. Most people incorrectly assume you can buy home at "auction" for less than what's owed against them, that's the area I was addressing. After they become REO, not before. True?

[Froggystyle]

Hey I saw you on Direct TV HD preview. You had they guy from E-tv on the boat all over the parker strip. Was that laborday weekend?
Yep! Labor Day. We will be shooting again later this summer with a couple of boats...
How did it look? I haven't caught it yet. I am going home right now to check it out on Tivo...

[cdog]

Yep! Labor Day. We will be shooting again later this summer with a couple of boats...
How did it look? I haven't caught it yet. I am going home right now to check it out on Tivo...
It looked like a lot of fun. Got me stoked for the river season. The boat looked bitchen. We left early that day and saw you towing thru crit. Our friends Jermey and Missy were also in the clip up by the damm with the red and white stoker. Cool! I can't wait to get back out there.

[Froggystyle]

It looked like a lot of fun. Got me stoked for the river season. The boat looked bitchen. We left early that day and saw you towing thru crit. Our friends Jermey and Missy were also in the clip up by the damm with the red and white stoker. Cool! I can't wait to get back out there.
Ahhhh.... the last mile of sin.
Show turned out pretty good. I could have done with a little bit more boating and a little less "PARKER 2005!!!!!! WOOOOOOOOHHOOOOOOOO!!!!!!!"
but it is all good...

[C-2]

Hey Loco,
What do you see happening with the market? You mentioned the short sales, sounds like business is picking up?