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View Full Version : Anyone tried taking over foreclosures??



NOTALENT
02-24-2004, 09:45 AM
Looking into start trying to take over forclosures. But need info on how to find them and what type of paper work and whats involved??? anyone have info or a website to figure this out??/

wsuwrhr
02-24-2004, 08:55 PM
a foreclosure in this market? you have to be kidding.
Brian

al cole'holic
02-24-2004, 09:13 PM
...tons of foreclosures, NOD's, etc. The problem is most loan balances could be upwards of 300k in this market..how many time do you think a bank will let you " " take over a forclosure like that? What specific area are you looking into??

Mandelon
02-24-2004, 09:18 PM
I get some monthly REO magazine.
I managed foreclosures for banks for a couple of years, and then got into rehabbing for them, so I have done this for a long time. Hardly anything is going back to the banks around here. Too much damn equity.
Foreclosure are rising in other parts of the country. but in So Cal there are not many bargains to be had like you see on late night TV.
I had a lady give me her house once. For free. Quitclaimed to me, to save her credit. I brought it current with the bank the next day, rehabbed and sold it quick before they found out.
Bropb16 I sent you a PM

coolchange
02-24-2004, 09:25 PM
I've gone to some seminars on it but they just want to sell you a $1000 class. I was just searching that about an hour ago. Tons of sights that want to sell you info that I think you could get for free if you knew how.

Mandelon
02-24-2004, 09:43 PM
Title insurance companies have all the NOD info. Befriend an agent, give him your business. NOD is Notice of Default. It is one of the first steps on the road to foreclosure.

bigkatboat
02-24-2004, 09:59 PM
What happened to Havasu, in California??? I don't want to rub it in, but I am happy that you saw the LIGHT. I'm going in around Needles (AZ. side) and it is going to explode soon. You don't have to send me any money for this tip, just "get busy", what about Havasu at the south end? LOOK AT A MAP, you will see what I mean. Good luck, keep your eyes open! Party, WOT!!!

C-2
02-24-2004, 10:16 PM
When the equity is gone I think there’s gonna be quite a few people losing their toys and homes.
Californians have been living off their equity for several years now and once it’s gone, they won’t have the safety cushion to bail their asses out. Currently they just get another refi for a quick fix and another cash infusion. Take that quick fix away and ouch…some bills are gonna be due and no more equity to help out.
Do the math; 25 year old making $50K a year, living in a $400,000 house, driving a $100K boat, pulling his Weekend Warrior in the winter, being pulled by a $50K truck, wearing his dope clothes and bar hopping every weekend. It just doesn’t add up.
I’ve been saying it for several years now but when the equity dries up…there’s gonna be some smoking boat deals out there for the cash-type person. And maybe foreclosures too, but the equity also has to disappear; otherwise the banks will keep the homes and sell them for their own profit.
C2<-------not an angry guy, just an observation :)

Mandelon
02-24-2004, 10:19 PM
You're saying 125% cashout refi's are a bad thing???? :rolleyes: :D :D
I think we are coming to the end of the cycle too, it is over due. But now the economy is supposed to be improving. So it may not dump out like in the early 90's. Maybe just a slow landing.....The southwest has been riding a very lucky wave for the past 8 years....

C-2
02-24-2004, 10:26 PM
Mandelon
Agreed.
The banks also learned a lot in the early 90's and I doubt they will have the same REO policies.

wsuwrhr
02-24-2004, 10:46 PM
Originally posted by C-2
When the equity is gone I think there’s gonna be quite a few people losing their toys and homes.
25 year old making $50K a year, living in a $400,000 house, driving a $100K boat, pulling his Weekend Warrior in the winter, being pulled by a $50K truck, wearing his dope clothes and bar hopping every weekend. It just doesn’t add up.
C2<-------not an angry guy, just an observation :)
Good post, but I tried to find that 50k a year job when I was 25, didn't work. Barely making that now.
What is your opinon on taking that equity and putting it back into the house for HVAC, bedroom/masterbath addition?
Brian

HavasuDreamin'
02-25-2004, 06:15 AM
Not happy to say it, but yes..............Indiana either leads the country every year, or is in the top two or three states in terms of foreclosures.
You have developers throwing up communities right and left and offering no money down programs with ARM mortgages, sometimes interest only mortgages. On top of that, I don't believe they have to factor taxes into the payment equation either. So in two years when the taxes kick in, and the ARM rate increases, the young kids can't afford the home anymore.
The problem arises when they try to sell it and they can't because they have no equity in it, developers are still throwing up new homes right around them, and half of the existing homes in the market are for sale anyway. Boom ..............foreclosure.
I blame the lending companies that qualify anyone and everyone for no money down, we will roll all your closing costs into your mortgage, you may even get cash back at closing, etc. What ever happened to needing at least 3% - 5% down?

SummerBreeze
02-25-2004, 06:31 AM
I am living in a forecloser home I bought in 89. I also bought another one in 92
They are still out there check with the county you want to look at. You need to be flexable with your money or have a relationship with a bank that has money.
Look in the paper look check with title companies
A good tip is to remove your emotions from the transacations
Good Hunting SB

Essex502
02-25-2004, 07:01 AM
Foreclosures are all over the place but there is also a lot of peeps looking to do exactly what you want to do. All of these infomercials and get rich through real estate courses and seminars have peeps believing any moron can be the next Carlton Sheets. Right!
As to equity drying up...I may be looking through rose colored glasses but I don't think we're in the same situation as the 80's and early 90's. The economy is improving - both here in the U.S. and worldwide. Interest rates are low and there's not a lot of indication (Greenspan) that they will raise in the near future. The supply is exceeded by demand in SoCal as well. As long as home owners don't go stupid (upside down with the >100% mortgages) they shouldn't be hurt at all with a "correction" in housing prices. Only time will tell.
Real estate has to be one of the best investments at all times - good or bad economy but common sense has to temper your enthusiasm for quick gains.

totenhosen
02-25-2004, 08:03 AM
If interest rates rise substantially and when the 3 and 5 year ARMS come there is a strong chance that people will not be able to make their payments. In CA right now there aren't any good foreclosure deals.
You can always look at the HUD website if you want.

coolchange
02-25-2004, 08:08 AM
I went to work for a co. last summer that buys reo's and does the refi-rehab thing. I didn't want to get back into construction but I figured I could learn something. they have major resources and say they just out bid the mom and pops. It borders on colusion with other bidders. They get investors with a 22% promise of return and start a LLC(limited liability corp.) Then refi and roll the money into the next one. Then when it goes bad they offer the invetor 7% to get out or they bankrupt the LLC and it doesn't effect the other 200 LLC's they own. Then the work comp thing hits and they drop 60 employees. Oh well gotta expect that in construction.

NOTALENT
02-25-2004, 08:13 AM
Originally posted by bigkatboat
What happened to Havasu, in California??? I don't want to rub it in, but I am happy that you saw the LIGHT. I'm going in around Needles (AZ. side) and it is going to explode soon. You don't have to send me any money for this tip, just "get busy", what about Havasu at the south end? LOOK AT A MAP, you will see what I mean. Good luck, keep your eyes open! Party, WOT!!!
Still looking at that right now..But My partner is kind of forcing me to try and do forclosures..lol I have not yet looked into needles yet..but I guess its worth the look..do u have a good website?

Essex502
02-25-2004, 08:16 AM
Originally posted by totenhosen
If interest rates rise substantially and when the 3 and 5 year ARMS come there is a strong chance that people will not be able to make their payments. In CA right now there aren't any good foreclosure deals.
You can always look at the HUD website if you want.
Greenspan is hinting in his latest published comments that the interest rates will not be substantially moving any time soon. Fools with 3/5 ARMS or interest only financing or some such "creative" financing stand to lose if they don't plan for the events mentioned but that is their own tough luck. Same deal with someone who creatively finances 125% loan and when prices for homes drops decides they can't afford the loan anymore. It was a bad decision to begin with in having a 125% loan.

NOTALENT
02-25-2004, 08:30 AM
yeah...IT does seem to be hard to make 50,000 a year by age of 25..but hey I still got about 5 years and im almost there..Once I get my RE license it should kick off. I hope.

hd&boatrider
02-25-2004, 08:34 AM
Originally posted by C-2
When the equity is gone I think there’s gonna be quite a few people losing their toys and homes.
Californians have been living off their equity for several years now and once it’s gone, they won’t have the safety cushion to bail their asses out. Currently they just get another refi for a quick fix and another cash infusion. Take that quick fix away and ouch…some bills are gonna be due and no more equity to help out.
Do the math; 25 year old making $50K a year, living in a $400,000 house, driving a $100K boat, pulling his Weekend Warrior in the winter, being pulled by a $50K truck, wearing his dope clothes and bar hopping every weekend. It just doesn’t add up.
I’ve been saying it for several years now but when the equity dries up…there’s gonna be some smoking boat deals out there for the cash-type person. And maybe foreclosures too, but the equity also has to disappear; otherwise the banks will keep the homes and sell them for their own profit.
C2<-------not an angry guy, just an observation :)
C2....I have to agree with you on this one totally. I will be scooping up some nice things eventually as I keep my debt low and have no bills...except for my real estate investments and insurances.

C-2
02-25-2004, 08:39 AM
Within days of a NOD there are literally tens upon tens of hard money lenders and private lenders who contact borrowers. I've seen people receive as many as 30-40 solicitations...everything from mortgage companies to joe thugo, with solutions across the board. So competition is tight out there for the few that exist.
It's a numbers game. If there is a hint of equity, that's when the vultures in the sky start circling. That is why there are no good deals in the foreclosure market - these vultures do a lot of research and if a home is foreclosed upon...it is probably upside down to begin with and now the lender is stuck with it. Damn those 100-125% loans!

bigq
02-25-2004, 08:47 AM
Originally posted by Essex502
Greenspan is hinting in his latest published comments that the interest rates will not be substantially moving any time soon. Fools with 3/5 ARMS or interest only financing or some such "creative" financing stand to lose if they don't plan for the events mentioned but that is their own tough luck. Same deal with someone who creatively finances 125% loan and when prices for homes drops decides they can't afford the loan anymore. It was a bad decision to begin with in having a 125% loan.
Well there seems to be a lot of fools out there. I get crazy looks when I talk to some friends and families expressing I think that housing is going to take a hit soon.:confused: nice to see some people that work closer to the industry see it the same. I have a friend and a neighbor that do loans and both say most are really streatching to get ino these houses, no down, interest only, ARMs, all kinds of creativity.They need to when you look at the cost of a 1300sq/ft house at 300-350 that is crazy talk.
I think what will happen is rates will inch up, because of the good economy and all of a sudden the people holding off selling because they are trying to get the most will put the house up for sale at top dollar. Only problem is now the market has better supply and less demand so prices will decrease and the market will turn to a buyers market. I don't hink it will totally crash, but it needs a good correction.
Also all the housing in vacation places like havasu will take a big hit. So I think that their will be quite a few forclosures in the coming years. Another hint is the consumer debt is huge right now, I mean huge.;)
Wayne<------feels sorry for bandwagon real estate agents in 2-3 years.

C-2
02-25-2004, 09:26 AM
Originally posted by bigq
Wayne<------feels sorry for bandwagon real estate agents in 2-3 years.
Hear ya on that. If I was a loan broker I would be looking at my contingency plan. They have been making money hands over fist for many years now and hopefully have banked some.
C2<-----wishing he got on that mortgage broker bandwagon!!!

al cole'holic
02-25-2004, 10:01 AM
I love it when I hear some crackpot say they are waiting for the market to take a dump, mostly it's because they are so damn bitter that they procrastinated so much on buying a house that they are still renting and watched as the market pushed up and up all the while still waiting for that bust that didn't happen. Now they can either grab their nuts and get in, or wait for that ****ing day they long for and keep paying rent!
Take a look around you here in SoCal at all the developments breaking ground and all that have yet to break ground. Hell, here in Simi there are 70 developments that haven't started yet..and when they do finish one they sell out in a matter of 24-48 hours. The demand is so high in SoCal that it is more a matter of trying to keep up at this point. Shit most of the people you think making 50k a year and buying a 400k home had the friggin balls to buy a place as early as 2 years ago and are reaping the benefits of moving up and up while still maintaining a level of morgage payment they originally had. All with the equity...
Originally posted by bigq
Well there seems to be a lot of fools out there. I get crazy looks when I talk to some friends and families expressing I think that housing is going to take a hit soon.:confused: nice to see some people that work closer to the industry see it the same. I have a friend and a neighbor that do loans and both say most are really streatching to get ino these houses, no down, interest only, ARMs, all kinds of creativity.They need to when you look at the cost of a 1300sq/ft house at 300-350 that is crazy talk.
I think what will happen is rates will inch up, because of the good economy and all of a sudden the people holding off selling because they are trying to get the most will put the house up for sale at top dollar. Only problem is now the market has better supply and less demand so prices will decrease and the market will turn to a buyers market. I don't hink it will totally crash, but it needs a good correction.
Also all the housing in vacation places like havasu will take a big hit. So I think that their will be quite a few forclosures in the coming years. Another hint is the consumer debt is huge right now, I mean huge.;)
Wayne<------feels sorry for bandwagon real estate agents in 2-3 years.
...and this dude, forget about it. Havasu taking a big hit?? WTF...dude it took like 20 years for that market to wake itself up and look at it...place is a prime example of development, you really think it is going to back up?? Not in our lifetime pal..:D
..oh and don't feel sorry for the real estate agents in 2-3 years cause whether or not this market takes a shit, they still get their %. :p

bigq
02-25-2004, 11:55 AM
Originally posted by al cole'holic
I love it when I hear some crackpot say they are waiting for the market to take a dump, mostly it's because they are so damn bitter that they procrastinated so much on buying a house that they are still renting and watched as the market pushed up and up all the while still waiting for that bust that didn't happen. Now they can either grab their nuts and get in, or wait for that ****ing day they long for and keep paying rent!
Take a look around you here in SoCal at all the developments breaking ground and all that have yet to break ground. Hell, here in Simi there are 70 developments that haven't started yet..and when they do finish one they sell out in a matter of 24-48 hours. The demand is so high in SoCal that it is more a matter of trying to keep up at this point. Shit most of the people you think making 50k a year and buying a 400k home had the friggin balls to buy a place as early as 2 years ago and are reaping the benefits of moving up and up while still maintaining a level of morgage payment they originally had. All with the equity...
...and this dude, forget about it. Havasu taking a big hit?? WTF...dude it took like 20 years for that market to wake itself up and look at it...place is a prime example of development, you really think it is going to back up?? Not in our lifetime pal..:D
..oh and don't feel sorry for the real estate agents in 2-3 years cause whether or not this market takes a shit, they still get their %. :p
Well thanks for the nice comments.:rolleyes: no need to get so pissy I could be wrong.;) If you look at history of it all, I think it will happen and I reference the supply and demand in my post that I thought was clear, maybe not.
As far as Havasu, i know the history of the real esate out there and it has ramped up in a short amount of time, but it is a vacation spot.
I never said the agents won't get paid, but the new people that come in and are selling houses before they are even listed and not saving for a rainy day will be in for a surprise. The last two house I sold I felt like I was getting raped by the agent, the houses sold with little effort.
Wayne<-----wont pay 300k for 1200 sq/ft house, crackpot.;)

Essex502
02-25-2004, 12:02 PM
I have to agree with Al'Coleholic...I don't see the market dumping at all...I think the interest rates will rise gently and the housing markets might do a small "correction" but nothing like the 80's. The economy has already gone through it's major problems and the market kept right on cooking! Unless, of course something akin to a Sept. 11 attack occurs - then all bets are off.
Havasu dumping? Don't think so...
1) Snow birds that have second houses aren't needing to sell unless the they die and the heir's sell.
2) It's a "destination resort" and those with enough money to have a second home and are not over-extended with 125% loans will still have their vacation homes.
3) Talk about supply and demand...75% of the land available for residential property is already built upon. And...they ain't making any more land. Maybe the public lands around Havasu will be made available but until that happens there is a shortage of land looming.
Or so I think - but then again, I might be full of sh!t. Either way, I'm gonna' build that second Havasu house and rent the first. If the rental payment doesn't pay the mortgage I'll that the hit in negative cash flow for a while and then decide what to do. Until then I'll enjoy the tax advantages.
But then again....I have no boat payment, no car or truck payments, no credit card debt that's not paid at the end of the month nor any other forms of debt outside of mortgage payments.

hd&boatrider
02-25-2004, 12:08 PM
Originally posted by al cole'holic
I love it when I hear some crackpot say they are waiting for the market to take a dump, mostly it's because they are so damn bitter that they procrastinated so much on buying a house that they are still renting and watched as the market pushed up and up all the while still waiting for that bust that didn't happen. Now they can either grab their nuts and get in, or wait for that ****ing day they long for and keep paying rent!
Take a look around you here in SoCal at all the developments breaking ground and all that have yet to break ground. Hell, here in Simi there are 70 developments that haven't started yet..and when they do finish one they sell out in a matter of 24-48 hours. The demand is so high in SoCal that it is more a matter of trying to keep up at this point. Shit most of the people you think making 50k a year and buying a 400k home had the friggin balls to buy a place as early as 2 years ago and are reaping the benefits of moving up and up while still maintaining a level of morgage payment they originally had. All with the equity...
...and this dude, forget about it. Havasu taking a big hit?? WTF...dude it took like 20 years for that market to wake itself up and look at it...place is a prime example of development, you really think it is going to back up?? Not in our lifetime pal..:D
..oh and don't feel sorry for the real estate agents in 2-3 years cause whether or not this market takes a shit, they still get their %. :p
DAMN! No problem with your enthusiasm but nothing goes up forever. There has to be a drop....how much? That is the million dollar question. I for one have multiple properties myself and have done well but I am making sure it is all self sufficient so as not to overburden myself if/when the market slows/drops. I don't see it as being a problem for myself but for some it will definetly hurt them. The variables and baloon payment owners are the ones that will be hurt the most. Lets just say I agree with some of your thoughts but I am a little more cautious than you when it comes to some of the other statements. Either way I hope we all get rich :)

bigq
02-25-2004, 12:10 PM
Well either way it should be interesting to see what happens.
BTW I am thinking correction not a "dump" or "crash". prices historically have never fallen, in general, to below a level they started at in real estate.

Essex502
02-25-2004, 12:52 PM
Originally posted by hd&boatrider
DAMN! No problem with your enthusiasm but nothing goes up forever. There has to be a drop....how much? That is the million dollar question. I for one have multiple properties myself and have done well but I am making sure it is all self sufficient so as not to overburden myself if/when the market slows/drops. I don't see it as being a problem for myself but for some it will definetly hurt them. The variables and baloon payment owners are the ones that will be hurt the most. Lets just say I agree with some of your thoughts but I am a little more cautious than you when it comes to some of the other statements. Either way I hope we all get rich :)
In 1987 when the stock market crashed the smart money was buying not selling!
If the morons are overextended it's their own fault.

Essex502
02-25-2004, 12:54 PM
Originally posted by bigq
Well either way it should be interesting to see what happens.
BTW I am thinking correction not a "dump" or "crash". prices historically have never fallen, in general, to below a level they started at in real estate.
I would guess a correction of 10-20% will probably be all that happens. If folks are leveraged that badly then they will lose out. I think it is criminal to load a home loan to 125% of the value of the house. It shouldn't be allowed. Interest only loans...Who cares except if they are variables.

al cole'holic
02-25-2004, 12:56 PM
Originally posted by bigq
Well either way it should be interesting to see what happens.
BTW I am thinking correction not a "dump" or "crash". prices historically have never fallen, in general, to below a level they started at in real estate.
...I beg to differ, ever hear of Lake LA/Palmdale Airport scam from the 80's?..:D

bigq
02-25-2004, 01:50 PM
Originally posted by al cole'holic
...I beg to differ, ever hear of Lake LA/Palmdale Airport scam from the 80's?..:D
nope, don't recall that, but the word scam would put it in a different class than normal gains or losses.:D

bigq
02-25-2004, 01:53 PM
Originally posted by Essex502
I would guess a correction of 10-20% will probably be all that happens. If folks are leveraged that badly then they will lose out. I think it is criminal to load a home loan to 125% of the value of the house. It shouldn't be allowed. Interest only loans...Who cares except if they are variables.
I agree, did it once and learned my lesson, good thing I didn't need to off the house for any reason at that time. Never again will I leverage like that.:frown:

al cole'holic
02-25-2004, 02:21 PM
Originally posted by bigq
nope, don't recall that, but the word scam would put it in a different class than normal gains or losses.:D
...actually I meant scam very loosely. Long story short, alot of people flocked to the Palmdale deep regions in hopes of a large lake being built...all homes sold, no lake was in the future and the area tanked. Almost every resident walked away and left the homes and mortgages when the values dropped well below their purchase prices. They tried to sue the developers but they were long gone.
Another is the area in the deep regions where the proposed international airport was to be developed. Similar situation, no airport was ever built and that was that. We have about 20 acres that was once valued at 800k 15-20 years ago, and after the airport idea crapped....let's just say today I would trade it for a lot in Havasu. ;)

al cole'holic
02-25-2004, 02:31 PM
Originally posted by hd&boatrider
DAMN! No problem with your enthusiasm but nothing goes up forever. There has to be a drop....how much? That is the million dollar question. I for one have multiple properties myself and have done well but I am making sure it is all self sufficient so as not to overburden myself if/when the market slows/drops. I don't see it as being a problem for myself but for some it will definetly hurt them. The variables and baloon payment owners are the ones that will be hurt the most. Lets just say I agree with some of your thoughts but I am a little more cautious than you when it comes to some of the other statements. Either way I hope we all get rich :)
Not claiming things go up forever, but everyone needs to realize what is happening before their eyes. Example, I live in Simi...alot of people are anticipating a huge fallout in the market here, but the reality is that our city and the values are actually "becoming" areas like Westlake, or Porter Ranch, or Encino...Let's say 3-5 years ago you couldn't buy that house in area X because it was way out of your range, you are now living in that area. It's all relative...:D

Essex502
02-25-2004, 03:11 PM
Isn't Simi Valley where those white cops that beat the sh!t out of that poor, innocent african american man were acquitted of police brutality? Sounds like a pretty good place to be these days! Aren't you in the top 2 for safest city over 100K population in the country?

al cole'holic
02-25-2004, 03:27 PM
Originally posted by Essex502
Isn't Simi Valley where those white cops that beat the sh!t out of that poor, innocent african american man were acquitted of police brutality? Sounds like a pretty good place to be these days! Aren't you in the top 2 for safest city over 100K population in the country?
...our claim to fame. Most people don't think of that one episode of Quantum Leap filmed here too! :D

C-2
02-25-2004, 03:33 PM
I don't know if the RE market will "crash", but one thing is certain....interest rates will go up. Maybe not this year, but when they do it's gonna hurt. Like Essex520 said...a lot of people with ARM's will no longer be able to afford their loans.
New housing developments are also structured a lot different these days. They sell in a manner of days beacuase well...that's the way they are structured. The days of building entire tracts and hoping they sell are gone. On the same token, if they can't sell a new tract - they won't build it.
We too have seen our home double in value and equity....but we're pretty happy knowing our 21' boat is paid for and we still enjoy our equity, even if some of it disappears in a normal cycle.