Strategy For Riding This Market To The Bottom

[traderx]

A few thoughts (and reasons to work w/an experienced realtor):

- Buyers can back out of any contract, including short sales, but that doesn't necessarily mean that you are entitled to get your earnest $ back

- When you put an offer on a short sale - for all intents and purposes - the seller can no longer market the property. It is not the seller's fault that lenders are slow to act AND the foreclosure clock is still ticking for these folks. If you're not serious about buying then you're just ****ing with people at a point in their life when they really don't need that.

- If you are serious about treating real estate investing like casual dating (this house will do until a cheaper one comes along), I suggest that you focus your search on bank-owned properties. You can typically get a better "deal" than a short-sale and a faster response on your offer. Another plus - since your bailout tax dollars might be paying the salary (and bonus!) of the decision maker at the bank - you don't have to feel guilty if you've wasted their time!

Thanks for the tip.

 

[Lynnie]

They typically will pay 5%.

Holda, holda, holda, holda, holda - they are paying 5%? Well, get ready for some added competition cause in GA, realtors are lucky to get 1% and many lenders are only paying a flat fee. I am not a realtor; however, I know many who can't sustain themselves on 1% or flat fee in GA.

Odd because there are more foreclosures in FL - seems GA would want to prevent going in this direction on a short sale opportunity......and, you can forget about RESPA being adhered to with regard to lending. I've lost many to the current lender demanding a pre-approval from their own institution...fine line and I've called a couple on the carpet.

In 2008 realtors and lenders' business in GA was down 60-80% and it's tracking a higher number for 2009 (as compared to 2007). Real estate isn't moving. Really a shame with rates as attractive as they are. With the past mini-refi boom of mid-Dec to Jan/Feb, 1/2-2/3 of all apps were declined: lower credit scores, more revolving debt, lower incomes, reduced property values.

Rates will probably hold for a bit, then start to creep back up.

 

[Babyblue]

I can tell you as a former banker these bank's don't know what to do other than get TARP funds and hold on.

 

[Lynnie]

I can tell you as a former banker these bank's don't know what to do other than get TARP funds and hold on.

Especially, after the assets are re-evaluated. Just think: if there hadn't been so much book cookin, the sub prime debaucle might have imploded in 2005 as opposed to 2007 and we'd be two years closer to recovery! Just a thought! ;-)

 

[Babyblue]

This is what the banks are doing. Take a non performing asset and keep in on the books to show Capitol. Apply for the TARP funds, get the funds, then sell the junk have the cash from the gov. hold on to what you have, core deposits, then when the market corrects, back in business and make money on the sale of the junk and the cash from the gov. Look at C they are already turning the corner. It is a no brainier when you have the gov. inject fresh cap. I wish I was a CEO again!

 

[Lynnie]

Yes, and if WE know what's going on, then why can't Capitol be a little more stern in dolling out tax payer $$? This is most likely one of the variables as to why a short sale decision takes so long. The bank approves and signs = they devalue an asset.

I wish you were a CEO again, too. And, I wish I was your CFO.

 

[Babyblue]

Lynnie, let's start a bank. It will be a money maker, It is a sure bet!

 

[Lynnie]

Lynnie, let's start a bank. It will be a money maker, It is a sure bet!

I'm all in!! Ready whenever you are......I know a couple of others interested, too!

Cheers~~~~

 

[scooterbug44]

- When you put an offer on a short sale - for all intents and purposes - the seller can no longer market the property. It is not the seller's fault that lenders are slow to act AND the foreclosure clock is still ticking for these folks. If you're not serious about buying then you're just ****ing with people at a point in their life when they really don't need that.

Really sums it up for me - those karma points are a biatch!

 

[Miss Kitty]

Thanks Lynnie and Babyblue! Y'all jsut helped me understand more about these TARP $$ and what the banks would naturally do! No Brainer, indeed!

Tell me when you open your bank...I am in!