Priced right REOs are moving fast

It's all about price!;-)

For those who have no idea what a REO is, a REO (Real Estate Owned ... by the lender) is a property which is owned by the lender, after having been taken back from the owner who couldn't pay their bills.

The crazy thing is that the bank could have gotten more money from it had they been upfront with the listing agent regarding the price. The banks are kicking themselves in the ars, and it just doesn't make sense to me.

The banks have to have a limit on how flexible they can be with borrowers. They have to have a wall, which borrowers must face (or have their back against). This perpetuates the system of borrowing and lending which has existed for thousands of years. Short term losses sometimes have to happen for long term gains.

Imagine debtors prison, or being shipped to another country as an indentured servant.

It's all about price!;-)

Or all bleeding eventually stops.

Is there any easy way online to find local REOs?

Is there any easy way online to find local REOs?

no. The only thing specially noted would be the seller's name, being the lender.

Is there any easy way online to find local REOs?

I wouldn't call it "easy," but it is somewhat possible.

Google "REO" and name a bank or mortgage company (i.e. REO "Countrywide").

Usually in the resulting list you will find the line item that directs you to their REO listings. You may find that each financial institution has a different way to search for properties: They ask you to identify the state; type of property; zip code; # bedrooms; etc.

Happy hunting!

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Is there any easy way online to find local REOs?

foreclosures.com
foreclosure.com
foreclosurelistings.com
realtytrac.com

These guys all tap into county records.

You could always just ask a competent realtor to setup automated emailings of newly listed REOs in the designated areas you desire.

I'm assuming (yes I know the definition) that REO's aren't all that negotiable?

I'm assuming (yes I know the definition) that REO's aren't all that negotiable?

Here's some interesting reading on REOs and Foreclosures from Mike Morgan in Central Florida.

I've been following this guy throughout the rise and fall of the housing bubble and, even though he is a Realtor, he saw the trainwreck coming and gave the straight scoop all along.

http://www.morgan-florida.org/reo-listing
http://www.morgan-florida.org/foreclosures




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I'm assuming (yes I know the definition) that REO's aren't all that negotiable?

They are actually, I've seen REO's that sold for under asking. Certain banks just want to unload, they'll negotiate on price.

I wonder if Shelly knows I have to move from rental to rental like a vagabond until he/she gives Skunky the word that it's safe to buy. My opinion carries zero weight.


I'm going to tell him he can have Shelly unpack the boxes this time.

lol

I wonder if Shelly knows I have to move from rental to rental like a vagabond until he/she gives Skunky the word that it's safe to buy. My opinion carries zero weight.
I'm going to tell him he can have Shelly unpack the boxes this time.

There ARE some good buys out there, so I hope you are shopping, just not buying into realtor hooey.

Paying a fair price for a house won't get you in trouble w/ Shelley!

especially if it doesn't have granite counters

OK, so what's an example of a good deal or a fair price currently in the market? I'm just curious.

I wonder if Shelly knows I have to move from rental to rental like a vagabond until he/she gives Skunky the word that it's safe to buy. My opinion carries zero weight.


I'm going to tell him he can have Shelly unpack the boxes this time.

(1) Have 20% to put down?

(2) Have enough liquid money to pay for 6-12 months of ALL expenses (living & housing)?

(3) Have your retirement accounts adequately funded for your age and retirement goals?

(4) Able to find a home that costs 2.5x but no more than 3x gross income?

(5) Absolutely sure that you will be living in the home for at least 5 years? And if not, or things change suddenly, have enough in savings to possibly bring money to closing if you're forced to move out earlier?

(6) Have adequate insurance (life & disability) in place in case something happens to either of you.

(7) Have a total debt ratio of no more than 38% (including CC, auto, mortgage, etc).

(8) Able to afford a place that is safe and within a decent commuting distance from workplaces?

(9) Factored in future expenses such as increasing the size of your family or the possibility of taking care of aging parents.

(10) When figuring out your budget, you shouldn't take into consideration "possible" future pay increases or house appreciation...but DO have to take into account further inflation (food, gas, utilities, etc.)

If you have all of this in place...by all means, you've got my blessing to buy now--but if you don't, by all means, use this time to compile the above and attend any open houses that include snacks (to help save on food costs)

BTW: I don't "do" packing or unpacking; and no, you can't borrow my pickup truck


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OK, so what's an example of a good deal or a fair price currently in the market? I'm just curious.

One where the owner realizes they own a home or piece of vacant land, not a winning lotto ticket!

I love that one seller who refused to even respond to my 'insultingly low offer' a year ago now has it listed within 40K of it!

(1) Have 20% to put down?

(2) Have enough liquid money to pay for 6-12 months of ALL expenses (living & housing)?

(3) Have your retirement accounts adequately funded for your age and retirement goals?

(4) Able to find a home that costs 2.5x but no more than 3x gross income?

(5) Absolutely sure that you will be living in the home for at least 5 years? And if not, or things change suddenly, have enough in savings to possibly bring money to closing if you're forced to move out earlier?

(6) Have adequate insurance (life & disability) in place in case something happens to either of you.

(7) Have a total debt ratio of no more than 38% (including CC, auto, mortgage, etc).

(8) Able to afford a place that is safe and within a decent commuting distance from workplaces?

(9) Factored in future expenses such as increasing the size of your family or the possibility of taking care of aging parents.

(10) When figuring out your budget, you shouldn't take into consideration "possible" future pay increases or house appreciation...but DO have to take into account further inflation (food, gas, utilities, etc.)

If you have all of this in place...by all means, you've got my blessing to buy now--but if you don't, by all means, use this time to compile the above and attend any open houses that include snacks (to help save on food costs)

BTW: I don't "do" packing or unpacking; and no, you can't borrow my pickup truck


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What does 5 out of 10 get me? 6 if I just resolve to let my mom fend for herself.

Fine, fine....you're right and that's why I thanked you for the link. It reminded me of the realities.

Still, I don't think you're factoring in the mental anquish of moving, the expense of boxes and tissue paper as the homes are foreclosed on in succession, or my need to plant a garden and have a place to bury my dogs.

I hate this market. I really do.

OK, so what's an example of a good deal or a fair price currently in the market? I'm just curious.

I think 2003 comps act as a pretty good baseline for prices today, not sure about tomorrow. ;-)

I think 2003 comps act as a pretty good baseline for prices today, not sure about tomorrow. ;-)

Sounds about right ... Don't beat me up too much, but I honestly believe unless the economy implodes or close to it, those prices will hold up pretty well. There was "room to grow" in the market between 2001 and late 2003, and that was due to the climbing inherent value of 30-A. YMMV ... I am not buying or selling, this is just my gut feeling from when we started looking around the area.

(1) Have 20% to put down?

(2) Have enough liquid money to pay for 6-12 months of ALL expenses (living & housing)?

(3) Have your retirement accounts adequately funded for your age and retirement goals?

(4) Able to find a home that costs 2.5x but no more than 3x gross income?

(5) Absolutely sure that you will be living in the home for at least 5 years? And if not, or things change suddenly, have enough in savings to possibly bring money to closing if you're forced to move out earlier?

(6) Have adequate insurance (life & disability) in place in case something happens to either of you.

(7) Have a total debt ratio of no more than 38% (including CC, auto, mortgage, etc).

(8) Able to afford a place that is safe and within a decent commuting distance from workplaces?

(9) Factored in future expenses such as increasing the size of your family or the possibility of taking care of aging parents.

(10) When figuring out your budget, you shouldn't take into consideration "possible" future pay increases or house appreciation...but DO have to take into account further inflation (food, gas, utilities, etc.)

If you have all of this in place...by all means, you've got my blessing to buy now--but if you don't, by all means, use this time to compile the above and attend any open houses that include snacks (to help save on food costs)

Hmmmmmmmm, except for #4, apparently now is a "good time to buy" for Scooterbug!

Great list that should be a good reality check for many!

Shelly are you Dave Ramsey ?

The long term rental market is where the action is...it's like buying in spring '05. We just had a house rented out from under us because we asked for 12 hours to see the new mortgage product our bank contacted us about.

And we were going to pay to have the house painted for them.

Good god, I hate this market.

Hmmmmmmmm, except for #4, apparently now is a "good time to buy" for Scooterbug!

Great list that should be a good reality check for many!

You can 'fix' #4 <Able to find a home that costs 2.5x but no more than 3x gross income> in a few ways:

(1) Make a bigger down payment and bring down the cost of the home (make sure you recalculate #2 (liquidity) accordingly if you're using reserves as your source.

(2) Keep low-balling the sellers until someone is desperate enough to bite on your offer.

(3) Increase your gross income by saying goodbye to "life as you know it" and increase work hours or get additional jobs.

(4) Decrease your debt ratio by selling off the leveraged "toys" and applying the resulting cash and any loan payments into the purchase of the house.

(5) Reprogram your brain to accept the fact that current local house prices or your "dream house" may be out of reach for the moment; keep saving and enjoying your life now as you work toward your goal.

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