Good news. We're at the tail end of a wave of subprime resets.
Bad news. Round Two of approximately $230 billion in resets that will hit home within the next year. Alt-A mortgages and Option ARMs.
The most opportunistic forecast I have seen is a 20 percent reduction in foreclosures for 2009 considered a “good year”. :yikes:
Add 750,000 in the active REO database. 17 percent of the inventory of existing homes for sale reported by the NAR in June. So we know that number is too low, let's add 8% to get to One in Four.
At current levels, there are more foreclosed homes than new homes sold in this country. 😱
25 percent of all sales will be foreclosed home sales, selling at a deeper discount to the market at an average of 33 percent discount to today's prices compared to 20 percent the previous year.
Builders can only compete with REOs by building custom from scratch rather Regardless, builders can't afford to compete against foreclosures at 40 percent to 50 percent off.
Pushing REOs through the FDIC-Asset Manager-Realtor pinhole is hardly any answer at all.
To Shoot The Messenger, aim at the stockings. :angry:
Replies
140
Banned
What about spec builders who buy vacant land out of foreclosure or better? Realtors tell me it is harder to sell vacant land then a finished home. Can't builders buy vacant land for 70% off and offer a new home without the red tape of foreclosure or short sale and compete quite handily?
Beach Fanatic
What about spec builders who buy vacant land out of foreclosure or better? Realtors tell me it is harder to sell vacant land then a finished home. Can't builders buy vacant land for 70% off and offer a new home without the red tape of foreclosure or short sale and compete quite handily?
Where can you buy a lot for 70% off? Prices are stubbornly high in the areas I have been looking in.
Beach FanaticAuthor
What about spec builders who buy vacant land out of foreclosure or better? Realtors tell me it is harder to sell vacant land then a finished home. Can't builders buy vacant land for 70% off and offer a new home without the red tape of foreclosure or short sale and compete quite handily?Haven't seen any/many 70% reductions in lots (against Sale Price), perhaps they are there.
I would think that would be the best of all worlds; 70% REO lot, a strongly priced custom home product, new construction.
Or play in an arena where money, downpayments, are not an issue. This is where we have chosen to operate as of late, with upper scale folk in that 5% category. Our low priced land comes from ecologically-strangled lands where landowners are trapped, regardless of the market, by the overwhelming complexity and inherent risk in the permitting process. Our builders enjoy very unique financial and sales opportunities as do our homeowners (who also enjoy high technology amenities, beach and bay/boating, community alternative energies, unrivaled security, privacy is complete and their own nature parks ad infinitum.
Banned
Where can you buy a lot for 70% off? Prices are stubbornly high in the areas I have been looking in.
Ask St. Joe for 70% off on a developer lot in Watersound Beach. They'll gladly sell you one of their remaining lot's for $680,000 less than the original price they sold comparable lots to their other customers in '05. They will even give you a gift bag with about $20,000 worth of additional promotional items.
I was thinking of buying another and they still have about 12 left. I bought one and closed on the last day of the quarter for additional savings. You won't be real popular with your neighbors, but I'm sure you could buy a pretty nice airplane with the money you'll save.
Peace, JC
Banned
Haven't seen any/many 70% reductions in lots (against Sale Price), perhaps they are there.
I would think that would be the best of all worlds; 70% REO lot, a strongly priced custom home product, new construction.
Or play in an arena where money, downpayments, are not an issue. This is where we have chosen to operate as of late, with upper scale folk in that 5% category. Our low priced land comes from ecologically-strangled lands where landowners are trapped, regardless of the market, by the overwhelming complexity and inherent risk in the permitting process. Our builders enjoy very unique financial and sales opportunities as do our homeowners (who also enjoy high technology amenities, beach and bay/boating, community alternative energies, unrivaled security, privacy is complete and their own nature parks ad infinitum.
Sorry I'm stepping on your thread. I think you have more wisdom than some folks think.
Beach Fanatic
Sorry I'm stepping on your thread. I think you have more wisdom than some folks think.
Its the Sheep thing😀
Meow
Sorry I'm stepping on your thread. I think you have more wisdom than some folks think.
When The Sheep types in English, it can be a good read. :wave:
Beach Comber
I must be missing something. I do not see a large number of foreclosures in the Destin mls. (I am mainly looking at condos.) Are the foreclosures not all listed in the mls? I assume the percentages you are citing are nationwide, but I think the destin foreclosure totals would be less than 5% of total listings.
Short sales are a different matter.
Short sales are a different matter.
Beach Fanatic
When The Sheep types in English, it can be a good read. :wave:
The Sheep speaks in scat jazz. :lol:
Beach Fanatic
I must be missing something. I do not see a large number of foreclosures in the Destin mls. (I am mainly looking at condos.) Are the foreclosures not all listed in the mls? I assume the percentages you are citing are nationwide, but I think the destin foreclosure totals would be less than 5% of total listings.
Short sales are a different matter.
What percent of short sales I wonder will ultimately end up as foreclosures? :idontno:
Banned
I must be missing something. I do not see a large number of foreclosures in the Destin mls. (I am mainly looking at condos.) Are the foreclosures not all listed in the mls? I assume the percentages you are citing are nationwide, but I think the destin foreclosure totals would be less than 5% of total listings.
Short sales are a different matter.
Since Sept. 1st there have been about 100 lis pendens filed in Walton County which is the precursor to foreclosure and about 300 Warranty Deeds which represent a property sale. Of the 300 Warranty Deeds there are a large percentage of them that were unqualified.
Beach Fanatic
If you want to get an idea of the foreclosure situation in Walton County, go through the legals section of the classified ads in the Beach Breeze/DeFuniak Herald. The number of notices there is quite impressive. (I guess their ad rates are cheaper than the Sun's for that kind of thing)
Beach FanaticAuthor
Sorry I'm stepping on your thread. I think you have more wisdom than some folks think.One does not own threads or freedom of conversation.;-)
Beach FanaticAuthor
Originally Posted by Miss Kitty 
When The Sheep types in English, it can be a good read. :wave:
When The Sheep types in English, it can be a good read. :wave:
The Sheep speaks in scat jazz. :lol:Speaking the common language commonly will commonly render the language, and the message, common.😀
Banned
One does not own threads or freedom of conversation.;-)
Tell that to some of the HOA's around here, please.
Beach Fanatic
Mikeyboy, Perhaps the problem is in the name. South Walton, SoWal in not in Destin. Destin is in Okaloosa County. SoWal is in Walton County. Two very different places. The stats for Sowal and Destin are very different. Many are ignorant of this fact. ps. I am not a realtor nor do I have anything for sale.
Meow
Originally Posted by Miss Kitty
When The Sheep types in English, it can be a good read. :wave:
Speaking the common language commonly will commonly render the language, and the message, common.😀
I am a kommon kitty. kommon works for me.
Beach Fanatic
Good news. We're at the tail end of a wave of subprime resets.
Bad news. Round Two of approximately $230 billion in resets that will hit home within the next year. Alt-A mortgages and Option ARMs.
Pushing REOs through the FDIC-Asset Manager-Realtor pinhole is hardly any answer at all.
To Shoot The Messenger, aim at the stockings. :angry:
Oh well, could be worse. If we get Resolution Trust Corp. II (The Sequel),
we'll get big auctions. REAL auctions, not those "marketing events" that
have been posing as auctions. Potential buyers will need cash, or (LOLOLO)
a bank letter of credit in order to buy.
How will that affect the value of surrounding real estate?
I remember going to a couple of those RTC auctions way back when.
Reminds me of how old I am getting to be.
And how people need to keep learning the same lessons over and over and
over....
Good reading;
http://online.wsj.com/article/SB122169431617549947.html
Capricious
"...Can't you understand what's happening here? Don't you see what's happening? Potter isn't selling. Potter's buying! And why? Because we're panicky and he's not. That's why..."
Banned
Isn't the Resolution Trust Corp. the entity that entitled us of Sowal to have Point Washington State Forrest? It can't be all bad....
Beach Fanatic
Isn't the Resolution Trust Corp. the entity that entitled us of Sowal to have Point Washington State Forrest? It can't be all bad....
Depends upon who paid for it and how much it cost.
Capricious
"...Can't you understand what's happening here? Don't you see what's happening? Potter isn't selling. Potter's buying! And why? Because we're panicky and he's not. That's why..."
Beach Fanatic
Yes. Bad is bad. No matter how many years gloss over the facts. There are consequences to be paid. Road access, alternate routes, neighborhood development, etc. etc. etc.
Beach FanaticAuthor
I am a kommon kitty. kommon works for me.Then why the "k", citty?
Beach Fanatic
Isn't the Resolution Trust Corp. the entity that entitled us of Sowal to have Point Washington State Forrest? It can't be all bad....
Yes it is. I believe it allowed the State to buy quite a large amount of land for very few dollars.
Beach FanaticAuthor
Yes it is. I believe it allowed the State to buy quite a large amount of land for very few dollars.Righty, right. Our FDIC, and re: the foreclosues in thread, I do not expect the near amount of large land parcels with Alt-A mortgages. 😀
Nonetheless, the new FIRREA is awakening as we march forward with the Fed Final And Awaited, Completely Predictable And Known For Years, Ultimate And Only Conclusion....
the buyout of bad loans and worser paper. :cry:
Edited
Beach Fanatic
Yes it is. I believe it allowed the State to buy quite a large amount of land for very few dollars.
Someone took a bath; I assume the taxpayers.
And bathe again we shall. And are.
Capricious
"...Can't you understand what's happening here? Don't you see what's happening? Potter isn't selling. Potter's buying! And why? Because we're panicky and he's not. That's why..."
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