Priced right REOs are moving fast

One more note regarding my frustration with REO listed properties which are really short sales: REO (real estate owned by the bank) properties are listed at a "real" price. Short-sales are not necessarily listed at a "real" price. So, when you see a price of $250,000 for a house located south of 30A, there may be a big difference in the listing, depending on whether it is a REO or short sale.

Don't you love it! Makes us work much harder. I really do love how this business changes daily. So glad I don't have a real job!

The market is changing, it always does. Some agents evolve and some don't. Those that understand and know how to evaluate a short sale's chances of closing will be the ones that are not just spinning their wheels. My clients know the chances of closing a short sale before we write an offer.

Hey, c'mon. I told you guys a month or two ago that agents are not listing short sales correctly. They are also not listing REOs correctly. But they are DICTATING MARKET VALUE!

They really can be the best deals out there, and it is up to us realtors to clear them off the board so that this market can appreciate- and it will - once the bank deals are sold off - I'm working on it!

And Shell, your question is very difficult to address as there are many circumstances that come into play of a short sale deal. Every bank's loss mitigation dept has different guidelines and the BPO's required to affirm an offer. I wish the situation was a bit clearer than mud...

We are just about to close on another Country Wide short sale! They are a nightmare but they do work The success depends on the buyer staying in the deal and like Joe Mammy says the agent having the ability to look at the loan and evaluate what the bank will take. The deals we have lost have been the buyer pulling out or the IRS stepping in.

They really can be the best deals out there, and it is up to us realtors to clear them off the board so that this market can appreciate- and it will - once the bank deals are sold off - I'm working on it!

You're assuming that there is a finite number of REOs. What if these REO are like Tribbles?

Clue me in on what you see in the immediate future that is going to turn the state of the US economy (and subsequently the RE market) around...I'd really like to know, because I'm missing it.


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The deals we have lost have been the buyer pulling out or the IRS stepping in.

The IRS? You mean the IRS is wanting the investulator to pay taxes on the amount of the loan that's forgiven--right?

I've also read that some lenders are requiring the seller to pay back some of the "forgiven portion" of the short sale with another loan. (A little reminder that RE isn't the risk-free investment they thought it was.)

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The IRS? You mean the IRS is wanting the investulator to pay taxes on the amount of the loan that's forgiven--right?

I've also read that some lenders are requiring the seller to pay back some of the "forgiven portion" of the short sale with another loan. (A little reminder that RE isn't the risk-free investment they thought it was.)

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You are going to have to pay back some portion of the short fall unless it is your primary residence. The pay back is one big negotiation! For instance, I know one deal where the guy owed $1.3 million on a home and sold it for $950,000. He then worked out a payback based on the short fall and all the interest he had paid on the note. I think in the end he is paying the bank back $150,000 on a 30 year note. Sure beats the $1.3 million.

I think in the end he is paying the bank back $150,000 on a 30 year note. Sure beats the $1.3 million.

We should all be so lucky...right Bobby?
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You're assuming that there is a finite number of REOs. What if these REO are like Tribbles?

Oh, that's easy. We just get Scotty to beam the REOs onto a Klingon ship.

The majority of the foreclosures that we are seeing today all have one thing in common- they bought in late 2005 or 2006 at the peak. That is a finite number.

Oh, that's easy. We just get Scotty to beam the REOs onto a Klingon ship.

The majority of the foreclosures that we are seeing today all have one thing in common- they bought in late 2005 or 2006 at the peak. That is a finite number.

But that was when the most were sold too. So based on the total number of places sold during the '05-'06 bubble and the rate of places being sold now--it may take years to absorb the over-priced bubble-era investulator inventory--especially since the Fog This Mirror™ loans are no longer available.

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But that was when the most were sold too. So based on the total number of places sold during the '05-'06 bubble and the rate of places being sold now--it may take years to absorb the over-priced bubble-era investulator inventory--especially since the Fog This Mirror™ loans are no longer available.

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...and Bernake is going to have to raise rates here at some point, inflation is rising at a fast clip and energy costs continue to rise. When he does, it in turn will hurt bank recoveries, causing more tightening in the lending markets, and more failures.

2009 plus the first half of 2010 are shaping up to be really terrible times overall. If you're not in a defensive position financially, you should consider doing so, and soon. The housing turn around though should start to show up in early 2010, with people dumping stocks and investing in real estate again.

We should all be so lucky...right Bobby?
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I sure hope so Shelly.

...and Bernake is going to have to raise rates here at some point, inflation is rising at a fast clip and energy costs continue to rise. When he does, it in turn will hurt bank recoveries, causing more tightening in the lending markets, and more failures....

I watch the lender rates, weekly, and am already noticing an up-tick in rates.

...and Bernake is going to have to raise rates here at some point, inflation is rising at a fast clip and energy costs continue to rise. When he does, it in turn will hurt bank recoveries, causing more tightening in the lending markets, and more failures.

Honestly, I can't see how .25 here or there is going to make a dent right now with this economy and in addition, risk a flat yield curve.

As far as Bank mortgage rates being higher, that has nothing to do with hedging what the Feds next move may be, the bond market determines that. It has everything to do with offering a more profitable securitization, and also it's near quarters end.

Regardless of why rates are increasing, it will as mentioned, affect sales of real estate to some degree.

Regardless of why rates are increasing, it will as mentioned, affect sales of real estate to some degree.

Sorry, haven't read the whole thread in its' entirety, and yes, it may stall some buyers who may wait for their price if rates kick up a bit, but historically, or let me say, as long as I have been in the business, 22 years.....which doesn't age me as much, when prices are right, rates are not as important, and a .50 %-1% spread increase in rate, for example is not as relevant, especially in a thriving economy. I remember 15 years ago when I bought my house, the 30 year rate was 7.25%, and I thought that was great compared to 10-11 percent in the late 80's. It's all perspective.

Also, I may add, it's June and some people buying are trying to get in new homes by the time school starts. I'd be curious to see and come back to to this conversation again in September. I also think the stock market this summer will cause people to flee to the security of bonds, and that may lower rates a bit.

Also, I may add, it's June and some people buying are trying to get in new homes by the time school starts. I'd be curious to see and come back to to this conversation again in September. I also think the stock market this summer will cause people to flee to the security of bonds, and that may lower rates a bit.

With inflation raging, folks will be demanding a higher interest rate in return for locking their money up in newly issued bonds...that being the case, the prices of the outstanding bonds (@ their present miniscule rates paying out in a depreciating currency no less) will tank, subsequently spiking the yields -- together they'll result in pushing mortgage rates even higher. Increasing mortgage rates will put downward pressure on housing prices.


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With inflation raging, folks will be demanding a higher interest rate in return for locking their money up in newly issued bonds...that being the case, the prices of the outstanding bonds (@ their present miniscule rates paying out in a depreciating currency no less) will tank, subsequently spiking the yields -- together they'll result in pushing mortgage rates even higher. Increasing mortgage rates will put downward pressure on housing prices.
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So, is this your way of telling us cash, maybe gold, and your personal favorite, corn, may be King?

So, is this your way of telling us cash, maybe gold, and your personal favorite, corn, may be King?

You heard it here first.
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