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TheSheep

Beach Fanatic
Jan 30, 2007
360
27
Farms
tinyurl.com
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. :eek:

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:
 
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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?
 

traderx

Beach Fanatic
Mar 25, 2008
2,133
467
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.
 

TheSheep

Beach Fanatic
Jan 30, 2007
360
27
Farms
tinyurl.com
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.
 
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
 
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.
 

Miss Kitty

Meow
Jun 10, 2005
27,015
1,123
67
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:
 

mikeyboy

Beach Comber
May 19, 2006
6
1
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.
 
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