Foreclosures

[tommyj]

That piece of sh*t for a million? And Kulindar - they just havent seen the new economics yet - tell them to keep fooling themselves. Why else hasnt it sold? Idiots!!

 

[ejbonk]

The reality when it hits them,will be a very bitter pill to swallow. No,Place,or man is an Island. the falling prices will catch up with all locations. California as well as all Pacific Coast Areas will join the rest of the country once the banks give up trying to recoup the entire loss from the sales of the foreclosured properties.

 

[metta]

The reality when it hits them,will be a very bitter pill to swallow. No,Place,or man is an Island. the falling prices will catch up with all locations. California as well as all Pacific Coast Areas will join the rest of the country once the banks give up trying to recoup the entire loss from the sales of the foreclosured properties.

San Marino, CA went up 4% while the cities around it went down over 30%. The wealthy are still doing ok. I have a friend that is an appraiser and he recently did an appraisal in a nice are of Pasadena, CA and it had only dropped 3.6% in value. Some of the wealthy highly desirable areas are holding pretty well. San Marino gets people from all over the World that want to live there, especially wealthy Chinese and many pay cash. They have the top school district in California.
http://www.realtor.com/realestateandhomes-search/San-Marino_CA

 

[ejbonk]

I'm sorry Metta,but there is no way in hell. This dump was worth $ 1 million in 2006. It is not worth $ 500,000 now. It's barely worth $100,000 ,If that.



Once the banks give up trying,Real Estate values will drop and big time. The bubble still has a long way to fall. We have not yet seen the prices reflect the really true value of many toxic assets.

 

[metta]

^
I agree with you regarding that home.

I'm not sure how much more it will fall in many areas in LA. I'm starting to get the feeling that it has hit bottom or near bottom. Some areas have dropped 40-80% already.

I would like to see drops in commercial property. It increased so much that it is impossible to make it affordable for a business.

 

[tommyj]

Metta -also remmeber that the appraiser has to go on closed sales - many of whichwere ecorded BEFORE themarket really cycled down in 2008. That may explain the "holding." Where do u live?

 

[Kulindahr]

That piece of sh*t for a million? And Kulindar - they just havent seen the new economics yet - tell them to keep fooling themselves. Why else hasnt it sold? Idiots!!

Houses with ocean views are still selling, just not quite as quickly. Houses two blocks from having a view are dropping off the market or turning into rentals.

And the developers are still building houses and condos with ocean views, but go two blocks back and there are frames standing there which haven't had so much as a nail added in many months.

There's a little place near here where total property value is just about holding even -- nine out of ten dwellings has an ocean view! But two miles down the road, a development just over a low ridge from the ocean is suffering from foreclosures, even though it's but a two-minute walk to be right on the beach.

 

[SonOfSlobone]

my concern with that is that Hawaii is so dependent on the travel industry, and energy costs will eventually sky rocket over the long term, making it affordable for less and less people to go to hawaii over the long term.....unless we come up with more energy efficient ways of getting there.

Not to mention that Hawaii is especially ripe for speculation by investors from Asian countries. As long as there's money looking for a safe haven the prices won't go down...

 

[SonOfSlobone]

And anyway, there is no "right" price for a house or anything else, it's whatever somebody's willing to pay for it. That old rule about it shouldn't be more than 3 times your annual income went out the window years ago.

Sooner or later people will decide that prices aren't going to go down any more and will start buying again. It's a mass psychology thing.

If I was looking for an investment I would definitely wait. There isn't going to be a shortage of bargain foreclosures for a long time to come...

 

[metta]

12 pct. are behind on mortgage or in foreclosure
That is a lot! More than I thought.

I would have guessed about half of that. WOW. That is really horrible.

NEW YORK – An industry report shows that a record 12 percent of homeowners with a mortgage are behind on their payments or in foreclosure as the housing crisis spreads to borrowers with good credit.

The Mortgage Bankers Association said Thursday the foreclosure rate on prime fixed-rate loans doubled in the last year, and now represents the largest share of new foreclosures. Nearly 6 percent of fixed-rate mortgages to borrowers with good credit were in the foreclosure process.

At the same time, almost half of all adjustable-rate loans to borrowers with shaky credit were past due or in foreclosure.

California, Nevada, Arizona and Florida accounted for 46 percent of new foreclosures in the country.

http://news.yahoo.com/s/ap/20090528/ap_on_bi_ge/us_foreclosures

 

[Kulindahr]

^
Just when talking heads are saying things are starting to get better.....

 

[ejbonk]

That's ,Why My Wife Started her own Business just this month. Home Foreclosure Bank Inspection Services of Stark/Summit and surrounding Counties LLC. The end is not near. This is just the phase,waiting for the other shoe to drop.

 

[metta]

Berkshire Hathaway's Sokol: "No Green Shoots"

David Sokol, chairman of Berkshire Hathaway Inc's MidAmerican Energy Holdings and a contender to succeed Warren Buffett, warned that the U.S. housing market still has a ways to go before bottoming out.
...
"As we look at the economy, I have to be honest: we're not seeing the green shoots," Sokol said ... "We think the official statistics of 10 to 12 months' backlog is actually nearly twice that amount," ...
"There is an enormous shadow backlog of about-to-be foreclosed homes and of individuals who need to sell but have time, and there are already six (for sale) signs on their block," he said.
... "It will be be mid-2011 before we see a balancing of the existing home sales market." He defined "balanced" as a six-month backlog.

http://www.reuters.com/article/marketsNews/idAFN2826249320090528?rpc=44

 

[metta]

wow....$643k.....so much of it needs to be ripped out. I would regrout all of that stonework on the outside. I hate that black grout. Dump the lions and put planters on top. And then rip out all of the flooring and tile work on the inside ....and rip out a bunch of the backyard. Maybe put another $200k in it and it still would make a good investment. In a normal market in California, that home would be worth way over a $1,000,000 (in the 90's)...but it is also a major fixer uper.

 

[metta]

here is an interesting foreclosure

 

[metta]

I think that the first group of foreclosures are pretty much done in California. I live in a development that was built in 2002. It has 327 homes. There are only 3 homes for sale and the only reason why they have not sold is becuase they are asking for way more than what the homes in the area are currently selling for. A foreclosure just went up for sale 2 weeks ago and sold in 2 days.

However, I do understand that there may be a new group of foreclosures coming becuase of the other crazy types of loans that were created by the financial industry that are going to start coming due. Those are the ones where people did not need to make payments large enough to even cover the interest on the loan.

One good thing about the foreclosures is that that every home that I have seen that was a foreclosure, the new owners spent a lot of money to get them back into shape. They still got excellent deals, only 1 lower than the cost that the builder originally sold it for and that was only because the new owners paid cash, but not the deals that some people may have thought may have happened.

 

[metta]

Another wave of foreclosures is poised to strike

Just how big the foreclosure wave will be is unclear. But loan defaults are up sharply. And with many government and banks' self-imposed foreclosure moratoriums expiring, the biggest lenders indicate that they are likely to move more aggressively to clear up a backlog of troubled mortgages.

http://www.latimes.com/business/la-fi-foreclosure4-2009jul04,0,5145254.story

 

[metta]

“I had people calling me crying, and we were telling them, ‘You can pay me or you can lose your house. People were giving me every dime they had, opening credit cards. But I never saw one client come out of it with a successful loan modification.”
Paul Pejman, a former sales agent for FedMod in Irvine, Calif

http://www.nytimes.com/2009/07/20/business/20modify.html?_r=1

 

[versatastic]

A lot of lawsuits against banks to get a loan modification for their ARMs and such will be going to trial in the coming months. There will also be lawsuits against a lot of those new loan mods. For the original mortgages, many agents filled in applications after people signed blank forms. Now those same agents are getting a percentage of the new loans they're "negotiating". Yeah, they feel so bad about screwing people the first time around that they want to do it again. At least some homeowners can stay in their houses for a few more years.

 

[Kulindahr]

^
Agents like that would hate people like most of my family: we don't sign anything until every blank is filled and we've read every word. I even read all the fine print in auto loan contracts.