Short sales, foreclosure, and the housing market.

[quikveedb2]

I've been working for the past year with a company that buys and sells foreclosures via short sale. In light of the current housing market and economy, business has been booming. There's more distressed properties out there than the housing market can bear, or banks can liquidate through auctions, hence the need for government bailouts to keep all the banks that created these bad debts afloat.

Who knows about short sales or foreclosure on here? Anyone looking to buy cheap, or get out of their home? Anyone had bad experiences with banks & home loans? R3v homeowners care to chime in on the effects of the devaluation of their homes, which was once a safe " investment" on their daily lives?

[Massive Lee]

Who cares about home valued at 50% what they were bought... as long as you don't sale. Just keep the house until things get better. If your neighborhood is worth 50% less, that municipal evaluations shall reflect that and you shall pay less taxes. So, it's all good. ;) Asn there's less traffic in your neighborhood streets.

[quikveedb2]

True, the flip side of that is the unemployment rate, lots of people got into mortgages when the economy was still OK, that ballooned right around the time everything went down the crapper. now those same folks cannot make payments, or sell their homes and pay off the loan, since their upside down. hence, foreclosure, and all the fun stuff that goes with it.

[Farbin Kaiber]

Who cares about home valued at 50% what they were bought... as long as you don't sale. Just keep the house until things get better. If your neighborhood is worth 50% less, that municipal evaluations shall reflect that and you shall pay less taxes. So, it's all good. ;) Asn there's less traffic in your neighborhood streets.

There is a lot more to this than just what you have tried to impart. And losing 300k of a homes value does not break even when you get a tax cut of 3200/yr on property taxes, unless you lived in the home for about a hundred years.

[Jonny Cash]

Its terrible whats going on. What makes it even worse is the 8500 credit being offered to "stimulate" the market. Please. Stimulate my balls. The FHA requirments are almost laughable.

The banks will offer to lower interest rates, but refuse to lower the principle to these people who've lost their ass on these properties. This doesent help anyone who pays a 4% rate on a 300k note, when their house is worth 80k.
Instead they kick them out, accept 1/3 of the defaulted note to cash payers (mainly overseas investors) who ultimatley will rent these properties out. All this does is bring what were at one time good areas, right into the shitter.

Now by kicking these people out, not only is their credit destroyed, but now they cant rent because noone will trust them.

Its all been a big fucking failure.

[pureaudio]

I bought well under market value a few years ago but even still we lost about $30k on the value of our home. I'm not really bent about that, I bought my house knowing the potential for fluctuation but what really pisses me off is that nobody will refinance my loan for that awesome 4% everyone else is getting who buy homes now. My credit is awesome, never missed a payment on anything yet I'm all of a sudden a risk.

[drift]

Should legalize some of those 'gray-area' businesses,
As long as it doesn't hurt people who don't participate.

[Jean]

Its terrible whats going on. What makes it even worse is the 8500 credit being offered to "stimulate" the market. Please. Stimulate my balls. The FHA requirments are almost laughable.

The banks will offer to lower interest rates, but refuse to lower the principle to these people who've lost their ass on these properties. This doesent help anyone who pays a 4% rate on a 300k note, when their house is worth 80k.
Instead they kick them out, accept 1/3 of the defaulted note to cash payers (mainly overseas investors) who ultimatley will rent these properties out. All this does is bring what were at one time good areas, right into the shitter.

Now by kicking these people out, not only is their credit destroyed, but now they cant rent because noone will trust them.

Its all been a big fucking failure.

There was a talk on public radio about this same thing last night, I didn't listen to the whole thing but something about banks not actually owning the loan/property and that being one of the reasons why loan modifications don't work? And banks accepting the default instead of modifying the loan and letting the home owners live and make payments.

But also some renters will rent to people that have filed for bankruptcy because you can't file again...

[bddog]

Got my Mortgage reduced and modified to a 3.1% loan. If anyone needs honest help with their hardship letter, etc, mine was awesome. I did lots of research and can help others do the same. I'll just give you a write up of mine and how I did it-- Steve

[Vedubin01]

people that have filed for bankruptcy because you can't file again...

Jean,


You can file more than 1 time. Full Bankruptcy every 7 years but you can file for chapter 11 just 2 or 3 years later. Plus you can file personally and against your business. Most smart people will put everything into a business, and if it fails they dump it really not hurting the owner of the business. There is a bit more to it but you get the jist of it.

[JUMPNYC]

No one has mentioned the people who are upside down in their loans cause when the market was great they "cashed out equity" and refinanced their home because, they had a mortgage for a house that appreciated, so they took the appreciation out of the property and blew it. I worked doing IT for a mortgage brokerage and couldnt believe some of the mortgage brokers were ex-cons and felons. Basically a bunch of thugs in a boiler room preying on peoples greed. I'm happy to say that the assholes that were running the operation (I worked there in Boca Raton for 2 weeks and saw the shit that was going on and quit, but not before they were asking me to "fix" appraisals for shitty properties that wouldnt have gotten a loan at all.) are in jail for fraud now. But the TopDot company is still around, and the massive fraud committed with mortgage loans probably still continues.

[joshh]

I thought about it till I found out some of the specifics. Fuck that.

Obama is on a spending spree.

[SynSyx]

when my dad died last year, i inherited his house in florida. we have been trying to sell it, but a few weeks it foreclosed. the money from the sale was supposed to pay my and my sisters college tuition (i am a senior at uconn, not too expensive, but my sister is a freshman at fordham = $$$$). no one really knows where the money is gonna come from now, since my mom barely makes enough to put food on the table

wanna buy my house?

[Jonny Cash]

^ where is the house?

No one has mentioned the people who are upside down in their loans cause when the market was great they "cashed out equity" and refinanced their home because, they had a mortgage for a house that appreciated, so they took the appreciation out of the property and blew it.

Theres plenty of these people also. But not eveyone blew it. Alot of people put it into remodeling, and other investments that failed due to bad economy.

On the up side, what the tax credit has done is helped the neihborhoods w/ low forclosure rates, and it shows in the house prices. House shopping in these neibhorhoods have changed a bit in the last year down here in south Broward.

But for the most part broward and dade is the ass crack of the country, I cant wait to go back to the northeast.

[SynSyx]

^ where is the house?

Haines City, about 45min SSW of Orlando: