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Good Time for Foreclosures ... If You're Brave
MSN.com ^ | 2/6/2005 | Steve McLinden, Bankrate.com

Posted on 02/06/2006 3:58:39 PM PST by ex-Texan

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It might be the right time, or, then again, it might not be the right time, yet. Personally, I'm waiting until after everything falls out. [No puns intended]. Next year might be an even better time for bargain shopping. [Learn more?] Banks frequently discount foreclosed houses 25% or even more in some regions. That discount is on top of whatever price reductions have been built into the market. Yada, yada. yada.
1 posted on 02/06/2006 3:58:40 PM PST by ex-Texan
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To: ex-Texan

It's going to get better. Wait until there is a backlog at the bank's REO dept. Then negotiate a deal for yourself.


2 posted on 02/06/2006 4:03:34 PM PST by Brilliant
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To: Brilliant

I intend to do just that, Brilliant One.


3 posted on 02/06/2006 4:08:50 PM PST by ex-Texan (Mathew 7:1 through 6)
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To: ex-Texan

I'm waiting for a piece of property this fellow bought that abutts my property. I think he over bought and is in trouble. He logged the poplar already, I'd guess to meet a balloon payment. I told him I'd be interested in a piece of the property, unless he cuts the oak and birch. Then my interest is gone.

I'm betting he comes knocking on my door before summer.


4 posted on 02/06/2006 4:10:40 PM PST by sergeantdave (And on the second day The Lord created February - the slowest month of the year.)
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To: ex-Texan

I was just thinkin this recently.


5 posted on 02/06/2006 4:21:42 PM PST by Huck (Roe/Kelo: You have a right to privacy IN your bedroom; you just don't have a right TO your bedroom.)
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To: Brilliant; ex-Texan
"it until there is a backlog at the bank's REO dept. Then negotiate a deal for yourself."

I'm totally green at this. How would one do it? Will a bank tell you when they have too many foreclosures? Will they give you the list of houses so you can check them out yourself? Lastly, I thought that most loans (especially the risky ones) were resold to Fannie May or elsewhere.

6 posted on 02/06/2006 4:23:37 PM PST by tom h
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To: ex-Texan

bump


7 posted on 02/06/2006 4:29:38 PM PST by lesser_satan
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To: Brilliant

I thought they packaged up all the loans, cut them up into tranches, and sold them to hedge funds.


8 posted on 02/06/2006 4:45:02 PM PST by proxy_user
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To: ex-Texan

I agree about the imminent boom in the foreclosure market as interest rates rise.

Problem is, a foreclosed property will have some maintenance issues that need to be handled right now. After all, this property was last owned by someone with severe cash flow problems. Repairs were let slip.


9 posted on 02/06/2006 4:53:24 PM PST by Sam the Sham (A conservative party tough on illegal immigration could carry California in 2008)
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To: Brilliant
It's going to get better. Wait until there is a backlog at the bank's REO dept. Then negotiate a deal for yourself.

Dream on.

The loan companies invest in property with the expectation that they won't get the money back for 30 years. You think they're going to get panicky after sitting on a house for a few months?

It didn't happen in Houston in the early 80's, where I saw entire blocks of houses with For Sale signs. Houses sat empty and foreclosed for years there, while the bank waited patiently to get all their money. And they did.

With recent 100% loans, you think they'll sell for less than they have in it? Right.

If they did, they would be cutting their own throat, because they would start a stampede of people selling low, and walking away from houses they refuse to pay someone to take. The lenders aren't that stupid.

Ex-T is famous for posting these doom and gloom stories on FR in an effort to get people to visit his web site. If he EVER posted something without his famous "Learn More" link, then I might have some respect for the guy. But he's just trolling for visits.

Go check out his web site. It's full of "Bird Flu", "Environmental disaster", "economic disaster predictions" and more. He knows he can count on the pessimists to visit, and no doubt he's correct.

The fact that he was predicting imminent real estate doom three years ago should tell you something.

10 posted on 02/06/2006 4:59:35 PM PST by narby (Hillary! The Wicked Witch of the Left)
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To: narby
The loan companies invest in property with the expectation that they won't get the money back for 30 years

Would probably be something like setting up an interest account, so much percent on the loan, and they have collateral, a gamble that they can sell the property again without losing half.

11 posted on 02/06/2006 5:03:23 PM PST by RightWhale (pas de lieu, Rhone que nous)
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To: ex-Texan

When is the tsunami?


12 posted on 02/06/2006 5:09:34 PM PST by Liberty Valance (Who knew Islam's hot button was in the funny papers?)
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To: Liberty Valance

"When is the tsunami?"

After global warming gets the oceans really, really "full."


13 posted on 02/06/2006 5:14:20 PM PST by RegulatorCountry
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To: ex-Texan
You know, an ex-GF of mine lives in a condo that costed $150K in Santa Clarita CA 3 years ago. Now it costs $450K 2 beds and 2 baths. I live in a nice apartment with 2 beds and 2 baths for $850 a month with nice neighbors all around, while my investment accounts swell.

When the crash happens, I can lay $100K cash on the table in front of the rep and ask for the keys and the contract. I like Santa Clarita and Valencia. I just hate the 405 freeway and know ways around it to get to work. The F-250 Super Duty can keep me comfy while I get there... To Calabasas. HELL, if the crash happens, I can do the same thing in Simi Valley! I like that place too! Screw the 405 Freeway!!!!!

There is always an accident around where the 14 and I-5 and 405 get together. Once 10+ lanes of freeway were closed because a truckful of live chickens overturned and they were running all over the place. If you have a stupid dream, come here and in time it will become real.

14 posted on 02/06/2006 5:19:05 PM PST by BobS
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To: narby

This whole "the real estate boom is collapsing" talk reminds me a lot of how we were all doomed by Y2K and computers.

Real estate booms and busts have always had more to do with regional supply and demand than anything else. Even in the mid-80's when rates shot up and places like Houston were hit hard, most of the country was just fine.


15 posted on 02/06/2006 5:19:32 PM PST by wagglebee ("We are ready for the greatest achievements in the history of freedom." -- President Bush, 1/20/05)
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To: narby

Do you hear that bubble bursting? A whistle, a hiss? Hmm I don't but then again it's coming right? Buy Gold from Swiss American. There is no empirical data to support a coming foreclosure 'crisis'. Late payments on mortgages are not on the rise and though some markets have cooled, there is not widespread panic. Too many late night informercial watching loons here thinking they can get rich with nothing but there 720 FICO score and those Carlton Sheets DVDs. Banks will just sit on the properties, and for those folks with those informercial programs, I have 15 years in real estate investing and I can tell you foreclosure real estate investing is not amatuer night. But go ahead and wait and spend Grandma's inheritance and your 401k loan fund on that crappola property.


16 posted on 02/06/2006 5:21:31 PM PST by lwg8tr
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To: ex-Texan

"Personally, I'm waiting until after everything falls out. [No puns intended]. Next year might be an even better time for bargain shopping"

Banks can hold them for 18 months so it probably won't be the opportune time for at least 2 years.

Personally anytime I buy one I have a built in 100% profit built in after fixing and upgrading with the expectation of having it on the market within 60 days after purchsse.

I've been sitting tight since 98.


17 posted on 02/06/2006 5:26:16 PM PST by dalereed
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To: BobS
When the crash happens,

Just how many people you think are stupid enough to pay you to take their condo?

And how many lending companies do you think are stupid enough to discount for less than they have in the property (often 95% or more), knowing they'll start a run on the market and lose every property they have because no one will pay people to take their condo and instead will default?

Answer: None.

You'll be waiting a long long time for such a deal.

18 posted on 02/06/2006 5:29:21 PM PST by narby (Hillary! The Wicked Witch of the Left)
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To: wagglebee; narby; RegulatorCountry
It's not just me. Have you seen this report today?

Goldman, Sachs: Real Estate is 15% Overvalued Nationally, 50% Too High in Los Angeles

19 posted on 02/06/2006 5:33:12 PM PST by ex-Texan (Mathew 7:1 through 6)
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To: narby

You're full of it.

I stole the condo i'm now living in, bought it to turn but sold one we were living in and moved into it, from a bank for $34k cash after beating them down from $43k when they were into it for over $80k in 98 and it is now worth $400k.


20 posted on 02/06/2006 5:34:43 PM PST by dalereed
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