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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (84778)	8/12/2007 6:27:03 AM
From: Tradelite	Read Replies (1) \| Respond to of 306849

Thanks for posting this. Perfect example of bureaucracy at work (and powerless bureaucrats who can't make independent decisions), instead of a natural market that's trying to work.... ________________ <<To move their growing inventories, lenders solicit local agents to do what they call broker price opinions. These involve the agent's physically examining the home, getting an estimate to clean up any damage, checking to see what similar homes in the neighborhood have recently sold for and suggesting a price. Thanks to globalization, requests for BPOs can come from the other side of the world. Ocwen Financial Corp., a Florida mortgage company that is trying to sell 753 foreclosed homes in California, has outsourced its BPO review office to India. Agents who work with Ocwen e-mail their reports to India, where they are processed and sent to the company's headquarters in West Palm Beach. Asset managers there decide on the price. "We're here and they're not, but they resist our expertise," said Jason Bosch, president of Home Center Realty, an Inland Empire firm that works with Ocwen and other lenders. Home Center has put 42 lender-owned homes on the market since the beginning of the year. Only two have sold. Bosch cited one house in Perris that a lender listed for $427,000. Home Center received an offer of $419,000, but the lender said it wouldn't budge. The would-be buyer moved on to a more flexible seller. Ten days later, the lender lowered the price to $417,000, where it still sits. "This is not the result of a person evaluating these deals on a case-by-case basis," Bosch said. "This is a computer working off a formula." The major lenders are reluctant to talk about their foreclosure strategies. Officials at Calabasas-based Countrywide Financial Corp., whose inventory in California exceeds 2,300 foreclosed homes, declined to be interviewed.>>

To: Elroy Jetson who wrote (84778)	8/12/2007 8:00:02 AM
From: Smiling Bob	Read Replies (1) \| Respond to of 306849

Just saw this ad Open a checking account at Downey Savings and get free checks and a furnished condo.

To: Elroy Jetson who wrote (84778)	8/12/2007 11:23:20 AM
From: Dan3	Respond to of 306849

Re: "We price our foreclosed houses high, at full market value," he said.... ...."They're trapped in a Catch-22," she said. "If the market goes down too quick, there will be more foreclosures. People won't be able to refinance or make their payments. Isn't that how this all started?" I hadn't really looked at that way, before. If the lenders do anything other than sit on the inventory at full price, essentially ALL of the arms will go into foreclosure, because they won't be able to refinance (house will comp out to significantly less than the required loan value - the lender won't be able to resell the loan under any circumstances to anyone, and it will also impact the capital ratios on their portfolio of loans). And foreclosed housed depreciate rapidly. A a pipe freezes and bursts, or racoon gets in, or a window is broken and rain gets in. There's no one there to correct the issue while the problem is minor. Accumlating foreclosed houses isn't a viable long term strategy. This is a real disaster. I don't see any way out of it except for a big, quick, inflation or a deep, prolonged, recession.

To: Elroy Jetson who wrote (84778)	8/12/2007 1:36:00 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 306849

This article confirms what I have been told is already happening in northern SB County. Retail J6P isn't moving....the banks are undercutting each other at the bottom and that is basically all that is moving....despite the 30% haircut ALREADY from the peak. J6P is behind the curve thinking a rebound...just hold on and things will get better.