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

To: Patricia Trinchero who wrote (113436)	3/29/2008 3:12:29 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 306849

If one gets cash strapped then your property is useless to you. Yep.. Kind of reminds me of the old stock market adage.. A long term investor is someone who's short term stock trade went down.. One of the aspects that's more frustrating (and should have been recognized by the Fed) is the economic disruption when homes are converted into stocks, with value based upon the derivative value of some security clustering together the respective mortgages. There's a good reason that buying a home should almost always be a long-lasting relationship between the lender and borrower. The lender can determine the value and quality of the loans they have outstanding, not the whims of the equity and bond market. I think we're learning this painful lesson and we're likely to see a gradual return to such practices. And that should restore some value to the smaller regional banks and S&Ls who seem to be less exposed to the sub-prime mess. At least that seems to be the case with one I have on my radar screen (WFSL). Hawk

To: Patricia Trinchero who wrote (113436)	3/29/2008 3:14:24 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 306849

We had some friends that bought a house at an auction and they bought it cheap. The bank found a phantom bidder who upped the bid one week after the close of the auction............our friends opted to back out of the deal and let the "phantom" purchase the home. I know you are from my area. I think auctions, here, where property is still valuable are a scam. Check out this blog post(nobody I know it just came up one day when I was looking): Bank Auctions vs Short Sales vs REOs The banks are understanding how to get the best prices for their new inventory of homes. Advertise the hell out of a public auction, cram 5,000 people into the Cow Palace (or any other convention center of choice), provide easy financing to all who have a FICO score anywhere near 600 and price these homes at ridiculously low prices. Recent example: $550,000 value Belmont home, now REO, listed in brochure for $275,000 - what a deal! - 10 buyers bidding on this home and one "winner" happy to take the keys for $620,000! Good luck with that one. This makes sense why banks are more apt to let a property go to foreclosure than deal with a short sale. bayareainvestmentrealestate.com I have an open offer on a short sale. I think its a bargain, because the banks take a month to get back to the buyers so its all guesswork as to whether you will get the house. Therefore a lot of serious buyers aren't interested. They also don't do open houses, no staging and all that baloney. The pictures of this house in the MLS are horrible too- but, I know the street and property. I don't care though, I am buying for investment. IF the bank punts on me, no worries I just move on. If they go for it, I have a good deal.