Foreclosure Frenzy!

[Ms.Havasu]

OMG

Now is the time. :thumbsup The last 3 deals I have put together have been bank owned and I have been amazed at the values.

There is alot of JUNK out there (not all foreclosures are a deal), but there have been some incredible buys as well.

here are a couple of examples of recent sales
#1
1700 Sq.Ft. home built in 2004 with a tile roof, Ganite counters in Kitchen and Bath, Stainless appliances, 34' boat deep bay,Great area on edge of town. Listed for 184K we got it for 188K.( went in a little over full price because we knew it had another offer and got it without getting in a bidding war) House across the street just closed at $270K.

#2
1500 Sq.Ft. home with a 12' tall retaining wall across the back and right side of property, and 6' retaining wall on the left side ($40K in walls). The appliances are in, needs carpet and paint. Hugh corner lot with planty of RV parking and muture landscaping, Built in 1994. Bought it for 160K FHA and lender/seller is paying 5K in closing costs.

#3
1700 Sq.Ft. home built in 1990 completely fenced back yard with plenty of parking behind gate. Kitchen Appliances have been removed but the house was owned by a tile installer and had plenty of beautifull custom tile throughout. Listed for 165K we offered 166K and got it. (Again their was another offer so we went in over full price and avoided a bidding war).

Offering full price or better doesn't always guarentee you will get the home. The good ones sell fast with multiple offers within 48 Hours, you need to be in position to act fast when a good one comes on the market.

Example;
I personally missed out on a killer deal this week and I put in a offer almost 20K over asking price. It was a
1500 Sq.Ft. Pool home in excellent condition built in 2000 with a tile roof on a cul-de-sac. Sold in 2004 for 279K and then in 2005 they refinanced for 379 drawing another 100K out of it and then walked away. Lender listed it for 299K and after 30 days dropped it to 214K. We offered 218K and they said come back asking for our best and final offer because there were multiple offers in 48 Hrs. We came back at 233K and did not get it.(This house is worth a least 275K). I don't know how much we missed it by, I'll find out when it closes escrow.

If any of you are interested in investing in this forecloser market send me a pm with your e-mail address or call my cell at 928/208-9171, and I'll get you set up to start receiving the foreclosures the minute they come on the market directly from the mls. When you see something you like I'll go check it out for you and send you several pictures of the home and neighborhood. I'll let you know if I think it's worth while or just plain junk. Interest rates are the best they have been in quite awhile and the market is starting to pick up, now is the time to take advantage of this opportunity.

Michele

 

[ChumpChange]

Please add me to you list.

mcrfinance at gmail.com

 

[Ms.Havasu]

Please add me to you list.

mcrfinance at gmail.com

I'll have everyone set up by the morning.

 

[Lavey29]

By next year, these 275K houses are going to be going for under 200K easily...Should be able to find a smaller house almost new for 150-180K range in 6-12 months with the way the market is falling up there...

 

[Ms.Havasu]

By next year, these 275K houses are going to be going for under 200K easily...Should be able to find a smaller house almost new for 150-180K range in 6-12 months with the way the market is falling up there...

Did you not read my post? Example # 1--- 1700 Sq.Ft. home with tile roof, Granite counters, stainless appliances, great neighborhood, Built in 2004 _ $188,000, This was a $300,000 house in 2004-Example # 2 - $ 165K, example # 3 - $160K

no need to wait 6 - 12 months. you just need to be on top of the deals when they come by. Interest rates are really good right now as well (election year) who knows what they will be in 6 to 12 months.

 

[Lavey29]

I did see your post and those are good prices. I bet that within 6 to 12 months every house up there just about has dropped significantly more in value which will translate to even lower sales prices. I am waiting to see. I would like to find a newer house 2006 or newer with 3 bedrooms and at least a 36' garage, level driveway. I would like to pay between 150 - 180K Some of those repo's are in terrible condition as you mentioned.

 

[Ms.Havasu]

I did see your post and those are good prices. I bet that within 6 to 12 months every house up there just about has dropped significantly more in value which will translate to even lower sales prices. I am waiting to see. I would like to find a newer house 2006 or newer with 3 bedrooms and at least a 36' garage, level driveway. I would like to pay between 150 - 180K Some of those repo's are in terrible condition as you mentioned.

Yep, most repos are messed up. But some are left in nice condition and if you can find what you are looking for in decent condition now, why keep waiting?

This may sound like bull to some people, but the MARKET IS PICKING UP. The last 4 offers I have submitted have had multiple offers on the table, thus driving the prices back up. If investors are coming into the market soon the best deals will be gone and the rest will sell for more. Supply and demand.

 

[Lavey29]

You have a good point. I am sure there are some really good deals out there right now but I think we have not hit bottom yet in this downslide for real estate. Interest rates have to go down further at some point. The fed drops the prime but the banks are not dropping their interest rates in order to make up for all their losses on those bad loans. I really think that in 6-12 months, you will see hundreds of nice newer houses not in foreclosure (yet) on the market up there in the 150-180K range. Hopefully by then also, the interest rates will have come down a little more also..

 

[ChumpChange]

Interest rates have to go down further at some point. The fed drops the prime but the banks are not dropping their interest rates in order to make up for all their losses on those bad loans.

So why do they "have" to go down further. The banks are taking higher spreads which they need to do in order to survive. It's not just the banks management trying to take the higher spreads, it's the FDIC and the SEC telling them to in order to prevent the government from having to bail them out.

The banks that whored themselves out every time there was a drop in the rates are closing up shop. WAMU just shut down their wholesale operations, PFF just sold off their mortgage division. I wouldn't plan on the rates dropping anymore than they already have and even if they do, don't plan on the loan programs being there to benefit from those rates....that's why hard money is so lucrative right now, the banks aren't lending.

You don't buy a house on rate, you buy a house on the purchase price. You can always refinance, you can't go back and change the price you paid.

 

[Lavey29]

I just feel the banks are trying to make up for their losses by keeping their interest rates up on home loans and credit cards. This is squeezing the money out of the majority of persons that can and do pay their bills on time and did not purchace something they knew they could never afford right from the start. If the fed is lending money to the banks at lower interest rates and they are still keeping their interest rates at a higher level then they are making up for their losses and you and I are the ones that are paying for their losses, not the persons that defaulted and walked away from their devalued properties. I do not feel interest rates are "high" but I feel that they could certainly be a little lower consistent with the fed dropping its rates. This would stimulate the economy a lot better then $600 refund. A half or full point wold make a big difference over the life of a loan payment. Just my .02.... thanks

and to anyone that is considering buying, Michelle and her husband are great people to deal with, very friendly and knowledgeable for the Havasu area.

 

[Ms.Havasu]

So why do they "have" to go down further. The banks are taking higher spreads which they need to do in order to survive. It's not just the banks management trying to take the higher spreads, it's the FDIC and the SEC telling them to in order to prevent the government from having to bail them out.

The banks that whored themselves out every time there was a drop in the rates are closing up shop. WAMU just shut down their wholesale operations, PFF just sold off their mortgage division. I wouldn't plan on the rates dropping anymore than they already have and even if they do, don't plan on the loan programs being there to benefit from those rates....that's why hard money is so lucrative right now, the banks aren't lending.

You don't buy a house on rate, you buy a house on the purchase price. You can always refinance, you can't go back and change the price you paid.

Well said!

Rates are very good today and they might even be going back up next week. (Hope not, but I think they are) Loans are getting harder and harder to get. Those that wait too long just might find out that they have wasted their last chance to get a loan at a decent price.

 

[Lavey29]

Well with the economy stalled in a resession, I think the rates will have to come down some more eventually to stimulate sales. Havasu, like everywhere else is having the bottom fall out on prices and home values. Sales are minimal up there right now. New home building and sales are non existent. Houses that were trying to be sold for 250-275K will be for sale for 150K next year for sure. The more expensive homes have dropped 200-300K in value up there and are still not selling. I agree that the price of a home at time of purchase is important but what also determines your ability to buy is the amount you have to finance and the interest rate. All 3 have to be within your range of affordability to make it happen. You can not depend on a re-fi, by doing so also extends your loan term again and ends up costing you more money inthe long run even if you lower your payment with a lower interest rate. Bottom line is whatever works best for you as the individual buyer. It's your money, your budget, you know what you can afford to pay and if you think you are getting a good deal, then go for it and be happy. There are some good deals for sure but I think there are even better ones to come...

 

[ChumpChange]

There are some good deals for sure but I think there are even better ones to come...

There will be more deals to come, that is for sure. With another wave of subprime reprices set for later this year, even more people will be losing their homes.

On the flip side though, even with lower rates, the loan programs just aren't there like they used to be. It's the programs that got the economy where it's at. Unless you are a cash buyer or a full doc 700 FICO borrower with 20% down, you can't get financed. With banks turning back programs every day, you might have a program that gets you into the house today that won't be around with tomorrow's deal.

 

[Outnumbered]

We are not to the bottom yet. There are so many loans in default that the lenders can't keep up with the NOD filings and people are 6-9 months back on payments and still in their homes. We had a slight boom when the rates dropped and we got really busy for about 6 weeks but it has slowed again. Its gonna get uglier before it get better. Prices are still way out of line with income and rents. We'll probably see a few more little runs if the rates move down some more. But, the rates can only go down so far. The market is going to be relatively flat to declining for several years. Don't buy a house just because you are in a frenzy. Take your time and look for the right deal, get pre-approved and have all your ducks in a row. When the right deal comes along, jump on it but don't loose your senses.

Just my $0.02 after 19 years in this crazy business.

 

[Outnumbered]

There will be more deals to come, that is for sure. With another wave of subprime reprices set for later this year, even more people will be losing their homes.

On the flip side though, even with lower rates, the loan programs just aren't there like they used to be. It's the programs that got the economy where it's at. Unless you are a cash buyer or a full doc 700 FICO borrower with 20% down, you can't get financed. With banks turning back programs every day, you might have a program that gets you into the house today that won't be around with tomorrow's deal.

Excellent point.

 

[Lavey29]

We are not to the bottom yet. There are so many loans in default that the lenders can't keep up with the NOD filings and people are 6-9 months back on payments and still in their homes. We had a slight boom when the rates dropped and we got really busy for about 6 weeks but it has slowed again. Its gonna get uglier before it get better. Prices are still way out of line with income and rents. We'll probably see a few more little runs if the rates move down some more. But, the rates can only go down so far. The market is going to be relatively flat to declining for several years. Don't buy a house just because you are in a frenzy. Take your time and look for the right deal, get pre-approved and have all your ducks in a row. When the right deal comes along, jump on it but don't loose your senses.

Just my $0.02 after 19 years in this crazy business.

I agree with your assessment. There is no doubt that things are going to get worse over the next year or two before the market hits bottom. As long as you have a good FICO, verifiable income and do not over extend yourself with a payment, there will be a loan out there with your name on it to make your purchace. The prices in Havasu will continue to decline over the forseeable future till they hit the bottom and you are right that when the right deals comes along, you need to be ready to jump on it...

 

[Vib]

I guess we are pretty fortunate here in Colorado, our foreclosure rate actually declined last month on a year over year basis when the rest of the country has reported a 57% increase.

decent homes in good neighborhoods are selling quickly, trying to find a foreclosure 'deal' is very difficult right now. They are either trashed or overpriced. Plus since we have a lot of the oil and natural gas money flowing into the state the economy is pretty strong.

Wait, let me re-phrase the above so we don't get people rushing here again. Our economy sucks, housing is overpriced and will probably keep falling...stay out of the mountains.