Real Estate Crash thread

[Benny Profane]

Wait. You are over 50% underwater? Did they reduce your principal?

[liv2ski]

Wait. You are over 50% underwater? Did they reduce your principal?

What the fuck are you talking about Benny???? I am so opposed to principal reductions. Jesus, it has never been done. That would totally be a slap in the face to everyone that had an ounce of responsibility in them.
GiBo, stoked to hear they are finally doing for you what they easily did for everyone last time there was the S&L crisis. Whoever has been running the show this time around has been fucking clueless.

[Benny Profane]

What the fuck are you talking about Benny???? I am so opposed to principal reductions. Jesus, it has never been done. That would totally be a slap in the face to everyone that had an ounce of responsibility in them.
GiBo, stoked to hear they are finally doing for you what they easily did for everyone last time there was the S&L crisis. Whoever has been running the show this time around has been fucking clueless.

Wow, hey, deep breath, put the pipe down.

I am too. I'm just addressing this one case, which is kinda sad or strange or both. A person who claims to be a staggering amount underwater is happy that they are in debt for it for the next thirty years, just at an affordable payment. Maybe, at the end of those thirty years, the value of that asset will be, well, about even. or, a little up. Maybe. Talk about a rat in a cage.

I'll let you in on a little secret, though. I think that the only way you can truly fix this massive worldwide debt problem is to reduce principal across the board. But that, of course, would wipe out the most powerful westerners, the financiers. You know, the new aristocracy. So, it will only happen by force. But, it will happen. Maybe I'll live to see it.

edit: btw, this is an election year. Don't blow your top at any kind of way to buy votes. Obama is a master at that. Wait until 13 for reality. Well, sort of.

[cramer]

What the fuck are you talking about Benny???? I am so opposed to principal reductions. Jesus, it has never been done. That would totally be a slap in the face to everyone that had an ounce of responsibility in them.
GiBo, stoked to hear they are finally doing for you what they easily did for everyone last time there was the S&L crisis. Whoever has been running the show this time around has been fucking clueless.

http://www.npr.org/2012/05/08/152239715/mortgage-update

its being done now. bofa is bitch slapping everyone who had that ounce of responsibility, hah.

[cramer]

Well, they finally did it. Wells Fargo has a HARP 2.0 program for poor SOB's like me that got fucked by the housing market through being a normal, responsible American. Before, my value to loan was so high (224%), I didn't qualify for any of the programs.

I'm getting refied to a 3.8% 30 year. It almost sounds too good to be true. No cost, easy, fast. We'll see. I'm hopeful, but until I see a mortgage statement, I not going to get my hopes up.

If it happens, this sure is a smart move for WF (not that they did it on their own). I was thinking that when my ARM adjusted in a year, if the payment went too high, I would have to start thinking about walking. If I get into this loan, I will be set up for the long term with a fairly low payment. I may even be able to keep it and rent it should I decide to move. Win/win.

Why didn't they just do this earlier?

And before anyone says, "Really? A responsible American takes out a 7 year interest only ARM!?" Yes. As I think I've explained here before, the WF loan guy was a co-worker/friend and he implored me to get this loan. He spent about an hour going over the numbers showing how much money I would save. I still said I wanted a 30yr fixed, but I finally gave in. "Besides," he says. "When interest rates go down, come see me and I'll get you into a fixed. Don't worry, values won't go down! I've been doing this for 20 years!"

Anyway, I'll be one less foreclosure. If they can get a lot of people into these, I think it can help stabilize the market.

wow, thats pretty sweet. i know bofa has been refinancing, but they are puting people into 40 year loans not 30.

[Benny Profane]

http://www.zillow.com/visuals/negative-equity/

[wooley12]

Just sold my house for 190k. Bought in 1981 for $97k. Current mtg amount $3600. Never cared much about "The Market" be it housing or labor as I've only needed one house or job. I would have been happy with less of a return for the joy of ownership. That's just one guy's take.

[GiBo]

Whoa there benny. Just glad to be able to stay in the house I like for about the same as rent around here and to get out of the stupid ass loan I got into. Hardly a rat in a cage.

[GiBo]

Oh. And no principal reduction. Don't expect one or really want one. Just as I wouldn't want them to come ask me for a cut if the value went up.

[4matic]

My short sale purchase was approved by BAC. $220k:

http://www.zillow.com/homedetails/15...24958361_zpid/

I talked to the current "owners" yesterday and they want to stay on as tenants. Nice family that got it wrong.

Seems like a fair price as a house two blocks away listed for $278k and is bid at $335k with 20% down. It appears the Asian community has discovered our little neighborhood and is buying with large cash percentage

[Shredhead]

Good for you! Just beware that BAC takes a lot of time to do anything. I purchased a foreclosure for cash, from them in February. It took them an additional two weeks past the closing date, just to get the proper signatures from their own people?


Plus their auctions.com site will mislead, omit and generally screw you, any way possible. I won't waste my time again.

[4matic]

Good for you! Just beware that BAC takes a lot of time to do anything. I purchased a foreclosure for cash, from them in February. It took them an additional two weeks past the closing date, just to get the proper signatures from their own people?


Plus their auctions.com site will mislead, omit and generally screw you, any way possible. I won't waste my time again.

Thanks, I'm very apprehensive dealing with BAC up until I take possession. Even then you never know.

[beaterdit]

Just curious, what do the sellers currently owe on the place?

I got a short sale here in SLC a couple years ago for $190K. The sellers owed $230 after an equity loan that they used to a little work on the place but mostly just burned up trying to stay afloat. According to their agent, their bank just forgave the $40K with no short sale on the sellers record making them technically eligible to buy again immediately. They also hadn't paid their mortgage in a year so their credit's probably fucked anyway. I find that hard to believe but that what he said.

Zillow says I'm worth $210K now but I take that with huge grain of salt, city tax appraisal says $203K. Still don't think I could sell for $200K but either way I'm in for the long game with an eye toward rental income in the future. If I am worth close to that though, it'll help me get below 80% L:V and get rid of my PMI and make a refi for a one point lower interest rate worth it.

Wish I had some more capital to invest in Ogden right now, or a year ago actually.

[4matic]

Just curious, what do the sellers currently owe on the place?
.

$470k or more. Crazy... Sale price was $467k in 2007 and they haven't been paying for a while.

[beaterdit]

Holy shit.

I was gonna say it doesn't look like much for $240 but I'm not familiar with the Ca market. The mortgage vs. rental income sure is nice though, good on ya, and good luck.

[meatdrink9]

Wolf Creek sold at auction last week. The Summit Series group that is buying Powder Mountain bought an additional 1,400 acres. http://ogden-valley.blogspot.com/201...ction.html?m=1

[Hutch]

Anyone here have any interest in a place in Magna, Utah for $50,000? Just finished up a foreclosure and eviction and finally got possession for a bank client. It needs some work before we can list it, and the bank just told me what they'd take for it, so I thought I'd throw it up here.

It's a real beaut.



Zillow has it at $103,000, for whatever that's worth.

http://www.zillow.com/homedetails/29...12728427_zpid/

I have more pictures I can send along if anyone is sincerely interested. Terms would be AS-IS, special warranty deed, you pay for title insurance, etc. May have methamphetamine contamination, but I am only basing that on the condition of the interior.

[Shredhead]

The Summit Series group that is buying Powder Mountain bought an additional 1,400 acres. http://ogden-valley.blogspot.com/201...ction.html?m=1

That must be were they'll put the economy units?

[ass-to-mouth]

shithole repo

I"ll give you a couple cans of Harpoon summer and some belly button lint.

[ass-to-mouth]

http://www.zillow.com/homedetails/15...24958361_zpid/

What a shithole. Love the flatscreen & Barbaro couches. God Bless Merica!!

[liv2ski]

What a shithole. Love the flatscreen & Barbaro couches. God Bless Merica!!

Yep, would cost you $70k in Ogden and then you have Snow Basin in your back yard.

[4matic]

Yep, would cost you $70k in Ogden and then you have Snow Basin in your back yard.

So what. It's a rental and I'll clear $600 a month after expenses. The profit is more than I'd get in rent in Ogden and, it's not in Utah. If it matters the Bay Area shitbox is less than 3 hours from Kirkwood and an hour from Santa Cruz. What else ya got?

[Hugh Conway]

An hour from santa cruz and 3 from tahoe? Only if you use TGR time. aka once leaving at 4am on a holiday weekend I was able to make it in an hour.

[4matic]

An hour from santa cruz and 3 from tahoe? Only if you use TGR time. aka once leaving at 4am on a holiday weekend I was able to make it in an hour.

162 miles to Kirkwood chair 6 lot. East Bay.

fwiw:

Where Rents Rose Most Among Largest Rental Markets:

# U.S. Metro Y-o-Y % Change in Asking Rent, May 2012
1 San Francisco, CA 14.4%
2 Oakland, CA 11.4%
3 Miami, FL 11.3%
4 Denver, CO 10.5%
5 Boston, MA 9.8%
6 Seattle, WA 9.6%
7 Houston, TX 9.2%
8 Portland, OR-WA 6.8%
9 Chicago, IL 6.4%
10 New York, NY-NJ 5.9%

“Not only are rents rising, they are rising faster every month and rents are up in all of the largest markets except for Las Vegas. The economy has strengthened enough to increase rental demand, but has yet to recover strongly enough for renters to become homeowners,” said Jed Kolko, Trulia’s Chief Economist. This statement, if true nationally, is doubly so in the Bay Area.

[liv2ski]

So what. It's a rental and I'll clear $600 a month after expenses.

That is tough to argue against. Do yourself a favor and apply as much of the $600 a month to principle reduction as you can swing. It would be nice to have it paid off in 10-15 years.