Real Estate Crash thread

[iceman]

Even places generally acknowledged to have zoomed haven't really when compared to bubble highs. Here's LA: http://us.spindices.com/indices/real...me-price-index

Up, certainly, recently. Nowhere near July '06 and at a level fairly consistent with the longer-term trend. My point is that I think the rapid growth will probably cool quite a bit in the "hot" areas but that the general US market is going to stumble along. For the forseeable future real estate makes a decent but not spectacular investment in general, with some hotter areas, as always.. Which is fine. It's good. Stability is what we want for a while. Anything more than a gradual upward trend is gravy.

[LeeLau]

Good to see you've realized that paying someone else mortgage does nothing for your future.

What a surprise. Another chump confusing dumb fucking luck with financial savvy.

[liv2ski]

Ouuch Lee, if it was not for dumb fucking luck and a long horizon, few of us would have Jack Shit. The markets continue to fool me constantly, as you have 3rd parties in there changing the old rules all the time, so it is always a new game, that I am just not well trained enough to keep up with. Pretty sure that is the best case for most of us here

[XXX-er]

I sold out in 2007 rented for 4 yrs, the rent probably cost me < 20K and I got back in low market 100% due to dumb luck, the thing is I haven't confused dumb luck with financial savy and I've always known I could lose on RE

and there is a guy in the basement suite is paying my mortgage but he gets a pretty good deal or he would find a better one so we both win and he will buy when he can

[icelanticskier]

real estate. best money maker for us dumbfucks, evar

the last 13 years have been epic for easy money making............

rog

[cramer]

What a surprise. Another chump confusing dumb fucking luck with financial savvy.

Dumb fucking luck? Hmm, here is your new mortgage, its less than you pay a month in rent a month. Yeah dude, dumb fucking luck. How about pretty fucking smart. I didnt buy a house I couldn't afford when everyone i know did. Once again, yeah bud, dumb fucking luck.

You want to be dumb, be me for the decade before that spending 250K on rent and having zero to show for it. I'm not clear on how me buying a house when the market crashed is "dumb fucking luck". Dick, hehe...At least give me a tiny bit of credit. I thought I did a decent job of timing it with the glut of houses on the market. I got my pick of the litter for what i could afford. Did i get lucky, sure. Was it dumb luck, no dude, it wasn't. I was fully aware of the financial commitment to a house I would ever make. A half million dollars was not one of them with my financial situation. I'm no financial genius, but im not a fucking idiot that would buy a 800K house on 150K a year. I can't say the same for the rest of my family and friends, lol. Either way, carry on...

[XXX-er]

What do you expect in a 156 page thread on the housing crisis in America where americans are holding mortgages that are under water when you make that simplistic statement?

[liv2ski]

Well shit, we expect everyone to have read the 156 pages so they can keep up, duuuuh

[cramer]

What do you expect in a 156 page thread on the housing crisis in America where americans are holding mortgages that are under water when you make that simplistic statement?

Well its pretty simple math. I make this much, i can afford this much. I'm not sure how much more simple it gets? I'm on another level, i didnt put shit down, but im not going to get into that. You can go back to page i dont even know and see those arguements back in 2008. Could i have done 20%, ya, but the housing market was a mess. Why would you? Now, i probably would buy a fixer upper. Its probably flipping time out here. Alot of money to be made, wish i had some to invest the time into.

[Kevo]

Not sure if it has been posted before, but www.burbed.com is pretty good entertainment on the subject of Bay Area housing.

This post in particular about incomes in the Bay Area was particularly eye opening.

[XXX-er]

Well its pretty simple math. I make this much, i can afford this much. I'm not sure how much more simple it gets? I'm on another level, i didnt put shit down, but im not going to get into that. You can go back to page i dont even know and see those arguements back in 2008. Could i have done 20%, ya, but the housing market was a mess. Why would you? Now, i probably would buy a fixer upper. Its probably flipping time out here. Alot of money to be made, wish i had some to invest the time into.

you make that $ now, you can afford that $ now but the economy /divorce/job loss/move for a new job yadayada changes everything for the rest of america, the $$$ part is pretty simple math, the part of the equation that is not simple is the greed of the buyers/ sellers/ bankers/ and anybody who stands to make a buck on what is IMO a mother hood issue ... a man's (or woman's) home his castle

your post was the simple "buy a house its better than paying rent" statement but here you are saying you want to flip fixer uppers,play the market yada yada which doesn't jive with joe lunch kit buying his castle cuz you appear to be all into the greed game ...which IMO is not so simple

[icelanticskier]

simple if you choose to keep (everything) simple. pretty simple actually

rog

[4matic]

Aug. 21 (Bloomberg) -- Wells Fargo & Co., the biggest U.S. home lender, is cutting 2,300 jobs from its mortgage-production unit because higher interest rates are cutting demand for refinancings, according to people with knowledge of the matter.

Other smaller cuts had been made in the past few weeks around the country, according to the people, who asked not to be identified because the changes haven’t been publicly disclosed. The cuts would equal about 20 percent of the 11,406 mortgage loan officers employed by the San Francisco-based company at the end of March, according to a presentation.

[liv2ski]

^^^Trust me when I tell you that loan origination's have gone in the toilet. As a company, where I work is off about 70% from 3 months ago. People in the industry for 30 years have told me this is the worst they have ever seen business fall off a cliff. Me, I am just waiting to get laid off too and I am a straight commission worker bee.

[Benny Profane]

So, all of that business for the past few years has been re-fi? Makes sense, that, if rates crawl up, there will be no business left on that side. Everybody who wanted to do it, did it. Too late for the rest.

[cramer]

^^^Trust me when I tell you that loan origination's have gone in the toilet. As a company, where I work is off about 70% from 3 months ago. People in the industry for 30 years have told me this is the worst they have ever seen business fall off a cliff. Me, I am just waiting to get laid off too and I am a straight commission worker bee.

Gawd forbid you have to head your head in shame out in the east bay and only make a quarter million dallars a year. You have options, i assure you. Lets not forget about everyone coming back into the housing market after their huge mistakes. They be building houses, i see them and houses are selling, ive seen them. Its a builders market now. Us chum feeders and the gov turned around the market, now its time for the richie rich's to keep it going.

Thats todays comment, feel free to add to 5 years from now

2018.....

Benny: I told you it would crash again, idiots.
iliv2ski: Real estate market sucks right now, i'll post after im back from eating my 300 dollar meal.
cramer: fuck i should have sold back in 2014.
md9: still flipping benny.
rest of tgr: cramers an idiot

carry on....

[Purveyor of Slack]

Gawd forbid you have to head your head in shame out in the east bay and only make a quarter million dallars a year. You have options, i assure you. Lets not forget about everyone coming back into the housing market after their huge mistakes. They be building houses, i see them and houses are selling, ive seen them. Its a builders market now. Us chum feeders and the gov turned around the market, now its time for the richie rich's to keep it going.

Thats todays comment, feel free to add to 5 years from now

2018.....

Benny: I told you it would crash again, idiots.
iliv2ski: Real estate market sucks right now, i'll post after im back from eating my 300 dollar meal.
cramer: fuck i should have sold back in 2014.
md9: still flipping benny.
rest of tgr: cramers an idiot

carry on....

pssssssstt......hey cramer......there is this little island called Japan.... maybe read about it. It may be eye opening.

[MontuckyFried]

So I have an REO question. Oddest situation in our neighborhood, which I'm trying to get to the bottom of, which many others here have tried with no success. Previous owners foreclosed on the property back in 2009. Home's been vacant and falling apart for over 4 years now. Went up for auction a few years ago to no avail (supposedly due to very serious foundation issues). I started at the courthouse and have already conducted a full title search (part of my profession actually) on it to get the straight scoop on it. I contacted Mortgage Company A who's been paying the taxes for years, and was the original mortgagor according to the deed records. They said they don't show it in their inventory, but it probably got sold to Mortgage Company B. After a LOT of work trying to get through to this worthless company, Mortgage Company B says they supposedly don't show it in their inventory, and even if they did own it, they couldn't release any info to a 3rd party (ie, me).

No matter who owns it, either bank has not been paying the HOA dues for years, and is about to have a lien filed against them. I informed Morgage Company B of this fact, and the fact that it's been literally falling apart for years now, but that I'd like to work with them to help resolve these issues. Rep at Company B straight up told me "We're big boys and girls here and don't need your help." WTF?! Lady was super rude like a bill collector, even though I was quite cordial from beginning to end. I said, "Well who's supposed to be paying the HOA fees and maintaining the property then?" She said "Technically, that's still the responsibility of the home owner, even if they vacated 10 years ago." That seriously can't be right, can it?

Either way, does any body here know the ins and outs of dealing with REO jerks, and how to get to the bottom of these things? 4 years is a long time for a bank to sit on a property, and that length of vacancy is brutal on homes in our winters. If they're waiting for the market to return before selling it, the home's gonna be literally worthless by the time that happens. As it is, the house might just need to be bulldozed completely, but I might want it for the lot alone, but only if I can get it for a fair price.

Any advice from all the expert real estate mags here?

[Benny Profane]

Burn it.

[Hugh Conway]

Place an add on TGR (via an alias) and rent it out to ski bums for the coming season. Cash only, season in advance. One way or another that'll move things along.

[liv2ski]

Austin, as part of the bail out of the TBTF banks in 2009, all the accounting rules were suspended for "mark to market" on banks REO's. That said, banks do not give a fuck if they have REO's sitting out there for years. I find it odd that someone is paying the taxes but not the HOA fees as a HOA can foreclose in CA for back dues. Thing is, if it does have a foundation issue, nobody is going to want it. By 2015 the original "mark to market" rules come back into play, so look for this property to be dealt with in the next 2 years

One of my buddies is a dirt pimp. She told me the banks have lists of preferred RE Agts that they roll their REO's out to, if they will work for a reduced commission. Only those people or companies willing to buy a few hundred REO's at a time will have any attention paid to them, by the bank holding the REOs.

If in fact the mark to market rules come back in 2015 (which I don't believe will happen) then look for a shit load of REO's hitting the market late 2014 and in 2015.

[Benny Profane]

Also, Google the term MERS. You'll find tons of stuff relating to the pathetic state of affairs that millions of chains of title are broken, and, generally, so fucked up that the banks are telling the truth when they say they really don't know who owns the mortgage.

[4matic]

Pry the door open and put anonymous Craigslist ad for free salvage. First come first serve, bring tools.

[Shredhead]

The HOA should have put a brick on it right away. Company A wouldn't have been able to unload it and something would have got done. If your a member, I'd be expediting that ASAP.

I purchased an REO from BOA last year. They couldn't close on time for a bunch of really stupid reasons, mostly not knowing shit about the house.
Bonus was the HOA had a $5k landscaping deposit I get as soon as I put in some sod, that they didn't know about.

[MontuckyFried]

Burn it.

Place an add on TGR (via an alias) and rent it out to ski bums for the coming season. Cash only, season in advance. One way or another that'll move things along.

Pry the door open and put anonymous Craigslist ad for free salvage. First come first serve, bring tools.

From what I gather, these may be some of the most viable options to get SOMETHING done with this property. I kid, I kid.

Austin, as part of the bail out of the TBTF banks in 2009, all the accounting rules were suspended for "mark to market" on banks REO's. That said, banks do not give a fuck if they have REO's sitting out there for years. I find it odd that someone is paying the taxes but not the HOA fees as a HOA can foreclose in CA for back dues. Thing is, if it does have a foundation issue, nobody is going to want it. By 2015 the original "mark to market" rules come back into play, so look for this property to be dealt with in the next 2 years

One of my buddies is a dirt pimp. She told me the banks have lists of preferred RE Agts that they roll their REO's out to, if they will work for a reduced commission. Only those people or companies willing to buy a few hundred REO's at a time will have any attention paid to them, by the bank holding the REOs.

Ahh, so THAT'S why they were such a-holes to me over the phone. I have seriously talked to over a dozen people who keep referring me to someone else, dealing with awful automated phone systems, and I feel I finally may have hit the end of the road. I'm not quite ready to give up, though.

Also, Google the term MERS. You'll find tons of stuff relating to the pathetic state of affairs that millions of chains of title are broken, and, generally, so fucked up that the banks are telling the truth when they say they really don't know who owns the mortgage.

They couldn't close on time for a bunch of really stupid reasons, mostly not knowing shit about the house.

Holy crap! I had no idea that banks were so retarded when it comes to properties they own! With the way they do business, they freaking deserved to go down. With the pathetic way they're handling REO properties, it's a damn shame anybody was bailed out.

I am shocked that someone's been paying taxes on this property, yet nobody's willing to claim it. Whoever owns it is going to properly deserve to lose all the money they will on it by completely ignoring it as the foundation continues to worsen, and it goes through more and more Yellowstone area seasons. It could POSSIBLY be salvaged as it is, but that becomes more doubtful as more time goes on. Over 400k was owed on it originally. Who knows what Company B paid for it. As it stands, it's not worth anywhere near that, and the value will continue to plummet the longer it deteriorates, despite what the market does around here. Amazing how the banks won't even talk to me. I asked what they might want for it, and that got me absolutely nowhere. Truly incredible.