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Flood of Shadow Real Estate Inventory about to hit the market will drive prices

By Lynnettemarcene   Follow   Mon, 11 Jun 2012, 4:49pm   8,632 views   85 comments
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Flood of Shadow Real Estate Inventory about to hit the market will drive prices further down. My friend who works for B of A Foreclosure Dept informed me the National HUD moratorium was lifted last month in which they expect the next big wave of foreclosures to hit throughout the end of 2012 and 2013. The media cannot broadcast this because this information will cause potential buyers to hold off on buying properties which will further drive the prices down which will cause the banks to lose more money. Awe, poor executives at the banks…after they fraudulently used the gov’t bail out money to give themselves gigantic bonus, do we really feel sorry for them?
Below is what the media has posted so far as they do not want to publicize how grim the outlook really is.
http://www.reuters.com/article/2012/04/04/us-foreclosure-idUSBRE83319E20120404

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1. Lynnettemarcene Follow Befriend (1) 1 threads 7 comments

   6   7:35pm Mon 11 Jun 2012   Share   Quote   Permalink   Like   Dislike   It's right above my post were I asked him to stop. Maybe the word he called me isn't very vulgar but it sure is insulting and uncalled for.

2. rooemoore Follow Befriend 41 threads 905 comments Ross, CA

   7   7:41pm Mon 11 Jun 2012   Share   Quote   Permalink   Like (2)   Dislike (1)   Lynnettemarcene says See the link below “Comment Policy: Insult Another User, Get Suspended” If Patrick enforced that the only thing here would be the crickets.

3. tatupu70 Follow Befriend (3) 15 threads 5,606 comments

   8   7:48pm Mon 11 Jun 2012   Share   Quote   Permalink   Like   Dislike   Lynnettemarcene says It's right above my post were I asked him to stop. Maybe the word he called me isn't very vulgar but it sure is insulting and uncalled for. That wasn't Roberto. It was House Prices are Cratering.

4. Call it Crazy Follow Befriend 228 threads 2,753 comments

   9   8:20pm Mon 11 Jun 2012   Share   Quote   Permalink   Like (2)   Dislike (1)   Lynnettemarcene says It's right above my post were I asked him to stop. Maybe the word he called me isn't very vulgar but it sure is insulting and uncalled for. If you have "thin skin" I would suggest NOT hanging out here.... it's a rough crowd!!!

5. HEY YOU Follow Befriend (4) 328 threads 913 comments

   10   8:23pm Mon 11 Jun 2012   Share   Quote   Permalink   Like   Dislike   I should be suspended just for making comments.

6. David9 Follow Befriend (3) 28 threads 747 comments Tarzana, CA

   11   8:24pm Mon 11 Jun 2012   Share   Quote   Permalink   Like   Dislike   Lynnettemarcene says The media cannot broadcast this because this information will cause potential buyers to hold off on buying properties which will further drive the prices down which will cause the banks to loose more money. Awe, I'll happily go with word of mouth and speculation. Even that helps us make decisions. In my mind, if someone is willing to let go of this property for only 64k above a 2002 price, someone else got a whiff of something too... http://www.redfin.com/CA/Los-Angeles/1115-S-Elm-Dr-90035/unit-502/home/6810929

7. Call it Crazy Follow Befriend 228 threads 2,753 comments

   12   8:29pm Mon 11 Jun 2012   Share   Quote   Permalink   Like   Dislike (1)   Lynnettemarcene says Flood of Shadow Real Estate Inventory about to hit the market will drive prices further down. My friend who works for B of A Foreclosure Dept informed me the National HUD moratorium was lifted last month in which they expect the next big wave of foreclosures to hit throughout the end of 2012 and 2013. I'm going to partially agree with this I'm just not sure of the timing of the "flood". I took a ride around this weekend to scope out some real estate. I was amazed at the sheer amount of "shadow" houses that are just sitting, without any "For Sale" sign on them. Every little subdivision and little neighborhood had vacant houses, some on EVERY street. Many had township stickers on the doors noting them as "empty". The total amount of empty houses I saw is absolutely staggering, and I've been around these areas for a long time. Now the question I don't know is how long the banks are going to continue to "hold" them or start to "release" them. Since the moratorium was recently lifted, if all these houses hit the market, the housing market here will be TOAST and prices will drop back to the early 1990's at best!!!

8. David9 Follow Befriend (3) 28 threads 747 comments Tarzana, CA

   13   8:34pm Mon 11 Jun 2012   Share   Quote   Permalink   Like   Dislike   Call it Crazy says the housing market here will be TOAST and prices will drop back to the early 1990's at best!!! LOL! Someone is trying soooooo hard to avoid that.

9. Call it Crazy Follow Befriend 228 threads 2,753 comments

   14   8:36pm Mon 11 Jun 2012   Share   Quote   Permalink   Like   Dislike (1)   David9 says Call it Crazy says the housing market here will be TOAST and prices will drop back to the early 1990's at best!!! LOL! Someone is trying soooooo hard to avoid that. Heck, I'll even provide the butter and jelly (for the toast) if I could buy a house now at 1990 price levels:)

10. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 169 threads 4,153 comments Premium

    15   5:04am Tue 12 Jun 2012   Share   Quote   Permalink   Like (2)   Dislike   Protected   1975 levels are the bottom.

11. Goran_K Follow Befriend (4) 25 threads 1,517 comments Laguna Beach, CA Premium

    16   7:12am Tue 12 Jun 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected   1990 levels would be great. I'd love to buy a cash 3/2 in Santa Monica without blinking. :)

12. StoutFiles Follow Befriend (1) 24 threads 557 comments

    17   7:14am Tue 12 Jun 2012   Share   Quote   Permalink   Like (2)   Dislike   Considering family net worth has fallen to 1992 levels, it wouldn't shock me if housing did the same.

13. CaptainShuddup Follow Befriend (1) 246 threads 4,658 comments

    18   7:41am Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike (1)   This I'm sure of... Those expecting wait long enough to get their dream property for a fraction of the cost in their wildest dreams; and plans on doing so with bank financing. Will be on the outside looking in. The current mode of operation, that has been the standard since 2008 when the bubble collapsed. Has been working for all parties(the Government, Banks, the Realestate industry) ect... and I don't see that changing. While it may be true that a flood of foreclosures are about to hit the market. You will need cash to buy them, and the powers at be, are hard at work, trying to bundle 10 or 15 properties a pop. So yeah you'll see those 60 and 70K properties, but you'll need to buy up 10 a pop with cash money. 700K isn't anything to the wealthy that will buy them up, but it may as well be $5,000,000 for everyone else. And I tell you something else, these investors wont be none happy, if every Tom, Dick and Harry are getting buying these properties driving the demand for rentals down, or the demand for flipping these houses at a good profit. After they own them all on their portfolio. I think it's up to the American consumer, to say "when", and resuscitate the American dream. If we stay on the side lines, then "THEY" will win and end up with them all, and create the "Land owner" class. Everyone else can only dream a long distant dream that will be impossible at that point to ever own a home. But don't take my word for it, I'm never right about these things.

14. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 169 threads 4,153 comments Premium

    19   7:44am Tue 12 Jun 2012   Share   Quote   Permalink   Like (3)   Dislike   Protected   DIE, BANKSTER FUCKS, DIE!

15. dodgerfanjohn Follow Befriend 19 threads 588 comments Los Angeles, CA

    20   7:45am Tue 12 Jun 2012   Share   Quote   Permalink   Like (1)   Dislike   robertoaribas says Lynnettemarcene says The media cannot broadcast this because this information will cause potential buyers to hold off on buying properties which will further drive the prices down which will cause the banks to loose more money. yes, and the media are forbidden to ever write anything that might be negative to some group of people, or business... your article referenced one from a month ago... another month has gone by, and still no flood. Phoenix inventory has dropped even lower over the month, filings of NTR (notice of trustee sales) while up over the past few months, are still running 30% less than last year, and 60% less than the peak... Until there is some visible evidence of this tsunami, it is pure speculation. lose, not loose btw. The arguement that the media won't hold back information is kinda weak. Currently the national media will not report race related incidents that are basically an epidemic in any place in the US not called California or New York. Thats evidenced by a simple Google search, where local papers report it, but these incidents are NEVER reported by any of the nationwide networks. The notion that the national media has been requested not to run this story would not be an earth shattering revelation.

16. CaptainShuddup Follow Befriend (1) 246 threads 4,658 comments

    21   8:02am Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike (1)   Housing Prices Are Cratering says CaptainShuddup says 700K isn't anything to the wealthy that will buy them up, Considering housing demand is at 15 year lows and falling, NOBODY is "buying them up". Correction "Owner Occupied" demand is at a 15 year low. Investment RE has never been higher. Don't take my word for it, I'm just telling you what is going on in South Florida. Houses are still selling lower and lower. How ever, MLS listing prices are actually rising now. Also trending up YOY at 6% or more is rent. While the city is actually appraising existing home owners lower. Here's some fucked up math for you... My house I bought in 2010 for 160K the city now appraises at 119K. Yet! now get this, average listing price is going up already back at 225K in my neighborhood. The same neighborhood is still seeing houses sell for 79K give or take a few grand. How ever you'll need cash, and you'll need to buy a gross of properties to get those prices. Think I'm nuts? http://www.trulia.com/real_estate/North_Central_Hollywood-Hollywood/1956/

17. robertoaribas Follow Befriend (23) 55 threads 3,765 comments Scottsdale, AZ robertoaribas's website

    22   8:11am Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Ok, so I just counted the NTR filings (notice of trustee sale) for maricopa county (phoenix metro) 3500 in the last 30 days. During the peak months of 2007 and 2008, there were over 10,000 such filings a month. today, there are 60% less bank owned homes on the mls, and under 300K less than 1 months inventory. Sales have been running around 8000 a month this year. So, for the next 5 months, no tsunami of foreclosures will show up here... Given the tight supply/demand situation, and prices that have jumped 30% year over year, I simply don't see any data yet of this market turning south.

18. robertoaribas Follow Befriend (23) 55 threads 3,765 comments Scottsdale, AZ robertoaribas's website

    23   9:35am Tue 12 Jun 2012   Share   Quote   Permalink   Like (1)   Dislike   Housing Prices Are Cratering says Forever misrepresenting the truth to the public. We expect nothing less from you ass-raping cannibals. I post facts, you post personal insults. Aside from the obviously huge gap in intelligence between us, what else are you trying to demonstrate?

19. BoomAndBustCycle Follow Befriend 28 threads 351 comments

    24   11:15am Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Housing Prices Are Cratering says Give it time because 1990 levels is the bottom. 1990 home prices were higher than 1996 home prices in Los Angeles.. so calling 1990 a bottom doesn't really make sense. Avg homes in my neighborhood were $175K in 1996.. but interest rates were like 8%. Now average homes are $365K...with interest rates a 3.75%. 2012 - About $2059...PITI 16 years later... 1996 - About $1413.. PITI So about $600 a month more expensive to own a home from 16 years ago... Yeah, what a painful bubble that needs to burst much further... that's about on par with inflation... Now if rates rise.. (which i dont' see happening.. I see us going JAPAN style with rates). Only our housing fell a lot harder and faster than JAPAN ever did... so if we keep rates low for as long as Japan has... we already have a huge head start in price drops. I don't see the downside being much more than 20% at MOST from current prices. And that would mean the economy would have to TANK hard.. and the FED would have to raise interest rates hard. I do see the economy tanking hard.. but no way the FED is raising interest rates if that happens. A long slow slide is the only viable scenario... People will lose money on homes.. but nothing catastrophic like in 2006. Renters will continue to be gouged in RENT increases. And in 15 years.. renting vs. owning will be a wash at worst if you buy in 2012.

20. thomas.wong1986 Follow Befriend 16 threads 4,426 comments

    25   11:20am Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   BoomAndBustCycle says Avg homes in my neighborhood were $175K in 1996.. but interest rates were like 8%. Now average homes are $365K...with interest rates a 3.75%. not to mention for some who can remember.. both prices and interest rates declined from 1990 to mid 90s. Lower interest rates didnt influence higher buying and prices.

21. thomas.wong1986 Follow Befriend 16 threads 4,426 comments

    26   11:25am Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Housing Prices Are Cratering says Then you're going to be shocked.... stunned over the coming years. in my area, some sellers and potential sellers Im sure are already shocked due to the recent facebook fuck up... look at this idiot! LOS GATOS, Calif. (KGO) -- A Silicon Valley couple is offering an unusual deal to sell their house. Their 11.5-acre estate on Forrester Road in Los Gatos, California is selling for $29 million. But if you're short on cash, the owners will also take pre-IPO shares of Facebook.

22. BoomAndBustCycle Follow Befriend 28 threads 351 comments

    27   11:51am Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Housing Prices Are Cratering says Then you're going to be shocked.... stunned over the coming years. The side effects of real estate falling over 20% more nationwide would be shocking to you also. I'd watch what you wish for!

23. BoomAndBustCycle Follow Befriend 28 threads 351 comments

    28   12:22pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Housing Prices Are Cratering says Uh huh. Right. Because we'll all come down with radiation sickness and the sun will rise in the west, right? Our government has started WARS for far more trivial reasons than a collapse of real estate to 20 year lows.. and wiping out of the middle class via asset and wage deflation. So "radiation sickness" may be a viable possibility.. things can get ugly fast when you got a lot of desperate, broke citizens spanning the globe... and broke governments with their fingers on nukes.

24. Goran_K Follow Befriend (4) 25 threads 1,517 comments Laguna Beach, CA Premium

    29   12:25pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Protected   BoomAndBustCycle says The side effects of real estate falling over 20% more nationwide would be shocking to you also. I'd watch what you wish for! It happened before, the country didn't go into cannibal anarchy.

25. David9 Follow Befriend (3) 28 threads 747 comments Tarzana, CA

    30   1:50pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   OMG, here Patrick, here is everything mentioned, only you didn't say it. ;-) 1.) Zombie, insolvent, bankrupt banks 2.) $1 Trillion in toxic, impaired mortgages 3.) Banks borrow for 0, zero percent interest 4.) Another pool of three percent 3% down sucker buyers http://articles.businessinsider.com/2012-03-21/markets/31219076_1_shadow-inventory-insolvent-banks-real-estate-market

26. everything Follow Befriend (2) 3 threads 546 comments Madison, WI

    31   1:59pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   I inquired about a shared rental today, in asking questions, party told me they are in foreclosure and won't be booted out until the end of the year so is trying to recoup some money. Payment is 1240 + condo dues + property taxes, they paid 175k, now it's valued at 124k. That's a fairly heavy debt burden, but a good one to get out from underneath.

27. Call it Crazy Follow Befriend 228 threads 2,753 comments

    32   2:11pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike (1)   David9 says OMG, here Patrick, here is everything mentioned, only you didn't say it. ;-) 1.) Zombie, insolvent, bankrupt banks 2.) $1 Trillion in toxic, impaired mortgages 3.) Banks borrow for 0, zero percent interest 4.) Another pool of three percent 3% down sucker buyers http://articles.businessinsider.com/2012-03-21/markets/31219076_1_shadow-inventory-insolvent-banks-real-estate-market That article was right on the money.... Anyone who thinks the housing market is coming back now and is a Bull in the market better take a GOOD read of that article. Just make sure you take off your "rose" colored glasses first...

28. David9 Follow Befriend (3) 28 threads 747 comments Tarzana, CA

    33   2:15pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Call it Crazy says That article was right on the money.... Yes, thank you. :) There is no housing market. It's all about the banks waiting: "until unicorns arrive and valuations return to bubblicious 2006 levels where the bank can unload them with no loss."

29. Call it Crazy Follow Befriend 228 threads 2,753 comments

    34   2:26pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike (1)   David9 says "until unicorns arrive and valuations return to bubblicious 2006 levels where the bank can unload them with no loss. We'll all be dead by the time that bubble returns....

30. David9 Follow Befriend (3) 28 threads 747 comments Tarzana, CA

    35   2:39pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Call it Crazy says We'll all be dead by the time that bubble returns.... Hopefully we won't be dead by time more reasonable, 'real' housing prices return. I don't want to use the term 'market' because it is anything but that.

31. BoomAndBustCycle Follow Befriend 28 threads 351 comments

    36   3:04pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Housing Prices Are Cratering says Yet the truth is housing prices are still at 2003 levels. Why deflect from that truth? My reference was to your CALL for housing to fall back to 1990s prices.. or lower. I'm saying if that happened... The "fallout" could EASILY cause World War 3.

32. BoomAndBustCycle Follow Befriend 28 threads 351 comments

    37   3:07pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Goran_K says It happened before, the country didn't go into cannibal anarchy. that's because the stock market rebounded.. and unemployment is keeping people from starving. Austerity hasn't kicked in for the US yet.... Another crash and a republican presidency will guarantee austerity... then all bets are off.. Again, watch what you wish for...

33. Call it Crazy Follow Befriend 228 threads 2,753 comments

    38   3:19pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike (1)   BoomAndBustCycle says My reference was to your CALL for housing to fall back to 1990s prices.. or lower. I'm saying if that happened... The "fallout" could EASILY cause World War 3. What happens if housing falls back to where it should be... 2.5 times wages? What year was that??

34. BoomAndBustCycle Follow Befriend 28 threads 351 comments

    39   3:29pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Call it Crazy says What happens if housing falls back to where it should be... 2.5 times wages? What year was that?? 2.5x wages doesn't take into account interest rates... My home is approx 3.5x my wage... but i have a sub 4% rate.. if i bought a home 2.5x my current income in early 2000.. I would have been paying more per month upon purchase. Refinancing would change things.. but 2.5x wages while safe.. isn't really the average for many major US cities. Even in high rate environments. If interest rates stay below 4% for as long as they did in Japan... Then a long slow slide is all that will occur.. and eventually nominal home prices will rise.

35. Call it Crazy Follow Befriend 228 threads 2,753 comments

    40   3:33pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike (1)   BoomAndBustCycle says Refinancing would change things.. but 2.5x wages while safe.. isn't really the average for many major US cities. I think it was back in the 60's and 70's.... go ask your parents...

36. tatupu70 Follow Befriend (3) 15 threads 5,606 comments

    41   3:34pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   BoomAndBustCycle says 2.5x wages doesn't take into account interest rates... My home is approx 3.5x my wage... but i have a sub 4% rate.. if i bought a home 2.5x my current income in early 2000.. I would have been paying more per month upon purchase. And home prices shouldn't be the metric--it should be mortgage balance.

37. tatupu70 Follow Befriend (3) 15 threads 5,606 comments

    42   3:37pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Margaret Has A HorseFace says WRONG. Prices are construction costs + profit+ lot costs less depreciation. And don't you forget it. Here's an econ 101 lesson for you. Price is not a function of cost. It doesn't matter how much it cost to build a house, the price is a function of supply and demand.

38. tatupu70 Follow Befriend (3) 15 threads 5,606 comments

    43   3:42pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Margaret Has A HorseFace says When demand is met by new supply Sure--when is that new supply coming? Housing starts are at all time lows, last I checked.

39. tatupu70 Follow Befriend (3) 15 threads 5,606 comments

    44   3:47pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Margaret Has A HorseFace says You better check again because we're building and we'll continue to build and sell at double digit percentages under resale housing. OK--I checked again. Still near all time lows.

40. tatupu70 Follow Befriend (3) 15 threads 5,606 comments

    45   3:50pm Tue 12 Jun 2012   Share   Quote   Permalink   Like   Dislike   Margaret Has A HorseFace says Whatchya think about that I think I'm wasting my time with a troll.

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