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There is a lot of cash out there coupled with pent up demand. Lots of cash buyers at forclosures, short sales and court house step auctions so there are plenty of buyers out there for these distressed properties.

So why would anybody pay more for the home than it is worth? The market price is already set by comparing other home prices and what they are selling for in the local area. I would not pay 200k for a comparable home that just sold down the street for 150k.

So are people bidding on a house for higher than market prices as you just said?

The second thing is these homes are not probably going to get financed anymore when the govt says you need 30% down and the buyer cant come up with the downstroke.

I am a buyer for a distressed property as well..............but all you can go buy to price this house is what houses are selling at in the local area.

And if prices are still going down you better be figuring that into your math as well.

No HOUSE buyer with money is going to underwater now. Unless they are willing to take a short term loss waiting for the big turnaround.........like Japan?

JohnAlexander says

So why would anybody pay more for the home than it is worth? The market price is already set by comparing other home prices and what they are selling for in the local area. I would not pay 200k for a comparable home that just sold down the street for 150k.

and you also would not pay for a home which sold for $150,000.00 because it is sold already

So are people bidding on a house for higher than market prices as you just said? The second thing is these homes are not probably going to get financed anymore when the govt says you need 30% down and the buyer cant come up with the downstroke.

I thought foreclosure auctions require full payment ? I have never been to one but I have heard that mortgages dont have a place at foreclosure auctions anyhow

I am a buyer for a distressed property as well…………..but all you can go buy to price this house is what houses are selling at in the local area.

Yep

And if prices are still going down you better be figuring that into your math as well.
No HOUSE buyer with money is going to underwater now. Unless they are willing to take a short term loss waiting for the big turnaround………like Japan?

Like Japan ??? Huh???? Someone has been drinking some Saki.

Thats my point...Japan has been spiraling down for 20 years. The Japaneese have been waiting and it never came...understand forked tongue?

Mr.Fantastic says

I don’t think people in Japan are waiting for a big turn around. Real estate has been declining or flat for 20+ years. If you don’t get the fundamentals by then, you’ve either got a great power for denial, or you’re very dense.

It couldnt have been declining if it was flat for 20+ years so you must mean it was declining.

The banks would have to take huge losses which they are trying to delay (still makes no sense when considering the carryign costs) and they are supposedly hoping for some sort of bailout. Either that, or they are very stupid.