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I was thinking of buying in the Fall 2011 in Fort Lauderdale, Fl. I can't see prices coming down another 30-35% after a 50% drop already. Maybe another 10-15%. South Florida would be in a depression if housing dropped a total of 85%. No?

This is very common, it doesn't change the terms of the loan, is no big deal and it means nothing.....They made a couple of bucks on it and freed up some of their capital. In fact, it will be sold a number of times over the years.

Hello,

My mother who is 75 yrs old has been approved for a HUD 56,000 home which is 10 years old in a nice newer nieghborhood and in very good shape, she had planned putting 12,000 down. She has spoken to someone about getting a reverse mortgage they said she would have no payments and could live basically payment free but still has the option to make payments if she wants to on the balance. (she is on a very fixed income) The broker is telling her about the reverse mortgage and that she would need to put down at total of 40 percent or $23,000 rather than $12,000 to do this and he would give her a 5.6% rate. Is this a good idea? Is 5.6 a good interest rate for a reverse mortgage? He said she would be able to make payments on the balance if she wanted and at any amount that she wanted then in the event of her passing away her heir would have the option to pay the balance off and buy the house at that time. Is this a rip off in any way? I would hate for her to find out that she sunk her money into something that would be a bad deal. It sounded ok to me at first but then wondering if there is anything that she should be aware of before closing the deal?

Thank You,

Ms2222

Ms2222 says

Hello,

My mother who is 75 yrs old has been approved for a HUD 56,000 home which is 10 years

What does this have to do with the title of the thread. If you can't keep to the subject, please create your own thread, but don't hijack somebody else's.

Whats median from 1975 adjusted for real levels, factoring inflation?

You act surprised, OP. Banks aren't in the loan business anymore; they are in the business of sucking off the government's teat, getting handouts, fucking their customers with fees and commissions, and paying themselves big fat bonuses. The government is still backing over 90% of all loans. The only thing that's surprising is that you would have expected otherwise.

$155,000 or so.

I think his median price was of NEW homes. Now the medium price is a around 220K, but new homes are bigger than they used to be, what with Mcmansions and all. Still, dropping another 15 - 20% could easily happen, but it sure would hurt considering how invested everyone is in propping prices up. But then that's also the reason why it can happen.

Yes. I think that's common with homebuilders also (our case). Funny part is it was told to Fannie (IIRC) but is serviced by BofA. Figure that one out.

kentm says

Whats median from 1975 adjusted for real levels, factoring inflation?

Accoriding to government statistics:
http://data.bls.gov/cgi-bin/cpicalc.pl

$102,059.98, but it only goes back to 1980. But I would consider any appilcable wages after taxes and other increased costs comparison from 1975 to be the more appropriate calculation to use. I.E. - affordability for housing comes in after you figure in how much more (proportionately) people are paying for property taxes, insurance, etc.

If this was important to you, you should have paid attention to the disclosure when you submitted your loan application. This disclosure states the percentage of loans the institution sold in the prior calendar year. That number is a good indicator whether they are likely to keep your loan.
When we refi'd in 2008, the news was full of stories about misplaced notes and deeds on loans that were sold multiple times. We knew we were going to accelerate our payments for early payoff. It was important to us to keep the loan with the originator, to reduce potential for problems getting our deed. So we used our credit union. They keep 100% of their loans.
A couple of months prior to payoff I'm going to contact them to ask their procedure. I've read of this also. People sending in a final payment but not contacting the bank ahead of time, so nobody processes the paperwork to cancel the note and release the deed.

Do Banks carry mortgages anymore? I don't think so.

I recently asked my credit union if they had any REO's that I might make an offer on. Not a one. All their loans have been sold off.

I generally like what Charles Hugh Smith writes, but in this case I can't agree with this extreme statement on this topic. Hmmm...

Fall baby fall. :-)

I'm looking at a Fannie Mae foreclosure, but they are trying to recover the entire loan. No way.

I went with a credit union that carries it's own loans when I refinanced. They make money by loaning (and fees), and not just fees and passing the buck. I like the idea of being able to go talk to the people who have my loan in person.

When we first got the house, our loan was sold as soon as the ink was dry, like yours. They typically have the deal already "done" before you sign the papers.

kentm says

Whats median from 1975 adjusted for real levels, factoring inflation?

For folks that are not fans of "Voo Doo Economics" you guys sure like going for that inflation adjustment crap. Supply and Demand, but mostly demand dictates prices. You don't adjust Apple stock do you?

But to really be fair, to adjust for housing from 1952 to now, you would have to compare materials used, craftsmanship, the supply chain then compared to now. And a 3 br 1200 sq ft house would cost closer to 500K.

Working with hard wood frames, steel plumbing, lathe and plaster walls, Craftsmen that had to spend 12 years as journey men to hone their skills, today a GC drives by the over pass and picks up his drywall mudders and slab form builders and pourers. The building materials were bought from retail mom and pop out lets, with a focus on quality because the artisans that used the materials accepted no less than the standards they demanded. Today you buy the same crap at Home Depot or Lowes whether it's for a McMansion or Habitat for Humanity home. Nothing about older homes match up to data on newer homes they are two different animals. Adjusting for inflation is a moot cause. At best you can determine the income to cost ratio for a house, compared to then vs now. But it wont be comparing apples to oranges, unless you found the last Carpenter with the flat pencil behind his ear, and the folding tape measure, to build you house.

"my god am I pissed."

Perfectly normal and happens everyday. Sometimes you never hear about it.

Factoring of receivables is done by many types of businesses.

SF ace says

Everything else is really irrelvant, including who holds the loan. I would be looking to see if they are building equity and providing good rates then whether they hold on to the loan.

Well that's you. I explained why it is important to me who holds my mortgage. I never cared about it in previous mortgages. You may never care about it.

Why get jumpy? Inventory is low and should come up soon... maybe. How much does all of this REALLY matter for a long term investor?

BTW, not I'm trying to get your goat. Just a thought question.

" The market i is FAR FAR FAR more hostile..."

Call me ignorant, but perhaps I didn't get it. Are people taking punches at each other to get the properties, or is there a gladiator arena out there, to battle for the right of purchase?

Anyway, I gave this a +rec since I see potential here and it covers the "hands on" point of view as a good balance...

cheers.

Maybe it is the elite top 1% (or even 0.1%) net worth Americans that are buying them all up with cash.

Any comments about the pair on Victory Lane. The home at 1128 Victory Lane appears to have been foreclosed for under $200k in December 2010. Is anything on the courthouse steps looking enticing these days? Short sales seem to be ruling the day -- is this ruse all part of extend and pretend, or the REIC at its finest?

Ducky, Regarding the short sale shenanigans -- well, if anybody can give the REIC a kick in the pants, I'm betting you could. Either a full frontal assault on the brokers repesentin' or through the back door directly to the banks. It would probably be a major PIA the first time around, but perhaps you could refine a strategy that you could use effectively on other stalled short sales . And, of course, share with us on Patrick.net...

Btw, what's the deal on short sales? - is the debt "forgiven" or being collected at some point later?

yeah, definitely too far from you unless you don't mind the long distance landlord biz. The area is beautiful - many houses with awesome views, new, updated and dirt cheap. I wish I had 200k disposable cash laying around...

In general, are pools really that troublesome? (when you are renting the house out) - can't you have the tenants sign a piece of paper that waives your liability?

Don't get your hopes up - Mr. Quack. You can't just will these prices to go up. This pipsqueak of a spring bounce is definitely over, now, and the steamroller bust is dead ahead:

http://www.redfin.com/city/4150/CA/Concord

Yeah, better hurry - prices are going....

down.

Silly duck.

I have observed several homes in Moraga lately have changed hands without entering the market ... one day a "sold" sign appears, along with a new family.

Nomograph says

I once bought a place with a pool. The first thing I did was bring in a backhoe guy who punched holes in the bottom, tore all the coping and sides into the hole, and brought in fill dirt up to level. I then had a patio poured and no worries since. Cost me about 5K when I did it.

Wasn't it hard to swim in?

I don't see what's so special about homes in Concord. Why do you always have to buy there?

I recently had the exact opposite experience with a real estate agent that lists a lot of REO properties. I called to inquire about a listing of his and he immediately began to tell me about financing options, amount required for DP, etc. When I told him I'm a cash investor, his immediate reaction was "if you have cash, I'll be your best friend in this deal." In this down market where financing is very difficult to secure for a lot of buyers, cash is king and speaks volumes during negotiating. Banks see "offers" all day long that require financing on their numerous REO properties and short sales. They typically get trashed, unless it is a particularly difficult property, or the offer has very substantial down payment money. Cash on the other hand makes everyone sit up and take notice. I find it impossible to believe an agent wouldn't even bother writing up a "full price cash offer" unless it is "sold" and within a couple of days of transferring title.

Katy Perry says

I think any real deals right now are not even shown to you. Folks in the business get them first then flip them to you.

Sadly this is sometimes true. I always advise people I know who are buying a foreclosure to send a copy of their rejected offer to the banks. In fact, I suggest everybody do it for all sale types. Send a copy to the owners via express mail.

The game is owned and run by realtors. That same unscrupulous prick that would go out of his way to fuck you over for a commission wouldn't hesitate to direct a "deal" to his friends and family. It's all a big incestuous circle jerk, not unlike Wall Street and inside trading. I've heard some people say "if you can't beat them, join them," insinuating that can be upset about this or try to get in on it. This is a sociopathic mentality in my opinion. These realtors need to be exposed when they do this.

We're talking about resale homes in Concord, CA, and you post a chart for new homes in the whole U.S.

What little credibility you had here is now completely gone.

klarek says

There’s no way for him to prove that the agent said “don’t bother”, so there’s no way the agent can get in trouble until an offer is sent and rejected (thrown in the trash by the agent).

An agent doing this independently of his/her instructions from the seller would lose their license and also be liable for a huge law suit. I'm not trying to defend agents, but they would have to be totally nuts to pull such a thing.

Move to Encino/Tarzana buddy. We have tons of houses out here with signs, have been there for a while.

Here's a refresher course, kids:

http://www.realtor.org/wps/wcm/connect/5e37be0045ba291385f5c7342c47dc89/REL10Q4T_rev.pdf?MOD=AJPERES&CACHEID=5e37be0045ba291385f5c7342c47dc89

Median U.S. price 2010: $173,200

http://docs.google.com/viewer?a=v&q=cache:ikHrBAiDn4YJ:www.realtor.org/Research.nsf/files/MSAPRICESF.pdf/%24FILE/MSAPRICESF.pdf+median+home+price+2006&hl=en&gl=us&pid=bl&srcid=ADGEESj7ef9duPjkETtV23kQUzlSNbvtWugxV8aDLaZAVUcTWx3_oeohxxDEhDkWwx3oFN50z1cAEC0xZHBCVg-kzL7C-5A6o2TtI52SCF8wRYOLZt94Vi4RCNALU7we3ugD6vt7WQB_&sig=AHIEtbSLXeDzjGeamK_If0PGrLXvdgxiSw

Median U.S. price 2006: $221,900

Any questions?

I don't think the trend is toward bigger homes, I think it's the reverse. With the aging population, people won't want bigger homes, they'll want smaller, 2 or 3 bedroom homes.
When you're in your 80's, a smaller home with no stairs is easier to get around in and clean. And a smaller home is also cheaper to heat in the winter.
Since there will be more older people in 30 years, which size homes do you think will be more popular?

waiting_for_the_fall says

Since there will be more older people in 30 years, which size homes do you think will be more popular?

A big house so the family and extended family can live with the aging Matriarch and or Patriarch.
To help with health and cleaning and general upkeep. Much like it is in Asian countries.
"I think we might be all turning Japanese I said I think so..."

Or Chinese at least.

Fisk says

Russians are buying. They can’t be wrong!

The Russians are coming. The Russians are coming. Quick, buy everything you can. Bid at least $100K over the asking price. Remember, house prices always go up.

I tend to think the article is right, "in the future". But I also think that, with the still huge number of pending foreclosures, in-limbo inventory, boomers downsizing, immigration much restricted, mortgage lending much tighter, and new college grads graduating later and eyeballs in debt, that future of major new housing appreciation cycle is much further away than portrayed. Say, more like a decade than year or two.

As to renting out, yes that could be quite profitable for suitable properties, mostly multi-family complexes and townhouses. But most larger SFH are not in that category, at least in our area.
A neighbor of mine used to buy and rent out SFHs since 1970-s, but sold them all a few years ago and now owns apt. complexes only. He tells me that is a much better and easier business.

dunnross says

Fisk says

Russians are buying. They can’t be wrong!

The Russians are coming. The Russians are coming. Quick, buy everything you can. Bid at least $100K over the asking price. Remember, house prices always go up.

What ever happened to the rich Chinese or Indians that were supposed to be buying up everything ? Anyway, so far ONE deal which made the headlines and the bulls are still full of it. And that Ruski isnt even gonna move to the Bay Area. I guess next it will be Japanese Billionaires escaping Tokyo.