patrick.net

Good link, but you posted a lot of irrelevant text from the previous article. Good info tho. I've started to see flipped properties hitting the market here. Realtor says they are part of block sales to investor groups. So I think the article is dead on. The good thing for people who want to buy homes is this: 1) those homes will finally be hitting the market, probably within three months of sale. 2) they're fixed up, so less hassle with the missus about ugliness, 3) they must move: these folks understand that they are losing money letting these houses sit empty and unsold. They will reduce to find a sell point.
More inventory can only be a good thing.

Interesting. I wonder what kind of discount do the hedgies get?

Ok Eman, here you go. I took a look at this flip myself and it's a polished turd. Some nice things done and some things completely unfixable, like a tiny master bedroom.

18301 THOMAS Circle
Huntington Beach, CA 92646

Then there was this property which was right next to high tension lines, backyard was nestled up to a tree nursery. Schools weren't good which nixed it for us.

8652 HASTINGS Circle
Huntington Beach, CA 92647

There you go!

OK, I just found out today, I am buying one of those homes bought by an investor, that was sold by the government. It was sold a couple of months back to an investor for $250,000 who later listed the home for $469,000, but it sat. Then he listed the home for $439,000 and I viewed it and didn't put an offer, and it sat. Finally he listed it for $399,000, it sat for a while, I made a lower offer and he countered, and now I am in contract to purchase great home. I hate the crappy flip but the house has soo much to offer. I would've loved to have payed $300,000 for the home and fixed it up myself but I never saw it listed. My agent told me today that the seller must sell to a low/moderate income family as part of the agreement to buy this foreclosed home. I didn't ask more because the whole thing makes me sick. I am done with house shopping. It's been the worst experience of my life. But I can't wait to move in.

Carolyn,

They have single family houses for below $400k in Pleasanton? That's a freaking steal.

Darrell In Phoenix says

Nobody wants the toxic assets. It looks like the Fed convinced some hedgies to by them now.

That's change you CAN believe in. This crew know no end when a buck is concerned.

lostand confused says

Interesting. I wonder what kind of discount do the hedgies get?

I foresee the following: the hedge doesn't pay off so then what ANOTHER BAIL OUT? IMHO there is money to be made all around this scenario for these freaking theives.