U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > North Carolina > Charlotte
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-24-2010, 11:10 AM
 
Location: Union County
5,783 posts, read 8,419,560 times
Reputation: 4818

Advertisements

Quote:
Originally Posted by chuckles34 View Post
I continue to be intrigued by this "shadow" stock that I only read about on this site. I don't doubt you, I just don't see evidence of it or read about it anywhere else, and I'm in the industry.
It really comes down to the fact that there is no foreclosure listing service similar to the Multiple Listing Service... Even then, if that service existed (like some web sites say they offer for a subscription payment) the banks control the flow of what gets put up for offer/auctioned.

Since sitting on the properties is ultimately less costly then flooding the market, the banks use that control in their favor.

If you drive around neighborhoods, you can usually pick out a zombie house.
Reply With Quote Quick reply to this message

 
Old 05-24-2010, 11:15 AM
 
Location: The place where the road & the sky collide
21,903 posts, read 27,184,852 times
Reputation: 8966
Quote:
Originally Posted by chuckles34 View Post
Okay, but the foreclosure process can take months and the banks are under tremendous pressure to successfully modify loans (for the homeowners) or offer short sales. Foreclosure is the last option and the banks have to do a lot before they can put them on the market. I'm not sure you completely understand the process (and that's a GOOD thing for you!).
There was a sign on the door for over 6 months stating that the house was in foreclosure.
Reply With Quote Quick reply to this message
 
Old 05-24-2010, 11:35 AM
 
1,554 posts, read 2,924,507 times
Reputation: 805
The banks can't and won't stop the foreclosure process once it's started because the proceedings take place in the banks' servicing areas. The loan modification attempts by the banks using their own or the federal government's arsenal of loan modification programs are handled in other areas. The two areas communicate but each moves ahead until 1) a loan modification is succesful or 2) it's determined the homeowner could not or would not negotiate a new loan structure and will forfeit the home. Either process can take months and most major lending organizations are choking on all of the distressed loans they've got on their books. Everything is not always a conspiracy.
Reply With Quote Quick reply to this message
 
Old 05-24-2010, 11:43 AM
 
Location: State of Being
35,885 posts, read 67,065,320 times
Reputation: 22371
Okay, let's look at this another way. It doesn't matter whether the banks are "conspiring" in some way to release houses on the market at different times.

What matters is what is happening, whether you call it shadow inventory, zombie houses, or whatever.

What is occurring is real. Houses are sitting empty yet are not on the market, for whatever reasons. So when statistics are compiled, if a house is not notated as "in foreclosure" and recognized as a viable property that can be sold to a new buyer, then that house doens't exist as far as statistics.

And it doesn't exist as far as potential buyers who can find out about the house and put in an offer on it - b/c the house is not listed w/ MLS and there is no sign outside saying "call XYZ bank for more info" either.

So that is why it is shadow inventory.

Doesn't matter what the reasons are as to why shadow inventory exists. The facts are - it just exists, lol.
Reply With Quote Quick reply to this message
 
Old 05-24-2010, 12:04 PM
 
Location: In the AC
972 posts, read 2,139,041 times
Reputation: 830
Quote:
Originally Posted by MikeyKid View Post
I'm sorry - but money is money. If I can save $10k, $20k, upwards of $50k by buying a short sale - and we're talking the same neighborhood - same schools - same comparable statistics - and similar finish. Bring on the pain!

I understand that my situation may not be typical as some folks need to get into a house quickly and smoothly. But, paying extra for convenience in a declining market is very risky IMO.
That's great for you that you can do that! Many people cannot, that is why I said "some people". At our price point, the differences were so small that the storage costs for our stuff would have eaten into any savings. I also needed to get our family settled quickly for personal reasons. There were less painful ways for us to take advantage of this market.

Out of curiosity, and to inform others, how are you going to handle the unkown of giving a move out date for your rental? My friend had to give a two month's notice when she thought she was buying a short sale, and her landlord went ahead and found new tenants for afterwards. At that point, and with the short sale having issues, she was faced with adding in another move to different temp living or buying a sure thing.
Reply With Quote Quick reply to this message
 
Old 05-24-2010, 12:36 PM
 
Location: Union County
5,783 posts, read 8,419,560 times
Reputation: 4818
Quote:
Originally Posted by chuckles34 View Post
The banks can't and won't stop the foreclosure process once it's started because the proceedings take place in the banks' servicing areas. The loan modification attempts by the banks using their own or the federal government's arsenal of loan modification programs are handled in other areas. The two areas communicate but each moves ahead until 1) a loan modification is succesful or 2) it's determined the homeowner could not or would not negotiate a new loan structure and will forfeit the home. Either process can take months and most major lending organizations are choking on all of the distressed loans they've got on their books. Everything is not always a conspiracy.
I don't think anyone is saying it's a "conspiracy"... The issue is that I think you're working under the assumption that the banks are working through this process with due diligence towards getting the property on the market ASAP. Regardless of the semantics of the process, the point is the bank will put the property on the market, for a price they decide, when they are ready. I don't think anyone can blame them for being smart about when that happens.

Quote:
Originally Posted by msm_teacher View Post
That's great for you that you can do that! Many people cannot, that is why I said "some people". At our price point, the differences were so small that the storage costs for our stuff would have eaten into any savings. I also needed to get our family settled quickly for personal reasons. There were less painful ways for us to take advantage of this market.

Out of curiosity, and to inform others, how are you going to handle the unkown of giving a move out date for your rental? My friend had to give a two month's notice when she thought she was buying a short sale, and her landlord went ahead and found new tenants for afterwards. At that point, and with the short sale having issues, she was faced with adding in another move to different temp living or buying a sure thing.
It's something that I would have to negotiate with my landlord... I completely agree that if you factor in all the costs, it won't be viable for everyone.
Reply With Quote Quick reply to this message
 
Old 05-24-2010, 01:00 PM
 
4,010 posts, read 8,932,078 times
Reputation: 1586
Quote:
Originally Posted by chuckles34 View Post
Okay, but the foreclosure process can take months and the banks are under tremendous pressure to successfully modify loans (for the homeowners) or offer short sales. Foreclosure is the last option and the banks have to do a lot before they can put them on the market. I'm not sure you completely understand the process (and that's a GOOD thing for you!).
This depends upon the bank that owns the loan, if the loan is owned by any bank. Bank of America said that it is going to increase it's foreclosure rate from 7,500/month, to 45,000/month. If the bank is one of the big boys, Obama is giving the bank, via the Federal Reserve, practically unlimited taxpayer funding.

Irvine Housing Blog - Irvine Real Estate and Irvine Homes - Bank of America to Increase Foreclosure Rate by 600% in 2010

Beyond that, the FDIC has closed more than 70 banks this year due to loan losses. This news is ignored by the main stream media.

My personal observation, from taking daily walks around Charlotte, is there a a great number of "zombie houses" out there. Zombie house = house that isn't for sale or rent, but which has no one living there. The big tell tale signs of this are grass that is cut, but where the hedges are not trimmed, weeds taken care of, and no stuff on the deck. (re grill) I am referring to the newer neighborhoods.
Reply With Quote Quick reply to this message
 
Old 05-24-2010, 06:03 PM
 
Location: Up above the world so high!
45,270 posts, read 88,403,909 times
Reputation: 39856
Here's the thing though...interest rates are at HISTORIC lows.

In fact, I never expected to see a 30 year fixed rate of 4.5% in my life!

Along with some of you I well remember the inflated rates of the early '80's - 13 to 16% depending on your credit - OUCH.

So, for anyone in the market for a home anyway, I'd be sure to buy, or lock in to buy, very soon. VERY soon. These rates are not going to last and will allow you to afford so much more house than ever before.

If you are selling and have to "get real" like Pink Caddy has reminded you, just know you can make up for what you feel you've lost if you buy again soon

Mortgage Rates at New Lows, Thanks to Europe's Debt Crisis - Yahoo! Finance (http://finance.yahoo.com/news/Mortgage-Rates-at-New-Lows-cnbc-442681525.html?x=0&sec=topStories&pos=1&asset=&cco de - broken link)=
Reply With Quote Quick reply to this message
 
Old 05-24-2010, 06:18 PM
 
515 posts, read 906,813 times
Reputation: 269
If mortgage rates go up home prices have to go down to keep the monthly the same. It appears no one cares about the cost of the home, only the monthly payment....if you wait, you have the possibility of refinancing at a later date.... if you buy high, you're stuck with it...
Reply With Quote Quick reply to this message
 
Old 05-24-2010, 06:26 PM
 
Location: State of Being
35,885 posts, read 67,065,320 times
Reputation: 22371
Quote:
Originally Posted by monkeyboy View Post
If mortgage rates go up home prices have to go down to keep the monthly the same. It appears no one cares about the cost of the home, only the monthly payment....if you wait, you have the possibility of refinancing at a later date.... if you buy high, you're stuck with it...
Okay, that line of thinking has my head spinning. The price of houses has to go down? Why? A house is not going to appraise for LESS just because interest rates have gone up.

???? Am I missing something here?

In the 80s, the interest rates went up but the median house price did not go down! It continued to go up.

If the maximum price you can pay per month equates to a $200K at 5% then the situation is gonna be that you will just have to find a $160K when the interest rates go to 12% - not that you will find all the $200K houses are suddenly costing only $170K.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:



Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > North Carolina > Charlotte
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 06:52 AM.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top