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Old 04-02-2008, 09:35 AM
 
Location: The Conterminous United States
22,584 posts, read 54,311,326 times
Reputation: 13615

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Quote:
Originally Posted by Wild Style View Post
Add Sir Greenspan to that list
Duly noted. <hiknapster adds big Al to the list>

 
Old 04-17-2008, 12:05 PM
 
26 posts, read 167,201 times
Reputation: 33
Default Is there a formula for purchasing a home on short sale?

Just curious...I hope this has not been answered already but we have put in on an offer on a short sale home. The house is on realtor.com for 395K we offerd 290K . We were actually #2 in line as there was another offer ahead of ours (I think they offered 250K). We just found out that the other offer did not go through because they would not come up to the price of 310K. Not sure if we are getting the correct info from our realtor but is there a general formula for what the bottom line is that the bank will take?

Sorry to be so ignorant with this question.

I would also like to ask if we should perhaps wait another few months for better choices????
 
Old 04-18-2008, 11:53 AM
 
197 posts, read 605,332 times
Reputation: 93
Quote:
Originally Posted by Wild Style View Post
First if the people in a given neighborhood or area are not making 200,000 dollars annually then that home is over priced. Hence the prices will fall.

Secondly no where is it written that everyone should own a home. If you can not afford a home then rent, period.

Lastly, as said before, 20% down and 3 times annual income (price of house) is the historical measure of qualifying for a mortgage. Once that is back in place, prices will be pushed down. That is natural supply and demand given income.

But as I said again and I want to stress this. Not everyone is supposed to own a home. No where is it written in stone that everyone should own a home. Again if people can not buy, homes will sit and prices will depreciate until they come back in line with the above mentioned formula.
That formula works for most of the country....but Florida's insurance/property tax burden wreaks havok on it!! I think Florida is more like 2 times your annual income.
 
Old 04-18-2008, 05:01 PM
 
Location: Living in Paradise
5,701 posts, read 24,169,529 times
Reputation: 3064
Just an update from the NW Florida, two houses sold in my residential area, both were listed for 6 months:

One asking $200K sold for $180K, 1630 SQFT, built 1996
the other house asking $195K sold for $155K, about 1500 SQFT, built 1997

200 sales (land, houses, and business) in Santa Rosa County for Mar....

200 plus sales for Feb 08---300 plus for Jan 07
250 plus sales for Jan 08---250 plus for Jan 07

Many more homes available....
 
Old 04-18-2008, 09:00 PM
 
Location: America
765 posts, read 2,639,621 times
Reputation: 240
Here is an interesting article I found:

Average Joe still can't afford a home - MSN Money
 
Old 04-18-2008, 10:30 PM
 
Location: Imaginary Figment
11,449 posts, read 14,472,910 times
Reputation: 4777
Quote:
Originally Posted by bdpop View Post
Here is an interesting article I found:

Average Joe still can't afford a home - MSN Money
We've got a way to go yet.
 
Old 04-18-2008, 11:51 PM
 
270 posts, read 571,172 times
Reputation: 78
okay so heres this very good video explaining the loan mess,he talks about california numbers but I felt it was appropriate for florida since were on the same boat, gives you website to do the florida research yourself,very scary stuff,this is were the deppression might come from I feel..
YouTube - Mr Mortgage - HERE COMES THE ALT-A CRISIS
 
Old 04-19-2008, 12:52 AM
 
Location: Imaginary Figment
11,449 posts, read 14,472,910 times
Reputation: 4777
Quote:
Originally Posted by lostbuyer View Post
okay so heres this very good video explaining the loan mess,he talks about california numbers but I felt it was appropriate for florida since were on the same boat, gives you website to do the florida research yourself,very scary stuff,this is were the deppression might come from I feel..
YouTube - Mr Mortgage - HERE COMES THE ALT-A CRISIS
Wow, those are some surprising stats.
 
Old 04-19-2008, 01:13 AM
 
270 posts, read 571,172 times
Reputation: 78
I just have to laugh at people who thimk this is the bottom,and that its over,things are just gonna kick into high gear this summer.watch out below.
 
Old 04-19-2008, 04:44 AM
 
Location: Reality
1,050 posts, read 1,931,226 times
Reputation: 259
Quote:
Originally Posted by lostbuyer View Post
okay so heres this very good video explaining the loan mess,he talks about california numbers but I felt it was appropriate for florida since were on the same boat, gives you website to do the florida research yourself,very scary stuff,this is were the deppression might come from I feel..
YouTube - Mr Mortgage - HERE COMES THE ALT-A CRISIS
Great video. The numbers don't lie.

Things in Florida are actually very scary. There is currently a 5 year supply of condos and townhouses on the market in Dade County, which represents an inventory of more than 24,000 units.

More than 19,000 condos are scheduled for completion this year, with 6,400 additional units expected in 2009.

Inflation, recession, increased storms forcasted for this season... A perfect storm is brewing. It's better to be prepared than surprised.
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