Foreclosures - how to play the game? (2010, loans)

[SeventhFloor]

why not? please share your experiences.

[westchester]

their are just to many things that you have to learn..........the most important is what do you do when the tenant takes 2 bages of cement and flushes them down the toilit beford they leave their house......................ooh *hit........do you have all the cash to put down in 30 days...............then you still have to get the tenants out...........so you buy a house 30 days later you put down 400k you spend another 5k and 2-6 months trying to get tenant out because they have 2 kids and no judge is going to throw them out,,,,,,,so you finally get them out.....it's been 4 months and quess what you finally get to look inside the house you bought 5 months ago to find out it needs another 80-100k...........and when your finished you have a house worth 450k.............

[SeventhFloor]

so the tenants of the house dont get evicted like when you dont pay your rent?

[westchester]

Originally Posted by SeventhFloor

so the tenants of the house dont get evicted like when you dont pay your rent?

sure they get evicted but only after you get them evicted another expense on your end . If their are kids or older people or someone with disability's it is a lot harder to get them out

[NooYowkur81]

I've looked into it before. From what I've gathered NYC-metro is a pretty rough market especially for someone new and unexperienced. Foreclosures can be profitable, but they are often more trouble than it is worth. I would recommend also looking into other areas in the U.S. that might be popping up.

[scatman]

Originally Posted by SeventhFloor

so the tenants of the house dont get evicted like when you dont pay your rent?

In this city, it takes a loooooong time to evict!

[Guywithacause]

Yes the idea theory behind foreclosures is great..but the reality if far from it. Between the "sight unseen", the cash upfront, and the squatters/tenants that are either not paying anything, or paying way below market rent, the problems, headaches can cause you to bleed cash nonstop.

In the Mott Haven area, I have NEVER EVER NEVER seen so many houses for sale in my neighborhood. Typically there were never homes for sale as the RE agencies did not even try to get listings in the area, and homes passed simply from one generation to the next. Now however, there are NUMEROUS ( as in 10 homes off the top of my head in a 6 block radius) for sale by just about every RE firm plus FSBOs. It is a distrubing trend as they have been on the market for awhile and more keep piling up.

Strangely, however, a home one block away, that is an unrenovated 2 family directly across the street from large housing projects, sold for $500,000 in September...which is the first time the $500,000 mark was set in the area for a 2 family home.

So maybe this guy was crazy? Or maybe there is an equalization/redistribution of housing prices, i.e. 2 family homes (for example) selling for $750,000++ in NYC won't sell and will have sizable price drops, while 2 family homes that are selling for around $400-500,000 range will sell, supporting price increases in these areas, and ultimately equalizing prices (higher prices come down, and more moderate prices have increases or at least stabilize)?

Just a theory from what I have seen selling and NOT selling.

[westchester]

that Guy who bought that house just last sept.....paid way, way, way, to much.......the market has been going down for the last 12-16 months and he sets a new record...............can you say pre-foreclosure.........their is a house near me that a lady bought 14 months ago for 625k she has put another 60-80k into it plus mortgage payments as she hasn't been able to rent it yet so she is into it for around 725k......i can probably get her 575k if she is really lucky. Timing is everything........p.s. i just gave you a pos. rep. i hate to see you stuck @ 100........

[SeventhFloor]

Originally Posted by scatman

In this city, it takes a loooooong time to evict!

trust me i know i used to do it for a living

[DonnaReed]

Originally Posted by Wild Style

Here is the science on that. I am sure you probably know the information I am about to say, but I will put it out there anyway.

...prices in many (not all areas) are about double what they are supposed to be. That means prices will and must come down by about 50% in most areas (just like they did in the 90s so its not like this cant happen).

... Problem is in NYC, sellers are still stuck on this dumb ish "this is NYC, everyone wants to live here and everyone will pay these absurd prices". They said people are renting out homes now that are not getting the prices they want. They are hoping someone will pay these dumb prices eventually. First, thats not going to happen for them, and secondly I read that the rents are not even covering the mortgages in full (this is also happening down here).

Just a couple of points.

I don't think houses will come down as much as 50%, not in most areas. I do think they're overpriced but not by that much in most areas.

When all is said and done, homes in NYC will still be expensive and it will be expensive as hell to live in NYC.

Also, people ARE paying very high rents in NYC, what many (particularly in the south by comparison) would consider absurd, because they DO want to live here, although it's very expensive. That's life in the Big Apple.

Although the home-buying has slowed, apartmental rentals has not.

I'm a landlord. The rent is what it is and folks who can afford it will and do pay.


ON FORECLOSURES

In this market, I would not buy anything, including foreclosures, which by the time you remodel and/or repair (in most cases) are market value in a terrible market.