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was looking at the sheriff sales for foreclosures in my county, which is as middle class as you can get. some lower end middle class cities, some upper middle class cities, just a bunch of suburbs outside of minneapolis/st. paul. 356,000 people in the county with 131,000 residences.
looking at the results im seeing 20 or so sales a day. i can imagine how worse it is in the lower class suburbs if its as bad as it is here.
from what ive read though, the next wave will be the arm interest only mortgages that are set to double in the next year or so.
was looking at the sheriff sales for foreclosures in my county, which is as middle class as you can get. some lower end middle class cities, some upper middle class cities, just a bunch of suburbs outside of minneapolis/st. paul. 356,000 people in the county with 131,000 residences.
looking at the results im seeing 20 or so sales a day. i can imagine how worse it is in the lower class suburbs if its as bad as it is here.
from what ive read though, the next wave will be the arm interest only mortgages that are set to double in the next year or so.
those were very popular loans.
i think were in big trouble here.
Prices will keep falling as long as the demand doesn't exist. This is the market correcting itself. These are hugely inflated prices thanks to loans supported by Fannie, Freddie, and the Fed. As long as banks keep tightening up credit, and the government gets out of the mortgage business altogether, prices will continue to fall to a level that will be affordable by people. Government creates inflation, and government exasperates the boom and bust cycle. Economics, like nature, follows a sine-like curve. What goes up must always come down. Liberal economics, aka Keynesian economics, follows a philosophy that we must always grow, grow, grow. If we can't grow, we have to throw in money to the system, or create incentives (low interest rates, government subsidies) to try to spur growth. But that creates inflation. Inflation erodes the value of your dollar. Instead of letting the market correct itself and unload excesses, Keynesian policies (like the government stimulus or TARP) creates the too big to fail syndrome. Instead of letting the market stay tipsy, government inflation makes the market super drunk and thus suffers from a revolting hangover (severe crash) instead of a mild one. Keynesian economics at work
The foreclosure crisis can't be stopped and it's only going to get worse. I hate to say it, but the sooner people who can't afford their homes are out, the sooner prices will stabilize. (3-5 years?) The housing market was in need of a good enema. Out with the bad...
but this is what i dont get. im looking at all these short sales, and nobody is buying them. these are all going to be empty after right to redemption period has ended, ive yet to see a buyer not be the original mortgagor and ive looked through tons of them now.
so my question is why are these banks so anxious to buy these homes that have no value. im sure there are bidders, but the bank is outbidding them to just have empty houses?
nobody can win vs the bank it looks like. its almost like they want these houses abandoned unless im totally off point here, which i may, admittedly dont know much about this.
but this is what i dont get. im looking at all these short sales, and nobody is buying them. these are all going to be empty after right to redemption period has ended, ive yet to see a buyer not be the original mortgagor and ive looked through tons of them now.
so my question is why are these banks so anxious to buy these homes that have no value. im sure there are bidders, but the bank is outbidding them to just have empty houses?
nobody can win vs the bank it looks like. its almost like they want these houses abandoned unless im totally off point here, which i may, admittedly dont know much about this.
Nobody's buying the short sales because the asking price is too high for your market. You are seeing the market correct itself. Prices will keep going down so long as there's no demand.
As for the houses being bought by the bank, I believer the builders and real estate companies sell it to the banks because the banks are the only places that have any money left.
Nobody's buying the short sales because the asking price is too high for your market. You are seeing the market correct itself. Prices will keep going down so long as there's no demand.
As for the houses being bought by the bank, I believer the builders and real estate companies sell it to the banks because the banks are the only places that have any money left.
not a short sale, sheriff sale. sheriff sale is where the home is auctioned off at the courthouse. these are open to anyone, but all i see is the banks buying back the mortgages. makes no sense to have an empty house on the block, just suck up the loss and let the highest non-entity bank winner take the property, at least thats what i think is best.
not a short sale, sheriff sale. sheriff sale is where the home is auctioned off at the courthouse. these are open to anyone, but all i see is the banks buying back the mortgages. makes no sense to have an empty house on the block, just suck up the loss and let the highest non-entity bank winner take the property, at least thats what i think is best.
If that happens the bank loses out on the profit. Right now the bank is buying those houses up for the same reason used car dealers go to car auctions and buy cars. They want to buy the product at a rock bottom price and resell it higher at retail. The banks are betting that those houses will at at least sold for more than they paid for at the auction
not a short sale, sheriff sale. sheriff sale is where the home is auctioned off at the courthouse. these are open to anyone, but all i see is the banks buying back the mortgages. makes no sense to have an empty house on the block, just suck up the loss and let the highest non-entity bank winner take the property, at least thats what i think is best.
If the banks were selling the propertys at a good enough price, investors would certainly buy them.
Nationally, i have no way of knowing, but in my immediate area, short sales/foreclosures are not all that great of deals, considering the hassle involved in successfully completing one.
If the banks were selling the propertys at a good enough price, investors would certainly buy them.
Nationally, i have no way of knowing, but in my immediate area, short sales/foreclosures are not all that great of deals, considering the hassle involved in successfully completing one.
They've been resisting the tide of market correction and the longer they resist the more they'll lose. Folks avoiding their medicine don't get well.
As for the common shorthand sold in RW media attributing all things to freddie fannie loans... there are so many guilty players in this it's not even funny. Those orchestrating at the top were not in government. There are key pieces of legislation that enabled all of this to happen, and the deregulation mantra is more guilty than the everyone ought to have a house mantra. If share prices were up Bush would have paraded Countrywide around as being a success story for reaganomics Ver 2.2
They've been resisting the tide of market correction and the longer they resist the more they'll lose. Folks avoiding their medicine don't get well.
As for the common shorthand sold in RW media attributing all things to freddie fannie loans... there are so many guilty players in this it's not even funny. Those orchestrating at the top were not in government. There are key pieces of legislation that enabled all of this to happen, and the deregulation mantra is more guilty than the everyone ought to have a house mantra. If share prices were up Bush would have paraded Countrywide around as being a success story for reaganomics Ver 2.2
Banks are doing very well right now and they have tons of cash. Maybe they feel that crappy real estate is a better investment than giving a loan to the American consumer our small business.
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