[KevK]

Originally Posted by Buzz123

From your mouth to God's ear.

The first time I ran into a bidding situation on homes was during the height of the buying frenzy in the 90s. I said then, and haven't changed my mind, if I have to stand in line to bid on a house I guess I'll do without. If they want to sell me one, sell it to me, otherwise shove it. I still think it's a scam. The buyers out there doing this are still speculators as they were over the past two decades. Many of them lost big time, but they like to gamble. Only this kind of gamble is at everyone else's expense.

It was pretty standard in Chicago when I lived there. The listed price of a property was just a minimum price. By the time it got bid up, the actual selling price was usually 25 to 35% more. But here in Georgia, never saw that. If they wanted $120,000 for the property and you had $120,000 you could buy it today.

[KevK]

Originally Posted by Buzz123

From your mouth to God's ear.

The first time I ran into a bidding situation on homes was during the height of the buying frenzy in the 90s. I said then, and haven't changed my mind, if I have to stand in line to bid on a house I guess I'll do without. If they want to sell me one, sell it to me, otherwise shove it. I still think it's a scam. The buyers out there doing this are still speculators as they were over the past two decades. Many of them lost big time, but they like to gamble. Only this kind of gamble is at everyone else's expense.

People are discovering the joys of renting again. Sometimes it is just the best move.

[macgeek]

Originally Posted by KevK

People are discovering the joys of renting again. Sometimes it is just the best move.

I would HATE to rent, but for people who have no flexibility and who have a job there and have to be there at "X" then renting for how long they need and then buying is a viable option.

Jonathan

[007 license to sell]

Here is the latest on what analysts and realtors have to say on what is happening with the housing market and projections as to when it may turn around.
For the last two years the analysts kept saying it will turn around in two to three years now they say another 5 yrs. No one really knows until other states can get their employment up we are stuck since we rely heavily on tourism.

Struggles remain for local sector as prices flatten, unemployment soars

[Buzz123]

Originally Posted by KevK

It was pretty standard in Chicago when I lived there. The listed price of a property was just a minimum price. By the time it got bid up, the actual selling price was usually 25 to 35% more. But here in Georgia, never saw that. If they wanted $120,000 for the property and you had $120,000 you could buy it today.

I've never paid the asking price for a house. In fact I try to negotiate most everything that doesn't have a fixed price. When we sold our last house we actually got more than we were asking if you can believe that. We have a good realtor.

[happyhunting]

I guess people will need to short sell their home or allow foreclosure and try again in 7 years

As it should be. A 620 credit score is deplorable. I can't believe anyone under 720 can even think about getting a loan these days...

With 25% down there really is not a deplorable credit score. You should qualify with that.

Kev K is right. Current FHA guidelines state that 24 months post foreclosure, with a 12 month history of ontime payments to other creditors and a 580 credit score ( at least) and 10% down can get you a new FHA backed loan as long as the reason for hardship no longer exists. They'll be more strict with income verification and what not.

In the past when the FHA credit score requirement was around 620-640 and 3.5% down, you still could get the house. The 7 year fallacy is due to people associating how long a bankruptcy lasts on your credit report.

And cash is king. In the past you could walk in to any lender conventional loan, and with 25-30% down get a decent loan. You could also buy down the interest rate. Now it may be tougher, may require more down, but then again housing is cheaper. So coming up with 30k down on a 100k house is doable.

[sdreloc]

Sometimes bankruptcy and foreclosure may happen together. Some unemployed or under employed people may have been living off credit cards to pay the mortgage and other expenses and then have no way to repay anything when the cards are all maxed out. Do those people have to wait the 7 years for the bankruptcy to fall of their credit report before financing another mortgage?

[happyhunting]

The bankruptcy will be on the report, as will anything else you do negatively, for 7 years. The lenders are looking usually for it to be discharged, and at least 2 years old. The funny thing is that from a creditors stance, you are a better risk, as now you cannot file for bankruptcy again so they know you cannot do it to them.

Let's assume that you file for BK and foreclose, all in the same month. I will also assume those credit cards are listed in the BK. You can start fresh by opening secured cards through banks like B of A, US bank, WF or Capitol ONE. Start low, like 500-1000. They look exactly like a regular card, only you and the bank know a deposit is attached. Your money on deposit is equal to your credit line, and often the deposit is in an interest bearing account. Use them only for gasoline or small monthly purchases, paying them off early and immediately each month. Doing this for 12-24 months will help rebuild your credit. You have money tucked away at deposit which is forced savings, you have cards reporting to all 3 credit bureaus. If you kept your house during the BK by reaffirming it, make all further payments on time, if renting get your rent reported through a rent reporting agency.

Keep an eye on your score with a goal of getting above 600 and save as much as possible towards the 10% down required by FHA. After a year of timely payments to the cards some will give you your deposit back, increase your line and unsecure it. Some do it automatically if you have accounts with them, like B of A, others, like Capitol One, you may reapply for. It seem like a long time, but I am here to tell you I helped a friend do it in 2004. She was fresh from a divorce, BK and a renter. It took 18 months to bring her up from a 475 score to 670. She qualified for FHA and 3.5% 2 years post BK. It seems like constant work, but you'd be surprised how quickly 24 months flies.

There are so MANY foreclosure and there are so many people with low scores right now, I wouldnt be surprised if what constitutes a good score changes.

[tomfirst]

Those 'cheap' rental homes ain't goin to look soo good when the water runs out.

[macgeek]

"Let them eat cake"
--MARIE ANTOINETTE

"Let them drink pepsi"
--MARK SILVERBERG - CEO PEPSICO

Jonathan