[olecapt]

Originally Posted by Daddys///M3

Excuse me if I am out of line here, but do you truly plan on renting your current home out and renting it? The reason I ask is that I get people all the time that want to get pre-approved to buy another home with plans of "renting" the current home out. 9 times out of 10 it comes to the surface that they are actually planning on walking away from the current home. As that puts entirely too much liability on my shoulders, as well as the fact that banks are getting wise to this, I send these people packing. Not to mention the fact that I could not live with myself knowing that I enabled these people to rent their current homes out knowing that the renters will soon be evicted due to the foreclosure process.

That being said, if you can afford to rent the home out and hold on to it for 5 years or more, and if these are actually your intentions, by all means make it happen. Now is a pretty good time to buy as there are some great deals out there and rates are still very low. Your upside over the next 5-10 years is potentially pretty substantial. Keep in mind that you will only be allowed to use 75% of the rent to offset your mortgage payment when trying to qualify for the new home.

You see this one clearer than I do. The decision to evict the tenant is made by the bank who has the option to retain the tenant if desired. It is not unusual to sell a home with a tenant in it.

As to the basic situation I think that is a moral view being taken on a business matter. The manuever itself does not bother me. It is simply the way of capitalism...maximizing ones wealth.

Now if they don't have the income to sustain the rental house? Then it is a business judgement to turn down the mortgage.

As to the OP this like all cycles comes to an end. Someplace relatively soon. I would think we are in or very close to the trough now. Volume is increasing at a very high rate. We are, as it were, eating the foreclosures and then some. I expect this years volume will well exceed last years. That will lead to at least price stability.

[Daddys///M3]

Originally Posted by LVN

I am lucky in the fact that I could buy both houses out right. But I have all my money in Gold as the Dollar is dropping like a rock. I could cash it out but I would rather leave it as it is making a great deal of returns. I am also in the 800 for credit score with no payments other than my house payment.

One of the houses I have found sits on a 1/2 acre, and is 4700 sq ft for $400,000. I really can not see it going any lower than that, or we are all in bigger trouble than we thought.

I am just wondering if the recession will kill the housing market even more where there are no buyers out there. I could hold it for longer but I would rather just hold for a year or two.

I honestly cannot see housing going much lower. Recession or no, people still need places to live and rental prices are just about in line with mortgage payments, so for a first time buyer the decision to purchase becomes easier everyday, IMO. That being said, if housing stays flat for another year or two and you have suffficient equity to sell then it may make sense. In other words, if you could sell right now and at least break even but the thing that's holding you back is the state of the market and the absorbtion rate then I feel that in a year or two you would be in a decent position to sell.

Originally Posted by olecapt

You see this one clearer than I do. The decision to evict the tenant is made by the bank who has the option to retain the tenant if desired. It is not unusual to sell a home with a tenant in it.

As to the basic situation I think that is a moral view being taken on a business matter. The manuever itself does not bother me. It is simply the way of capitalism...maximizing ones wealth.

Now if they don't have the income to sustain the rental house? Then it is a business judgement to turn down the mortgage.

As to the OP this like all cycles comes to an end. Someplace relatively soon. I would think we are in or very close to the trough now. Volume is increasing at a very high rate. We are, as it were, eating the foreclosures and then some. I expect this years volume will well exceed last years. That will lead to at least price stability.

Although I do have a moral position, the fact that I will not do loans for the type of prospect that I mentioned in my earlier post is 100% a business decision. If a client came to me and laid their intentions on the table (like I said 9 times out of 10 I dig it out of them anyway) then the fact that I know what they are planning puts me in a position of liability. As such I have no choice but to refuse the business. On the other hand, if a client was to come to me with a lease agreement in hand and I was made to believe or I had no proof that their intention was to purchase another home and walk from their current then I would have no choice but to do the loan, as I cannot deny someone based on suspicion, nor is it my place to.

[olecapt]

Good ole market has rolled off in yet another direction. REPO/REOs are now almost 50% of the sales. Those and shorts are well over 50%. The REPOs have been running a pretty consistent 33% though the accounting in the MLS has changed a little. The interesting one is that price is up about a percent at the moment. REPOs are up about a percent and a half and non REPOs are up something like 10%.

Volume is up well over 20% from last month so it is now a virtual certainty that sales in April will be up 5 or 10% over last year. Been a long time since that happened. Inventory is clearly dropping. Pending continue to climb strongly.

Don't know how this is all going to work out but the market is changing and real fast. I will hazard a guess that if you want a real buy the timing is now or pretty soon. Nothing like a price increase or even stability with a significant year over year volume increase to start the up cycle.

Personally our sales volume has now reached last years...going to be a good year it looks like.

[Terri B]

End of the first week in April


Thxs for the stats on LV. Would love to see some relief for folks.

[SHEPNYC]

Been getting lots of emails regarding major price reductions on specific properties in the 600K to 800K price range. Seems owners are beginning to realize it's not 2006 anymore. The price reductions are probably accounting for the increased volume olecapt talked about.

[Nodaclu]

Trust me, it's very frustrating to see those kinds of numbers when you're in the kind of predicament I'm in (see update on previous page of thread).

[olecapt]

Originally Posted by Nodaclu

Trust me, it's very frustrating to see those kinds of numbers when you're in the kind of predicament I'm in (see update on previous page of thread).

Well first off relax and enjoy your rent free status. Save a little money.

If you can get an offer run it in again. The lenders are notorious for accepting on a second or third pass that which they would not initially deal with. And if this does not fly try again. Might as well until they throw you out.

Appeal the credit reports. Claim you are dealing with the bank to settle the matter. Likely they are screwed up enough you can get the item killed. Worth a try.

Stay cool...this to will pass.

[Buzz123]

ReviewJournal.com - Business - HOUSING: 'Feeding frenzy' in Las Vegas

[Nodaclu]

Originally Posted by olecapt

Well first off relax and enjoy your rent free status. Save a little money.

If you can get an offer run it in again. The lenders are notorious for accepting on a second or third pass that which they would not initially deal with. And if this does not fly try again. Might as well until they throw you out.

Appeal the credit reports. Claim you are dealing with the bank to settle the matter. Likely they are screwed up enough you can get the item killed. Worth a try.

Stay cool...this to will pass.

Well, no such luck, as I'm not the kind of person who "cheats" like that. As soon as I stopped payments, I moved out. I won't live somewhere if I'm not paying for it.

Of course, when I told this to the lender, my reward was for them to report me to my homeowners insurance company, who immediately canceled my policy.

Always remember, no good deed goes unpunished.

As mentioned, we've brought ELEVEN offers to the table. There have been no second or third passes with any individual offer, as CW has refused to even counter any of the offers. Each prospective buyer has walked away in disgust because of CW's complete unwillingness to move even an inch to get a deal done.

Meanwhile, every living thing on that property that I spent three years bringing back to life, is going to die in the next few months - further reducing the value of the property.

"Well, what the hell do you care, you don't live there any more!!"

Right?

Well, believe it or not, not everyone on this planet exists solely to see how much they can "leech" off the system, or "get away with" through loopholes.

There are still a handful of us left who are honest, hardworking people who made the fatal error of trusting another human being, without having a lawyer check every single word in the contract. I thought I was safe from all that by working with the largest lender in the country.

Never again.

This isn't necessarily directed at you olecapt. It's more of a "heads up" to everyone in this thread, who is intellectually arguing the merits of their particular positions, while sometimes forgetting about the real people that are being swept up in this tidal wave.

It truly bothers me that so many people *assume* I am taking advantage of the situation by continuing to live in a home I am no longer paying for.

Honesty and integrity still exists in this world. I know that sounds hypocritical to hear from someone who has basically walked away from a contractual obligation.

But until you've walked a mile in my moccasins, I ask that you think twice before making any broad assumptions about a particular person or their situation.

[jpk]

I understand your frustration with Countrywide. I was a buyer of a CW repo and they were painfully slow to deal with. And apparently I did much better than most in forcing a "quick" acceptance and closure of the deal. Some have posted here that it has taken months from offer to closing.

The only thing I can suggest is you find what realtor is representing the property on behalf of Countrywide and implore them to give Countrywide a kick in the ass the next time an offer is on the table. A good selling agent will know who to work at CW to make things happen faster. Don't take anything lying down, ask them to get in touch with the boss if the asset manager isn't responding. If they don't know the boss, then you have a bad realtor representing your home and it will be painful.

CW actually was going to miss signing on the closing date after we had entered escrow and I had already signed papers and put all of my funds for the purchase into escrow. They apparently screwed up all manner of paperwork related to the original foreclosure and wanted another month to get their house in order. I told them I'd be happy to extend 30 days if they paid me interest on my money plus damages for every incidental expense related to the delay, or they could visit me in court and pay my attorneys fees on top of that. We closed that day.