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CNBC is reporting that a settlement on the Robosigning ruckus is in the works.
Quote:
Originally Posted by CNBC
First, banks would pay into a fund used to compensate borrowers who have claims after their home has been sold in foreclosure. The borrowers would have to prove they were wronged in the process, and the attorney's general would allocate the funds. In other words, the AGs would be the administrators.
The requirement for borrowers to demonstrate they were actually wronged is going to pose a problem to most the yahoos that thought they were going to get a free home out of this.
This article covers how investors continue to be the bulk of buyers for distressed properties in Vegas.
Unfazed investors shell out cash for distressed properties
News Story | Posted 11/17/2010 | By HUBBLE SMITH LAS VEGAS REVIEW-JOURNAL
The hang-up over so-called foreclosure "robo-signers" is definitely cause for concern, but it hasn't stopped investors from sinking their cash into low-priced Las Vegas homes that throw off a relatively
This article covers how investors continue to be the bulk of buyers for distressed properties in Vegas.
Unfazed investors shell out cash for distressed properties
News Story | Posted 11/17/2010 | By HUBBLE SMITH LAS VEGAS REVIEW-JOURNAL
The hang-up over so-called foreclosure "robo-signers" is definitely cause for concern, but it hasn't stopped investors from sinking their cash into low-priced Las Vegas homes that throw off a relatively
Interesting article 007, one paragraph stands out...and what I saw during my temp job at National Title as well, with the many escrows they have open.
"People are flocking from all over the country to try and buy rentals in Vegas because we have the highest return on investment in the United States," Hawks said. "The cash flow on an average property is staggering compared to current alternative investments. They'll make more in one month on their money than the whole year if the money was parked in a savings account."
So, either the investors know something that most people don't or they are just plain stupid and in for great losses by starting up a new Las Vegas bandwagon. Only time will tell, I guess.
Another "if" is something I saw on Channel 5 last week. With so many homes in foreclosure, why is there home building going on? Some of those teeny tiny home neighborhoods on the fringes of the valley are almost vacant, so why this? We have friends of ours who's son just bought a brand new built home in Mountains Edge, he said there is building going on there in a couple of different developments, but maybe it's just there?
New Construction Baffles Underwater Homeowners
Despite Housing Crisis, New Building Continues
POSTED: 9:11 pm PST November 11, 2010
UPDATED: 8:12 am PST November 12, 2010
VEGAS -- Even though so many homeowners in the Las Vegas valley are underwater on their mortgages, builders are once again putting up new houses
CNBC is reporting that a settlement on the Robosigning ruckus is in the works.
The requirement for borrowers to demonstrate they were actually wronged is going to pose a problem to most the yahoos that thought they were going to get a free home out of this.
That article was pretty rediculous. The statement that you can earn $12,000 a year (by renting at $1,000/mo) on your $100,000 house purchase doesn't consider property taxes, hoa, insurance, property management fees, repairs, or months the rental is unoccupied. Plus, comparing a liquid savings account to purchasing a rental home in vegas, a completely illiquid investment in a declining market is just asinine. Yes you will get better returns (although not nearly what they are suggesting), but there is far more risk.
I suppose if you're picking up homes at trustee sale and renting those, that would be better since you're buying way under market, but there are definite risks to purchasing at trustee sale that are more complex than the article states.
No slam dunk by any means.
As far as the builders building new homes, people may want a specific floorplan/style/fit/finish that is not offered by foreclosure or conventional sale. Some people actually want to close a loan in 30 days and not have to worry about dealing with a short sale or multiple offers on a low priced foreclosure.
I know in the market segment we are looking at, there is hardly any good inventory available. The short sale we were purchasing just fell through due to the seller not liking the terms of lender approval. We're back at square one and while there is probably 75 homes available that meet our broad criteria on the MLS, I don't like any of them enough to make an offer.
I was just looking into the cost of buying land and building a custom, but the economics of that just don't make sense even with land prices falling through the floor.
Quote:
Originally Posted by MomMom
"People are flocking from all over the country to try and buy rentals in Vegas because we have the highest return on investment in the United States," Hawks said. "The cash flow on an average property is staggering compared to current alternative investments. They'll make more in one month on their money than the whole year if the money was parked in a savings account."
So, either the investors know something that most people don't or they are just plain stupid and in for great losses by starting up a new Las Vegas bandwagon. Only time will tell, I guess.
Another "if" is something I saw on Channel 5 last week. With so many homes in foreclosure, why is there home building going on? Some of those teeny tiny home neighborhoods on the fringes of the valley are almost vacant, so why this? We have friends of ours who's son just bought a brand new built home in Mountains Edge, he said there is building going on there in a couple of different developments, but maybe it's just there?
I know in the market segment we are looking at, there is hardly any good inventory available. The short sale we were purchasing just fell through due to the seller not liking the terms of lender approval. We're back at square one and while there is probably 75 homes available that meet our broad criteria on the MLS, I don't like any of them enough to make an offer.
Jeff, I could have written that exact paragraph about my experiences. It sure looks like not much is going to be added to the inventory until the new year-IMO.
...
I know in the market segment we are looking at, there is hardly any good inventory available. The short sale we were purchasing just fell through due to the seller not liking the terms of lender approval. We're back at square one and while there is probably 75 homes available that meet our broad criteria on the MLS, I don't like any of them enough to make an offer.
I was just looking into the cost of buying land and building a custom, but the economics of that just don't make sense even with land prices falling through the floor.
Yeah, I looked at dozens of foreclosures and shorts (In July - before any foreclosure freeze) in the 100-150k range and I only liked three enough to make offers. Two of those were shorts, which had some "funny" stuff going on between the sellers and brokers, and the other was a foreclosure which I did end up buying. ... But yeah - it *looks* like there's lots of good distressed property around, but when push comes to shove...not really. Finding something at the right price that you can act on quickly is tough.
That article was pretty rediculous. The statement that you can earn $12,000 a year (by renting at $1,000/mo) on your $100,000 house purchase doesn't consider property taxes, hoa, insurance, property management fees, repairs, or months the rental is unoccupied.
Huh?
The article specifically mentioned most of those items in the very same sentence that it talked about the income:
"For example, interest gained on a $100,000 savings account is about $875 a year. If someone bought a home for $100,000 and rented it out for $1,000 a month, they'd get $12,000 a year, minus maintenance expenses, insurance and property taxes."
Here is the latest analyst take on what property values could do in the following months or year. It appears that anyone purchasing a property now or of lately could have the value of their property go down. It is really important for any potential buyer or recent buyer expect values to go down due to the volatility of the market we are currently in.
Anyone purchasing a property now or as of late must plan on keeping it for years and enjoying it and not plan on flipping it soon. I have noticed allot more flippers offer higher commissions to entice realtors to bring their clients to them.
What the flippers don't get realtors aren't bringing offers because there isn't that many buyers right now in the market. The buyers I am seeing are cash buyers looking for second homes and allot of Canadian buyers looking to buy since there money is either worth more or as of lately on par. And they are savy buyers their not just going to buy just to buy.
Interesting article 007, one paragraph stands out...and what I saw during my temp job at National Title as well, with the many escrows they have open.
"People are flocking from all over the country to try and buy rentals in Vegas because we have the highest return on investment in the United States," Hawks said. "The cash flow on an average property is staggering compared to current alternative investments. They'll make more in one month on their money than the whole year if the money was parked in a savings account."
So, either the investors know something that most people don't or they are just plain stupid and in for great losses by starting up a new Las Vegas bandwagon. Only time will tell, I guess.
Another "if" is something I saw on Channel 5 last week. With so many homes in foreclosure, why is there home building going on? Some of those teeny tiny home neighborhoods on the fringes of the valley are almost vacant, so why this? We have friends of ours who's son just bought a brand new built home in Mountains Edge, he said there is building going on there in a couple of different developments, but maybe it's just there?
New Construction Baffles Underwater Homeowners Despite Housing Crisis, New Building Continues
POSTED: 9:11 pm PST November 11, 2010 UPDATED: 8:12 am PST November 12, 2010
VEGAS -- Even though so many homeowners in the Las Vegas valley are underwater on their mortgages, builders are once again putting up new houses
In regards to your question why builders are still building.
New home builders have pulled permits and it takes along time to get permits to build so most of the new homes being built are doing so,because they won't have to submit again for permit approval which can take a long time. New home builders have been purchasing property from other failed builders at huge price reductions. This has helped the new home builder offer much lower prices than they could in the past because most of the prices of the new homes in the past was the land price.
According to Collier's research the average price for residential land is now $130,000 an acre, some builders paid more between $175,000 and $200,000 an acre in master planned communities like Summerlin South, Mountain's Edge and Henderson.
Just to give you and idea of how much land has gone down since 2007.Pricing of nonresort property in following a peak of $939,400 an acre in fourth quarter of 2007.
You asked why would a person buy a new property over a resale:
No multiple offers:
Everything is new, you won't have to worry about if the air conditioner or the furnace will need to be replaced, the appliances will be new. If they do break they will have a warranty on them and the house.
The title will less likely have problems show up compared to distressed properties especially with the foreclosure debacle.
YOU will get into your home in 30 days or less if there is standing inventory and if you have wait for it to be built, you will know that you will have the house in 2,3,4, months versus a short sale that after waiting that long just to find out that it's not going to happen, due to a seller canceling because they don't like the banks demands or the bank doesn't accept your offer.
You will pay a little more for a new home over a resale, but to some people it's worth it. YOU could end up paying more for a resale especially if you get caught up in bidding against multiple offers, and then be disappointed when the appraisal comes in lower than your offer and the bank won't sell for the lower appraised value.
Also it's proven that banks make more money off a short sale than a foreclosure, so why don't they approve more short sale offers? Only the banks know that answer. Banks are really messed up right now and to try to use any logic regarding why banks do what they do regarding selling and foreclosing on properties will only drive you crazy. There is no logic as I see it it's about greed and incompetency.
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