[trekwars2000]

Originally Posted by aqualung8705

Personally,I'd never buy a repo. It's just bad karma.

Why is buying a Repo bad karma? I would say the majority of the repo's in Vegas were California investors looking to make money and they lost. That is why it is an investment and not a savings.

[Daddys///M3]

Originally Posted by trekwars2000

Why is buying a Repo bad karma? I would say the majority of the repo's in Vegas were California investors looking to make money and they lost. That is why it is an investment and not a savings.

In the beginning they were, now the majority of REO's are owner occupied homes that got stuck due to short term ARM's and falling values, those that simply walked away due to being upside down, or those that have had to relocate and cannot sell. That being said, I don't agree that buying REO's is bad karma and in fact believe that it is a good thing as it takes vacant inventory off of the market, which will eventually stabilize neighborhoods. It also beautifies the neighborhood as the new homeowner will have to bring the home back up to livable standards. Thirdly, it reduces the threat of crime, IMO, as you don't have to worry about squatters or folks looking to steal applicances or copper.

[olecapt]

Originally Posted by Daddys///M3

In the beginning they were, now the majority of REO's are owner occupied homes that got stuck due to short term ARM's and falling values, those that simply walked away due to being upside down, or those that have had to relocate and cannot sell. That being said, I don't agree that buying REO's is bad karma and in fact believe that it is a good thing as it takes vacant inventory off of the market, which will eventually stabilize neighborhoods. It also beautifies the neighborhood as the new homeowner will have to bring the home back up to livable standards. Thirdly, it reduces the threat of crime, IMO, as you don't have to worry about squatters or folks looking to steal applicances or copper.

CA flippers were long gone before the fit hit the shan. I did a check back in last December which found the foreclosures were 60% owner occupied and 90% locally owned (the tax address was in 89XXX).

Some greed but mostly bad timing.

[Daddys///M3]

Originally Posted by olecapt

CA flippers were long gone before the fit hit the shan. I did a check back in last December which found the foreclosures were 60% owner occupied and 90% locally owned (the tax address was in 89XXX).

Some greed but mostly bad timing.

In my opinion you are partially correct. The savvy flippers came in and cashed out quick. However, there were quite a few "investors" that had no business buying a primary, let alone an investment property. These folks had a buy and hold strategy, they did not flip. I talked with a very large amount of them when I embarked on a ARM to FHA refi mailer campaign early in 2007. I spoke with hundreds of this type of borrower. Most of these folks were from CA, most of them were minority, and all of them were renters in CA. Me thinks that they caught wind of a "invest in real estate for no money down" infomercial and were looking at getting rich quick. Of course these folks qualified for nothing but subprime loans (100% LTV, sub 600 FICO's, non-owner occ, no income verification). I couldn't close any of them, but did try to refer them to RE agents for short sales, The problem with "borrowers" like this is that they really don't give a hoot about their credit (otherwise they would have worked on bringing the FICO up prior to recast) so they get flustered and frustrated and walk away, of course blaming someone other than themselves the entire time.

[airics]

i would always buy a repo, the deals are there...as for countrywide, i have had them for years...with no problems at all... i must be the only one

[MR77]

I hired a broker and just about everything we looked at was either a short sale or repo. They were almost impossible to avoid. In the end, I went with a repoed townhouse. The process was not too bad, but I have a good agent.

[airics]

i did the same but short sales are a waste of time

[jpk]

Originally Posted by Daddys///M3

In my opinion you are partially correct. The savvy flippers came in and cashed out quick. However, there were quite a few "investors" that had no business buying a primary, let alone an investment property. These folks had a buy and hold strategy, they did not flip. I talked with a very large amount of them when I embarked on a ARM to FHA refi mailer campaign early in 2007. I spoke with hundreds of this type of borrower. Most of these folks were from CA, most of them were minority, and all of them were renters in CA. Me thinks that they caught wind of a "invest in real estate for no money down" infomercial and were looking at getting rich quick. Of course these folks qualified for nothing but subprime loans (100% LTV, sub 600 FICO's, non-owner occ, no income verification). I couldn't close any of them, but did try to refer them to RE agents for short sales, The problem with "borrowers" like this is that they really don't give a hoot about their credit (otherwise they would have worked on bringing the FICO up prior to recast) so they get flustered and frustrated and walk away, of course blaming someone other than themselves the entire time.

Fits the profile of the repo'ed home I bought perfectly. It was new construction bought as a second home/investment property by a Latino family from California with little down payment. They used two mortgages to finance the place, probably an 80/10/10 situation or maybe even an 80/20. They probably had no way to pay for the place and they never planned to be holding a mortgage that long. They had the place listed for sale through an agent for $50K over what they paid for a few months after contruction was completed before the bank claimed it.

[Tymberwulf]

I learned two things quickly while buying my home in North Las Vegas: 1) Get a good real estate agent and 2) Make sure you get a good deal on your home, because you are going to spend a bloody fortune on any repo you end up getting.

I still can't complain, paid 261k for a 2750 sq ft house that originally sold for 486k.

[airics]

i paid 252k for a 2500sf house in the NW that sold for almost 550k... total cost of repairs -- UNDER $500... mine was move in ready.. 2 toilets loose, 1 bad electric outlet, and missing the heads on the sprinkling system...
So you CAN get a great deal on a foreclosure.