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Old 07-28-2012, 04:06 PM
 
784 posts, read 922,791 times
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After looking into this further it looks like its a special deal for investors with at least 10 million and they are going to rent out the homes. California was trying to block this, not sure if they were successful.

IMO....these kind of deals will only cause the housing problems to linger longer than letting the free market to work like it should.
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Old 07-28-2012, 06:56 PM
 
Location: az
13,692 posts, read 7,979,859 times
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Quote:
Originally Posted by jdahunt View Post
After looking into this further it looks like its a special deal for investors with at least 10 million and they are going to rent out the homes. California was trying to block this, not sure if they were successful.

IMO....these kind of deals will only cause the housing problems to linger longer than letting the free market to work like it should.

I`m not sure selling distressed properties in bulk is such a bad idea. Sure the homes may be back on the market at a later time but it`s unlikely the buyer will unload them anytime soon and there is no loan to default on.

In the meantime such homes are now off the market which can only help housing prices.

This should have been allowed two years ago.
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Old 07-28-2012, 07:04 PM
 
Location: LEAVING CD
22,974 posts, read 27,001,123 times
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The big question is were they purchased at prices that would have been available to joe schmo off the street or were they priced at "sweet heart" prices? A secondary question would be what link (if any) do these investors have with the agency selling 'em or the government?
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Old 07-28-2012, 07:54 PM
 
Location: az
13,692 posts, read 7,979,859 times
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Originally Posted by jimj View Post
The big question is were they purchased at prices that would have been available to joe schmo off the street or were they priced at "sweet heart" prices?
The buyer probably got a deal but the homes are now off the market.

Bad news for those still hoping for prices to drop again and good news for current owners
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Old 07-28-2012, 08:04 PM
 
Location: Rural Michigan
6,343 posts, read 14,680,057 times
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Quote:
Originally Posted by john3232 View Post
I`m not sure selling distressed properties in bulk is such a bad idea. Sure the homes may be back on the market at a later time but it`s unlikely the buyer will unload them anytime soon and there is no loan to default on.

In the meantime such homes are now off the market which can only help housing prices.

This should have been allowed two years ago.

You don't know that "there is no loan" to default on - the scuttlebutt was that the government was seeking a "partnership" with investment bankers ( the pig men that *caused* the crash ) on these deals. A pretty typical government "partnership" would be selling the properties at 30-40 cents on the dollar, with the government taking the risk, and the bankers taking the reward.
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Old 07-28-2012, 08:07 PM
 
255 posts, read 514,143 times
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Quote:
Originally Posted by jimj View Post
The big question is were they purchased at prices that would have been available to joe schmo off the street or were they priced at "sweet heart" prices? A secondary question would be what link (if any) do these investors have with the agency selling 'em or the government?
Could be sweet heart prices. But they probably avoided a lot of paperwork and transaction overhead by buying bulk.
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Old 07-28-2012, 08:16 PM
 
Location: az
13,692 posts, read 7,979,859 times
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Quote:
Originally Posted by Zippyman View Post
You don't know that "there is no loan" to default on - the scuttlebutt was that the government was seeking a "partnership" with investment bankers ( the pig men that *caused* the crash ) on these deals. A pretty typical government "partnership" would be selling the properties at 30-40 cents on the dollar, with the government taking the risk, and the bankers taking the reward.
Pig men or Warren Buffett let the gov`t unload them all.

This is 275 distressed homes that will not be hitting the market.

Should have been started two years ago.
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Old 07-28-2012, 08:17 PM
 
Location: az
13,692 posts, read 7,979,859 times
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Originally Posted by Home Addict View Post
Could be sweet heart prices. But they probably avoided a lot of paperwork and transaction overhead by buying bulk.
Sure. I wouldn`t doubt that.
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Old 07-28-2012, 08:21 PM
 
Location: Rural Michigan
6,343 posts, read 14,680,057 times
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Quote:
Originally Posted by Home Addict View Post
Could be sweet heart prices. But they probably avoided a lot of paperwork and transaction overhead by buying bulk.
I don't think you have any idea about the volume of dollars being *given away* here. We're talking billions of dollars in give-aways to the investment banks.

Fannie REO's typically recover about 90%+ of current market value - investors aren't paying more than 60% in the open market, and those transactions are much smaller than these transactions.

There's a reason they're doing this in secret.

Here's a website selling "bulk" properties - notice that "selling at 30-40", that's cents-on-the-dollar...

http://www.tadimuta.com/

And another opinion piece regarding these deals

http://www.sandhillsnc.com/bulk-reo-...d-freddie.html

Selling in bulk when the market is not moving is one thing. Selling in bulk at a massive discount, when there are bidding wars going on is just criminal.
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Old 07-28-2012, 08:48 PM
 
Location: az
13,692 posts, read 7,979,859 times
Reputation: 9383
Quote:
Originally Posted by Zippyman View Post
....Selling in bulk when the market is not moving is one thing. Selling in bulk at a massive discount, when there are bidding wars going on is just criminal.
The gov`t just wants to be rid of the homes and help push prices.

However, it`s way too late and won`t help in the Nov. elections.
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