The Conservative Cave
Current Events => Economics => Topic started by: debk on June 08, 2012, 06:55:07 PM
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Not a chance in hell!!!
I don't care what anybody says. I have been in "Broker Price Opinion Hell" for weeks now.
Some of you know that I do reports for lenders (through a 3rd party company) for properties that are pre-foreclosure, in foreclosure, short sale - both before bank agrees to do it, and after an offer is received, PMI removal, loan modification, and the newest thing - "deed in lieu" which is giving the deed back to the lender and walking away. I've been doing BPO's for this company for 10 years.
From early 2006 to fall of 2010, I averaged between 15-25 sometimes 30 a month.
In the fall of 2010, was when the "robo-stamping" investigation started. I was lucky if I did 2 or 3 a month.
Until this February, I did 8 of them. I was quite happy to get them!
March - I did 28. :yahoo:
April - I did 48. :o
May - I did 77! Yep that is 77. :panic: :panic: :panic: :panic: Only 1 was a PMI removal. The rest were all pre foreclosure, foreclosure, short sale and 2 deed in lieu. I must have turned down at least 25, simply because I just couldn't do them as I work 29 hours/wk at my other job.
I have already done 19 this month. And I have 8 more to finish by tomorrow afternoon. It is only the 8th. All all but one are either pre or foreclosure, and one is a short sale.
Some of these have been vacant for a year or more.
Some have had prior reports done on them for the last 2-3 YEARS!!
Some have been owned by the same people for over 15-20 years!!!, but they got seconds on them.
Some have only been in them for a year or two, and based on the price of the house, I would guess it was job loss. I did one, a short sale, a 5000+SF house, VERY expensive. Owner has been very ill with first heart disease requiring open heart surgery then gets colon cancer. Losing the house, but at least has a decent health prognosis.
Some, I either know, or know of, the owners. ( which makes it very difficult for me to do them. :( )
According to the a few of the people I have spoken to, who work for the company I do these for....they do not expect the numbers to decrease anytime in the next several months.
Very few are comping out to property tax assessor value. Some are close, some are multi -thousands less.
There are very strict guidelines that must be followed when doing these reports. I couldn't "skew" the numbers if I wanted to even if I knew how to do it.
And before any of you jump on this and say "oh but houses are selling here!" ....well they are here too. And that's a good thing. But let me tell you all.....there is a world of shit out there coming down on the housing market when all these houses start getting listed and put on the market.
A couple of week ago I did an exterior report on a house that had 3 prior reports done on it. The last one was 6 WEEKS prior to the one I did. In that 6 week period 65 foreclosed houses were dumped onto the market in the subject's desigated mls area FIFTY of them were within ONE HALF MILE of the house I was reporting on. All by one bank. Because of those 50 houses, and what had sold in that 6 week period within a half mile of the subject house.... I had to price the house $20,000 LESS than it had been priced 6 weeks before, and I was lucky to keep it at $20K. I had to do a lot of documentation to prove it too.
We better all hope and pray that Romney gets elected and can get some major changes into our economy or we are screwed even more than we have been the last 3 years.
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Deb the last three paragraphs of your post are so true and scary!!!!
It really, really worries me because it ain't over and we're nowhere near a full economic recovery.
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It seems to me that Obama meddling in the housing market just delayed what should have happened. I think the bottom would have happened by now and a real recovery started.
It's the same thing that happened with the cash for clunkers, people bought cars , but only a little sooner than they would have anyway. The only real effect of cash for clunkers was permanently removing a massive amount of good used cars from circulation.
All the housing bailouts have done is prolong the length of time before people lose their houses anyway.
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Our foreclosures are going down in Las Vegas only because of some law that passed requiring even more loopholes to jump through to actually foreclose on someone. So it LOOKS like a decrease in inventory is happening quickly. It's not at all. We have a lot of new construction going on (including our house and 13 other homes on our street alone) right now. We were going to go with an older home, but it's so competitive because of the inventory and banks are taking cash offers first. Which I don't really blame them, but it made it hard for our family to get a house without going new construction.
Sorry for my little rant.
I do know for a fact the housing market IS NOT improving and I'm tired of people saying it is looking better every day. It simply isn't. The prices at our subdivision have gone up $7,000 since we purchase, but I think it's because lots are almost all filled up since more & more people are going with new construction right now.
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I think we have seen the worst of the housing crash,as evidenced by all the new construction. Sure it will take some time for the rest of the near future foreclosures to hit the market.
It's going to take some time for all the money loses to be absorbed and existing construction prices to once again begin any meaningful appreciation. That could take years depending upon the overall economy and local investment outlook.
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My wife and I are actually counting on the current state of the market to make a home purchase possible on our budget.
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My friend's husband is making a killing buying foreclosers with some investment partners and then renting them. Renting is profitable business right now.
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There are 3 houses in our very nice neighborhood that are still on the market since we moved in 3 years ago.
A prior rental home that needed some repair (on 2 acres) sold for $63,000 in January. The home a couple of lots away, also on 2 acres, is on the market for $223,000. How will that look on comps? Ugh!
A very high end gated golf course neighborhood, The Orchard, has several foreclosures just sitting there. Yet, there is some new construction. I figure it was cheaper to buy the lots and build new than messing with the existing foreclosures.
Still, I see no rebound in our market. We would have to take an enormous loss to sell our house now.
I forgot to add that when my husband refied the loan from a 30 to a 15 in April the exterior report came in at about $12,000 less than what we paid for it 3 years ago.
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My friend's husband is making a killing buying foreclosers with some investment partners and then renting them. Renting is profitable business right now.
My husband & I have an interest in that. There are condos next door to our current apartment. Some of those units are selling as low as $25,000. They are not terrible homes, but I don't think many people are looking to purchase condos these days. We probably won't be able to do any investment type purchase for another three years though. At that point, the housing market will probably start going up because Obama will be long gone. Who knows, we will see what happens in the future.
My wife and I are actually counting on the current state of the market to make a home purchase possible on our budget.
Good luck! That's why we waited so long. The area we bought in had those homes selling for $300,000+ during the boom. We got our house for half that price.
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Deb, when I retire (again) in about 6 years or so, we'll be looking to sell.
Only one thing - we ain't moving to Tenn. Sales taxes are just too damned high. Looking at GA, AL, and if I'm truly insane (definitely a possibility), maybe even MS.
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There are 3 houses in our very nice neighborhood that are still on the market since we moved in 3 years ago.
A prior rental home that needed some repair (on 2 acres) sold for $63,000 in January. The home a couple of lots away, also on 2 acres, is on the market for $223,000. How will that look on comps? Ugh!
A very high end gated golf course neighborhood, The Orchard, has several foreclosures just sitting there. Yet, there is some new construction. I figure it was cheaper to buy the lots and build new than messing with the existing foreclosures.
Still, I see no rebound in our market. We would have to take an enormous loss to sell our house now.
I forgot to add that when my husband refied the loan from a 30 to a 15 in April the exterior report came in at about $12,000 less than what we paid for it 3 years ago.
Your post is exactly what is happening here.
New construction that is selling, or existing that are selling for what they were purchased for a couple of years ago or less.
I did an exterior on a house last night. They paid $185,260 for it in 2006, it was brand new, 2028SF in a new subdivision with it's own small lake, walking trails, playground, pool. The highest I could price it for 0-90 day list price was $185K. 90-120 days - $176,000. 120-180 days - $168,000. 30 day quick sale - $143,000. Those prices were comparing it to fair market houses within the subdivision - 3 lists, 3 solds.
A larger house in same subdivision was foreclosed, and sold in Feb for $166k after 60 days on the market. It was purchased new in 2006 for $200,680. I'm not allowed to use REO or short sale properties unless the report says I can, which is usually only after the house I'm doing the report on, has already gone through foreclosure.
This is the 3rd house I've done in the same subdivision in the last 2 months.
If 3 more houses go into foreclosure in the subdivision, it will really knock down the potential prices for the existing houses.
What a lot of people forget ... they can't lower their homeowner's insurance just because the value of their house decreases due to foreclosures in the subdivision, because the costs to rebuild in the event of a fire causing total loss, haven't reduced.
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Your post is exactly what is happening here.
New construction that is selling, or existing that are selling for what they were purchased for a couple of years ago or less.
I did an exterior on a house last night. They paid $185,260 for it in 2006, it was brand new, 2028SF in a new subdivision with it's own small lake, walking trails, playground, pool. The highest I could price it for 0-90 day list price was $185K. 90-120 days - $176,000. 120-180 days - $168,000. 30 day quick sale - $143,000. Those prices were comparing it to fair market houses within the subdivision - 3 lists, 3 solds.
A larger house in same subdivision was foreclosed, and sold in Feb for $166k after 60 days on the market. It was purchased new in 2006 for $200,680. I'm not allowed to use REO or short sale properties unless the report says I can, which is usually only after the house I'm doing the report on, has already gone through foreclosure.
This is the 3rd house I've done in the same subdivision in the last 2 months.
If 3 more houses go into foreclosure in the subdivision, it will really knock down the potential prices for the existing houses.
What a lot of people forget ... they can't lower their homeowner's insurance just because the value of their house decreases due to foreclosures in the subdivision, because the costs to rebuild in the event of a fire causing total loss, haven't reduced.
I agree about your last paragraph. Allstate told us our house has to be insured for $220,000 since rebuilding would cost a lot more. Thankfully our premium will be less than $500 a year. I guess that's my only happy dance I can do because HO-3 coverage is so much less out here than I first thought it was.
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I agree about your last paragraph. Allstate told us our house has to be insured for $220,000 since rebuilding would cost a lot more. Thankfully our premium will be less than $500 a year. I guess that's my only happy dance I can do because HO-3 coverage is so much less out here than I first thought it was.
I have a suggestion for you when dealing with Allstate. Once you move in, take photos and/or video of everything you own. Store it off site. In the event of a house fire or other major catastrophe it helps prove that you actually owned it and it was in the house. I assume you will have a full replacement value policy.
Allstate really tried to low ball a friend of mine that lost everything in a house fire several years ago.
I'm not singling out Allstate, as I am sure that other insurance agencies do the same.
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The OBEWON says everything is fine. :thatsright:
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The OBEWON says everything is fine. :thatsright:
It must be so if Dumbo thinks so.
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I'm on the HOA board here in our development in Sarasota, Fl. I know who's about to be foreclosed and in which stage they're in. One of the worst houses in the development belongs to a doctor who had it as a rental house. It's so bad that our HOA stepped in and have been paying to have the grass trimmed and the bushes trimmed so it doesn't attract rats and other vermin. The neighbors are furious. We had another one that needed our intervention. I'm busy communicating with the attorney. We've had to put liens on the places so we hopefully will be reimbursed for some of our expenses.
It's not getting better, folks. The values continue to plummet and there are more foreclosures on the way. They are really driving down the value of our property. We've lived here 2 years and will probably lose a lot if we had to sell now. We hope to hang on before we ever decide to move. SR says there will be no more money wasted on this house. We just put hardwood floors in the bedrooms---found wood to exactly match the hardwood floors in the other rooms. There is a shower in the master bedroom that we had been debating changing. Since I found the sale price of one of the nicer homes in our development, I concur---not a nickle more, other than maintenance.
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My house has almost doubled in value since Katrina smacked Baton Rouge. The housing market has gotten better in my locality.
I got a great deal on a beach condo in FL. It sold for over $400k several years ago. Got it for less than half that amount. Prices have gone up since I bought it in March of this year as the supply of condos from Gulf Shores AL to Perdido Key FL have dried up.
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My husband & I have an interest in that. There are condos next door to our current apartment. Some of those units are selling as low as $25,000. They are not terrible homes, but I don't think many people are looking to purchase condos these days. We probably won't be able to do any investment type purchase for another three years though. At that point, the housing market will probably start going up because Obama will be long gone. Who knows, we will see what happens in the future.
Good luck! That's why we waited so long. The area we bought in had those homes selling for $300,000+ during the boom. We got our house for half that price.
The condos on the strip in Las Vegas started to sell again and they are no longer 2 million bucks. :lmao:
I am ready to start looking for a condo in Las Vegas. Healthcare out here is difficult at times and if I move to Las Vegas I can actually take a promotion with my company. So many residents with major illnesses have to have someone drive them to Las Vegas for things like radiation treatments as it's simply not available where I live. It might be hard to give up my home and privacy. It's nice and quiet where I live and it's easy to shoot guns in the back yard. O-)
Just because sales are up does not mean prices are! There are a few new homes going up, mostly to those with cash and the prices, like you said, are about 50% of what they were being built for 5 years ago...Brand new homes starting at 150k at the south edge of town.
One homebuilder's stock jumps eight cents and they call it a housing recovery! :rotf:
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The condos on the strip in Las Vegas started to sell again and they are no longer 2 million bucks. :lmao:
I am ready to start looking for a condo in Las Vegas. Healthcare out here is difficult at times and if I move to Las Vegas I can actually take a promotion with my company. So many residents with major illnesses have to have someone drive them to Las Vegas for things like radiation treatments as it's simply not available where I live. It might be hard to give up my home and privacy. It's nice and quiet where I live and it's easy to shoot guns in the back yard. O-)
Just because sales are up does not mean prices are! There are a few new homes going up, mostly to those with cash and the prices, like you said, are about 50% of what they were being built for 5 years ago...Brand new homes starting at 150k at the south edge of town.
One homebuilder's stock jumps eight cents and they call it a housing recovery! :rotf:
I'll be living almost as far south as you can get in Mountain's Edge. It sometimes feels like a haul just to get back to Blue Diamond Rd, but I like it. We're close enough to everything, yet we have that "country" feeling by living away from businesses.
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I'll be living almost as far south as you can get in Mountain's Edge. It sometimes feels like a haul just to get back to Blue Diamond Rd, but I like it. We're close enough to everything, yet we have that "country" feeling by living away from businesses.
That's the area I like.
PM me a link if you have it of the condos that are for sale.
I am having some windows put in and ready to flip my house. I got a great deal, it's zoned multi family, low taxes on an acre...it should sell quick. I own it right. I'm ready to start looking in Vegas. There are also a couple job opportunties there with my company.
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What side of town are you looking at?
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I like Blue Diamond or Durango area....South Edge of town. Yet I am open to any decent neighborhoods with some good ol' bank owned deals.
How are the property taxes?
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I like Blue Diamond or Durango area....South Edge of town. Yet I am open to any decent neighborhoods with some good ol' bank owned deals.
How are the property taxes?
Ours are about $1,300-$1,400. I don't have the exact number yet, but checked the other properties that are already done and built and that's the average. It really depends where you buy. Durago & Blue Diamond is a really close to me. There are some condos in Mountain's Edge, but not sure how much they are. They look really nice though.
I used realtor.com and went to the zip code (89178) and found some condos as low as $80,000 for three bed, two bath
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Thank you! :cheersmate:
One more question. What is the zip code or area that the condos that are priced below 25k in?
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That's the area I like.
PM me a link if you have it of the condos that are for sale.
I am having some windows put in and ready to flip my house. I got a great deal, it's zoned multi family, low taxes on an acre...it should sell quick. I own it right. I'm ready to start looking in Vegas. There are also a couple job opportunties there with my company.
I've got a timeshare thats a GOOD deal. I swear. O-)
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I've got a timeshare thats a GOOD deal. I swear. O-)
Timeshares are so 1990's.
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Timeshares are so 1990's.
:lmao:
I know a girl that owns one and she is always trading weeks and locations. Seems like a lot of work to me. She is nuts so she does not notice. :banghead: I stayed at one with her in Vegas for a week, she lives in Iowa. The main advantage was the four swimming pools open 24/7
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Ours are about $1,300-$1,400. I don't have the exact number yet, but checked the other properties that are already done and built and that's the average. It really depends where you buy. Durago & Blue Diamond is a really close to me. There are some condos in Mountain's Edge, but not sure how much they are. They look really nice though.
I used realtor.com and went to the zip code (89178) and found some condos as low as $80,000 for three bed, two bath
Great deal on taxes!
My town in unincopirated. So my town's casino revunue supports the rest of the county (2nd largest in the nation) that is full of gold mining ghost towns that end up with new fire stations and fire trucks.
I paid $1003 last year for taxes. My house is zoned multi family. Total SF is 2722 on one acre.
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Great deal on taxes!
My town in unincopirated. So my town's casino revunue supports the rest of the county (2nd largest in the nation) that is full of gold mining ghost towns that end up with new fire stations and fire trucks.
I paid $1003 last year for taxes. My house is zoned multi family. Total SF is 2722 on one acre.
I love ghost towns. We haven't been out venturing around Nevada yet, but did it often in Arizona. I know we are missing out and need to go.
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I love ghost towns. We haven't been out venturing around Nevada yet, but did it often in Arizona. I know we are missing out and need to go.
It's cool.
Even just driving out to Ash Meadows or Death Valley is neat (once the temps drop) there is so much to see. Baker, CA has some neat sites also... Every time I drive out there I see something new...It's so relaxing.
When my dad was alive my folks took the RV to a lot of ghost towns it was like Bonnie Springs in Red Rock Canyon in Las Vegas without the actors!
There is a lot of great info online about ghost towns. This is one of the most popular and I know many that have been there and enjoyed it: http://www.ghosttowns.com/states/nv/rhyolite.html There is a lot of history there.
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Thanks for the link.
We like going out to Bonnie Springs Ranch a couple times a year. I love their restaurant out there. So good! :)