Priced right REOs are moving fast

[Smiling JOe]

..and with building, you get new construction built to current code, which was updated last year.

One more note regarding my frustration with the REO (incorrectly listed as such) properties which are really short sales: REO (real estate owned by the bank) properties are listed at a "real" price. Short-sales are not necessarily listed at a "real" price. So, when you see a price of $250,000 for a house located south of 30A, there may be a big difference in the listing, depending on whether it is a true REO or short sale. Looking at the listing alone will not always get you that answer.

 

[Bobby J]

One more note regarding my frustration with REO listed properties which are really short sales: REO (real estate owned by the bank) properties are listed at a "real" price. Short-sales are not necessarily listed at a "real" price. So, when you see a price of $250,000 for a house located south of 30A, there may be a big difference in the listing, depending on whether it is a REO or short sale.

Don't you love it! Makes us work much harder. I really do love how this business changes daily. So glad I don't have a real job!

 

[Joe Mammy]

The market is changing, it always does. Some agents evolve and some don't. Those that understand and know how to evaluate a short sale's chances of closing will be the ones that are not just spinning their wheels. My clients know the chances of closing a short sale before we write an offer.

Hey, c'mon. I told you guys a month or two ago that agents are not listing short sales correctly. They are also not listing REOs correctly. But they are DICTATING MARKET VALUE!

They really can be the best deals out there, and it is up to us realtors to clear them off the board so that this market can appreciate- and it will - once the bank deals are sold off - I'm working on it!

And Shell, your question is very difficult to address as there are many circumstances that come into play of a short sale deal. Every bank's loss mitigation dept has different guidelines and the BPO's required to affirm an offer. I wish the situation was a bit clearer than mud...

 

[Bobby J]

We are just about to close on another Country Wide short sale! They are a nightmare but they do work The success depends on the buyer staying in the deal and like Joe Mammy says the agent having the ability to look at the loan and evaluate what the bank will take. The deals we have lost have been the buyer pulling out or the IRS stepping in.

 

[SHELLY]

They really can be the best deals out there, and it is up to us realtors to clear them off the board so that this market can appreciate- and it will - once the bank deals are sold off - I'm working on it!

You're assuming that there is a finite number of REOs. What if these REO are like Tribbles?

Clue me in on what you see in the immediate future that is going to turn the state of the US economy (and subsequently the RE market) around...I'd really like to know, because I'm missing it.


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[SHELLY]

The deals we have lost have been the buyer pulling out or the IRS stepping in.

The IRS? You mean the IRS is wanting the investulator to pay taxes on the amount of the loan that's forgiven--right?

I've also read that some lenders are requiring the seller to pay back some of the "forgiven portion" of the short sale with another loan. (A little reminder that RE isn't the risk-free investment they thought it was.)

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[Bobby J]

The IRS? You mean the IRS is wanting the investulator to pay taxes on the amount of the loan that's forgiven--right?

I've also read that some lenders are requiring the seller to pay back some of the "forgiven portion" of the short sale with another loan. (A little reminder that RE isn't the risk-free investment they thought it was.)

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You are going to have to pay back some portion of the short fall unless it is your primary residence. The pay back is one big negotiation! For instance, I know one deal where the guy owed $1.3 million on a home and sold it for $950,000. He then worked out a payback based on the short fall and all the interest he had paid on the note. I think in the end he is paying the bank back $150,000 on a 30 year note. Sure beats the $1.3 million.

 

[SHELLY]

I think in the end he is paying the bank back $150,000 on a 30 year note. Sure beats the $1.3 million.

We should all be so lucky...right Bobby?
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[Joe Mammy]

You're assuming that there is a finite number of REOs. What if these REO are like Tribbles?

Oh, that's easy. We just get Scotty to beam the REOs onto a Klingon ship.

The majority of the foreclosures that we are seeing today all have one thing in common- they bought in late 2005 or 2006 at the peak. That is a finite number.

 

[SHELLY]

Oh, that's easy. We just get Scotty to beam the REOs onto a Klingon ship.

The majority of the foreclosures that we are seeing today all have one thing in common- they bought in late 2005 or 2006 at the peak. That is a finite number.

But that was when the most were sold too. So based on the total number of places sold during the '05-'06 bubble and the rate of places being sold now--it may take years to absorb the over-priced bubble-era investulator inventory--especially since the Fog This Mirror™ loans are no longer available.

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