All Forum Posts by: Eric M.

I wondered if anyone has had experience with the abandonment clause of the Michigan Redemption Laws.
If the property has been abandoned, redemption is only 30 days. I have read the law and it seems to be easy to prove it is abandoned but I wondered if it is easy in practice to accomplish this.

THanks

This was a poorly written article that you are trying to further distort.

This is not AIG company money, these are personal contributions by employees of AIG.

They have there own personal interest in who becomes elected in any election and can give the money to whomever they wish.

If you work for a company and you donate to a candidate or charity or anything, is that the same as your company donating? Of course, not.

And the amounts are hilariously small in the scheme of things.

Anyone have any experience with the idea of hedging future rate adjustments on an existing ARM using Eurodollar futures?

Not all Realtors are all that savvy as to the best way to deal with a pending foreclosure.

My vote for understatement of the day!

We can agree to disagree. We don't know the exact situations people are in, but no one is offering seller financing unless they have real equity (20%+). (or unless it is just a Raltor trick to generate interest in the listing)

And even today, with a low FICO and no job. You can refi if you have 20%+ equity. You might not love the rate, but you can do it. And you would do it to stop a FC.

Subprime as we know it may have disappeared but subprime people can still get loans from many sources. Only lenders who packaged and sold their loans are stuck right now. Lenders like Credit Unions and others who hold their own paper are still in the subprime business.

But at least prior to the past few weeks subprime meltdown. If they had equity enough to offer seller financing, they had equity enough to refinance and avoid the foreclosure. Even now, if they have equity they probably can clean up a foreclosure....at least temporarily.

I know not everyone is smart about their finances. But even if your goal was to sell and you had equity, wouldn't you refi?

Wouldn't the realtor tell you to refi to stop the foreclosure and give you some breathing room to sell?

Eric

That is a strange one.

I also love the listed short sales that say "seller will help with closing costs".

"Houses are still selling even after the changes to lending guidelines"

BUT AT WHAT PRICE? Of course houses will always be selling. The whole question is at what price.

"drop the ARV by 2-3% for every month you plan on holding the property"

So I guess you DO agree with me. Let's say 6 month holding time is pretty average now. I guess that is an 18% lower ARV by your numbers. Just about exactly what I was thinking.

#1, I didn't say people couldn't get a mortgage, I said the rate would be much higher causing them to be able to pay less forcing a tick down in values. Unfortunately, many buyers don't have good credit and documentation.

#2, yes, I think I am saying our models and assumptions must change. I was trying to start some discussion about it. Just saying rent them instead of flipping is too simple an answer, I think. There will be price pressures on rentals too and there is still a big oversupply issue that will be exacerbated if lenders start letting REO's go. I think I read Countrywide has 200,000 REO's.

I have been in this biz for a long time and plan to for alot longer. I just think we are seeing some AMAZING changes that not everyone is grasping yet and trying to stir some discussion. Alot of newbies aren't paying attention to what is really happening, I think, as they just go about working their deals like normal and looking at comps the way the always have.

All the lenders got the memo and either cancelled programs or jacked their rates a bunch at once. That is shocking the market as we speak but if we just wait for and follow the govt reports after the fact, it will take us months to see that shock show up in Home Resale prices.

What if all us investors "got the memo" now and realized what will happen over the coming months and then called the lenders and cancelled all our offers to buy short sales and REO's or lowered our prices? That might get their attention. Then we might really see some interesting things.

I admit that I am sort of frozen right now in my REI. Maybe I am too fearful but I don't see anybody on these boards talking about the credit crunch much and how it will effect their ability to resell the homes they are trying to SS.

Or else, you somehow think these lenders in trouble are going to help us SS investors get more deals approved. Yay for us, right?

This might be true but do we want these deals approved easily? What does that mean when the lenders all the sudden start approving your low offers? Do you really want them anymore? Or is it a sign that our offers are too high?

Does everyone realize the environment your potential buyers are in trying to get a mortgage? In the past few weeks, rates are dramatically different but it doesn't seem like we have yet made dramatic changes in our valuations of property. How are most people going to buy your flip at the price you expect if their interest rate is 2 points higher?

How can a comp from even 60 days ago be relavant if that buyer was able to obtain a 7% mortgage and today it is 10%+? That comp can't be relavant can it?

How about the 1 year old comp (come one you know you guys use them that old) where the mortgage could have been 5.5%?

I think that virtually every comp is now irrelevant because the mortgage rate environment is so different.

Maybe I am chicken little who thinks the sky is falling but if we don't reevaluate the deals we have made offers on already, we may end up with approvals we can't resell.

I think prices in general have to adjust down big time in one click just like mortgages adjusted up in one click.

Yes, maybe the loss mits will not agree with our new valuations just yet but such is the nature of SS.

The great deals always come at the END of a crises. People who stand in there at the beginning of a crises get run over. Are we at the end or the beginning?

Is there an avalanche of homes coming that we are ignoring?

Thoughts?