All Forum Posts by: Eddie Ziv

"While that may in fact be the case, that is not the entire picture from the banks perspective. Because of marked to market accounting practices, it was more beneficial to them to hold that asset rather than sell it at a discount, as that would have a negative affect on ALL of their assets on the balance sheet. The difference in loss now rather than selling 6 months ago is much less than the amount of loss to the balance sheet and therefore, the amount of moeny they are allowed to loan."

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I don't see how holding a REO property helps the balance sheet. It may do just temporarily unless you want to look good for a certain quarter, but for the most part it looks like kicking the can. Eventually that property will be sold for much lesser money and since it's attached to a loan figure that negative would just keep growing.

There is no doubt that building trust and playing fair is the biggest pay-off for any growing business and reputation is any business' biggest asset. However, it seems to me that the time a buyer have to close a deal may not be enough to build that reputation with a given seller and many sellers in this market have already had their fair share dealing with unscrupulous buyers.
I also think that the fastest way to build this trust is to bring undisputable facts to build the buyer's case. (Recent comps, etc)

I must admit. I don't wholesale. I buy REO or HUD and rent them out, but looking at it from the seller's prospective, "educating" can be construed by the seller as just a "sale gimic". Regardless of the facts, when you offer a seller a certain price which is obviously substantially lower then what the seller think, is a fair market price, they become suspicious.
Regardless how truthful you are as a buyer, they see you as a one who tries to get their house for the least amount of money and I'm not sure if they are looking for education coming from you.

Jeff,
If this is true, we should see even more REO's out there very soon based on the up coming Stress-test - The sequel. Courtesy of the congress.

Hey Josh. Have your mortgage broker dropping me a line (My e-mail address is in my signature) Cause I'm having a hard time getting a loan less then $40,000.
Thanks,

It's amazing to me how you all bashing Obama who's actually trying to do something that should have been done long time ago, There is no one word about eight years of disastrous mismanagement by W's administration that brought us this mess. OH NO! He's going to take our money and our guns!!! What we're gonna do? Wah Wah Wah...
You don't even give a guy a year, let alone six month. Let me remind you that election happens every four years (Or two years for the congress) the pendulum moved in one direction and it can easily move to the other.

Everything written here just shows that in Real Estate, just like in politics, everything is local. Some areas experience reductions in REO, and some see increases. I don't think we've even seen the beginning of Alt. A and Option ARMs defaults yet.

As to the claims that the banks keep the best ones for last, it's systematically their biggest mistake. Those properties that could have been sold for a decent price six to eight months ago, now have been so badly deteriorated that the bank need to substantially reduce their price just to get rid of them.

Scott:
What I heard was in Pontiac. If you know exactly where, let me know. I'll probably buy a house there... :lol:

Will:
I don't think Detroit will be the next Hollywood because of the weather and infrastructure ( Most of the vendors are in California, New York, Chicago and Florida) but it can definitely have room to grow in that direction.

To of you who love to bash Hollywood.
Just remember, that Hollywood is one of the last manufacturing industry in the country and one of the biggest exporter which bring lots of revenue here. Just think about all those blockbusters movies and TV shows circling the globe.

Mike,
Have you ever thought that maybe, just maybe not everybody is lucky enough to be born as smart as you are? If you were born in a dump to what you would call "looser parents" and you are also, not the sharpest tool in the shed, what odds do you have?
Case in point.
My wife was born in Jamaica into a very poor and broken family, At forty years old she got married for the first time - to me.
She has two kids from one man and another kid from another man none of whom she was married to.
She picked herself by the boot straps, as they say and got two jobs while going to school to become a special education teacher which she completed. She bought herself a house and now is studying to become a nurse. Now, the only two reason that she could achieved all that is because she is smart and tenacious. People make good decisions because they are smart. Those who make bad decisions and never learn from it are not bad people, just simply not lucky enough to be smart, They're pretty much doomed and they don't deserve to be punished for it.