You got it - REALTORS!
Explains why they hate HP (and life) so much right about now.
They've lost their careers to the crash, and they've also lost everything.
Ouch.
Like a cocaine dealer who uses cocaine. Not pretty.
Many of the investors were well-off real estate professionals, riding the wave of the housing boom, as well as middle and upper-income families with good credit and cash to invest.
Their dreams of getting rich quick have been replaced by fears of losing a great deal of money as prices started plunging.
Rather than take the risk of suffering sizable losses in a protracted housing downturn, some investors have stopped paying their loans and turned their properties over to the bank to be auctioned off.
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Word on the street Hutch is that they got hooked on their own junk.
Huggy Bear
Speculators stop making their payments ... bank get's house ... new mortgage applications drop ... more homes on the market.
Prices *must* drop, and drop.
http://tinyurl.com/yukvtr
I was checking out the foreclosures in my area a couple of weeks ago and noticed two local realtors on grant deeds.
So yes this is happening.
Scarface rules:
Frank Lopez: Lesson number one: Don't underestimate the other guy's greed!
[laughing]
Elvira Hancock: Lesson number two: Don't get high on your own supply.
Oh I hope Greg Swann had investment condos in Arizona!
If someone turns their house over to the bank and the bank auctions the house off for more than the person owed the bank, isnt that person still on the hook for the difference?
Thanks for the 'straight dope' Huggy Bear!
Of all of the sales ploys out there the cheapest has got to be "I'll have you know I'M investing in XYZ also!"
Or a certain neighborhood, gated community or whatever? To some degree, I can see this where real estate is concerned. Afterall, isn't all RE local!?
But guys! (Lighten up on your own kool-aid for crissakes). Saying "I own a home down the block, around the corner" etc. should suffice! BUT NO...! That just wouldn't cut it in a speculative environment! How can you drive around in that Lexus and have to admit that you only "own" ONE stinking property?
In order to attract speculators you've got to be able to say "I own MULTIPLE properties!"
I think a "Pimp of the Year" award is in order Huggy Bear, don't you?
DinOR
Scariest part of that article from State Senator Brown: "We need help. ... The Federal Reserve should have acted long ago to stamp out the abuses we have seen in Ohio and across the country," said Mr. Brown. "We are facing a full-blown housing crisis, and the rest of the country is not far behind us."
What the heck does the Federal Reserve have to do with anything? Our country is being led by imbeciles.
smart dealers never touch the stuff
I don't know man. That same buddy of mine that only sold one house last month, netting a measly $15,000 check to him, is buying a new 4000sq ft house this week. It's a deal, I'd buy it as well. I wish prices would come down around here. It just looks like it aint gonna happen though.
I know one Realtor who bought 3 pre-construction houses in Florida for 1 million + each. (All No Doc loans, zero down). She did cash out refinances on them when they were completed. The money went to buy new Mercedes, a million dollar farm, a 35 foot yacht, a vacation cabin in Gatlinburg. As she needed money for payments they would do another cash-out refi.
Now the banks will not refi her anymore. She has $73,000 in payments due/overdue and an expected income this month of $2,700.
BTW, 2 of the 3 houses have never been occupied; they were nothing more than ATMs as far as they were concerned.
I don't understand. If housing always goes up, why aren't they just selling for massive profits on the open market instead of walking away from their debt obligations?
Actions speak louder than words, Realtwhores.
It was so easy, a Realtor could do it.
I love you Keith!
"If someone turns their house over to the bank and the bank auctions the house off for more than the person owed the bank, isnt that person still on the hook for the difference? "
A stupid realtor here will answer your question.
It depends on state law. In my state if your mortgage defaults and it was a purchase mortage the bank cannot get a deficiency judgement. If you cashed out or declared it an investment property the bank is then entitled to come after you. All states are different and all loans are different as well.
Over the last few years the sheople speculators were asking me how many properties I owned and why I wasn't buying more and I told them truthfully I thought the market was over valued in 2002, so why would I buy now? They all laughed at me as I sold my investment properties aquired in the RTC bust into the frenzy of the last few years. Looking to go long housing again as soon as the banks call me begging for me to aquire properties at 4 times the rent roll.
Peace.
Next time you see a REALTOR on the road, take a close look at their facial expression. It especially comes out in the women. You can tell who a realtor is by the stupid license plate or the shameless advertising in the back window and on the front door panels. They have a frazzled, scared, overworked look on their face. Like they keep working harder but selling less. It's really kind of sad. But hey, we're a flexible economy and these opportunists will respond to the next no-education, quick-certification, fly-by-night industry. Personally, I think it will be debt counseling / working for creditors to get consumers to pay.
This does not surprise me. That is why they are so testy!
An example hot off the press:
http://www.cnn.com/2007/POLITICS/06/19/treasurer.indicted.ap/index.html
South Carolina Treasurer Thomas Ravenel, a former real estate developer who became a rising political star after his election last year, was indicted Tuesday on federal cocaine charges.
Ravenel is also the state chairman for former New York Mayor Rudy Giuliani's presidential campaign.
> If someone turns their house over to the bank and the bank auctions the house off for more than the person owed the bank, isnt that person still on the hook for the difference?
You probably meant "less" not "more". If you did - it depends on the mortgage, if it is recourse or non-recourse. In some states, mortgages for buying a home are non-recourse, i.e. the lender can foreclose on the house but not go after the borrower's income. Refinanced mortgages and HELOCs are recourse, the borrower must repay (or seek bankcruptcy protection).
From CBS 4. “When it comes to mortgage fraud, Florida ranks number one in the nation with Miami Dade coming in fourth among all metropolitan areas nationally. A survey found the most common mortgage fraud scheme is South Florida involves a buyer receives a property loan above for thousands above the appraised value and then the seller kicks back cash at the closing.”
“‘There are so many people profiting off of this,’ said a local realtor who did not wished to be identified by CBS4. This realtor told CBS4’s Evan Bacon he became involved in a fraudulent deal this past spring.”
“‘I was approached by a group that I did not know,’ said the realtor, ‘and they asked me directly to ask my seller if I could raise the price of my unit a substantial amount, almost double.’”
“The realtor said the caller then offered to buy the condo for what the seller was asking if the seller agreed to increase the sale price by more than $200-thousand and then give the extra cash back to the buyer at closing. The realtor told CBS4 on the day of the closing the sale documents had been changed to reflect a new buyers name and a much higher price.”
“‘It’s a very typical scheme in South Florida,’ said Miami Dade Police Sgt. Richard Davis, ‘that is now spreading all over the country.’”
“Fraud investigators say if this type of scheme continues it’s going to get to the point where lenders will pull out and not lend any money. ‘When I see mortgage commitments where someone makes $28-thousand a year and they are qualifying for a $900-thousand mortgage, that’s not normal,’ said Nancy Hogan with the Florida Real Estate Commission.”
westwest888 said...
Next time you see a REALTOR on the road, take a close look at their facial expression. It especially comes out in the women. You can tell who a realtor is by the stupid license plate or the shameless advertising in the back window and on the front door panels. They have a frazzled, scared, overworked look on their face. Like they keep working harder but selling less. It's really kind of sad. But hey, we're a flexible economy and these opportunists will respond to the next no-education, quick-certification, fly-by-night industry. Personally, I think it will be debt counseling / working for creditors to get consumers to pay.
June 20, 2007 5:07 PM
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Well, the younger hotter females can go (back?) to "exotic dancing."
This may disappoint some of you, but the bubble bursting has been a good thing for our business. Maybe because the quick money scammers are exiting in droves and it's getting tougher to break into the market.
I bet I'm not alone. Those that work hard to create value for their clients are likely to see their business increase - at least in our region.
If the 2nd half of 2007 is like the first, we'll double our business from last year.
Forgot to mention - I was not involved in flipping personally nor have I advised clients to do so. Fix and sell for a decent profit - yes. But no pre-construction contract flipping.
Don't get high on your own supply!
Oh the market outside is frightful
But it is just delightful
And since all flippers will flop
Let it drop let it drop let it drop
good ol' Rudy, he sure knows how to pick 'em. just like his mafia-connected, high school dropout ex-police chief Kerik.
An example hot off the press:
http://www.cnn.com/2007/POLITICS/06/19/treasurer.indicted.ap/index.html
South Carolina Treasurer Thomas Ravenel, a former real estate developer who became a rising political star after his election last year, was indicted Tuesday on federal cocaine charges.
Ravenel is also the state chairman for former New York Mayor Rudy Giuliani's presidential campaign.
honica jewinski said...
I don't know man. That same buddy of mine that only sold one house last month, netting a measly $15,000 check to him, is buying a new 4000sq ft house this week. It's a deal, I'd buy it as well. I wish prices would come down around here. It just looks like it aint gonna happen though.
June 20, 2007 4:09 PM
You are an idiot and a racist.
Osman,
I agree with what you said. I see a lot of agents getting blown out of the business by the deflating bubble leaving a better business climate for the survivors. I actually lke this market better than the bubble years as the buyers and sellers are less hostile and less cocksure making my job a little more rewarding. Also, it is quite frustrating watching people make bad decisions and seeing those decisions rewarded by an irrational market. Many have been humbled so far and I expect many more to follow.
Volume in mymarket is up from Q 4 of 2006 but still of 10% YOY. IS that a good market? No, not really. Can a broker make money in this market? Yes.
I noticed comission rates increasing at the begining of '06 from a bottom of about 4%, or 2% on a cobroke side to now a little under 2%. Discount brokers are getting wacked as their business needs high volume to throw off cash.
I love it!! I remember the greedy bastards saying how much money they made and flaunting all their new toys! Now they can sell tehm so they can pay their home loans!! HAHAHAHAHAHA
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