October 30, 2008

HousingPANIC Stupid Question of the Day


Do you think housing flippers, fraudsters, gamblers and speculators will be getting back into real estate anytime soon?

34 comments:

Anonymous said...

No. They are still trying to get out.

LoneLibertarian said...

I know a woman who was a mortgage broker until her shop closed up.

When her shop closed up she moved to scottsdale circa late 2006. When that dried up she moved to Las Vegas and has recently purchased a new house. (from the frying pan to the fire?)

So yes they will return.
My personal belief is that they have drank too much kool aid and actually believe that housing prices will have a "spring bounce"


"It was too good of a deal to pass up" is the common thought right now.

Ok, I'll buy it from you in 24 months when it is worth even less. Can you say NASDAQ?

Towjam said...

Yes.
They already are. I get offers from them every day.
Every time any real estate guru comes through town with their get rich quick course a new batch is born.

Anonymous said...

Speaking of fraud....

http://www.bloomberg.com/apps/news?pid=20601109&sid=aGYlBrRCgtq0&refer=home

bottom feeder in philly said...

The smart ones will, but not quite yet. There is a lot of money to be made in real estate the next 7-10 years if your willing to be a landlord, and then sell at the top of the next cycle.

Anonymous said...

Yes, they will be getting into Real Estate, into a 1 bdr apt. for rent after their BK filing...

DIE U PIGS

Cinch said...

"Ok, I'll buy it from you in 24 months when it is worth even less. Can you say NASDAQ?"

that is nothing

Try the Nikkei 225
1989 40,000
2008 8000

Elliot said...

Keith, I would be interested to hear your thoughts on this article:

http://market-ticker.denninger.net/archives/636-Stop-Paying-Your-Mortgage-Today.html

Do you feel that people who stop paying even if they are able to are justified, because of bailouts, greedy bankers, neighbors, etc. Do two wrongs make a right?

Anonymous said...

The foreclosure market has got to heat up pretty soon. And the government may sweeten the pot. . .

fishNchips said...

Umm, I thought so many of them where Eurotatrds buying ‘bargains’ and taking advantage of the weak dollar.

joe the realtor said...

Did casey leave the country yet?Kiwosaki is the biggest crook next to trump.

Anonymous said...

Maybe not RE specifically. But with their fraudster skill set I am sure they are drooling at all the federal tax payer money sloshing around in all these bailouts and they will definitely be getting a piece of that action to replace the income they've been losing from the now defunct housing/mortgage scam of the past decade.

Anonymous said...

Housing prices feel because they were artificially, dishonestly, unrealistically inflated and houses were pimped to the people as a way to make easy money, and greed and reality, and actual income got in the way. Dang!

grandma pkk

Anonymous said...

A lot of the mortgage brokers around here are now "foreclosure prevention specialists". The laws in my state consider the offer of advice on foreclosure options to be the practice of law, at least when the advice includes any suggestion that an attempt be made to modify or cancel existing contractual obligations. Despite this, the ex-brokers offer foreclosure advice openly and freely with no acion by the atty general.

Who would ever imagine that a public officer would neglect to perform his oversight activities.

6% is the devil said...

Does a bear crap in the woods?

casey hater said...

I saw casey on the corner here in sacramento holding a no on prop 8 sign.His gay buddies are running scared.

Owner Earnings said...

I'd like to see them get back in now and lever up 10 times so that when the market goes down another 10 percent they are completely wiped out and the rest of us can get affordable prices.

Anonymous said...

The scorpion and the frog.

Anonymous said...

Without a doubt! Right now is the perfect time to buy!!

Just log on to bloodhound.

(haha)

Anonymous said...

These days I’m getting my share of “I told you so moments”.

This once high-flying Realtard sits down at the bar looking like someone ran over his dog, and joins our convo about housing/econ. The talk quickly turned to his problems.

His bank won’t work with him on 2nd that “turned out to be” Op-ARM. He said he was a “pretty smart guy”, and even he didn’t realize the int. would shoot up and double his payment. The first lien holder CW increased his escrow for tax/ins. to what he believes is preposterous. He just wants to stay in his home (riverfront condo).

His atty told him if he claimed BK he & wifey could only keep $8K each in assets. I responded - at least you will have a car. He looked at me like I ran over his dog and said “not much of a car”. Boo F’N Hoo as I thought back on a time when my car was worth less than the golf bag full of Pings & Calloways I inherited.

His wife doesn’t understand any of this or him because she is from the Philippines (no, I didn’t ask if he borrowed $$ to buy her off i-net.)

He lamented that if O wins, the cap gains tax will go up and businesses will hold and not sell, he will have no work. I said some will have no choice, for others there will be no “gain”, and biz listings in our area have nearly tripled in past 2 yrs anyway.

After ALL this, he asks me (a comm appraiser) if I could look into “getting some ##s together” on the golf course and river prop in f/c down the street!

I told him I was busy with liquidation values on all the other comm.. f/c’s coming down pipe, and thou I feel no sympathy for this loser, I bit my tongue on telling him he couldn’t even afford the appraisal.

Answer: Yes, these people with their delusions of grandeur and easy $$ will exist till the end of time.

Marge said...

Have you read this?
http://market-ticker.denninger.net/archives/636-Stop-Paying-Your-Mortgage-Today.html

JaneZ said...

Elliot said...

Keith, I would be interested to hear your thoughts on this article:

http://market-ticker.denninger.net/archives/636-Stop-Paying-Your-Mortgage-Today.html
Do you feel that people who stop paying even if they are able to are justified, because of bailouts, greedy bankers, neighbors, etc. Do two wrongs make a right?

Not Keith but...

America left moral authority in the dust years ago. Ethics and morals only work if those around you share your values and you all play by the same rules. If you are the only ethical, moral guy in a room with thieves and greedy bastards, you are going to lose your shirt every time, and they will laugh and laugh about how naive and gullible you are. they will say that you deserved to lose your money for being stupid enough to take the rules seriously.

The "Middle Class Welfare Kings and Queens" will get on the mortgage welfare bandwagon and stick their hands out. Uncle Sam will then reward them and you and your family will get the shaft for living a moral life.

Don't take my word for it ask Nick.

Then, go and read Denninger again. Read the part about changing the terms of your loan into a recourse loan when you accept your welfare handout. They will OWN you and your family for the rest of your lives. Not even bankruptcy will discharge the debt. You will be running from dem huntin dawgs forever.

God Bless Denninnger:

If you're imprudent you definitely want to intentionally default right now because the absolute last thing you ever want to do is convert a mortgage into a recourse loan, and that is precisely what taking the government's "help" will do - it will bend you over the table.

Anonymous said...

Yes, as soon as the FDIC passes the homeowner bailout.

Anonymous said...

Fraudsters never left: Now there are many New and Improved SCAMS.

Your new bail out money at work.

Why do you think they gave the job to a KID to manage.

http://biz.yahoo.com/cnnm/081027/
101708_new_mortgage_fraud.html?.&.
pf=loans

THE NEW APPRAISAL FRAUD

These schemes involve short sales, which come up when a struggling homeowner is "underwater," or owes more on his mortgage than the home is worth.

Fraudsters fake very low appraisals for the homes and use those appraisals to justify low short-sale prices - well below true market values.

If busy bankers don't check the appraisal closely (or if the bankers are in on the scam), they may agree to sales of homes that should be worth $200,000, for $150,000 or even less.

The buyers - in cahoots with the owner - then flip them for a big profit.

THE NEW LIAR LOAN

"Liar loans are now fully documented - but with really good fraudulent documents," said Hagberg.

Advanced information technology and photocopying equipment have gotten so accurate that very convincing papers, including income statements, savings accounts and tax returns can be produced on demand.

Ronan said there are Web sites that provide believable documents that scam artists use.

"Because they say it's for 'novelty purposes,' you can't really do anything about it," he said. "They don't say it can be used to defraud."

Scams that misrepresent income or employment are still the most common type of fraud, according to MARI.

BUY AND BAIL

You're underwater on your mortgage and want a new, cheaper home down the block.

You could just bail on the existing home, but no lender would give you a mortgage for the new one.

So you tell the bank you plan to rent out the current home - even though you have no intention of doing so.

Trader Vic said...

Yes. The dumb ones anyway. The smarter fraudsters are already borrowing at 1% and inflating the next bubble. Because of bailout nation, the ponzi schemes will go on until the democracy ends.

Lost Cause said...

If you mean by "getting back into real estate" -- parking next to vacant lots and squatting amoung the overgrown shrubs -- I think Casey Serin is on the vangaurd once again.

Lost Cause said...

I knew a real estate guy who once said "there is always a good deal out there," and I tend to agree. You always have to look, sometimes pretty hard, for the good deals.

UPTHECREEK said...

What do you mean... may get back into the flipping market... Who do you think are buying most of the REO's. IN CALIF
Undercover flippers and realtors.. the only problem is we STILL have another 15-20% LEG DOWN..

"FOOL ME TWICE"

Anonymous said...

I think this guy's life (Casey Serin) is going to be comical to watch over the next decade until he gets thrown in the jank.

Adam SlowHand Smith said...

Two interesting articles:

1) Maid-turned realtor and her mortgage broker husband, called Las Vegas' "Bonnie and Clyde" of mortgage fraud, are busted by the FBI:

http://tinyurl.com/5rzyrf

2) Many homeowners are in denial, unaware their homes are worth less than they think:

http://tinyurl.com/6f82ak

keyser soze said...

Dumber and Dumber?

gutless and lazy said...

Soon? No. Eventually YES.
They are what they are.
Selfish, greedy, opportunistic SALES SCUM.

Anonymous said...

I think these guys have found their next bubble.

We'll be seeing them in reality TV shows again with titles like "Flip this Foreclosure" or "Foreclosure King"

Buying and selling heavily marked down foreclosures is the new real estate bubble.

Martin Rose said...

I believe the word you are looking for to describe this phenomena is "Carpetbagger."