Click the post title above to watch today’s video! Catch all your real estate news and mortgage news with Frank Garay and Brian Stevens here at www.TBWSDailyShow.com!
Thanks for your personal marvelous posting! I actually enjoyed reading it, you’re a great author.I will remember to bookmark your blog and will often come back sometime soon. I want to encourage you continue your great work, have a nice holiday weekend!
I agree with Kelli,
I think the reason Phoenix and several other states are not going to see the tsunami is because like Phoenix, many of these states are Trustee states where the Foreclosure is completed in 90 days. Very little red tape.
Another thing to consider, Many of the current bank owned homes or soon to be bank owned homes were part of the deal that was created when bank A bought bank B’s bad debt for penny’s on the dollar plus in this deal the FDIC guaranteed Bank B would not loose any money should the home sell for less than they paid to the toon of 80% of the ORIGINAL LOAN AMOUNT!
These banks don’t need to get these homes sold right away because they are a good assett on their books. As the housing market here in Phoenix recovers, 8 to 10% in the median price range over the last 8 months, the banks will just make more profit by not flooding the market on homes they didn’t pay much for in the first place.
Excellent topic! At an event I attended last week in Phoenix, “Short Sale Tsunami II” where a highly accredited panel spoke throughout the day, Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business and creator of the Cromford Report, spoke about how he thinks the wave of upcoming foreclosures is a myth. “Many people think there’s a glut of homes the banks are hiding somewhere, and that may be the case in other markets, but not here in the Phoenix area,” Orr says. “We’ve gone through so many foreclosures that the system has been working itself out for about five years. Everything is cyclical in housing…” Read More It’s interesting… we are seeing more and more banks approving a record number of short sales PLUS when there are foreclosures, a high percentage of them are being sold to investors at trustee sales who are fixing them up and selling move-in ready homes to buyers versus seeing Bank Owned sales on the market. Time will tell… too bad my crystal ball is broken! AZRealEstateNews.net
We are finally seeing some lenders in our area touting the Harp 2.0 program. It would be nice if they could get those loans done. However, inventory is way down in Arizona right now and some new REO’s in our market wouldn’t hurt that much. Retail sellers can’t sell and they aren’t defaulting so nothing to sell.
Never has the phrase “Rome burned while Nero fiddles” been more apt. Civil servants have no skin in our game and therefore as long as they get their salary, they really don’t care; banks are incompetent when it comes to risk acceptance and thereore choose risk aversion; stockpiles of homes are held in the quasi land of ‘almost’ foreclosed by lenders hoping that things will change and solve the problem. You have to hope Nov will at worse provide new impetus to solve this problem from outside of DC because the alternative is drifting along like this for years. Even with the best of marketing efforts – who can truly afford to sit that out??
Maybe so maybe not so!! As an REO agent, I have been sitting on some of the properties for 9 months waiting for them to be released for sale! Why do they want to flood the market? They will be hurting themselves if they do that. We have heard this “flood” news since 2009-time will tell, just sayin’
Sobering, but really good show today! Happy Fun Day Friday! Cheers
I wonder how long it is going to be before Neil Barofsky loses his job for telling the truth?
Hey, TBWS! What about Short Sales! They are taking off in my area. Each short sale eliminates 1 forclosure. Don’t get me wrong, I think the banks should have opened the flood gates since day 1 (our economy would be improving and closer to recovery at this time). As a Realtor we are being guided toward short sales. We have a short sale team at my office. With the lack of REO inventory we need to do something! With banks lack of action on forclosures, they have made it harder to do short sales. Owners want to milk the system and stay in their homes payment free for as long as possible…making motivation for a short sale difficult. Bottom line is that government and banks now own our real estate industry, they are in full control. And we know they have no clue on how to run a business. They need to get the heck out immediately. We need to stand together to get them out of our business. We can’t make a living on 2% for listing REOs (and a lack of inventory), Short Sales that may or may not work and lack of money for buyers to borrow! We don’t need the government or the banks, they are just making things worse! We need to get together and let our voice be heard. CAR and NAR is not doing a thing, need to get rid of them too!
Hello sir, What is your take on a situation in an area of Queens New York. Flushing, Bayside Whitestone. Real estates involved in Overpriced homes that do not sell. They are about 34% above market value and they use a lame excuse of “It’s the neighborhood your paying for”. Some of these homes are 50, 60 plus years old with horrid interiors.
By now, property owners that are going to default already KNOW they are going to default, it’s merely a question of when. There is a natural/normal level of default (even when the rate & terms are “ideal”) due to ‘everyday’ household distress factors ( divorce, etc). This segment is predictable. The variable is the segment of those that are reaching their tolerance threshhold of frustration- such as those that are being rejected in DU & LP HARP2 for not meeting the “select” LTV or scores or ratios. Regardless of how they’ve proven capacity at the higher rates & more volatile terms in place. What does this mean? Is there perhaps a motive in the GSE’s and servicers to identify & deliberately create fertile grounds for those borrowers to justify their defaults in a recovering values R/E market? What’s in it for them? Identify the motives beyond the avoidance of risk. Incompetence is apparent- but who will be profiting from this fiasco?
Wouldn’t it be ironic and quite poetic if Obama lost the election because all the pissed off HARP borrowers turned around and voted for the other person who will become president, all because they were told they would get a loan because their loan was owned by Fannie Mae, only to be denied by a computerized automated underwriter named DU, who sounds like some friend of RD 42!
This program is a disaster, and the way DU is cherry picking through these loan applications and issuing approvals on some and not on others is quite frankly a disgrace! And ultimately the buck stops with the man sitting on the throne, who has the ability to tell Fannie or Freddie, if they have a loan with you, APPROVE ALL OF THEM!
Bring ‘em on! Not enough inventory in AZ right now! Crazy market here!
Just a heads up, the reps and warranties on Harp 2.0 are *way* less restrictive; these are practically a \golden ticket\ to never have a buyback from a lender’s perspective, so plenty of incentive to put another these loans on the books…
Great Topic guys and something that needs to be talked about. Did you have to do it on Friday the 13th!
Dam! When is going to break. They have been talking about a flood of foreclosures coming is seems forever. I agree it needs to happen sooner than later if the market and economy is going to improve.
Great show today guys!
Your email address will not be published. Required fields are marked *
You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
Twitter UsersSign in with your Twitter account by clicking the button below.
Lost your password?
Username or E-mail: