Tough times in my business (mortgage)

[torch]

Cwinkler is he building another house? That MOFO told me he was broke and didn't know how he was going to pay for pampers and formula.

[crow]

Days like these make me glad I have a frugal wife and we have little debt load. The properties I own are in prime markets and houses are selling quickly at premium prices. I think I'm going to wait untill about the beginning of next summer and buy some more property for later resale...should be about bottomed out then, I figure.

I'm glad I have no investments tied to mortgages for sure. The mutual funds that are not real estate connected are off the charts right now. I hope they hold for one more year and I'll cash in when I retire.

All this figurin makes my head hurt!

crow

[cwink]

Cwinkler is he building another house? That MOFO told me he was broke and didn't know how he was going to pay for pampers and formula.

Well his house is up for sale. And he was supposed to be building one on the lake.. Last I heard from him when they did my mortgage last month..

[bradrussell5]

"Simply cyclical." yep, although never seen it this bad but there will always be someone out there willing to buy sub paper. Most of the sub lenders that have dropped out will either be replaced by new ones or jump right back in when it starts to go back up. What im fed up with is these underwriters changing their guidelines every other day and stipping and appr reviewin to death. I understand they are gettin theyre ass handed to um pretty good now but im pretty sure they knew about the risk when dealing with bad paper and arms. IMO its their own dam fault.

[cwink]

Days like these make me glad I have a frugal wife and we have little debt load. The properties I own are in prime markets and houses are selling quickly at premium prices. I think I'm going to wait untill about the beginning of next summer and buy some more property for later resale...should be about bottomed out then, I figure.

I'm glad I have no investments tied to mortgages for sure. The mutual funds that are not real estate connected are off the charts right now. I hope they hold for one more year and I'll cash in when I retire.

All this figurin makes my head hurt!

crow

Me too... My wife is frugal also.. I am the one with a spending habit, but that's OK by me.. You can buy a lot of cool stuff when you don't have car payments, student loans or credit cards..

[Duck Chaser]

"Mr buyer, you only qualify for $90,000 on this $100,000 house but I the seller is going to give you a $10,000 check to take to the closing. Sice the lender didn't source that down payment, nobody is the wiser, until....... Two years later Mr Buyer is 90 days behind on his mortgage which started increasing because they put him on a ARM mortgage. Mr Lender calls and threatens foreclosure. " Mr Buyer, I know you don't want to lose the $10,000 of equity you had in your home, do you?" Mr Buyer says, "what $10,000, Mr Selller gave me that money! I could care less, see ya." Now the lender is sitting there with a house that he has to spend on average $50,000 to foreclose on. Next problem is that the appraisal was infalted to help the original seller make more profit.

another possible scenario... similar deal, but a refi. no seller involved..

who's being "creative" in this case? and if the appraisal is inflated, who is the driving force if there is no "help the original seller make more profit"?

I guess the only one involved, with a commission interest, would be Mr lender. and with the deal actually going to Mr investor, why would Mr lender (mortgage company originator) care if its paid, he got em on the front, back and everywhere inbetween.. buyer defaults, investor requests a review of the appraisal, and they're off...


I'm not saying any of the mortgage folks here operate in such a way, but it happens every day. either way, the appraiser is at fault if the value is inflated due to any outside influence, but make NO mistake, many times the lender is the influence. I know appraisers that cater to less than ethical lenders, real estate brokers/agents, attorneys, builders, you name it. their days are numbered, or already passed, as are those that rely on them.

our local market is very stable due to new industry. I figure the fall-out here will be less substantial because of it. (a huge break for an inflated value 2 yrs back, thats actually worth it now.) I hope things take a turn sooner than later for the folks doing it right.

[Dutch Dog]

The properties I own are in prime markets and houses are selling quickly at premium prices.

No such animal there skippy, not in today's market. Nobody is lining up to by any properties at "premium prices" Period, end of story. Overall, NOTHING....I repeat NOTHING is selling at a premium price. Some builders are still trying to get a premium price, but are NOT getting it. Yeah, there's one here and there, I know, but I'm talking in the overall scheme of things. I'm sure folks can example it to death about they know someone who just sold this house for this much and so on and so on, but I'm talking about the overall picture. Those few sparse examples don't add up to nothing.

[TODO]

The properties I own are in prime markets and houses are selling quickly at premium prices.

No such animal there skippy, not in today's market. Nobody is lining up to by any properties at "premium prices" Period, end of story. Overall, NOTHING....I repeat NOTHING is selling at a premium price. Some builders are still trying to get a premium price, but are NOT getting it. Yeah, there's one here and there, I know, but I'm talking in the overall scheme of things. I'm sure folks can example it to death about they know someone who just sold this house for this much and so on and so on, but I'm talking about the overall picture. Those few sparse examples don't add up to nothing.

Dutch, you dont reckon the market in georgia might be a little different than Desoto County? What about the condo market in downtown memphis. . . i would call that selling at premium prices, although i know the sales are quite a bit off from last year as far as # of units, prices per SF have continued to rise. One Beale sold out of 4,000 units @ $1,700,000 in its first week of pre-sales. Thats $425 a foot, i call that premium.

[Dutch Dog]

I'm sure folks can example it to death about they know someone who just sold this house for this much and so on and so on, but I'm talking about the overall picture.

There ya go....ding ding ding....we have a winner there Johnny. You're the first contestant in the example show-down.

[crow]

No argument from me that the market "in general" is at a near stand-still. That is why I said the "properties I own." I am fortunate to live in a county here in GA where the economy is still pretty strong, but there are still a lot of houses (and I'm talking 750,000+ homes) sitting unsold. The house I live in, I bought because of its location near one of the best schools in the nation (Parkview HS) ranked in the top 100 in the US. If a decent house goes on the market within 2 miles of the school, it is usually sold within 30 days. The other property I own is on one of the last undeveloped lakes within 75 miles of Atl. Lots of buying and selling on the lake right now...a huge development of estate lots is going in just up river from my place. Prices are escalating quickly...in one year my property has appreciated 40%. The lot next to me just sold for 15,000 "over the asking price!" Two folks got in a bidding war.

The two places where I own property are prime markets right now. I hope to sell my current house in about a year and move back home. I will keep the lake property for investment and for my kids.

I think in real estate you have to make a lot of you own luck. In that regard, I have been very lucky!

Dutch, I have a vacant lot at Lake Sinclair that I might be willing to sell you if the money's right!

By the way, what, if anything do you think this market will do to the price of recreational/hunting land values? Have folks bought that on the float to the extent that some will come on the market at a decent price soon?

crow

[Dutch Dog]

For the most part, hunting/rec properties are solidly mortgaged. Usually they require 10% down, sometimes up to 25% down. I don't think there is a 100% LTV program for unimproved properties such as hunting/rec land. There may, MAY be some through some of the land banks, but I doubt it. To answer your question, no, I don't think it will lead to a lot of cheap properties in the near future. There may be some come up here and there by folks getting into home mortgage trouble and needing to unload other forms of debt (i.e. hunting property) to keep their house...but those will be individualized cases and rare at best.

[TODO]

I'm sure folks can example it to death about they know someone who just sold this house for this much and so on and so on, but I'm talking about the overall picture.

There ya go....ding ding ding....we have a winner there Johnny. You're the first contestant in the example show-down.

Ya, i speed read sometimes and missed that overall picture bit, cant argue with u there. I think recreational properties will continue to rise or at least stay stable. My analogy is " its all relative" The folks buying the big tracts typically arent going to be affected by the rising intrest rates, thus the demand is still there. With the higher commodity prices of late farmland has been trending up also.

[bradrussell5]

"I guess the only one involved, with a commission interest, would be Mr lender. and with the deal actually going to Mr investor, why would Mr lender care if its paid, he got em on the front, back and everywhere inbetween.. buyer defaults, investor requests a review of the appraisal, and they're off..."


I totally agree. But in some cases doesnt the "mortgage company originator" have to recorse some of these deals when they sell the paper?

[Hole Hunter]

Hell the agents make way more than we do, let's not forget.

[Dutch Dog]

B.M.F....no problem...just picking at you a bit.