Comments on: Short Sale Report Volume 3: Another Week and Another Record. SoCal Short Sales up over 12,000.

By: know what i dont know

know what i dont know — Sat, 01 Dec 2007 21:22:48 +0000

I office next to a person that handles REO’s (foreclosures), so I have an opportunity to listen in on what goes on all day at a bank. This individual is hard as nails and always in a bad mood!!!!. Yells as realtors and doesn’t really give a darn. Regularly rejects low ball bids and insists the appraisal indicates a higher price. I just bring this up to point out not all banks are capitulating, yet.

By: doug r

doug r — Sat, 01 Dec 2007 20:54:37 +0000

Maybe if we offered bucket houses like Countrywide a choice between a 30 fixed around 6% or cramdowns?

By: Lloyd

Lloyd — Sat, 01 Dec 2007 20:27:41 +0000

I am looking to buy a vacation/retirement house in Denver/Colorado Springs (not an investment!!!), and was looking at this market because supposedly there is no bubble there. What I found is that if you look at the rents vs prices, and incomes vs prices, it’s as bublicious a place as any. People hold on to prices as if Bible prescribed them; properties sitting on the market for 6 months or more; when I mention to seller thar reduction in price is in order, they get really insulted! One seller said they will ‘kill a baby seal’ if they don’t sell, and they will throw in a Hawaii vacation (or something) to the seller. But when I said that reducing the price might work, the seller sent me a polite email saying ‘I really don’t know what are you talking about’. People will stick to their unrealistic prices to the bitter end, that’s what I learned. After the ‘bitter end’ (whatever it be), pricess will go down much lower than they shot up during bubble period (pure panic psychology).
From my experience, I would say that buying now is a fatal financial mistake. People think that 400K in California is a good price. It’s not. 200K probably is, and will be. If you want to be saddled with 200K in debt for thin air in return, go for it.
People don’t understand how much money 200K is, that is, IF you are the one who have to pay for it, not the runaway price appreciation. That’s the problem. Hundreds of thousands of dollars are talked about as if a person can go to the bathrom and sh*t that kind of money and hand it over. Try it, it doesn’t work when your salary (as it is on average) is all you have.
Good luck to all, I will go back to Denver/Colorado Springs again next year, and see if the madness has subsided.

Lloyd

By: TonyD

TonyD — Sat, 01 Dec 2007 19:41:52 +0000

I suggest that all homedebtors that take the tax payers bail out go to this site Subtle Confessions and confess their sin of taking our money to pay for your greed. How do you sleep at night!?

By: Richard Geller

Richard Geller — Sat, 01 Dec 2007 17:20:15 +0000

Hi Thanks for this. I can believe short sales doubling…but people are still “waiting for spring” to list their houses. Handwriting is on the wall. These forced sales are going to drive prices down further. Appraisals that were done even a month or so ago become worthless.

Thanks, I blogged about this at http://www.HomeSaleRelief.com and I thank you for your excellent blog

regards

–Richard