tag:blogger.com,1999:blog-27697009.post4180550165149543471..comments2024-02-29T03:21:35.007-08:00Comments on The Great Depression of 2006 : Robbery Royale at Fannie MaeJim in San Marcoshttp://www.blogger.com/profile/09435296419912935381noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-27697009.post-49359427796941974462010-06-25T22:39:06.964-07:002010-06-25T22:39:06.964-07:00Hi Anon 11:04
"Happy trails to you" as ...Hi Anon 11:04<br /><br />"Happy trails to you" as Roy and Dale use to say.<br /><br />I think you will do OK, I wish you the best of luck.<br /><br />Take care.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-31054762814255352932010-06-25T11:04:35.113-07:002010-06-25T11:04:35.113-07:00Jim,
The future is looking bleak to many who are a...Jim,<br />The future is looking bleak to many who are at least aware of where things are going. The majority of this country is still clueless or in denial. Most will get caught out and suffer negative consequences. Only the smart ones who can adapt will make the necessary changes so that they can survive, and some thrive, in the new future.<br /> <br />Govmt, in collusion with the banks, has to come up with all sorts of tricks to keep those foreclosures coming out in a slow, controlled fashion. If they just let them all flow out, prices would depress hard and fast and the housing market would be toast for decades. With another 5M foreclosures coming, whatever tricks they use, they still won't be able to stop another 20% average drop in US home values over the next 1-2 years. We may wind up with home values slowly going down, sometimes going sidewards, for the next 5-10 years. Appreciation will be a memory from days past, not to be seen again (except for only a few regions in the USA) for decades-- or maybe a lifetime. We only can guess as to when residential real estate will actually bottom... a few years? 5? 10?<br /><br />The last thing that we would want is to own a home now or in the near future. The American Dream has become the American Nightmare. Who wants to pay a mortage, insurance, property taxes, maintenance and repairs when you can put all the money into YOURSELF (education, new skills, anti-aging and health treatments, etc.). <br /><br />We're moving out of our rental and going into a motorhome for full time living. We'll follow the warm weather and visit friends and family, and live economically. We can run our internet based businesses from our motorhome for decent income. We have no debt, minimal possessions. We converted everything we have into cash and we have that cash working for us at 20%+ annual return (loaning to residential rehab/resellers, and our money is safely secured by the properties). We'll keep building up our cash and staying in cash until the deleveraging/debt destruction/deflation is over and the inflation begins--at which time we'll put our cash into tangible assets and ride the inflationary wave. <br /><br />We are streamlined and ready to deal with the crashing economy and whatever the future brings. Hope to profit from it too. Gotta turn things (crazy and corrupt government, etc.) to your advantage.<br /><br />Riding off into the sunset,<br />The Cowboy MillionaireAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-15991481170256457782010-06-24T21:04:05.257-07:002010-06-24T21:04:05.257-07:00Hi Ohio Loan Officer
I looks like HUD is doing a ...Hi Ohio Loan Officer<br /><br />I looks like HUD is doing a good job out there.<br /><br />10 years ago in California you could always tell a HUD repo--it was the one with the plywood nailed over the windows.<br /><br />HUD and VA financing all but disappeared out here when real estate went sky high. The VA repos were my favorite, you got both sides of the commission, the full 6 percent.<br /><br />Loan officers use to be everywhere out here, you have to look real hard to find one now.<br /><br />Glad to see that you are doing good. Thank you for the input.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-18014816348664263272010-06-24T20:02:27.781-07:002010-06-24T20:02:27.781-07:00Hi Rob
I agree. All Fannie and Freddie are doing...Hi Rob<br /><br />I agree. All Fannie and Freddie are doing is buying time by passing the home onto someone else for a while.<br /><br />I think that investors have to be a big part of this market. All of the investor real estate I sold years ago, the banks wanted 20% down.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-5498205869937834152010-06-24T16:35:35.992-07:002010-06-24T16:35:35.992-07:00HUD is utilizing a different tactic now to dispose...HUD is utilizing a different tactic now to dispose of their FHA foreclosures:<br />They are listing the homes WAY below market value to generate a frenzy and multiple offers. The last several deals I have been involved with the home ended up selling for up to 45% more than the offering price. By doing this the homes are only on the market for a couple of weeks and the reasoning is they will sell at what the market will bear whether they price them high and come down or low and get competing offers driving the price higher.<br />Here is the most recent sale I am financing: 5 year old home that sold in 2005 brand new for $130,000. The house needs some cleaning up and new carpet but it is generally in decent shape. HUD's offering price was $57,000. There must have been a 100 showings in two weeks. My guy offered $80,000 and got it. Once it is fixed up a bit they figure it will be worth at least $90,000 even in this market.<br /> <br />HUD has another purpose to their madness-- you see, they offer new FHA financing on these homes but if the sales price is more than that "appraised" offering price the buyer needs to come up with the difference in additional downpayment cash. We can get around that if we do a FHA 203K rehab loan that will improve the property IF we can get a new appraisal for the higher amount.Ohio Loan Officernoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-17561360959135407612010-06-24T16:35:11.729-07:002010-06-24T16:35:11.729-07:00Jim
It's hard to figure out why anyone would ...Jim<br /><br />It's hard to figure out why anyone would want to buy a house with 20 percent down when they are giving them away.Robnoreply@blogger.com