All Forum Posts by: Anson Young

Is it truely a title company issue? Call them anyways and know the problem inside and out so you know exactly what to ask for. Lean on your agent, and lean on the listing agent (call him directly, if he dosnt get back to you within 24 hours, call his office and ask for his employing broker or managing broker to escalate the situation). You still have avenues, keep working hard!

Originally posted by Dick Green:

Congratulations!

Man that's a good feeling. How long did it take to locate it?

Not long, it was seconds after a deal fallout and a final price reduction that I got my offer in.

Closing pushed another week and a half, we got another $1000 out of them for the inconvenience.

On the HUD statement, everything is out there in the open. Unless you are paying cash, you will have some kind of payoff amount, and the purchase price. At the bottom it will say "Amount due to seller (you): $20k" and they will have a pretty good idea that you just made $20k. No real way to hide it unless you paid cash.

Originally posted by Harrison Painter:

Auctions at the courthouse are a monster. The regulars will eat up and spit out newbies. If you bid, the price will get bid up to teach you a lesson......I have seen it in action in multiple counties/states.

Also, many of the sealed bid auctions are not quite as advertised either. I had a very good friend who is "in" with an auction company, and he has the ability to ask for "favors" and get the property at the price he wants.

~Harrison Painter

This is the hard part, the part I'm starting over again here. Breaking in is the hard part...

Originally posted by Jon Holdman:

When is this moratorium supposed to end?

Was supposed to be the end of April, most banks extended for another 45 days, and extended again at the end of May. Between us and the other REO players, the idea is end of July/August we should be seeing more inventory pop up.

Anson

Originally posted by Nancy Dito:

Hey guys I am somewhat of a newbie in the investment world. When you say that there are different levels of waves of foreclosures, how many have we had and how many more are we expecting.

Nancy Dito

Nancy,
1st wave - speculators and D paper subprime borrowers
2nd wave - subprime, ARM resets, builders

[b]
3rd wave - properties held back during the 4 month moratorium now released
4th wave - those hit by the recession, prime borrowers, unemployment, etc etc.

I would start with the listing agent, put enormous amount of pressure on him/her to get the title fixed and your amend signed and get answers from the bank. Asset managers absolutely hate when buyers call, thats why they have an agent represent them, so they dont have to talk to you! Do you have an agent in this transaction? Get them calling the listing agent as well. Unfortunately Title snafus happen during the foreclosure process or when the borrower gives back the deed, we just cleared up a 5 month process, nobodys fault but title but thats life.

Originally posted by Jon Holdman:

This isn't the first time I've heard of a huge wad of REOs being held by the banks. Anyone have some direct evidence this is the case?

I'll add one piece of ancedotal evidence. The listing agent at a closing last week mostly did REOs She said they currently had only 12 listings, and had had as many as 42 in the past. Just looked at another agent's web site who also concentrates on REOs, and his list is also much smaller than its been in the past.

I can vouch for this, I work on an REO team (top 3 in the state), this time last year we had 120 listings, now down to 30 or so. We work with 35 banks, and most of them are talking about a large 'wave' coming through soon, after the moratorium was over. Another servicer was talking about 9000 properties that were going to need assignment within the next 3 weeks (more than just local denver of course, but shows there is alot of property 'on the other side').

That and the county auctions (Denver county) went from 15-30 per week up to 2-300 a few weeks ago, back down to 75 or so, but thats alot more than 15-30. Its coming!

Originally posted by nationwidepi:

I woudl say that many of these prime borrowers are going into foreclosure and walking away, not maily because they lost their jobs or income, but that their hom values are so upside down form their mortgages, it makes better sense to them to just walk.

In addition, I don't believe this to be the thrid wave either. The thrid wave is and will be the REO's finally allowed to be released into the market place due to the new chnages in marked to market (an accounting practice).

What I find interesting is that, at least locally, people think things are getting much better. "inventory is down and prices are creeping up, we must be out of the worst of it", etc. Little do they know, there are millions of REOs just being held behind the dam, waiting to be released. When the market is flooded again with REO, it will wash away their thin, frail hope that we are out of this unfortunately (even in Denver, which is slated to rise early out of the recession, etc). A good for us, bad for them mentality I have.

I would say, more accurately, the 3rd wave is the release of the bank moratoriums (REO will flood your market again), 4th wave for those hit by recession is probably another 3-4 months away. Either way, get your $$ ready to jump on it!! :-)