All Forum Posts by: Mark Key

Mark Key has started 5 posts and replied 56 times.

Originally posted by "YSP":

Originally posted by "**********":

Have you been smoking anything? Where does this come from?

Banks take a HUGE loss on foreclosures!!

aparently the value wasnt there to begin with and maybe the banks new this and they just wonted to max out there loan now alot of these refi are maxed out at 85% ltv plus thats just what they wonted, if the customer defaults they loose every thing and the new buyers have a bigger selection of houses to buy the problem was no one was buying because they didnt like any of the houses that they were looking at but now they will with all the new forclosures so they will buy and if they cant sell/flip then the same thing will happen to them they take your money and get the next guy in and do the same to them if they cant satisfy the loan i dont think you can see were this is going (think!) this is going to happen in 20 more years because the lenders are still giveing loans with simular exceptions are you smokeing, They take your money and get a new buyer and do the same to them THATS WHAT MAKES UP FOR ANY LOSSES THAT YOU THINK THE BANKS LOOSEING WAKE UP all the baby boomers are retired and all the youngsters will be buying these homes now the banks taking a lose is a smoke screen theres a customer for every product you sound like you havent been doing this for verry long

your sensible compass is way off ! its kind of like leasing a car you put a big down payment and in 3 years they take the car back and resale it .just like when you by a house big down and when your rate adjusts and you cant make the payment then they forclose and resale it its that simple wake up!

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Originally posted by "**********":

Have you been smoking anything? Where does this come from?

Banks take a HUGE loss on foreclosures!!

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There are 500k sub-prime loans out there right now 41% of them are in default with late payments not to mention all the forclosures,and there are 700k Alt-A laons 54% of all of them were cash out refi the biggest contributor to loan defaults are negative equity my question is who sets the values on these homes are there any appraisers here that can give us the answer or is it the slow economy thats doing it and if so than its everyones fault that this is happening any opinions ?

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Originally posted by "MikeOH":

retiringinRE,

I agree with all of your points, except the divorce thing. Yes, people are getting divorced more often, but they aren't really splitting up. After the divorce, they just find a new person to live with. So, it's more like switching spouses than getting rid of one.

Now, as to predictions. You made a pretty compelling case for why California may continue to appreciate in the future and all of your points are valid.

However, offsetting those things are the fact that the United States is facing financial collapse in the near future (if not the immediate future). Ignoring our immediate problems, the fact is that Medicare will soon be insolvent followed shortly thereafter by Social Security. In addition, with the socialists proposing universal health care, and President Bush enacting the Medicare drug benefit, the timetable for our country's bankruptcy is rapidly accelerating toward us. This is real money that the United States does NOT have and these are REAL problems that the politicans are completely ignoring. The result is 100% predictable.

Additionally, the number of 49-54 year olds is peaking (by 2012). That is the group that invests the big money during their peak spending years. With the decreasing number of people in that group, the demand for stocks will decrease and prices will plummet.

How will all of this affect the long term appreciation in California? Let me see if I can find that crystal ball! Or maybe a tarot card reading? How about those tea leaves? Ouija board anyone?

Mike

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Originally posted by "YSP":

Originally posted by "kenl314":

Most of this is political- of course. I believe only 250K homeowners would be helped by this, which is only about 10% of the people that need to be helped- over this past 6 months and the next 12.
So this is not a complete bailout, but any bailout- administered by the feds- is a bad idea in general. Sometimes you just have to get it over with- and if its a further housing correction in this next 8 months, then so be it- and let's be done with it and move forward. Overall, housing usually appreciates between 4%-5% per year over the past 40+ years on average. Let's just get back to that hopefully.
-Ken

Ivestors like us buying short sales/forclosures will keep the bank/lenders way ahead of the game

the more people that buy the forclosure that will come on to the market (demand) bank keep getting richer on thoes homes

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Originally posted by "kenl314":

Ivestors like us buying short sales/forclosures will keep the bank/lenders way ahead of the game

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Originally posted by "dcg123":

Here's a situation that I have recently been presented with. I spoke to a private lender that's willing to do 65% LTV on residential or commercial with no credit check. I asked this private investor if he would allow 35% Seller financing creating 100% Cltv no credit check.
Granted this is expensive money 12 to 13% on the first lien but, I turned to the MLS and ran a report of high end properties that had been on the market for and extended period of time and the sellers have already expressed a willingness to allow creative financing. WOW! after contacting them, to my supprise a large number of them were willing to explore this type of transaction. I may have tapped into a new income stream. 100% Loan No Credit Check. Nice get the rate loc in writing

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Originally posted by "YSP":

Originally posted by "**********":

Lito,

Banks and Wall Street Investors are taking MAJOR write downs as a result of the sub prime melt down.

There are hundreds of thousands of bank owned properties all across the nation. Some places worse than others, like CA!!!

It's a numbers game and relates to sub loan securitized and Wall Streets appetite for bogus loan portfolio's for several years. The investors were duped and the Fed ignored the whole situation.

There REO's are bringing down the values of all other properties and there are several other factors.

Also when these investors sell of the REO inventory in volume portfolio's this also hurts the overall market.

There are so many factors an so much of a mess that we will NOT see ANY signs of recovery for at least 6-10 years (in many hard hit area) as far as what the experts who know their stuff say.

We have NOT even started to see the REO and bank wreckage as of yet! This is all just beginning.. Our banks are being bailed out by foreign countries as well.

MANY CEO's of mortgage and banking firms will be heading to prison as well, you will see. The industry is in DEEP trouble!

Not nessaseraly ceo going to jail for the loans ive seen the dea shut down companys and take owners to jail for forgery and stuff on reverse mtg but it all has to do with the appraisers that should go to jail for bringing in higher values some leners dont ever require a 2055 appraisal review thoes ones are there fault they might run comps in the area for a certain radius but there so overwelmed with all the loan in the last 13 years that theres no time for them to do it or there just lazy/incompitent ! but that isnt the real truth the real truth is that they wont to have the home owners to live the high life for a littel while and then after 3 or so years when they start to cap out on there adjustable if they didnt pre pair for it then they move the next one in a vicious cycle its a desingned to keep the economy working