A Real Estate Hypochondria
A report from the Oklahoman. “The mess in the mortgage industry is hitting home for some Oklahomans. Bob and Dorothy Harper of Yukon grudgingly put their dream home up for sale Jan. 16. They had it custom built in 2002 to fit their every desire. ‘It’s not easy to come out of this house,’ Bob Harper said. ‘It’s everything we worked our whole lives for. We’ll never own anything like this again.’”
“A real estate broker with variable income, Harper took an adjustable loan, figuring he’d refinance it later. He took out a second to furnish it.”
“Three years later, the interest rate on Harper’s 30-year loan reset from more than 6 percent to 11 percent. The hike coincided with Harper’s wife’s hip replacement surgery, which caused her to lose her livelihood as a beautician.”
“‘We were like deer caught in the headlights,’ Harper said. ‘We liquidated our 401ks, Roths, everything to hang onto the house and pay our bills.’”
“Refinancing wasn’t an option because in today’s crippled mortgage industry, lenders are making few, if any, stated-income loans — the type of loan that helped the Harpers buy the house. The couple have listed their 2,153-square-foot home for sale and priced at $220,000, $8,000 less than what they paid for it.”
“Tamela McSwain married and moved into her husband’s home in Mustang in September, but has been trying unsuccessfully to sell her home in west Edmond since late July. The newlyweds have been carrying two mortgages, at about $3,500 a month.”
“‘I’d like to dump the second mortgage, but I don’t want to be silly and just dump the house,’ McSwain said. She already has dropped the price on the 1,975-square-foot home $3,400 to $198,500.”
“Houses that sold in January took an average of 95 days from listing to closing, according to the Oklahoma City Metro Association of Realtors. That was three days longer than in December, when marketing came to a virtual standstill after an ice storm knocked electricity out for days across the metro area.”
“‘We’re doing pretty well,’ said Marolyn Pryor, president of the Metro Association of Realtors. ‘I think the word’s getting out. We haven’t had near the low offers we were getting.’”
“Pryor said the slowdown isn’t surprising considering the increase in the number of houses on the market since the end of the 2002-2005 construction boom.”
“‘Builders are certainly exercising discretion in regard to inventory, and keeping tabs on the pulse of the market,’ said Jeff Click, VP of the Central Oklahoma Home Builders Association. ‘It’s really a psychological condition within the market marked by delusions that Oklahoma City is suffering from the same ailments found elsewhere in the country, a real estate hypochondria of sorts.’”
The Enid News and Eagle from Oklahoma. “Anna Blubaugh, of Century 21 Homes Plus, said the Enid market is doing well. Some owners also are helping with closing costs, but have not taken discounts, depending on where they choose to start the listing price.”
“‘It’s market driven. Condition, location and price are always the same. I’ve been at it for 50 years and it hasn’t changed,’ said Jim Nicholas, of Nicholas Realty.”
“The only down market in Nicholas’ career was the period between 1984 and 1990, he said, but a recovery began in 1987. Rates in the last five years have allowed people who thought they could afford $200,000 homes to buy a $400,000 home, because the interest has been reasonable, he said.”
From Tulsa World in Oklahoma. ” The approximately 5,670 foreclosure filings in the metro area represented a 3.66 percent drop from the year before, according to RealtyTrac …although the city’s foreclosure rate of 0.912 percent of all households made it the 56th highest.”
“‘We didn’t enjoy the bubble, so now we’re not going to feel the pain of the bust,’ said Steven Admire, president of Advantage One Mortgage.”
“Margo Mitchell, executive director of Consumer Credit Counseling Service in Tulsa, welcomed the news, though she expects local foreclosures will start piling up soon.”
“‘We’ve had a lot of calls in January with people struggling, and we’re now seeing a lot more past-due situations than we did in the fourth quarter of last year,’ she said.”
The Times Record News from Texas. “The Wichita Falls housing industry took another hit in January, but Wichita Falls Association of Realtors president John Wilson it not rattled by the numbers. A total of 85 homes were sold last month, compared to 148 in January 2007, and the total number of active residential listings for January hit the 916 mark.”
“‘We anticipated it would be down, but I didn’t know it was going to be that much,’ Wilson said. ‘If you are a buyer, it is tremendous for you now.’”
“‘The national media still has people scared. They have been bombarded by the national media. People get to believing it,’ Wilson said. ‘It is a mental thing right now. People are sitting and waiting for the sky to fall. All the economic indicators here show it is a great time to buy a house, or a car.’”
From NBC 5 in Texas. “A North Texas Realtor is making the most of the flood of foreclosed homes on the market. Real estate agent Tess Langevin started a bus tour to connect buyers with foreclosed houses. Foreclosures throughout the Dallas-Fort Worth area are setting record numbers. More than 4,100 are scheduled for next month’s foreclosure sale.”
“‘We have felt it, you know, but we have a steady stream of buyers,’ Langevin said. ‘I think what they’re looking for are deals. We don’t want all of these houses sitting empty and deteriorating.’”
“Take one home on the tour — it’s $180,000 cheaper than other houses in the neighborhood.”
“In one Desoto subdivision, 13 homes are for sale between $150,000 and $250,000. Of those 13 houses, 10 of them are foreclosures. Robert Zitske’s house has been on the market for nine months. He’s lowered the price three times and still hasn’t found a buyer.”
“‘I think at this point, I’m able to break even with the price listing that I have,’ Zitske said. ‘Beyond that, I’m losing money.’”
“The banks now own many of the homes in the neighborhood. They are willing to sell at deep discounts, making it difficult for people such as Zitske to compete. Realtors said some sellers end up with 30 percent less than what they paid for their house.”
“‘They’re not going to be able to leave this neighborhood, leave this house, without having to spend money,’ Jon Warren of Realty World said.”
“The only upside is for buyers. One 3,900 square-foot foreclosure is selling for $181,000.”
The Palestine Herald from Texas. “While national news media have broadcast stories about slumping real estate markets and rising foreclosures, local realtors say that’s not reflective of Anderson County.”
“Demand for homes has driven prices up over the past three years, said realtor Mike Whitworth, noting that homes in Westwood which sold in the $62,000-$72,000 price range in 2005 now were averaging more than $80,000 each, with many selling in the $90,000 to low-$100,000 range.”
“A combination of lower-than-average cost per square foot, more people wanting to leave larger areas such as Houston and Dallas and supply and demand are helping drive home prices higher, he said.”
“‘We have been cheaper for a long time. We used to have over half of our inventory (of homes for sale) in the $50,000-$100,000 range. Now more than half of our inventory is over $100,000,’ Whitworth said.”
“While that may push some home ownership out of reach for those looking for housing under $60,000, he said, the same home may seem like a bargain to someone moving from an area with much higher housing costs. ‘They’re selling homes for $200,000 and coming here and getting more for their money,’ Whitworth said.”
The Killen Daily Herald from Texas. “Fort Hood Area Association of Realtors president Marcia Worthington thinks the negativity in the news might have had some effect. She credits the industry with offsetting any jitters by maintaining good media relations and pumping up morale with the association’s newsletter for members and regular advertisements about the good points about the local housing market.”
“Although home sales dipped in the local area while so many troops were overseas, market forces seem to be taking hold for hope on the horizon, regardless of what the national market does.”
“‘We’d see more effects of the nationwide troubles here if we didn’t make a conscious effort to combat them,’ she said.”
The American Statesman from Texas. “Sales of Central Texas homes fell 10 percent in January, the seventh month in a row that year-over-year sales dropped. The 1,321 sales last month were a two-year low, based on data from the Austin Board of Realtors. The number of Central Texas homes on the market increased by 24 percent to 8,727 active listings.”
“Jim Gaines, research economist at the Real Estate Center at Texas A&M University, said the market was almost too tight last year, when there was about 3 months worth of homes for sale in January. He said that level ‘is almost unsustainable and probably not a good thing over a long period of time.’”
“Sellers must ‘get real or be prepared to take longer to sell, and even then you’ll take longer to sell with an adjustment,’ he said. ‘You have to deal with the market you’re in, not the market you wish it to be or the market it was a year ago.’”
“The struggles of the national housing market are changing the face of development in Central Texas, delaying some projects and causing big builders to back out of others.”
“‘The national home builders have almost completely pulled out of the market, not just from a lot-development standpoint but also from a home-building standpoint,’ said Chris Ellis, a principal with Endeavor Real Estate Group. ‘They have either dropped their positions and land they were looking at or sold their positions or are actively looking to sell their positions.’”
“‘The local guys know the demand is still there, and the national builders know the demand is still there, but Wall Street is cutting them off,’ Ellis said.”
“Dallas-based DR Horton had options on lots at Headwaters at Barton Creek, a project east of Dripping Springs that will have 1,000 single-family homes and a 1,000-acre park. Rather than develop the lots, however, Horton agreed to be bought out.”
“‘Their home office told them to cut back, and they agreed to back out on a mutually agreeable price,’ said Dick Rathgeber, who is one of the developers behind Headwaters.”
“Three of local developer Bob Wunsch’s Central Texas projects have been stalled because of the national real estate downturn. ‘Some of our projects have been delayed a year,’ said Wunsch, CEO of Waterstone Development.”
“‘Now that the large national builders have pulled back and walk away from deal after deal after deal, there are opportunities that have allowed … all the local guys to jump back in,’ said Clark Wilson (of) Wilson Holdings Inc. ‘We’ll take increasingly large shares of the market because we will be able to get in and get the land deals and get the good subcontractors and be positioned for the impending boom.’”
“Groundbreaking has been delayed for the condo project called 1155 Barton Springs. Yesterday, Elisabeth Waltz wrote in an email: ‘These times seem to call for a measured approach. It may take us a few more months to start construction; we will start when we have 50% or more of the residences sold. (Personally, having been a real estate broker for many years, I would prefer all of them pre-sold).’”
“Owners (will) be shelling out anywhere from $1 million to $4.3 million for the 27 units.” “And although it’s located next to a railroad track, the Waltzes have said the building’s concrete and sound-proofing insulation will minimize noise from the railroad.”
“‘Everyone is amazed on how little impact the train will have, if any. It moves very, very slowly in anticipation of the upcoming 90-degree turn across the lake,’ she said.’”
From KRIS TV in Texas. “As Richard Alligood stands on the corner of West Second Street and South Oak Street, he remembers Saturday nights downtown in the city he’s now mayor of.”
“But now, as the lunch hour approaches, the streets are vacant. The two-year mayor said this is largely due to absentee owners of the buildings. ‘It’s like a lot of downtown areas in West Texas,’ Alligood said. ‘It’s got a lot of potential, it just needs someone to come in and take it over.’”
“Alligood’s not just talking the talk about downtown. He’s actually moved there. He’s currently refurbishing a living space above his downtown telecommunications business. ‘I thought it was unique to do,’ he said. ‘I’ve seen them in Austin and Dallas. I’ve just been amazed by loft apartments.’”
“As part of Pecos’ downtown rejuvenation program, there’s interest in putting offices and restaurants on the first floor of the old Woolworth’s store, with apartments on the second floor. Other housing could soon be available, even for those with slightly higher incomes. Alligood said a California company is looking to build 120 town homes.”
“But Alligood knows he faces an uphill battle in a town where trailer homes sit next to restaurants on major streets. Zoning could take some getting used to.”
“‘It’s a complete change of mindset,’ he said. ‘When you have a city that had no growth and no economic development, and somebody says Let’s do this,’ you say, go ahead!’”
‘Different pockets of San Antonio have been hit hard while other sections have not been phased by the economic downturn. The year ended with Single Family starts totally a 34% decrease while single family closings registered a 9% to 9.4% decline as compared to 2006 numbers.’
‘We can’t forget the foreclosure market, San Antonio has still seen an increase in the rate of foreclosures as with all the rest of the country. There is a scurry of short sales (a topic of another article) that have hit all real estate markets. If the banks/mortgage companies would take a stronger look at short sales, in lieu of foreclosures, that would certainly help the market. Be it short sales or foreclosures, there are still a hefty number of bargains in this end of the market.’
‘As a closing note, I can’t help but stop to think that if the public would just get out there and BUY, BUY BUY, instead of holding back and the banks would loosen up their reigns a bit, the economy could recover.’
“if the public would just get out there and BUY, BUY BUY”
Turn those machines back on!!!
Excellent “Trading Places” reference……
I wonder how the Montelongo brothers are doing in the San Antonio market? Didn’t they split as the one brother is trying to be the next Carlton Sheets?
I wonder why anyone would willingly buy houses off those clowns with their corner cutting, cheap materials and illegal labor being well documented ?
Almost all construction in San Antonio is illegal, and corner cutting is standard practice across the country
Get an inspector first, not all of them are junk. It’s currently cheaper to own than rent in most cases in Texas at this point.
Only if you have the 20% down. If you go 0 - 10% down, its still cheaper to rent, plus the freedom from maintenance headaches and freedom of mobility which will be invaluable in the coming societal upheaval. Appreciation expectations are soooo 2006.
Currently, the rent vs. buy ratios are 1:100 to 1:133 in Texas. If you are betting house prices will keep dropping in Texas then renew your lease for another year, otherwise it’s cheaper to own accroding to my math(mortgage monthly costs + taxes + insurance *is less than* rent costs)
Your math IS wrong. Ignoring for a moment that you left out maintenance, I rent for $1k a house that would carry a $1.4k mortgage before any maintenance is factored in assuming low to no down payment. That’s $400+ a month I save towards a down payment while I watch the median price bleed $1k a quarter. Ironically, by renting, I am effectively paying down principal on the house I will end up buying in a few years. The problem in San Antonio is this: The vast majority of homes built here during the boom were north of $150 while the pre-boom median was under 6 figures. I saw the HUD statements with my own eyes and knew $30k a year people were buying $200k homes, a 6.67x ratio. Now, that ratio may fly on the coasts, but not here. True, we’re not as f’ed up as Florida, but still f’ed up. Bye, you really need to turn of the WoW, put down the hot pocket, and move outta your damn parents’ basement.
So you are getting a huge steal on rent by renting a $200k house for $1k a month. I would have done the same. However, most landlords want rent that is greater than what they pay for the mortgage!
Even in Florida, I am seeing rentals with a higher monthly cost than owning. This means it’s too expensive to live in Florida, period.
Umm, not well. Armando was on the local radio morning show the other day, 99.5 KISS, trying to pimp his wares and pretend like everything is OK. Meanwhile, he’s been indicted by a grand jury. Those guys are true creeps and one can only hope they end up sharing the same cell block w/ tanzillo, crisp, et al. Check out the story below.
http://www.mysanantonio.com/business/realestate/stories/MYSA022308.01C.Montelongo.1b79700c.html
public would just get out there and BUY, BUY BUY, instead of holding back and the banks would loosen up their reigns a bit, the economy could recover.’
That is a smart statement, instead of a herd of sheeple being in financial trouble and facing a recession, we could put everyone in the same position and repeat 1929 all over again, but much worse!
Yeah, consumerbots need to Put Out!
It’s actually ‘fazed’ and ‘reins’. Even newspaper journalists are functionally illiterate in this society.
since you started it, I’ll also mention that I think she meant “tapering off” where she wrote “tampering off”
Don’t forget the abuses of punctuation!
another casualty of editorial downsizing.
Public: I would if I could but I can’t so I won’t.
Water, water everywhere, and not a drop to drink.
Short Sales Are “Fake Listings.” Only 5% Close!
Most Short Sales are what I call “FAKE listings.”
Only 1 in 20 sells.
In Arlington only 3 have sold out of 65 attempts.
I briefly went over Short Sales when I defined all SOL Homes including REOs, Bank Owned Etc. But Short Sales need more attention, as they are very tricky and misleading.
A Short Sale is a listing for sale that requires “Third Party Approval.” That means that 1, or 2!!, banks are owed MORE than the list price.
For Example:
Home is bought for $500,000 with 5%, or $25k down.
Home has a $475,000 mortgage.
Value dropped below $475,000
If the seller is facing foreclosure, they slash their price for a quick sale
A Short Sale is attempted at $450,000
If the bank accepts it, the BANK eats $25,000 (see Phantom tax for Seller)
The Theory Behind Short Sales: Banks would be better off to accept a loss now, versus going through the legal expense of a foreclosure, just to end up selling it for less later. Win win, right? Wrong. Read on.
Bank Trick 1: “Sure, we will consider a Short Sale, IF YOU KEEP PAYING US.”
Yep, a bank sees a desperate seller, and a potential $50,000 loss. They then mislead them into thinking that they might consider taking a bath on the deal IF the owner keeps paying their mortgage. The bank then ignores offers for 2-4 months in order to squeeze out another $2,000 x 4 or $8,000 profit. Brilliant. The bank then takes it over after foreclosure and sells it for $10,000 OVER the Short Sale List price. $18,000 better off, NOT doing a Short Sale.
Bank Trick 2: Sometimes the bank has mortgage insurance and it is CHEAPER for them to let it foreclose versus allowing a Short Sale, which is NOT insured.
For example, I was at an NVAR short sale class and a Realtor asked the speaker, “Why after 60 days, calling 2 times a day (120 calls) with a full price Short Sale offer, did the bank not call us back?” The speaker claimed it was due to an overworked staff.
I asked:
Did they tell you they would consider a Short Sale IF you kept paying $3,000 a month? The answer was Yes.
Was the home bought with Mortgage insurance? The answer was Yes.
Bingo! Why eat $50,000, by accepting the low offer, if the bank a) gets $3,000 a month and b) is insured against a foreclosure and NOT a Short Sale.
She was pissed. She realized that she had been “had.” But this goes on ALL THE TIME. It can take MONTHS to hear back.
Another example:
A seller in Clarendon 1021 tries to sell his property and profit $30,000 at $600k. (Yeah right!)
Then he drops it to $570,000. No bites, but the foreclosure is pending!
They SLASH it to $530,000
(sidenote, I get flooded with calls from friend that want to pick it up for a steal at $470,000! I said that it was impossible… since I’d buy if that price was a possibility.)
It sits for another month, then the listing disappears after 100 days!
A month later it is “bank owned” and listed for $560,000
It sells for $540,000 in 26 days.
The moral here is banks are not dumb and the market isn’t so horrible that they will take all these lowball offers. They sold it for $10,000 OVER the previous list price (which probably had lower offers).
Short Sale Statistics:
Reston homes from $300k to $400k.
- 20 Active “Short Sales” in Reston (watch out for “Not a Short Sale” listings)
- 73 were Withdrawn, or Expired.
- 3 Under Contract (1 under contract since Nov 2007! Many UC do not close.)
Only 3 sold in the last 24 months. 3 closed sales in 100 attempts!
Dropped From $480k to $400k, sold at $400k (Full list)
Dropped from $430k to $400k sold for $380k (5% under list)
Dropped from $380k to $350k sold for $345k (2% under list)
Arlington Short sales.
- 25 Actives
- 37 Withdrawn
Only 3 have sold in ALL price ranges in all of Arlington in the last 2 years.
Listed at $335k, sold for $335
Listed at 700k dropped to $620, sold for $600k
Listed at 480k dropped to $420k sold for $420.
In Alexandria, only 8 have closed in 2 years out of 80 attempts.
(most were at list, or 2% under list, some were $20k over list)
I show this, so you don’t think “Wow, they are desperate, we can now lowball. These 3 were the ONLY successful ones. Probably because they gave the bank a real offer.
Do NOT blindly compete with a Short Sale. If you get an inexperienced agent, and they see 3 Short Sales in your neighborhood, and they have you compete against these “fake” listings, you can lose $25,000. Hope you “saved a ton” on that agent. (see Realtor Rebates)
Advice for Sellers Facing Foreclosure
Watch out for the bank tricks to “keep paying.” Talk to a lawyer that specializes in bankruptcy to help guide you. They MIGHT recommend stopping payments immediately and saving it up for a rental.
Use an agent that has completed (as in CLOSED, not listed) at least 1 Short Sale.
If you have mortgage insurance, be extra careful, the bank might prefer that you foreclose.
Get bank approval for your list price before listing it. Put in the listing remarks “List Price approved.” Otherwise you will get lumped into all the other Fake Listings and ignored by smart buyer agents.
“‘I’d like to dump the second mortgage, but I don’t want to be silly and just dump the house,’ McSwain said. She already has dropped the price on the 1,975-square-foot home $3,400 to $198,500.”
HOW IS THAT NOT SELLING??? With that HUGE discount!! I would think there would be a line out the door with that 1.5% savings.
$198,500 is a lot of money for Yukon, Ok.
Or are you joking about the $3400 drop actually being miniscule?
A 1.5% discount on a home in today’s housing market is an insult!
No joke!
JJ, the_econ is definitely being sarcastic!
I may check out the DeSoto dude’s place. I like it there.
Any update on the Dallas Condo market? My last trip to Dallas was limited to hanging around NW Dallas- I was not able to see if developers were getting the big condo towers and condotels off the ground in uptown and the Victory area.
Dead. Can’t give them away. Developers are selling them in bulk now.
I bet youll be able to get a high rise luxury condo for under $100k soon. Last time I checked, they were going for around $200k for 2/2 1000sf units.
I thought Texas didn’t have a bubble? Weren’t all of the Californians tripping over themselves to move to Frisco, McKinney and the People’s Republic of Austin? All of these foreclosures must be a statistical error.
DeSoto dude’s place - 3200 sq ft. Tax appraisal 203K. Co-owns it with another guy. Don’t know what he’s asking for it but will find out. I am going to check it out.
Yeech. No thanks.
http://www.realtor.com/search/listingdetail.aspx?zp=75115&mnp=21&mxp=21&typ=1&sid=16671229cd204f8394f37d5640b5fc44&pg=5&lid=1081971067&lsn=46&srcnt=79#Detail
Looks like a typical Texas house- they are like cars, you pick up the keys and the place depreciates 20% as soon as you move in.
Ew! It looks like it has a skin disease.
That place must be a joy to cool in the summer. How big is the cooling bill for July and August? Keeping those second flood bedrooms cool won’t be a problem, will it?
Wow, everything IS big in Texas…except the front yard.
I don’t think I will ever get over this small-lot-big-house mentality. Don’t get me started on the (lack of) architecture.
I drive through one of the most expensive areas in Dallas on my way to and from work and it just sickens me to see these small but lovely tudor style homes sitting on huge lots with lush greenery and then right next door is a brand new monstrous mcmansion that takes up every square inch of the lot. I really feel those people in the tudor.
You must be talking about the M Streets. I lived there. Makes me sick.
Actually its the park cities area but don’t get me started on the m streets.
They spend a lot of time describing how big each room is, but I didn’t see one mention ofhow big the lot is.
I suspect you can see every inch of yard you have in that one photo.
Wow what a nice house! Lot is tiny at Approximate lot is 59X113 but you could just buy a double lot or oversized corner lot cheap.
You could not touch a such house in my neck of the woods for less than nearly half a million!
If you seriously think that house is “yeech” please tell me what you consider a nice house? One twice as big on acreage lot? Too bad most people can’t afford those half million Texas mansions.
The house is fugly, a pathetic, grasping, middle-class crib. When houses get this bloated, they loose all human proportion. A nice house would actually feature architectural design, not this simulacrum. The entryway is a disaster.
‘It’s not easy to come out of this house,’ Bob Harper said. ‘It’s everything we worked our whole lives for. We’ll never own anything like this again.’”
OK, it’s really really easy to sound snarky, the way the “poor, poor, over leveraged home buyer” stories are going, but allow me this on, philosophical indulgence:
The Freakin’ Dream House Doesn’t Define Who You Are! You DIDN’T “work your whole life” for that freakin’ “dream house”. IT’S JUST A HOUSE.
And before people get too testy, yes, I know what it’s like to “fall in love with a house”. The sad part was that the house didn’t love me back. All in all, it was just a house (albiet a pretty nice one). And a nice car is just a nice car. And a plasma TV is just a plasma TV. There is a lot more to life than these “things”.
“A real estate broker with variable income, Harper took an adjustable loan, figuring he’d refinance it later. He took out a second to furnish it.”
Snarky moment #2…when we were living in our 3000+ sq. ft. dream house, we had several rooms unfurnished. Each year, part of our SAVINGS would go to furnish a new room. I guess we were not financially astute enough to refi our house in order to fill it with nice, new furniture.
*Sigh*. As Housing Wizard said a while ago, where’s the stories of the people we can actually sympathize with?
I’d like to see the sob stories about the people that did all the right things and still lost a home to foreclosure.
1.) Did not pay much above rental rates.
2.) 20% down
3.) 3x income
4.) 6 months Savings.
Sure these people may be forced to sell and rebuild on job loss etc
but they can afford to lower their lifestyles without losing everything.
So Ben can you find some stories about smart people having problems these would be worthwhile.
I doubt you will find many of those stories.
(1) For the last several years you couldn’t find anything that wasn’t much above rental rates (at least in some places).
(2) If you have 20% down, you are probably less likely to want to “lose” that money for real rather than on paper.
(3) When combined with #2, you can actually afford your mortgage; and wouldn’t need a crazy loan program that is going to reset or adjust.
(4) Even if you lose your job, you can probably find a new one in 6 months.
If you did everything “right”, you probably aren’t going to be a sob story.
listen up, those deals are out their right now….you just have to find the right seller, and then beat them up till they come around to your way of thinkin…..it is possible.
I thought the little old lady I bought my house from was gonna come back and kill me, and the renter was none too happy when I booted his ass out.
People who lose houses to foreclosure could not have, by definition, have done the right things. They signed notes they couldn’t pay. Therefore, they must have overpaid relative to their income stream. That’s a bad mistake.
Smart is a subjective term, but making financial mistakes is objective. Trying to evaluate whether or not certain foreclosed individuals are more at fault than others is analagous to trying to determine whether certain crimes are hate crimes or not.
But all the stories I have read so far shows a people that made stupid mistakes. Even the ones involved in divorce are not real tear jerkers. If you have large bills from the previous marriage settle before you buy a home. Also if you can’t afford a custody battle don’t fight. Or if you do decide to don’t buy a house. Most of the time if you give it a few years the former spouses are more than happy to share custody.
Anyway I know I may be reaching here but you can make smart decisions and still have to sell your house but primarily its because you decide that other things are more important such as divorce medical bills etc.
I guess it would be nice to see a story about a guy that got transferred put his house up for a attractive price and was happy he got out not losing to much of his down payment.
You forgot the first rule of journalism, if it bleeds it leads.
Michael Emmel, the sob stories of the people who
(a) did not pay much above rental rates
(b) saved 20% down before buying
(c) did not pay more than 3x annual income
(d) and hung onto 6 months’ savings
…are OUR sob stories! We have no houses! because we are smart and did a,b,c and d. Well, I don’t see us sobbing very much right now. Because things are going our way. Some of us will fall off the wagon and buy houses (didn’t Bantering Bear buy one?), some sooner, some later. So long as a,b,c, and d are satisfied, we will be OK. Especially if (a), which is still close to impossible…
Yeah, and then there’s this:
“We liquidated our 401ks, Roths, everything to hang onto the house and pay our bills.”
That’s the part that made me cringe, fall into the fetal position and suck my thumb. They will basically be working the rest of their lives because of this “dream house.”
Yeah, all of that, and also rocking back and forth whimpering softly.
How can you justify 30 years of your life for a mere thing?
I’ve said it before and I’ll repeat it: the ones who walk are not only smart, their societal cost is way, way less. The money these idiots blew through will be assessed to you and me.
Preach it, Jimmy. I just got off the phone with my tax accountant. I did such a great job of cutting costs in my business that my profits, and, thus, my taxes went up. Nice reward for being frugal, eh?
Slim’s NOT a happy camper this afternoon.
That’s the part that made me cringe, fall into the fetal position and suck my thumb.
Why? These were greedy, stupid sheeple who never thought they would lose their $10 hr hair cutting job or the commision only mortgage broker job but were financially stretched beyond their means.
Well, it’s empathy. He is imagining him/her-self in that position.
Of course, if you don’t plan to repay the debt and you are taking a free punt, it’s a different story.
Oh, it’s not their 401(k) I was thinking about. I couldn’t imagine cashing in mine for the reason they did, especially after seeing that house. I’d punt and mail back the keys before I messed with my investments….
I’m so sick of hearing about dream houses. Same mentality as people who fawn over diamonds. People need to get a life.
I was thinking about loans to get furniture.
Why can’t people wait?
It took me a couple of years to move up from a used mattress on the floor to a used mattress on a used bed.
Took more years to move up to a new mattress on the same used bed.
And then it was years to purchase a new bed for that now older mattress.
And we will make $130,000 this year.
I still have my college sofa. Not pretty but it does the job where it has been placed. Cost? $60.
And I don’t throw a cow if someone spills wine at a party, etc.
New stuff is overrated IMNSHO. It’s nice and all, pretty and shiny, etc. but too much work.
I sold my house for a good profit in aught-7 and I make above the median household income as a single person.
My couch consists of an old futon frame and cushions I bought at IKEA for like $20. Yeah, everyone laughs at me and my cheapness. I do too.
Sleepless, you are almost motivating me to invite HBBers to a party in Santa Barbara at my own expense.
LOL. Low overhead for sure. Although I will confess I did invest in a NEW Serta mattress a few years back. I like my sleepy time.
There’s cheap and there’s cheap and sleeping on a used mattress is darned cheap!
AG, I had a great house (2250sq.ft) custom. Like you, there were rooms to furnish to make it into a home, for us, not for others. After 19yrs. we moved and ended up renting a 1300 sq.ft. place. We had to do a lot of downsizing which seemed traumatic but in retrospect has been a godsend. Every weekend we find ourselves out in nature walking or some type of activity that enhances our quality of life. Not only has it allowed us more degrees of freedom in our daily routine of life but comforts us to know that should we want to change our location at any time we can. Should we decide to purchase a house in the future it will be in a smaller community of 150K or less with moderate climate and good medical services within a 90 mile radius.
I’m a believer in furnishing the outside of a house, not the inside. I don’t mean with “outdoor room” crap like a fancy grill or paving over half the yard. I mean stuff like blueberry hedges, flowers, veggie gardens, orchard trees…
Why not just live in a tent then?
“Owners (will) be shelling out anywhere from $1 million to $4.3 million for the 27 units.” “And although it’s located next to a railroad track, the Waltzes have said the building’s concrete and sound-proofing insulation will minimize noise from the railroad.”
“‘Everyone is amazed on how little impact the train will have, if any. It moves very, very slowly in anticipation of the upcoming 90-degree turn across the lake,’ she said.’”
Calling all millionaire trainspotters. Here’s your once-in-a-lifetime chance. LOL!
There was a time when living close to RR tracks meant one was in the PWT class.
“happy owners is especially important when they’ll be shelling out anywhere from $1 million to $4.3 million…And although it’s located next to a railroad track”
Allow me to repeat….BWAH-HA-HA-HA-HA-HA-HA-HA-HA-HA-HA!
“the Waltzes have said the building’s concrete and sound-proofing insulation will minimize noise from the railroad. ”
Minimize, but not eliminate…well, what do you expect for only $1 million to $4.3 million.
I especially like the very low pitched hum/rumble of the diesel electric locomotives…how easy is it to filter out those low frequency waves?
I’d pay an extra $1mill not to live near the railroad tracks!
Interesting. I’d rather have trains roaring by right next to my house than hear the tiniest sound from OP’s (other people) stereo or conversation through a shared wall.
You can’t.
You “feel” the sound not “hear” it (although the distinction is kinda arbitrary.)
Out here in NYC, the addition to Carnegie Hall (called Zankel Hall) is built on NYC bedrock. During concerts, you can “feel” the rumble of the subway even though they have worked very very hard to minimize it.
I doubt these people are going to fork out that kinda money. In any case, you can’t eliminate it.
If you can’t eliminate it then spin it.
I once heard a realtor talk up the sound of traffic from a nearby freeway by comparing it to the gentle and soothing sound of ocean waves breaking upon a beach.
“The gentle rumble of the ground like a tummy that is about to release a triple-flusher.”
Sounds like the Waltzes are doing a little dance.
You just wear one of those Bose noise-cancelling headsets all the time. No problem, they deal with the low frequency rumble quite well.
White noise CD’s on a good cd player. Push repeat.
So, it looks like the line in question is part of the Union Pacific’s line coming north from Loredo. That’s likely one of the lines that’s seen large traffic increases since NAFTA - lotsa of trains.
That 90 degree curve across Town Lake she mentions is interesting. Trains going into the curve will indeed slow, but those coming out of the curve are likely to be accelerating. At any rate when trains are in the process of changing speed is when they make a lot of unharmonious clanging, banging, and scraping sounds as slack runs out, brakes are applied, etc.
I have a house about 15 blocks north of that track and the whistle is a sweet, soft sound at that distance. All the new condos along the N side of town Lake, however, are likely to think they’re living in a switching yard.
And nobody is fooled by their “measured approach”. The reason they won’t start construction until they are 50% presold is not because they are knowledgeable, thoughtful developers - it’s because their bank has a 50% presale requirement before they will fund their development.
http://tinyurl.com/2knsuw
Analysts have said that gasoline could reach $4 a gallon by this spring, due to strong demand and a change in formaulation, among other reasons.
When taking the question about the $4 milestone, Bush told the reporter, “That’s interesting. I hadn’t heard that.”
Upsurging gas prices might spur more train traffic.
Not in the short run.
Right. Passenger service, expecially in the west, is almost non existant. For instance, there is no direct train from Denver to SoCal. You would have to go from Denver to the bay area, then down the coast.
Which is a very nice trip BTW.
Also there is a bill moving forward to roll back tax cuts for ‘big oil’. Looks like the Washington brain trust is doing everything they can to get oil up to $150.00. $4 a gal. no problem, I wonder how $5 will feel?
Higher gas costs may help in the long run as people learn to conserve energy which results in less pollution and slower global warming. I read somewhere that people could be using half of the energy they currently use without affecting their lifestyle!
I thought he was told no one can afford gas and he replied
Let them burn ethanol
“‘We were like deer caught in the headlights,’ Harper said. ‘We liquidated our 401ks, Roths, everything to hang onto the house and pay our bills.’”
Watch out Harper.
I brake for Bambi but NOT for dazed and confused RE Brokers with their heads up their A$$E$ malingering on the financial highways of DEATH
malingering?
I don’t think that word means what you think it means. LOL
Malingering is a medical and psychological term that refers to an individual fabricating or exaggerating the symptoms of mental or physical disorders for a variety of motives, including getting financial compensation (often tied to fraud), avoiding work, obtaining drugs, getting lighter criminal sentences, trying to get out of going to school, or simply to attract attention or sympathy. Because malingerers are usually seeking some sort of primary or secondary gain, this disorder remains separate from Somatization disorders and factitious disorders in which the gain is not obvious. Legally, malingering is often referred to as Fabricated mental illness or Feigned mental illness. See United States v. Binion.[1]
See Avoiding WORK as noted above and remember this is one BROKE real estate BROKER
Nice word-twist there, Mikey!
. . . sigh . . . lofts in downtown Pecos, Tx . . . sigh . . .
trailer homes next to restaurants close to loft living above a telcom business.
Sounds like the setting for a Coen bros. movie.
“Take one home on the tour — it’s $180,000 cheaper than other houses in the neighborhood.”
No it isn’t ! Houses are worth what they sell for. Lets see what happens when one of those “other” houses gets sold.
cool. start a foreclosure bus tour, and get free PR!
Charging idiots for tour itself is just the icing on the cake..
Wondering what folks think the downside risk is in Austin right now - I am thinking about buying in 1-2 years in NW Austin.
Masstexodus:
Check out the news on Austin Business Journal:
Austin home sales still falling
http://www.bizjournals.com/austin/stories/2008/02/25/daily8.html?f=et51&ana=e_du
I’m in Austin. Austin is usually late to the game. I think Austin will finally succumb in late ‘09. There’s still some money from CA pouring in buying McMansions at $500K a pop. None seem to realize that their annual tax bill will start at $15K and go up 10% a year from there.
I lived about 3 doors down from this place in Travis Heights in Austin….nice lookin’ place and great location (just off South Congress, not far from the Continental Club), but it’s been on the market now for about 2 1/2 years….
http://www.greenmangorealestate.com/index.cfm?p=homelisting&type=forsale&id=541
Why did you do that to me???? Now that place I want!
LOL $600k? Your taxes would be $18k a year and can rise up to 10% annually! It’s a nice custom home but NO way worth anywhere near that money!
I still keep running into folks who recently bought in Austin. Different circumstances in all cases, so I can’t say whether they are all FB’s or not but I AM sure that they could’ve gotten lower prices had they waited. There seems to be a lot of willful blindness when it comes to honestly addressing the economic situation in this town.
Everyone has such a short memory, they have completely forgotten about the Intel building, and it was only a few years ago. During the tech boom Intel tore down a local music venue (in a historic downtown building, of course) to build some new corporate cube hive. Then - surprise! The tech bubble collapsed and they never even finished the building. The concrete-and-steel shell sat vacant for a couple years, and was demolished only this time last year. Check out this
article:
“Intel abandoned the project in 2001, when the bottom fell out of the high-tech industry. The shell is being imploded to make way for a new $63 million federal courthouse just as a real estate boom in downtown is hitting its stride.”
People fail to grasp ANY similarities to the current situation. Note that this article is from one year ago exactly, and downtown Austin real estate is described as JUST “hitting it’s stride.” So, the denial here is still strong.
How many half-finished condo projects are gonna be scattered around the city? People don’t seem to understand how it is often cheaper to abandon a project rather than complete it. If a lot of these projects do get finished, there will probably be lots of cheap rentals for UT students in the near future…
If you can buy a house for $60/foot maximum, id say very little downside risk. Prices will probably bottom out at an average of $45/foot for larger houses on small lots. It can’t get much cheaper since it costs wholesale $30/foot for developers to build those homes plus lot costs.
At $100+/foot in Florida, there is much more room for price drops.
“Rates in the last five years have allowed people who thought they could afford $200,000 homes to buy a $400,000 home, because the interest has been reasonable”
Let me run this through the ‘ol REIC B.S. filter:
“Rates in the last five years have allowed delusional people who could not $200,000 houses to overbid and pay $400,000 for that same $200,000 house, because the interest has been forced below inflation by a reckless, irresponsible Fed”
That’s closer to it. There is no flipping way that anything short of a mansion should be over $200,000 in Yukon. (Or in Enid, for that matter.) That is simply crazy. Ten years ago, that would have been $120K max, and only if it was on an acreage. No bubble my eye.
According to Wikipedia, the median household income is $45,000 in Yukon (which is pretty near OKC) and $32,000 in Enid (which is near nothing). There is no way a house in that Enid should be that much money ($200K-400K) unless it is sitting on a gold mine.
“The couple have listed their 2,153-square-foot home for sale and priced at $220,000, $8,000 less than what they paid for it.”
If anyone is knowledgeable about this area, then please post the listing for the property. It would be fun to look at for us folks in bubble areas where 200k won’t buy a crackhouse…
another meh
http://www.realtor.com/search/listingdetail.aspx?ctid=90788&mnp=22&mxp=21&typ=D&sid=e929aa6d566c40d3b4ddf4002c5d78f8&pg=2&lid=1094256015&lsn=17&srcnt=22#Detail
Thanks Texas. I’ll share one of our 200k houses in the hood that used to be military housing 60 years ago. A mere 5 years ago this thing probably cost 70k…
http://www.realtor.com/search/listingdetail.aspx?cmid=1103989%2c1103992%2c1104000%2c1104001%2c1104002%2c1104003%2c1104006%2c1104008%2c1104009%2c1104010%2c1104012%2c1104014%2c1104015%2c1104022%2c1104023%2c1104024%2c1104027%2c1104030%2c1104031%2c1104032%2c1104037%2c1104038%2c1104040%2c1104041%2c1104044%2c1104045&ml=3&mxp=20&typ=1&sid=eb14dfebe0d44dfb8ced8badb633ff1a&pg=5&lid=1090543202&lsn=44&srcnt=45#Detail
Wonder what it looks like behind the tree branch.
That looks like it should sell for $120-130.
One person’s dream house is another person’s meh.
Nice shot of the Garbage can, are Realtors so stupid they don’t know not to take pictures into direct sunlight ?
And now the Agent is thinking the price dropped worked. Look at the hits your house is now getting. It’s only a matter of time before someone puts in an offer.
I wonder when a Flash Mob would show up to the open house? Anyone interested?
“And now the Agent is thinking the price dropped worked. Look at the hits your house is now getting. It’s only a matter of time before someone puts in an offer.”
That thought always cracks me up when people post links to houses for sale on these boards.
That’s a nice medium house but the price is quite a bit too high.
“‘We didn’t enjoy the bubble, so now we’re not going to feel the pain of the bust,’ said Steven Admire, president of Advantage One Mortgage.”
There wasn’t a price bubble in Tulsa. But there sure were a lot of McMansions built south of town. And, there’s always the HELOCs.
And they are actually pricing homes like these in the Tulsa area for over half a million. Who in their right mind would pay $800,000 to live there? I often get the sense realtors “try” to compare Oklahoma with California! There is no prime location in Oklahoma! LOL
The article on Palestine/Anderson County Texas got my attention. I have family in that part of Texas (Nacogdoches) and it’s incredible to me that homes can often fetch $80K to $100K.
For an apples-to-apples comparison, I also have family in rural SE Missouri, and it’s very comparable to Palestine TX in population, demographics and employment opportunities and modest homes in SE Missouri often sell for $55K to $70K and the really big ones (ie more than 2,500 sq feet) will sell for around $100K.
Good price. Only a little more expensive than rural western Pennsylvania where I am relocating to.
Palestine is pretty, but out in the middle of nowhere. Pine trees and rednecks abound, but there is a very pleasant small town core with some newer homes nearby. Not my cup of tea, but if we’re comparing lifestyles… I’d choose P. over Pasadena (Ca. or Tx.) anyday.
http://biz.yahoo.com/ap/080228/paulson_housing.html
how about “forgiveness ?
i have family in oklahoma, well paid people get $15 per hour. they should never ever ever spend more than $80k in a house! and this couple wasting their retirement trying to save a house they should never attempted to build. this is 100% for showing off purposes. americans should make an effort to get rid of this obsession with image. it’s just vulgar.
“delusions that Oklahoma City is suffering from the same ailments found elsewhere in the country” — VP of Okla HB Assn
Julia, thanks for pointing out that Oklahoma City is probably suffering from an exacerbated version of the same ailments found elsewhere in the country.
OT…Au hits $970.00 Ag close to $20.00 Oil @ $102.00 Dollar heading south. FED rate cut coming, that should shore up the dollar(not). No worries the D.C. dingle berry’s have it all contained.
http://money.syracuse.com/dynamic/stories/C/COMMODITIES_REVIEW?SITE=NYSYR&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2008-02-28-13-37-38
and the Australian dollar today finally breaks through the multi-year high (vs USD) recently achieved in November 07.
BTW, I know roundsparrow and a few others are in the South Texas region. I’d love to email those of you in the area offline to discuss where the market here is headed. San Antonio is still early in the denial phase since the bubble came here later after the CA equity locusts picked Vegas and then Phoenix clean from the West and the FL locusts from the East. Email me at stewieb92@yahoo.com if interested.
““The only upside is for buyers. One 3,900 square-foot foreclosure is selling for $181,000.””
What a huge upside! Less than $47/foot! Even if this needs minor repairs, its still reasonably priced! You can’t touch anything in Florida for less than twice that!
Freddie Mac is paying YOU to buy their foreclosed homes! For the next 60 days, you can get a coupon from Freddie Mac good for $400 worth of closing fees. I printed my coupon out and you can get yours too at:
http://www.homesteps.com
It’s raining FREE money from the government! Get yours while you can!
I would go for it if that deal applies in Pennsylvania towards a sub $50k home.
here come the pro-housing sales trolls … hilarious they are so desperate for business that they try selling selling ice cubes to us eskimos.
like how scamming parasites leech off of walmarts economic success. some days you need pepper spray just to get thru the front door.
I’m buying a junker house on 21.7 acres in SD for $35,500. I wanted the land, not the house.
Wow show me where! I can’t get land this cheap in Pennsylvania. Theres a 5 acre lot with a tiny 1/1 shack(probably poor shape too) for $50k a few miles outside town.
However I am interested in a .91 acre lot with a fixer upper 1300 sf house for $13k that’s right inside town. Very few such large lots unless you go outside town. I want the lot for my garden and orchard and it’s convinent to be able to walk a few blocks.
People are saying the same for Gainesville, FL. Checking the MLS, this unfortunately looks true. Prices have dropped very little, if at all. They were still going up in price in 2006. I hear it’s because of all those college students, it keeps increasing demans for rentals and housing. Those who can’t sell can easily rent and in most cases, break even vs. their mortgage. They can easily rent each room out for $400-500 a month, thats $1200-1500 a month for a 3/2 house. I can rent for much cheaper in different cities in Florida since there isn’t so much demand for rentals unlike Gainesville with it’s huge college population.
My mom suggests I live in Gainesville for a year so ill be close to my brother. I told her I could not afford the rental and one bedroom was not big enough for me and my business. To buy a house is an average of $125/foot which at this point is more than Port Saint Lucie and close to the $150/foot of Palm Beach County. $150k in Gainesville gets you a nice 2/1.5 house or a simple 3/1 or 3/2 house that looks like a trailor. Size is from 800 to 1400 living square foot. Those houses would cost around $995/month to rent making it almost as expensive to rent as to own.
I will only consider Gainesville if my brother agrees to share a mobile home with me. I can purchase one for around $20k with lot rent for $250-300 a month. This is 3-4x cheaper than renting a house and many times cheaper than owning a house.
bye fl
take along a few friends also when in Gainesville to challenge the locals. have a bike race to show em you aint no lightweights. and be sure n’ sing eye-talion operas while cycling around town while yer waiting on parts for that mustang-on-blocks in front of the trailer. I predict mullets in 3 months.
“People are saying the same for Gainesville, FL. Checking the MLS, this unfortunately looks true. Prices have dropped very little,”
GOOGLE: Countrywide REO then search Florida
also Bank of America REO, Chase REO, Washington Mutual REO, etc
PIMCO says it was early calling the bubble, but might be early calling the bottom.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ajpLYo2xv9v4&refer=home
“There’s value in “assets that are regurgitated into the market place at prices that are more attractive than we have seen in decades,” Gross said via video link from Newport Beach, California. “We’re moving into assets that have been unwound and sold without discretion. There are tremendous hedge-fund unwinds of municipal securities.”
“Pimco anticipated the collapse of the U.S. housing market and the Federal Reserve’s subsequent interest-rate cuts, Gross said today. The firm focused on shorter-dated Treasury bills and increased its cash holdings in preparation for the collapse by staying “out of the market,” he said.”
I’ve still got those shorter dated Treasuries. Does Gross know something I don’t?