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Thursday, January 27, 2011
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18 comments:
We talked a little about this house a couple of months ago house I find it very odd that it sat on the market listed at 649K for a month the price was then lowered for 599K. After being on the market at this price it was then bid up in price to 648.5K. It looks like one of the people interested in it should have bid on it earlier and probably could have gotten it for 30-40K less.
HB,
Perhaps there was a bidding war for this house? It looks from the listing history that it was being aggressively marketed. They were dropping the price $50k every 2-3 weeks.
If someone really liked it but hemmed and hawed, and suddenly had competition from people at a lower price point, it might make sense to go at it aggressively at the previous listing number.
My $0.02
My $0.02-
I agree there was probably a bidding war. I just found it comical that if the person had bid before the price drop they probably would have been able to get it for a much cheaper price.
I received a market update report today from a real estate broker.
As I'm sure everyone is aware, there is very little inventory in the under 300K market.
What was interesting was the comment that we can expect foreclosee's and short-seller's to re-enter the market beginning this year. Some lenders, including FHA, require only a 3yr waiting period to re-purchase.
This agent believes that many former owners do not want to be renters and will take the first opportunity to buy back in and that prices are low enough for a similar house to be affordable.
Thoughts?
VA-
That is interesting. I thought foreclosures took 7 years to go away. I would be very surprised if there were many short sales in 2008. I thought the problem was housing prices were going down quickly and banks were slow to react, so by the time the reacted the price they accepted was no longer good. I thought there were a lot more short sales in 2009.
hb,
What I read said that this would apply to foreclosures as well. There were a ton in 2008. If this prediction is correct, it would mean many buyers entering the market every year for a number of years.
http://franklymls.com/dynamicHtmlGen.aspx?Id=AR7511597
cute place but they are a little delusional on price.
Bought for 500K during the bubble,
and the price is getting relisted every day.
If they held to the the original price they could get several bids and a bid war.
At the price currently, i think it will sit and rot.
one thing to bear in mind, is that
people who got foreclosed or short sold don't have a lot of equity.
Will they have saved up hard for a 20% downpayment?
And any banker who would float a mortgage to someone who short sold or foreclosed with less then 20% down, should be dragged to death by the mob.
HB, I think the 7 years is for bankruptcies.
Pat, that seller/bank is very delusional - started at a somewhat reasonable point and RAISED the price into the stratosphere. But it is cute--reminds me of my grandparents' house.
Ace & VA-
This article says that after a foreclosure you have to wait 2-5 years if it was from a job loss, but you may need to wait longer if you just walked away. You also need a couple of years of job history so 2 years is unlikely unless you got a job immediately after you lost your house.
Pat-
My guess is that most people who were foreclosed will try and go down the FHA route where you only need 3.5% + another ~1-2% for fees. I doubt there will be a huge rush of these people to buy at exactly three years, but we will see.
http://www.statefansnationforums.com/topic.php?id=2076
fannie won't let you get a mortgage for 7 years if you strategically defaulted.
FHA has a 3 year lockout.
but your credit scores aren't going to be great after a default.
Honestly I think the market for the next year will be kind of stagnant.
Thanks, HB and Pat.
7 yrs for a "Strategic' default.
Look up FHA purchase after foreclosure.
pat,
What is your source? I can't find anything beyond 5 yrs conventional (lesser if special circumstances were present). FHA is 3yrs with the same provision for circumstances.
Shorts are 2yrs.
All require meeting minimum credit guidelines which can be quite low.
The smarter people continued car and credit card payments as they needed these more than an unaffordable house.
Source: Obtaining a fannie mae mortgage after foreclosure. A seach pulls up many articles.
Va_I, Pat put the URL for his source in his post--here's a link. Unfortunately, that source seemed to quote someone else but wasn't clear about who was being quoted.
Pat's source
The original source for the info in article Pat cited is FNMA itself:
FNMA press release
Foreclosures and BK will affect you for 7 years. The 2-4 year rule applies of you worked with your mortgage company on a deed in lieu or short sale. Basically, if you force the company to take the house from you by legal means, then the credit hit is 7 years. If you work with them and willingly GIVE them the house back, saving them time and legal costs, then they reward your cooperation with a much smaller credit hit. Usually it goes away in 2-4 years. -I work in Loss Mitigation for a 3rd party loan servicer.
brandon,
Thanks. Good to know as this is not what Samson Realty is putting out.
Any idea of shorts vs foreclosures in this region?
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