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foreclosure: HAMP - Preventing Froeclosures, Or Causing Them? - 08/24/10 06:43 PM
As I once heard brilliant financial guru Steve Forbes say (paraphrase) “. . . we had a chance to fix the mortgage crisis back in ’07; if we had just let it crash, it would have been painful, but we would have recovered in 6 months.” A free economy tends to correct itself, but it’s just not the nature of government(s) to leave things alone. That’s why we have to endure this mess for years instead of months, and why we have new government programs every time another one fails. Whatever it takes to prevent economy from it’s natural course: stretch … (0 comments)
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foreclosure: Homebuyer Tax Credit For Inmates Serving Life Sentences - 08/23/10 09:35 PM
Remember the First-Time Homebuyer Tax Credit? It was perhaps the only effective or successful federal economic program in the past five+ years. Well, Even those rare government programs that actually work are fraught with fraud. Go figure.
As early as last October, there were reports of fraud schemes and suspicious claims as the tax credit was set to expire and was being considered for extension (see DSNews 10/20/09). That’s not so surprising.
What’s shocking is the recent report that prison inmates were able “to apply for and receive $9.1 million in homebuyer tax credits” (see DSNews 6/24/10). This article refers to … (3 comments)
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foreclosure: The Principal Solution to Strategic Walk-Aways - 07/02/10 08:10 PM
There’s been a lot of discussion on the subject of Strategic Default over the last year or so, with no shortage of passionate viewpoints. It’s a favorite topic in all forms of media. The last time we posted an article on this subject (Feb ’10) it created a virtual firestorm of response.
Ethical and legal arguments aside, it’s always been our opinion that the most practical solution to this issue is for lenders to reduce principal loan amounts. If you can make payments on a $350K loan but the home is only worth $200K, then does it make sense for your … (12 comments)
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foreclosure: Are Foreclosures On The Decline In California? - 07/01/10 09:58 PM
We were recently asked this question while being interviewed by the local ABC TV news station. What prompted the interview was an article and statistical survey published by RealtyTrac: “Forelcosure Sales Account for 31 Percent Of All Residential Sales In First Quarter.”
According to RealtyTrac, “California posted the second highest percentage, with foreclosure sales accounting for 51 percent of all sales there in the first quarter — up slightly from 50 percent in the previous quarter but down from 70 percent of all sales in the first quarter of 2009.” Wow! Over half of all sales were foreclosures, and that’s an … (2 comments)
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foreclosure: Beware The Craigslist Rent Scam - 03/13/10 01:21 PM
Regretfully, all is not what it seems on Craigslist. On a recent REO listing we received numerous calls inquiring whether the property was for rent or for sale. Shortly after we posted the home on the multiple listing service someone posted a Craigslist ad offering the property for rent at a ridiculously low price. The ad actually copied our MLS headline and verbiage word-for-word. This was an upscale property in remarkably good condition for an REO. We expected a lot of inquiries, but not from renters.
Some of the callers had driven by the property, noticed our lawn sign, figured the … (12 comments)
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foreclosure: The Ethical Dilemma of Strategic Walk-Aways - 02/03/10 08:54 PM
Owners that can actually make their loan payments, but choose to walk away, accounted for 1 in 4, or 25% of all foreclosures as of June 2009. That was over six months ago, and the numbers have probably gone up since the initial studies (these data can be easily verified via a quick Google search). Strategic default is an ethical dilemma, and the discussion is burning up cyberspace.
On one hand, there is a moral obligation to honor your contract. If you owe more than your house is worth, one way or other you gambled on your equity and came … (164 comments)
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foreclosure: Is There Really A Shadow REO Inventory, Part Two? - 12/19/09 04:06 PM
No doubt there is a shadow inventory. In fact, our sources indicate a substantial, almost incredible number of foreclosed homes in the national bottleneck. Our original post on this topic was “Shadow Inventory, yes. Banks holding back, not likely”. As indicated, this was posted in rebuttal to the referenced WSJ article, last July.
Of course a lot can change in 6 months. Since then we have come to believe that Fannie Mae is, in fact, deliberately holding back inventory, a probable attempt to stabilize or stimulate values, another ill-fated artificial manipulation of the marketplace. Only government-sponsored entities (GSE) can … (19 comments)
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foreclosure: Did You Really Squeeze Super-glue Into The Keyhole? - 10/10/09 05:05 PM
Unbelievable. The old adage is true: “if you come to the ballpark every day, you’ll see something you’ve never seen before.” Agent behavior never ceases to disappoint me, like vandalizing listings. Have you heard the one about agents that steal keys from lockboxes to discourage competing offers on hot listings? Well, today my Realty World colleague, Derek Miller, told me a real whopper. This takes the prize (to date, anyway) for the most classless act I’ve ever heard of. To my shame, it made me belly-laugh.
Derek took some clients to look at an aggressively priced bank-owned listing and couldn’t get … (8 comments)
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foreclosure: What Is The FED?, Part Two, or The Wolf Is In The Henhouse - 10/06/09 09:13 PM
The Federal Reserve Board controls the Federal Reserve system: an elaborate depository chain which guarantees the value of money, determines the cost of money, and controls the flow of money. Natural economy is based on supply and demand of goods and services. Contrarily, the American economy is based on the supply and demand of money, controlled entirely by the FED. Basically, the FED, a private organization; autonomous and accountable to no one, controls and manipulates the American economy.
Why? Profit. Private profit. As long as money is moving, or changing hands, bankers make a profit. When the money stops moving, they … (1 comments)
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foreclosure: Where Have All The Good Appraisers Gone? - 07/15/09 10:06 PM
Seems like they're dropping out of site. It's almost epidemic, as if there is some new infection that's wiping them all out. This is a trend that we've noticed for some time, as early as 2005, long before the HVCC, the collapse of WAMU, or the current default crisis. Maybe the best appraisers started intuiting the current mess while it was brewing and just decided to pack it up.
Appraisers have, by far, the most stringent licensing and continuing education requirements in the real estate industry. If real estate or loan agents had to obtain half of the experience and education … (0 comments)
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Mike Bell
Santa Clara,
CA
More about me…
Mike Bell, REO Broker - Realty World MBA
Address: 1125 Saratoga Avenue, Suite 3, San Jose, CA, 95129
Office Phone: (408) 984-7420
Email Me
Insightful and timely information about foreclosures and bank owned properties in San Jose, Santa Clara County and Silicon Valley
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