13 replies to this topic

[JAP]

The foreclosure minimum bids are still too high. There is too large of a gap from being able to buy a house and rent the house for any return now that the appreciation bubble has burst.

Bingo! Great point.

[OEXCHAOS]

It depends upon where you are. Out Left Coast way? Yeeks. I have no idea how folks did it BEFORE the explosion in prices. Out our way? I'd say that we're not too far from cheap IF rates come down (not just Fed Fund). I note that Mortgage rates are up 25BP even though the 30 year is down. That's a problem. M

[Rogerdodger]

Housing slowdown apparent locally, but nothing severe
Tulsa's housing market has been largely insulated from the effects of the national crash -- sales and construction haven't dropped the way they have across the country.
But will the national problems eventually drag down Tulsa?
Bernard Markstein, senior economist and director of forecasting at the National Association of Home Builders, said Tulsa may have already been affected.
"You've seen some slowdown because interest rates are a little higher and credit is a little tighter," he said.
Sales in the area -- 6,649 homes through June -- are nearly 200 fewer than during the first half of last year, and construction through June stands at 2,266 housing starts, well below the 2,598 for the same time in 2006.
Ron Sumner, president of the Greater Tulsa Association of Realtors, said the drop isn't necessarily a sign of a weakening market since the number of homes being offered for sale has dropped as well.

"Our slight decrease in demand has been offset by a decrease in supply," he said.

Tulsa in middle of foreclosure list TulsaWorld.com 8/14/2007
The Tulsa area ranks No. 55 on a midyear list of foreclosures in the largest 100 metro areas.
The list, compiled by real estate tracking service RealtyTrac, indicated Tulsa had 2,712 foreclosure filings for the first half of 2007, or one foreclosure for every 143 homes.
Tulsa's performance was down 8 percent from the last six months and 12 percent from the first half of 2006.
Oklahoma City was 54th on the list, with 3,660 foreclosures or one for every 138 homes.

State foreclosure rate rises TulsaWorld.com 8/21/2007
Foreclosures in Oklahoma increased faster than the national average during July but remain well below last year's rate.
Approximately 899 mortgage foreclosures were filed in the state last month, or one for every 1,767 households, according to a monthly report by RealtyTrac, a real estate data service. The rate is up 17.67 percent from June but down 34.38 percent from July 2006.
Oklahoma's mortgage foreclosure rate now stands at 22nd in the nation, up from 29th in June.
Nationally, the foreclosure rate increased 9.08 percent from June was up 93.44 percent from July 2006. Last month's 179,599 filings represents one out of every 693 households.

In the report, Realty Trac CEO James Saccacio said half of the nation's foreclosure filings came from just five states -- California, Florida, Michigan, Ohio and Georgia.

Oklahoma was one of just seven states that experienced a year-over-year decrease in foreclosures, along with New Mexico, Rhode Island, South Carolina, Texas, Utah and West Virginia.

Edited by Rogerdodger, 26 August 2007 - 03:22 PM.

[IndexTrader]

The word "foreclosure" doesn't necessarily imply "deal". To buy at a trustee sale in the several states that I have done so, requires all cash, in the form of a cashiers check. There is a good chance that a successful bidder may not have seen the inside of the property, and therefore may well not have the best handle on the condition of the property. Therefore, I am always reluctant to bid anything over let's say 60%-65% of the current market value. This leaves me room to make repairs, pay expenses like real estate commission and closing costs upon resale, and various carrying costs during my ownership, like insurance, taxes, utilities etc. In order to buy at 60% of market value, the existing loan have to have a low loan to value. In today's market that is more unlikely than not. Today, the typical foreclosure is a loan that represents close to 100% of the value of the property. Therefore, these properties do NOT draw bidders at the trustee sale, unless the bidder is a fool, or unless the bidder knows that particular property somehow, and wants it, without reqard for price. What needs to happen now is for the foreclosure to take place, the lender to take the property back, and then the lender to put the property back on the market. This all takes time, especially if mortgage insurance is involved, which is more than likely the case since it is almost always involved on properties with loans above 80% LTV. When the properties come back on the market will be when the price drops begin to take place, because the lender will want to move the property. He will price appropriately, and if the property doesn't move, he will reduce the price. Homeowners either won't do that, or can't do it typically because of the size of their loan. The deals are still in front of us is my guess.....UNLESS the government decides to bail everyone out. IT