Anyone tried taking over foreclosures??

[wsuwrhr]

Originally posted by C-2
When the equity is gone I think there’s gonna be quite a few people losing their toys and homes.
25 year old making $50K a year, living in a $400,000 house, driving a $100K boat, pulling his Weekend Warrior in the winter, being pulled by a $50K truck, wearing his dope clothes and bar hopping every weekend. It just doesn’t add up.
C2<-------not an angry guy, just an observation
Good post, but I tried to find that 50k a year job when I was 25, didn't work. Barely making that now.
What is your opinon on taking that equity and putting it back into the house for HVAC, bedroom/masterbath addition?
Brian

[HavasuDreamin']

Not happy to say it, but yes..............Indiana either leads the country every year, or is in the top two or three states in terms of foreclosures.
You have developers throwing up communities right and left and offering no money down programs with ARM mortgages, sometimes interest only mortgages. On top of that, I don't believe they have to factor taxes into the payment equation either. So in two years when the taxes kick in, and the ARM rate increases, the young kids can't afford the home anymore.
The problem arises when they try to sell it and they can't because they have no equity in it, developers are still throwing up new homes right around them, and half of the existing homes in the market are for sale anyway. Boom ..............foreclosure.
I blame the lending companies that qualify anyone and everyone for no money down, we will roll all your closing costs into your mortgage, you may even get cash back at closing, etc. What ever happened to needing at least 3% - 5% down?

[SummerBreeze]

I am living in a forecloser home I bought in 89. I also bought another one in 92
They are still out there check with the county you want to look at. You need to be flexable with your money or have a relationship with a bank that has money.
Look in the paper look check with title companies
A good tip is to remove your emotions from the transacations
Good Hunting SB

[Essex502]

Foreclosures are all over the place but there is also a lot of peeps looking to do exactly what you want to do. All of these infomercials and get rich through real estate courses and seminars have peeps believing any moron can be the next Carlton Sheets. Right!
As to equity drying up...I may be looking through rose colored glasses but I don't think we're in the same situation as the 80's and early 90's. The economy is improving - both here in the U.S. and worldwide. Interest rates are low and there's not a lot of indication (Greenspan) that they will raise in the near future. The supply is exceeded by demand in SoCal as well. As long as home owners don't go stupid (upside down with the >100% mortgages) they shouldn't be hurt at all with a "correction" in housing prices. Only time will tell.
Real estate has to be one of the best investments at all times - good or bad economy but common sense has to temper your enthusiasm for quick gains.

[totenhosen]

If interest rates rise substantially and when the 3 and 5 year ARMS come there is a strong chance that people will not be able to make their payments. In CA right now there aren't any good foreclosure deals.
You can always look at the HUD website if you want.

[coolchange]

I went to work for a co. last summer that buys reo's and does the refi-rehab thing. I didn't want to get back into construction but I figured I could learn something. they have major resources and say they just out bid the mom and pops. It borders on colusion with other bidders. They get investors with a 22% promise of return and start a LLC(limited liability corp.) Then refi and roll the money into the next one. Then when it goes bad they offer the invetor 7% to get out or they bankrupt the LLC and it doesn't effect the other 200 LLC's they own. Then the work comp thing hits and they drop 60 employees. Oh well gotta expect that in construction.

[NOTALENT]

Originally posted by bigkatboat
What happened to Havasu, in California??? I don't want to rub it in, but I am happy that you saw the LIGHT. I'm going in around Needles (AZ. side) and it is going to explode soon. You don't have to send me any money for this tip, just "get busy", what about Havasu at the south end? LOOK AT A MAP, you will see what I mean. Good luck, keep your eyes open! Party, WOT!!!
Still looking at that right now..But My partner is kind of forcing me to try and do forclosures..lol I have not yet looked into needles yet..but I guess its worth the look..do u have a good website?

[Essex502]

Originally posted by totenhosen
If interest rates rise substantially and when the 3 and 5 year ARMS come there is a strong chance that people will not be able to make their payments. In CA right now there aren't any good foreclosure deals.
You can always look at the HUD website if you want.
Greenspan is hinting in his latest published comments that the interest rates will not be substantially moving any time soon. Fools with 3/5 ARMS or interest only financing or some such "creative" financing stand to lose if they don't plan for the events mentioned but that is their own tough luck. Same deal with someone who creatively finances 125% loan and when prices for homes drops decides they can't afford the loan anymore. It was a bad decision to begin with in having a 125% loan.

[NOTALENT]

yeah...IT does seem to be hard to make 50,000 a year by age of 25..but hey I still got about 5 years and im almost there..Once I get my RE license it should kick off. I hope.

[hd&boatrider]

Originally posted by C-2
When the equity is gone I think there’s gonna be quite a few people losing their toys and homes.
Californians have been living off their equity for several years now and once it’s gone, they won’t have the safety cushion to bail their asses out. Currently they just get another refi for a quick fix and another cash infusion. Take that quick fix away and ouch…some bills are gonna be due and no more equity to help out.
Do the math; 25 year old making $50K a year, living in a $400,000 house, driving a $100K boat, pulling his Weekend Warrior in the winter, being pulled by a $50K truck, wearing his dope clothes and bar hopping every weekend. It just doesn’t add up.
I’ve been saying it for several years now but when the equity dries up…there’s gonna be some smoking boat deals out there for the cash-type person. And maybe foreclosures too, but the equity also has to disappear; otherwise the banks will keep the homes and sell them for their own profit.
C2<-------not an angry guy, just an observation
C2....I have to agree with you on this one totally. I will be scooping up some nice things eventually as I keep my debt low and have no bills...except for my real estate investments and insurances.