tag:blogger.com,1999:blog-5140004705538204727.post8507139237913391034..comments2023-12-16T04:08:06.419-08:00Comments on Real Estate in the LBC: Excellent Conditionsel beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5140004705538204727.post-24336058701846475472009-05-24T10:13:41.744-07:002009-05-24T10:13:41.744-07:00El Bee, thanks so much for explaining that.
That ...El Bee, thanks so much for explaining that.<br /><br />That helps a ton!<br /><br />Also, a lot of the things you say confirmed my hunches, in regards to places that just don't seem like much of a deal, yet being dressed up as "an incredible deal".<br /><br />Again, luckily for me I have "an incredible deal" with my rental, so I don't have to be anxious at all...<br /><br />I'm seeing people jump on a few sales thinking that they are great deals, but when I look around at all of the layoffs, government bankruptcy, unemployment rates, etc, etc.... I just don't see why some people are so over-anxious to spend their money. <br /><br />Anyways, thanks again!Mike in LBCnoreply@blogger.comtag:blogger.com,1999:blog-5140004705538204727.post-90221475553762281142009-05-19T11:40:00.000-07:002009-05-19T11:40:00.000-07:00Mike,
HA! From WHAT I'VE HEARD about Tijuana bro...Mike,<br /><br />HA! From WHAT I'VE HEARD about Tijuana brothels!<br /><br />Banks aren't going to approve the prices because they don't have to. Nobody is forcing them to mark-to-market (mark the homes on their books at what they're REALLY worth.<br /><br />If banks approve a short sale, then they have to book a loss. In this case the bank would eat $100,000 immediately because the loan was probably for $250,000. So instead it lists properties as short sales but rejects every offer (unless one is way higher than its internal valuation and would save them the hassle of a foreclosure) while it pretends to sell it in earnest. As long as it's still "for sale," the home is still considered an "asset" on their books for the full amount of the loan. No loss realized if it never sells for a loss.<br /><br />When the owner eventually walks, banks can also drag out the foreclosure process for almost a full year before they have to actually take it back. Some communities are threatening banks with criminal charges for allowing bank-owned foreclosures to fall into disrepair (green pools, squatters, vandals, etc), but again, largely nobody is forcing them to do anything. And since they are in no hurry to take these incredible losses onto their books, they drag out the entire process as long as they can with no repercussions.<br /><br />Add to that how overwhelmed the banks are trying to keep up with the growing number of Notices of Default, Notices of Trustee Sale, and actual foreclosures (to the point that it takes banks months to counter-offer), and you see why many consider short sales to be "fake" sales and refuse to consider them as comps. <br /><br />The answer to your last question is: You and I are going to have to wait even longer for the pig to pass through the python. The gov and the banks don't realize that the quickest way for housing values to regain their upward trajectory is to let this bubble fully deflate—and quickly as possible. Once housing is affordable to average working Americans, demand will skyrocket. However, as long as there is a widespread perception that prices still have further down to go, and banks are out there playing games to gloss over the truth, sideline sitters will be forced to continue waiting it out—or buy and lose value while the bubble slowly, and artificially, deflates.el beehttps://www.blogger.com/profile/14187665973956068496noreply@blogger.comtag:blogger.com,1999:blog-5140004705538204727.post-663010701931568932009-05-19T11:12:00.000-07:002009-05-19T11:12:00.000-07:00It's so funny you picked this one out to blog ...It's so funny you picked this one out to blog on because when I first saw this listing last week, I thought about how much material there was here.... I didn't catch the um "salt shakers"? but I did catch the rest of the decorating, and instead of TJ brothel (how do you know what they look like??? ;-> ) I'd say it's a fortune teller's setup.<br /><br />And who would want to live in a place, where potentially spirits of dead people and demons, might be popping up?<br /><br /><br />But on the business side, I have a beginner question - <br /><br />Why would the bank not approve the short sale?<br /><br /><br />I mean, if the bank doesn't approve sales like these, then what is really going on? <br /><br />And how are buyers like myself, going to wait for prices to fall, if banks aren't going to approve the prices???<br /><br /><br />thanksMike in LBCnoreply@blogger.com