Comments on: Debunking Foreclosure Myths

By: Norman

Norman — Thu, 13 Aug 2009 14:53:26 +0000

I’m preparing to sell my home in China (currently in an up-market frenzy) and buy Calfornia, again. Upon the announcement of my intensions, I have had 3 Chinese friends approach me so far to also buy a house for them in the US…with cash.

“Give us your poor, your tired, your huddled masses longing to be free…and your cash”

By: Whitehall

Whitehall — Mon, 03 Aug 2009 20:25:17 +0000

You guys are thinking “real estate market” only but that’s a small subset of “global financial markets.”

I see a house purchase as a form of bond with some inflation adjuster on the cash flow. If one is looking a a wave of inflation coming down the tubes, then that inflation adjuster is a mightly fine thing.

Like a bond purchase, a house can decline in market value. A bond has a cash flow associated with it, usually some fixed rate. A house rent will periodically adjust to the current market. True, rents will fluctuate but if the value of the dollar crashes, rents will somewhat track incomes. People will work and people will pay market for rentals.

Here in Silicon Valley, I’m shopping for a basic 3/2 house with decent schools. Every open house I go to is crowded with Asians, many not speaking English. I suspect that family back in China are bringing their dollars to America to park them prior to a big devaluation.

By: 3clicks from da Beach

3clicks from da Beach — Thu, 23 Jul 2009 14:16:51 +0000

I wonder what next spring will bring?

By: Jim the Realtor

Jim the Realtor — Thu, 23 Jul 2009 07:50:15 +0000

W.C.

I had that one on the 1st REO Shadow tour, and am watching. Looks like a family is occupying?

Former owner paid $959,000 in 2005, but when foreclosed the loans totalled $1.4 million.

It’s 2,216sf on a 9,300sf lot but down in the hole. Under $950,000 would probably be a good buy if in good shape. No view?

B of A foreclosed in March.

By: W.C. Varones

W.C. Varones — Thu, 23 Jul 2009 05:24:09 +0000

Jim,

What about 313 S. Rios in Solana Beach?

That place was a long, dragged-out foreclosure and apparently went back to bank quite a while ago but hasn’t been listed.

By: News from around the web: 2009-07-23 - Credit Writedowns

News from around the web: 2009-07-23 - Credit Writedowns — Thu, 23 Jul 2009 04:10:12 +0000

[...] Its not just HRE, but Landesbanken too. Very important piece.Debunking Foreclosure Myths – bubbleinfo.com [...]

By: LV Renter

LV Renter — Thu, 23 Jul 2009 00:48:09 +0000

That was the word I mean, thanks. BTW available credit is also a component. When there were no underwriting criteria (ie NINJA) it increased demand.

By: tj and the bear

tj and the bear — Thu, 23 Jul 2009 00:30:24 +0000

Regarding that saving the 20 to buy another… looks like that person wants to DCA (dollar cost average) into their RRE “investments”.

By: tj and the bear

tj and the bear — Thu, 23 Jul 2009 00:28:00 +0000

LV Renter,

Ah, okay, get you now. I’d suggest the word “component”, i.e., desire is a component of demand.

Otherwise, as you say, only a fraction of those that desire something can actually demand it (hence my superset argument).

By: LV Renter

LV Renter — Wed, 22 Jul 2009 23:48:56 +0000

SDBri

I could not believe that person on SD Lookup. It did not make sense to put 20% down in a declining market but it did make sense to buy? Help me with that.

The person was also hoping to become a mogul with a $300K townhome rental in Chula. What is the best rental potential, $2,000/month. The mortgage would be $2,000 plus $600 for HOA and taxes. Smart, right?

Everytime I read something like that makes me realize how much further the market has to fall. If the market falls as they fear once they realize the rental income is not there how long till they decide to walk away?