Real Estate Crash thread

[Benny Profane]

Wow, of all the media choices we have today, and that was your afternoon?

[Supermoon]

Wow, of all the media choices we have today, and that was your afternoon?

When we didn't have cable, one of my wife and mys favorite vacation activities was sleeping off a hangover from the night before with HGTV on.

[Name Redacted]

Wow, of all the media choices we have today, and that was your afternoon?

I know you would prefer Golden Girls reruns but to each his own.

[Benny Profane]

I know you would prefer Golden Girls reruns but to each his own.

You know, what I really wanted to say was, that was kinda gay. Really gay.

Man rule #43: There's always a game on, somewhere.

[Name Redacted]

You know, what I really wanted to say was, that was kinda gay. Really gay.

Man rule #43: There's always a game on, somewhere.

Classy.

[muted]

You know, what I really wanted to say was, that was kinda gay. Really gay.

Man rule #43: There's always a game on, somewhere.

OK boomer.

[Benny Profane]

X

[Stu Gotz]

This looks pretty shitholy to me.
Attachment 357321

Lordy. Where is that?

[Toadman]

X

I like the way it's trending. Now all mortgage holders need to do is start complaining incessantly that they can't pay off their mortgages. Send letters to AOC and Elizabeth Warren and work on getting mortgage debt forgiven.

[Toadman]

Lordy. Where is that?

Reminds me of neighborhoods in Vegas. But if you really want to see shitholy, just head to certain parts of Santiago, Chile or even parts of Juarez Mexico will do the trick. Heck, most of Sau Paulo. Shoot, pretty much 90% of Central and South America.

[frorider]

I know you would prefer Golden Girls reruns but to each his own.

. That’s unfair. He doesn’t watch GG episodes. He usually finishes in 30 seconds or so.

[Kevo]

Following up on a post from several pages back about not receiving my escrow refund after selling my house.

It took more than 90 days and a CFPB complaint, but I did finally receive a check.

I contacted two CO lawyers who specialize in suing mortgage servicers- the general consensus was that 3x damages and attorney's fees only apply to class action lawsuits against mortgage servicers in the state of CO. One was willing to write a demand letter for a nominal fee. Neither thought it was worth bringing to trial because the cost of attorney's fees would represent too much of the damages to be awarded. They basically said I'd have to go the small claims route, which wasn't workable for me because I no longer live in the same state as the house that I sold and my costs for getting back to file and go to court would have been too much to make it worthwhile.

[liv2ski]

My daughter has an impound account and the damn new servicer / lender that bought her loan in October 2019 never paid the Nov 2019 property taxes. With a $200 per month penalty the total due is now over $6k and the fuckers still have not paid it. I told her she is going to have to pay it to close her refinance and then take them to SCC to recoup the penalties charged. No more impound account for her.

[goldenboy]

^^ It's kind of crazy the way loans can be sold. Yeah, there are benefits, but if a shitty servicer buys your loan, it sucks.

[char_]

PDX data point for those selling. Just missed out on a house in SW that will ultimately sell for more than 62,000 over ask and I believe the buyer waived a bunch of contingencies. This is a 2 bed 1 bath that is 80 years old with an unfinished walkout basement.

[Supermoon]

PDX data point for those selling. Just missed out on a house in SW that will ultimately sell for more than 62,000 over ask and I believe the buyer waived a bunch of contingencies. This is a 2 bed 1 bath that is 80 years old with an unfinished walkout basement.

Closing today on my house in SE. got it for “only” 102% of asking. Lol. Lots of homes still going for 50-100k over asking in prime areas.

Just heard about a house in Oregon City that got 28 offers. Fucking bonkers.

Luckily PDX has gone from top 5 most desirable cities to like 80. Thanks Ted Wheeler.

[char_]

Closing today on my house in SE. got it for “only” 102% of asking. Lol. Lots of homes still going for 50-100k over asking in prime areas.

Just heard about a house in Oregon City that got 28 offers. Fucking bonkers.

Luckily PDX has gone from top 5 most desirable cities to like 80. Thanks Ted Wheeler.

There is just no inventory, it’s crazy and depressing.

[neufox47]

Finally have a closing date on my house sale and purchase. My house had a ton of activity but no offers for a while, then we got 4 offers in a week. The house we are buying needs a new roof and has been on the market for months, then suddenly got 3 offers at once. This is in The foothills of CA off 80.


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[MiddleOfNight]

^^ It's kind of crazy the way loans can be sold. Yeah, there are benefits, but if a shitty servicer buys your loan, it sucks.

Closed our refi end of Dec and still waiting to see who buys the loan. 1st payment due feb1, but radio silence ..

Following up on a post from several pages back about not receiving my escrow refund after selling my house.

It took more than 90 days and a CFPB complaint, but I did finally receive a check.

That's a bad story. Cause I'm waiting for my escrow refund as we speak. And don't get me started on the refund of 'cash to borrower' that still hasn't come.

[Kevo]

There is just no inventory, it’s crazy and depressing.

https://dsnews.com/daily-dose/01-22-...illion-in-2020

"The number of seriously delinquent homeowners in 2020 hit 2.6 million—according to Black Knight, that's a 250-plus% increase in 90-day default activity.

Foreclosures, on the other hand, are at all-time lows, thanks to moratoriums and forbearance plans meant to protect distressed homeowners from facing foreclosure in the wake of the pandemic. Foreclosure starts and sales (completions) fell to record lows. Starts fell by 67% from 2019 and the year’s 40,000 completions represented an annual decline of more than 70%."

We are screwing prospective buyers by propping up delinquent owners. It's fucking over an entire generation of would-be homeowners.

With interest rates being so low, institutional buyers (REITs, hedge funds, PE) will be using cheap debt to buy up tranches of foreclosed homes en masse directly from banks without inventory ever hitting the market.

Institutional buyers can go public (REITs, SPACs) or issue bonds (PE, hedge funds, etc) and have the Federal Reserve buy the bonds to fund the pillaging of single family home markets across the US. The average person is being sold into serfdom and will rent for life. It's so fucked.

Closed our refi end of Dec and still waiting to see who buys the loan. 1st payment due feb1, but radio silence ..



That's a bad story. Cause I'm waiting for my escrow refund as we speak. And don't get me started on the refund of 'cash to borrower' that still hasn't come.

Maybe go the CFPB route. Who knows, maybe they'll have more teeth under Biden.

[char_]

https://dsnews.com/daily-dose/01-22-...illion-in-2020

"The number of seriously delinquent homeowners in 2020 hit 2.6 million—according to Black Knight, that's a 250-plus% increase in 90-day default activity.

Foreclosures, on the other hand, are at all-time lows, thanks to moratoriums and forbearance plans meant to protect distressed homeowners from facing foreclosure in the wake of the pandemic. Foreclosure starts and sales (completions) fell to record lows. Starts fell by 67% from 2019 and the year’s 40,000 completions represented an annual decline of more than 70%."

We are screwing prospective buyers by propping up delinquent owners. It's fucking over an entire generation of would-be homeowners.

With interest rates being so low, institutional buyers (REITs, hedge funds, PE) will be using cheap debt to buy up tranches of foreclosed homes en masse directly from banks without inventory ever hitting the market.

Institutional buyers can go public (REITs, SPACs) or issue bonds (PE, hedge funds, etc) and have the Federal Reserve buy the bonds to fund the pillaging of single family home markets across the US. The average person is being sold into serfdom and will rent for life. It's so fucked.
.

Well, that makes me feel better. Jesus.

Can’t rent a comparable house for anything close to the escrow payment around here.

Any back up on the institutional buyer thing or is that speculation? Seems like that delinquency thing should incentivize owners to put houses on the market when the moratoriums lift so they can walk with something. Especially here with homes selling way above ask you would potentially be able to cover years of back payments to the bank.

Big issue according to agent here is that inventory is so low that sellers don’t have anywhere to move to or/and are less attractive buyers if they need to sell as a contingency and it is sort of feeding back on itself, coupled withCOVID and people moving in.

[AdironRider]

That feels like speculation to me. I saw a lot of similar articles 10-12 years ago during the crash about how hedge funds were just going to buy up foreclosures and fuck everyone, and a couple probably tried, then the reality of owning houses came to bear and they got rid of all of them. You can't just let a house sit, even being a landlord is relatively labor intensive, and institutional investors aren't in the business of hands on ownership.

Every homeowner knows how hard it is to say, get a plumber to show up. Some desk jockey in Manhattan isn't going to get Carlos, the plumber in Abilene to do him a favor.

[Supermoon]

Big issue according to agent here is that inventory is so low that sellers don’t have anywhere to move to or/and are less attractive buyers if they need to sell as a contingency and it is sort of feeding back on itself, coupled withCOVID and people moving in.

This has been my experience. There's nowhere to move, so if you sell your house where are you going to go? Everything on the market here is either new construction, rentals that the landlord is trying to exit, or houses that are so weird they are practically unlivable.

[Kevo]

Any back up on the institutional buyer thing or is that speculation? Seems like that delinquency thing should incentivize owners to put houses on the market when the moratoriums lift so they can walk with something. Especially here with homes selling way above ask you would potentially be able to cover years of back payments to the bank.

I was talking my childhood best friend today. He heads up a data science team at a multibillion-dollar mortgage originating and servicing banks in the US. They keep billions of the loans they originate on their books, sell some the Fannie/Freddie and others to bond investors.

He said that they have started to sell tranches of delinquent mortgages to wall street investors. Huge chunks, like tens to hundreds of millions of dollars in each tranche.

They have a team of staff economists and data scientists who are figuring out what to offload. The bank doesn't want to hold the bad debt, but there are REITs, hedge funds and PE companies are chomping at the bit to buy it from them.

If the foreclosure faucet gets turned on some more may end up in auctions, but a lot of it is now being sold before it ever gets to auction. The institutional investors buy the delinquent tranches with a plan to foreclose when they are legally able, then pick which properties they want to hold and rent out, then sell the leftovers to other institutional investors or let things go to auction.

[char_]

I was talking my childhood best friend today. He heads up a data science team at a multibillion-dollar mortgage originating and servicing banks in the US. They keep billions of the loans they originate on their books, sell some the Fannie/Freddie and others to bond investors.

He said that they have started to sell tranches of delinquent mortgages to wall street investors. Huge chunks, like tens to hundreds of millions of dollars in each tranche.

They have a team of staff economists and data scientists who are figuring out what to offload. The bank doesn't want to hold the bad debt, but there are REITs, hedge funds and PE companies are chomping at the bit to buy it from them.

If the foreclosure faucet gets turned on some more may end up in auctions, but a lot of it is now being sold before it ever gets to auction. The institutional investors buy the delinquent tranches with a plan to foreclose when they are legally able, then pick which properties they want to hold and rent out, then sell the leftovers to other institutional investors or let things go to auction.

I get that, I just don’t understand why a delinquent owner in my market wouldn’t just sell and walk away with their equity and instead wait to get foreclosed on.