&%$#(%&@%!!! HUD (Houseing Urban Development)

[kranky]

You'll see a lot of people in meltdown mode as this whole real estate thing unfolds. They've found some agents told buyers to get a "stated income" loan (no proof of income required) because they couldn't qualify with their actual income. The agents were telling them what to put down for annual income so it would get past the underwriters. If the buyer didn't want to, the agent just said "OK, fine. You won't get the house, someone else will, and you'll end up paying more later." And some people have been told not to worry about interest rates going up - if rates go up 2%, their payment will only go up 2%, nothing to worry about.

Some people are going to be financially ruined (remember, the new bankruptcy law in effect and its effect on mortgages!) for life because they signed things they didn't understand.

 

[daveymark]

Does this mean the bubble might no longer be expandding?

 

[daveymark]

Originally posted by: Armitage
Is this how the bubble starts to pop?

yep, I'm depending on the bubble to pop so I can finally make some real estate investments. I'm giving it an other year or two.

 

[HomeBrewerDude]

1) if these are existing homes, then they probably need a lot of updating to get them to average value
2) the unoccupied homes will drag your values down whether or not HUD lists them

Its better to sell them and get good owners in them.

 

[Linflas]

Originally posted by: daveymark

Originally posted by: Armitage
Is this how the bubble starts to pop?

yep, I'm depending on the bubble to pop so I can finally make some real estate investments. I'm giving it an other year or two.

Housing starts were at a 33 year high in January. So much for the "bubble bursting".

 

[Armitage]

Originally posted by: Linflas

Originally posted by: daveymark

Originally posted by: Armitage
Is this how the bubble starts to pop?

yep, I'm depending on the bubble to pop so I can finally make some real estate investments. I'm giving it an other year or two.

Housing starts were at a 33 year high in January. So much for the "bubble bursting".

Only if they sell.
Reardless, I don't think it will go out with a bang - in most markets at least. But I don't think the current situation is sustainable either.

 

[CPA]

Originally posted by: Aimster

Originally posted by: Slew Foot
check out zillow.com and see what it thinks your homes are worth.

If housees are being bid on, then it shoudl reach a good value.

That site is crap

agreed.

 

[ijester]

20K below market is not that much. If you tried to buy them and sell them for a profit, the buying and selling costs would eat most of that up. Do the houses need work? Most HUD homes sold are either poorly maintained, or somewhat beat up. Either way, that should not affect what your house would appraise for as much as you might worry it would.

 

[AccruedExpenditure]

HOUSEING?

Does.. noot.

*head explodes*

 

[Noirish]

i'm still waiting for the bubble.

 

[Slacker]

A while ago someone told someone else that there was a "Bubble" in the real estate pricing scenario, since then everyone has assigned their own definition to the term, that being the point at which the prices would magically drop to what they considered reasonable :roll: It aint gonna happen

http://www.legalwiz.com/articles/bubble-rightframe.htm

 

[alent1234]

Originally posted by: Citrix
F*cking assholes! :| on Friday HUD put 3 houses in my neighborhood up for sale, one of them happens to be next door to me. So i called and asked what the asking price is and its 20K below what my neighbor paid for it 5 years ago. The same goes for the other 2 houses.

I know to buy a HUD home you have to bid on it, but priced that low there is no way they are going to sell for what my house and my other neigbors houses are appraised for.

If this happens me and my neighbors are going to be seriously upside down on our home mortage. Im so fricken pissed. :| :| :|

why did HUD have the homes? did the people foreclose because they had ARM loans? if more of your neighbors have ARM loans this will happen again.

are you around denver somewhere?

 

[BlackOmen]

We put a bid in on a HUD foreclosure home last year. My understanding of the process is that they list it significantly below market value. However, highest bid wins. Likewise, HUD holds all the cards and can throw out bids if a bidder isn't a "cash buyer" (ie not pre approved).

Example: The place we bid on was listed at 86,000. Homes in this neighborhood were selling for 120,000 - 150,000. This place in particular went for ~140,000.

Likewise, just because your neighbors property is listed at 20k below the expected value of yours, doesn't mean yours has depreciated 20k. Reason #1 being that HUD is involved. Listing price means squat when HUD is involved. Reason #2: you havn't seen the appraisal. What is the average selling price of homes in your neighborhood in the last six months? A year? You're trying to establish a trend with no data.

The neighborhood we were looking in had tons of foreclosed homes because people bought based on interest only balloon loans that they couldn't pay when the time came. If these houses are like the one I bid on, sit back, chill out, and have a beer while you watch people fall over each other to get these places.

Charlie

 

[drnickriviera]

When you pull comparables for your neighborhood, those houses will be listed as a foreclosure. So all is not lost. There are still plenty of moron investors that could jack up the price.

HUD is HUD, there's no understanding them. I've seen junker houses where HUD was asking full market value.

After Katrina, HUD pulled all the Mississippi foreclusures off the market to put the hurrican victims in them. Problem is some of the houses are in such bad shape that no one could live in them. HUD still sits on them doing nothing.