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Originally posted by Krazzyfour

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Originally posted by investpro

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Originally posted by rahul_singh23


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Here is little business advice for RE experts: Start foreclosure tracking site of your local area and get the lead for prospective buyers. That is the RE future. We are going to see mass foreclosure.

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why will new foreclosures help prospective buyers?

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Foreclosure will help someone as Foreclosure bring prices down. The whole mess which is going on, can be seen and felt, has been creation of foreclsorue only. Thats means foreclosure will certainly help someone. And it is not going to help seller or banks or insurance companies otherwise the current mess would not have been created. Moreover it is basic prices are determined by supply and demand. More demand + less supply= price goes up,More supply +less demand = price will fall.

What foreclosure does brings adds more inventroy.

Hence only and only it is going to help buyer only.

Those who do not understand need to do their basic right.

Quite agree with Rahul.

Cheers!

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Here are 3 phases of RE crash. We are in somewhere in between phase 1 and 2. At this point we are not even thinking about phase 3.

1. Flippers/builders want to unload property at any cost. Over supply will cut the price. House ATM machine is not working.
2. When Seller wants to sell but can not sell that is going to happen soon because he owns more than house price is. Who is going to pay the difference? He may not able to keep that property too for any reason then only option is foreclosure. Is there any other option?
3. When interest rate going to hit higher and people are ready to re-finance the home which have lesser value than mortgage. They want to keep home but can not as they can not afford new payments as they already living paycheck to paycheck.


Some state allows Realtors take part in foreclosure bidding price and represent the client. Some province/state deal only with cash for foreclosure bidding and there is no mortgage available on those property.

We are going to hit like US. Vancouver will be hardest in North America as bad as AZ, Miami and San Diego. Some area of GTA may not hurt like western Canada.

I need to research about foreclosure RE laws and pros/cons in AB or Canada. I would appreciate if our CD realtors can help us to understand that better.

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Here’s the spin-free version: The BCREA expects the average home value in Greater Vancouver to decrease $7,147 a month, every month, in 2009.

http://vancouvercondo.info/2009/02/revised-downwards.html#comments

Calgary price are going down $4000/month.

Calgary's MLS sales take nosedive, down 50%.

http://www.calgaryherald.com/Homes/Calgary+sales+take+nosedive+down/1247916/story.html

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Originally posted by investpro

R U referring to the mess in the US? Right now there is no real mess in Canada seen on the grand scale as mortgage defaults are currently in the .2-.4% range..
It might increase in the future- the forecast is that it will- but even then it will be less than 1%, which many claim is miniscule.

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Originally posted by rahul_singh23


2. When Seller wants to sell but can not sell that is going to happen soon because he owns more than house price is. Who is going to pay the difference? He may not able to keep that property too for any reason then only option is foreclosure. Is there any other option?
3. When interest rate going to hit higher and people are ready to re-finance the home which have lesser value than mortgage. They want to keep home but can not as they can not afford new payments as they already living paycheck to paycheck.

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Originally posted by investpro


Nowadays lenders are afraid that if there is a foreclosure, then they will be left holding a baby worth $350,000 (just as an eg) with a $390,000 mortgage on it. This last scenario does not benefit a buyer.

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Originally posted by rahul_singh23

Here are 3 phases of RE crash. We are in somewhere in between phase 1 and 2. At this point we are not even thinking about phase 3.

1. Flippers/builders want to unload property at any cost. Over supply will cut the price. House ATM machine is not working.
2. When Seller wants to sell but can not sell that is going to happen soon because he owns more than house price is. Who is going to pay the difference? He may not able to keep that property too for any reason then only option is foreclosure. Is there any other option?
3. When interest rate going to hit higher and people are ready to re-finance the home which have lesser value than mortgage. They want to keep home but can not as they can not afford new payments as they already living paycheck to paycheck.


Some state allows Realtors take part in foreclosure bidding price and represent the client. Some province/state deal only with cash for foreclosure bidding and there is no mortgage available on those property.

We are going to hit like US. Vancouver will be hardest in North America as bad as AZ, Miami and San Diego. Some area of GTA may not hurt like western Canada.

I need to research about foreclosure RE laws and pros/cons in AB or Canada. I would appreciate if our CD realtors can help us to understand that better.

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Here’s the spin-free version: The BCREA expects the average home value in Greater Vancouver to decrease $7,147 a month, every month, in 2009.

http://vancouvercondo.info/2009/02/revised-downwards.html#comments

Calgary price are going down $4000/month.

Calgary's MLS sales take nosedive, down 50%.

http://www.calgaryherald.com/Homes/Calgary+sales+take+nosedive+down/1247916/story.html

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Originally posted by investpro

R U referring to the mess in the US? Right now there is no real mess in Canada seen on the grand scale as mortgage defaults are currently in the .2-.4% range..
It might increase in the future- the forecast is that it will- but even then it will be less than 1%, which many claim is miniscule.

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Originally posted by amit kalia

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Originally posted by Fido

There s a difference b/w guiding and misguiding . Show me one Realtor today who would advise his clients to buy after 6 months ... ' The right time is NOW ' is what they say knowing that prices are expected to fall in future ...

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See for yourself; My blog post dated Jan 14, 09:

http://condopundit.com/wordpress/?p=96

Since Nov 08 I have been asking my buyers to hold on, and have advised them to jump in when the right opportunity comes.

There are many honest and sincere Realtors out there. You need to find one!

Please don't lean towards bashing Realtors during these tough times. Most of the posts end up lamenting over Realtor commissions etc. This is not the time to corner Realtors, or for that matter any sales professionals, the market is tough.

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Originally posted by hchheda

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Originally posted by investpro


Nowadays lenders are afraid that if there is a foreclosure, then they will be left holding a baby worth $350,000 (just as an eg) with a $390,000 mortgage on it. This last scenario does not benefit a buyer.

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Hey Investpro,

I am under the impression that you buy the property at the current rate and whoever has taken the mortgage will have to chip in the difference. If he cant, then he can declare himself insolvent. Thats the lender's loss.

Please dont tell me this is not so...you might break many CDs hearts..

Hiren

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Nice post by investpro and agree that better to buy new house than used maal on same price. If you are looking house in rich mature neighborhood near downtown then it's not easy to find new house. Builders are in better position to give competition to used house market and that will bring price down. We have seen in US. Builders need cash desperately and if you have cash to pay then you may make 40% off price offer some day.

But foreclosure will bring price to bottom too. Bank does not want to hold property after sometime. He likes to go first with 100k off then no buyers bank may like to start bidding war starting from 150k for 400k home. Someone with good down payment and good credit history can snitch the deal.

Realtors can start own link to track foreclosure property that buyers might be interested in. I am not sure how can Realtors deal/work with foreclosure business? Does a Buyer need only cash? Does buyer can see home before offer on foreclosure property? One of my friends told me some buyers make 200k cash offer on 600k home in San Jose court auction. But buyers were tracking those homes from long time and they visited that home when it was open house or when bank was trying to load off.

Again I am not sure how this foreclosure business works in Canada or provinces. I hope some CD Realtor can educate us.

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Originally posted by investpro

That's the way I understand it. so why go for a foreclosure? If the lender is holding a property worth $350,000 with a mortgage of $390,000 on it why pay $350,000 for used maal when you can probably negotiate a better deal for new maal from a builder who wants to get rid of inventory.
A strong lender with holding power may not budge from the market price but a new builder who has borrowed money from the bank might just be more amenable to getting rid of stock at a lower price and give you a car in the bargain with the insurance paid for a year/ 2/3 depending on how good a negotiator you are plus barbeque plus extra freezer plus....
Many have taken advantage of builders with no holding power in these times.
A couple of years ago foreclosures/close to foreclosures usually meant a property worth $390,000 had a mortgage of $350,000 on it which you could take on and thus have $40,000 equity in it already. Then it was worth it monetary wise to get old maal.

Anyway, the reason I brought this up is that I read Rahul's post to mean that RE agents should track foreclosures and let prospective buyers know that such deals are coming up and from the looks of it he meant that foreclosures would occur due to people being unable to pay and that the foreclosures would be with under water mortgages- so why track them to offer them to clients?- they are not deals.
Maybe I read it wrong.

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