U.S. foreclosure frenzy


dancing-loon
#1
Investors on the prowl amid U.S. foreclosure frenzy

Orlando has always been known for its theme parks but some tourists are now heading to the Sunshine State for a different type of excitement.

For only $45, bargain hunters can sign up for the Foreclosure Bus Tour and spend six hours looking at homes with a real estate agent.

The tours, which are also taking place in other parts of the U.S., come as more and more Americans lose their homes to foreclosure.

In February alone, 223,651 U.S. homes had foreclosure filings -- default notices, auction sale notices and bank repossessions.

The highest foreclosure rates were in Nevada, California and Florida.
"In Nevada and Florida you had a lot of speculative buying going on and a lot of overbuilding of condo units that just haven't turned out to be good investments," ...

In California and Arizona, affordability problems contributed to the high foreclosure rates.
"Prices escalated too rapidly, people overextended themselves to get into these houses. They got into them with risky financing and their loans have gone bad."

In Michigan and Ohio most notably unemployment have contributed to high foreclosure rates.
"Foreclosure properties are selling for significantly less than they did just a couple of years ago".

Ralph Roberts, author of "Foreclosure Investing For Dummies," told CTV.ca that foreclosure investing is one of the hottest segments in real estate sales in the U.S.

"Foreclosures are hitting affordable homes, foreclosures are hitting upper-end homes, foreclosures are hitting middle-America homes -- they're hitting everything."

http://news.sympatico.msn.ctv.ca/Top...sure_US_080327
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If you read the whole article, you will find at the bottom some price examples, ....still to high for me!!

I wonder how things are in Canada.
Apparently, there are more than 220 new foreclosures being registered in Calgary and Edmonton….. each and every month!
I'm not sure, if that is the normal trend.
 
MikeyDB
#2
It's evolution Dancing_Loon..

The weak will be made victims to the strong and the species as a whole will grow stronger.

This is simply another example of how the evolution of mankind came to a stop a very long time ago.
 
Kreskin
#3
Watch for the coming wave of foreclosure informercials, soon to replace the ones saying "take advantage of the hot real estate market..it's never been a better time to invest in real estate".
 
MikeyDB
#4
Kreskin

It's too bad that "truth in advertising" is such a hollow promise! People could have been far happier and the entire social/political dynamic much quieter if only we'd exercise this tenet to its fullest.

"Hire a Hispanic"....make sure they're an illegal and watch your bottom line rise as your employee wage expenses fall!

"Hire an African American"....maybe you won't get a lot of work out of them but you'll have instantaneous access to quality herb..

"Hire a woman" ...You can pay them less and they're much nicer to look at and have around than hairy Hispanics or fat African Americans......
 
Kreskin
#5
Quote: Originally Posted by MikeyDB View Post

Kreskin

It's too bad that "truth in advertising" is such a hollow promise! People could have been far happier and the entire social/political dynamic much quieter if only we'd exercise this tenet to its fullest.

"Hire a Hispanic"....make sure they're an illegal and watch your bottom line rise as your employee wage expenses fall!

"Hire an African American"....maybe you won't get a lot of work out of them but you'll have instantaneous access to quality herb..

"Hire a woman" ...You can pay them less and they're much nicer to look at and have around than hairy Hispanics or fat African Americans......

Those are good Mikey. I would also add:

"Help others profit!"...'investors will make a ton of money if you buy their high priced assets - act now!', or, 'sell all of your assets at the lowest possible price so people like Warren Buffet can substantially increase their wealth'.
 
#juan
No Party Affiliation
#6
Can we blame Bush?........
 
Kreskin
#7
In some ways, yes.
 
MikeyDB
#8
Juan

Why would we blame Bush! The man has a degree from Haaaaaavard.......

If anyone knows how to run an economy surely it's a Haaaaaaavard grad!

 
Toro
#9
I'm hoping to buy a condo by the ocean out of foreclosure.

But this has some time to play out, so there is no rush.
 
MikeyDB
#10
Hey Toro...

Buy some land in Nevada....the shore line will get to you eventually.....
 
Toro
#11
Quote: Originally Posted by Kreskin View Post

In some ways, yes.

In minor ways, but this would have happened no matter who was the President.

The fault lies at the feet of the Federal Reserve. Plus, there were other factors having nothing to do with government.
 
Toro
#12
Quote: Originally Posted by MikeyDB View Post

Hey Toro...

Buy some land in Nevada....the shore line will get to you eventually.....

Yeah, I'm thinking about buying some swampland down by the Everglades that is worth nothing now. But with global warming pushing up sea levels, I figure it will be oceanfront some time!



Now excuse me, I have to go turn on my car for 10 hours.
 
MikeyDB
#13
Toro

Great stuff!

Waterskiing to work could be the next big transportation industry... Git yerself a parachute an some string...a wide slightly curved board....there ya go!
 
#juan
No Party Affiliation
#14
Profiting from a foreclosure feels a bit like a vulture feeding on carrion.
 
Zan
Green
#15
yes Juan, I think that's how the rich get richer, and the rest of us.... don't.
 
Avro
No Party Affiliation
#16
Quote: Originally Posted by Zan View Post

yes Juan, I think that's how the rich get richer, and the rest of us.... don't.

I have built over half my assets in a similar way, buying homes that people can no longer afford.

It's smart buisness if you ask me.
 
Zan
Green
#17
Don't mind me Avro - a bit of sour grapes is all - and I do feel sorry for people who find themselves on the sh!tty end of that stick - I'm a paycheck to paycheck survivor - one really rough stretch and that could be my wee home adding to your coffers.

I imagine there's people out there who made foolish decision, buying homes that made them house-poor and unable to withstand changes in the economy etc., perhaps they should have known better, but still it's a horrible way to learn that lesson.
 
#juan
No Party Affiliation
#18
Quote: Originally Posted by Zan View Post

Don't mind me Avro - a bit of sour grapes is all - and I do feel sorry for people who find themselves on the sh!tty end of that stick - I'm a paycheck to paycheck survivor - one really rough stretch and that could be my wee home adding to your coffers.

I imagine there's people out there who made foolish decision, buying homes that made them house-poor and unable to withstand changes in the economy etc., perhaps they should have known better, but still it's a horrible way to learn that lesson.

Hi Zan
People are at a disadvantage in these days of low inflation. When we bought our first house we could just barely pay the mortgage and eat. Within five years that house was worth almost five times what we paid for it. High inflation drove up the price of houses and drove up wages and salaries. We had our house and quite enjoyed watching inflation raise our income and our standard of living.
 
Toro
#19
Quote: Originally Posted by Avro View Post

I have built over half my assets in a similar way, buying homes that people can no longer afford.

It's smart buisness if you ask me.

I agree. And it helps the economy because it establishes a clearing price in which to work down the excess inventory.
 
Kreskin
#20
Quote: Originally Posted by Toro View Post

In minor ways, but this would have happened no matter who was the President.

The fault lies at the feet of the Federal Reserve. Plus, there were other factors having nothing to do with government.

Good marketing helps drive people to do nutty things too. On Team1040 sports radio in BC these days is an ad that says "Kelowna is the hottest real estate market in Canada. Get in on this secure investment with a guaranteed rate of return of 15%." Where have we heard that before? Reminds me of the hype that Eron made in the 90's before it imploded.
 
Avro
No Party Affiliation
#21
Quote: Originally Posted by Toro View Post

I agree. And it helps the economy because it establishes a clearing price in which to work down the excess inventory.

What if nobody bought them.

Talk about disaster.
 
Imp
#22
Quote: Originally Posted by Avro View Post

I have built over half my assets in a similar way, buying homes that people can no longer afford.

It's smart buisness if you ask me.

Yes it is. It's all about watching the market and going for it when it's time...and never rushing into things.

It's a great way to make a living.
 
Toro
#23
Quote: Originally Posted by Kreskin View Post

Good marketing helps drive people to do nutty things too. On Team1040 sports radio in BC these days is an ad that says "Kelowna is the hottest real estate market in Canada. Get in on this secure investment with a guaranteed rate of return of 15%." Where have we heard that before? Reminds me of the hype that Eron made in the 90's before it imploded.

Oh, yeah. For sure.

People just can't help themselves.
 
Avro
No Party Affiliation
#24
Quote: Originally Posted by Toro View Post

Oh, yeah. For sure.

People just can't help themselves.


Not sure I should feel ashamed for being smart.

For a Janitor by trade my net worth is sort of sick.
 
Kreskin
#25
Quote: Originally Posted by Avro View Post

Not sure I should feel ashamed for being smart.

For a Janitor by trade my net worth is sort of sick.

I don't think anyone was referring to you Avro. It's great you've done well.

There is a reason why the S&P500 returned approximately an annual average of 11 or 12 % in the 90's through to '05-ish and yet the average investor recieved about 4%. Chasing yesterday's winners and getting caught in hype is the mistake the average person makes. That's how the big guys make their money. As Warren Buffett said, it's fear and greed. "When people are greedy I get fearful. When people are fearful I get greedy". Right now in Canada there is a lot of hype in real estate and fear of most other assets. We'll see how it plays out over the next few years.
 
Avro
No Party Affiliation
#26
Quote: Originally Posted by Kreskin View Post

I don't think anyone was referring to you Avro. It's great you've done well.

There is a reason why the S&P500 returned approximately an annual average of 11 or 12 % in the 90's through to '05-ish and yet the average investor recieved about 4%. Chasing yesterday's winners and getting caught in hype is the mistake the average person makes. That's how the big guys make their money. As Warren Buffett said, it's fear and greed. "When people are greedy I get fearful. When people are fearful I get greedy". Right now in Canada there is a lot of hype in real estate and fear of most other assets. We'll see how it plays out over the next few years.


On a personal level I look forward to the next year or two.

I'll be poaching some cottages soon.

Pisses me off because I just bought mine in a sellers market.
 
Toro
#27
Quote: Originally Posted by Avro View Post

Not sure I should feel ashamed for being smart.

For a Janitor by trade my net worth is sort of sick.

Good for you for seeing a bargain.

I like to hear when people make shrewd investments.
 
dancing-loon
#28
Quote: Originally Posted by Toro View Post

Good for you for seeing a bargain.

I like to hear when people make shrewd investments.

As long as you don't over-extend yourself. Read this article in The New York Times:
Quote:

Homeowners’ Pleas Put G.O.P. Lawmakers in Bind on Defaults

Published: March 30, 2008

HIALEAH, Fla.In Los Portales, a pink and terra cotta condominium complex in this city of hard-striving Hispanic immigrants and often harder luck, many of Juan Carpio’s neighbors are losing their homes.


But as Congress returns from a two-week recess on Monday for a furious debate over whether to help homeowners on the brink of default, Mr. Diaz-Balart is caught in a crunch of his own.
On one side, Democrats emboldened by the Federal Reserve’s intervention in the collapse of Bear Stearns are demanding help for “everyday Americans.” On the other, Republicans including Senator John McCain, the party’s presumptive nominee, are urging restraint, reluctant to commit taxpayer funds to what they say is simply a bailout for greedy lenders and reckless buyers.

http://www.nytimes.com/2008/03/30/wa...hp&oref=slogin
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Instead of denying help clear across the board, they could examine case by case and help the hard-working and hard-hit immigrants to retain their home. It's traumatic for them and their children! Where would they go? Into public housing? If they can't pay the mortgage, they can't pay the high rent either.
The government wouldn't bail them out for nothing - they have to pay the government back eventually, or how does this bail-out work?
 
MikeyDB
#29
Do those who've been successful in making investment choices owe nothing more than their taxes and fees to the society in which their opportunities have been realized?

Because the wealthy pay more taxes and facilitate money-flow by distributing their money through purchasing more than those who don't enjoy greater wealth would, isn't it far more important in terms of maintaining the climate or "supporting the system" for the wealthy to be as equally shrewd when it comes to influencing social institutions and government?

Or perhaps it's little-fish-big-fish....

The wealtlhy get eaten by the extravagantly wealthy and the whole social strata simply keeps slipping downward.....

When Enron and Prudential and Bear Stearns and and and are revealed as being mismanaged with CEOs earning multi-million dollar salaries while their businesses go broke...isn't the real message that "Hey we don't care about anyone but ourselves and if you lose your home and lose your pension and lose your future...well them's just tough nuugies...."

On the other hand of course the vanishing middle class are trying their damndest to emulate the wealthy because after all perception is everything...and the poor are of course always being the way the poor have been...stooping to theft and chicanery while using drugs to avoid reality....

Oh wait now....I've stumbled on a loop...

Multi-millionaire rock stars and fashion models appear to have little qualms about dumping on everyone and anyone and heaven only knows...drugs are popular....

So maybe the drug abusing cheating poor are in many respects the higher target the wealthy are shooting for...

Strange world.....
 
MikeyDB
#30
Dancing_Loon

Vultures and hyenas have been a part of human commerce forever. One man's shrewdness is another mans con game.....

What's happened and what's happening as we speak is that we are witnessing the outcomes of "shrewdness" as exercised by the wealthy for generations. A poor man nudging someone out of place in the line-up at the food bank doesn't make international headlines, but the corruption of the "backbone of America" as practiced by the wealthy does repeatedly.

We owe a great deal to the wealthy.......
 

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