I donât work in Georgia, so I am not too familiar. I know about that foreclosure market because I read an analyst report a few weeks back from the National Realtor Association. If you want to find foreclosures look for property wholesalers or investment clubs. Thatâs the easiest way (but be careful and use an attorney). We have a bunch here in FL. Here is a link for a few in FL. http://www.myehomefinder.com/Florida_Foreclosures.html Itâs my website that is not complete, so just use it as an example and get some info from the investment clubs. They might also offer some classes that may be worth while traveling for. In a few months I might have a list of those people in Georgia or have a few contacts that may be able to locate properties. . Your other option is to go to the court house and get the lis pending list. Knock on the ownerâs doors and try to cut them a deal! (most of these people are in denial and donât believe they can loose there house) Trying to go through the bank might be ok too, they also have lists. Lately banks have not been talking to individuals, but they might where you are. Itâs tough I have done this for a living before. As for buying at the auction it is very risky. You need to watch for liens and you almost never see the property inside. Some think like 80% of the properties donât make it to the auction because someone bails out the owner. You might put a lot of work in and never see the property get bid on. You also need to pay for it cash the same or next day. Another option is something I have never done but know people who do well doing it. Get some flyers made up and farm an area you want to live. If you do it long enough you will find someone who in over there head and will give away there house.
At the time of my earlier post I didn't know about this article (it just came out an hour ago) on Yahoo. I guess my feelings about Michigan and Georgia were correct. They were initially based on the amount of declination letters I've been sending to those states. http://news.yahoo.com/s/ap/20060619...LWduOGs0NUE;_ylu=X3oDMTA3bGI2aDNqBHNlYwM3NDk-
Geez - I didn't realize the ARM's could adjust the payment more than one time per year. According to the article payments are increasing as much as 50% in a short term. Scary. Glad I locked in at 30yrs in '04.
Wow I did not know it was already that bad in some of these areas! I guess it is another opportunity⦠If I lived in some of these places I would be buying these houses for pennies on the dollar. Not to flip them. But if I got them cheap enough and with the rates out pricing buyers I would make a killing on cash flow off of renting them out to people who have less then perfect credit!
ARM's can adjust as often as every month once they reach the anniversary date. What's sad is that so many people bought homes they can only afford because they're in an interest only ARM. And if they bought the house in an inflated market it's even worse. So basically you bought a $900k home that in 10yrs you'll $900k on...and you will probably be able to get $800k for it. So they've been paying $4,500 a month (not including taxes and insurance) for what may come down to just a lease.
Something I noticed in the article is ... only one of the people quoted bought their home with an ARM, the others all refinanced a home to an ARM. Not too bright refinancing to an ARM, IMHO.
I believe a 7 year ARM is fine, in retrospect I wish I had taken one over the 15 year we took out. Off memory I believe the stats are ppl move every 5 years or so, but these 1-3 year ARMS are just shiiaatt! Plain and simple. Unless you are a true experienced pro RE investor they shouldn't be allowed at all.
This maybe off topic, but a real estate agent sent this to my email address today, after I posted on Craigslist asking about a real estate bubble. I want to share it with you. : ------------------------------ I looked at the article you had posted on the internet about the real estate bubble. To be honest, I still think it is a great time to sell your home for the following reasons: Interest rates are historically low, which is graet for many buyers. Yes, the prices are a lot higher than before, but depending on the type of property you have (i.e. condo/townhome, single family home, multi-family,etc), will depend on the saleability of your home in this market. As the inventory increases, we are realizing a more normal market in which it takes 30 to 90 days to sell a home and the real estate agent to work harder. The past couple years, speculators, investors and new agents came into the industry because it was the investment to pursue. Everyone caught on the bandwagon. Believe it or not, now everyone is scared, but the more savvy investors understand that real estate is a macro economics issue. The prices of oil, the health of the economy domesitcally and globally, the cost of constructions, the number of permits being approved, everything affects real estate. On thing for sure, the number of people in California is increasing. Jobs is definitely the major indicator as well with wages. If you look at companies hiring, high tech and low tech, there are jobs out there, more than before, which is a good sign. You have to focus and see where there jobs are in which industry. The past couple years, a majority has been in real estate which more real estate agents, mortgage brokers, lenders, appraisers, construction workers, etc. I believe there will be a price correction of at least 10-15% delcine in prices, but depends on the city/area. When reading the articles, you have to look at it from a National standpoint as well as a Bay Area standpoint. Both are different markets, since the Bay Area is very uniqe. I believe and have seen homes in great turnkey move in conditions, priced well, the key is priced well are still selling. The key is to PRICE your home well and keep in mind since there are more inventory on the market, your agent has to know the competition and the pros/cons of each home in order to value your home correctly. There are many little tricks in selling your home and one trick that I use for sellers is not to reduce the price, but instead to give a credit back to the buyer for their loan points to reduce their mopnthly payments. For example: If you have a home that is $500K and a month goes by and it hasnât sold yet, the interest from buyer, agents, open houses is average, instead of dropping your price to $485K ,letâs say, give a $15K credit to the buyer to pay down points for the buyerâs mortgage. This $15K or a couple points can be a major factor to the buyer and reduce monthly payments by a couple hundred dollars. As a seller you still receive you $485K net price and when the home closes, you helped the neighborhood out by a $500K comparable instead of a $485K comparable. This make the neighborhood look like the values are stable and not declining, but most agents and realtors will reduce prices since that is a faster method.