Read this and Get Mad
Just when you think you’ve heard enough about corruption in the banking, mortgage and real estate fields, along comes this article to make you even more mad. From my perspective, here is the latest in adding insult to injury. The bank will foreclose on many homes, put them into a group and sell them to an investor. The group of homes will contain property that would be desirable to an owner occupant.
Owner Occupants are not typically able to purchase homes at the foreclosure action, the Trustee Sale in our state, because they must have all cash, in hand, to purchase the home, often times, offered at well below market value price. So, this leaves those purchases only available to investors at prices that allow those investors to handle the legal issues and repair issues, remarket the home in a condition that a typical owner occupant can procure financing, and the investor makes money too.
In this proposed bulk sale, there were be an even smaller pool of investors who can afford to purchase a bulk sale, a much smaller number of investors, given that the top selling homes at the aforementioned auctions are actually in the under 300,000 price range because small time investors can’t risk putting too much into one property. So the sale price of the bulk sale will be even lower in comparison to market value of the properties and since the article doesn’t say anything about being able to resale the property, the more restrictions there are, the more the pool of investors shrinks. However, I speculate that the bulk sales would not be planned if there wasn’t already an investment company who came to their top exec pals at Fannie and Freddie. This transaction of bulk selling homes cheaply to investors who are going to own and manage rentals is not some big win/win as it is being purported in the article.
Aside from the owner occupants who are losing these homes and would LOVE a loan modification, some deserving and some not, but that is a topic for another article, there are ready willing and able buyers who want to be owner occupants who will pay considerably more for these properties if sold individually, as we have been doing for many years now, and would likely make better neighbors than a landlord. Reselling these homes to new owner occupants was sometimes, occasionally, the silver lining to watching the prior homeowners loose the homes to foreclosures. It at least allows for the presumed shift of wealth from one household to another but this looks like another way for a corporation to get rich and increase the pool of renters, while diminishing the likelihood of homeownership for some.
Last month, I wrote an offer on a property with 5 offers. Last weekend, another with 3 offers. Last night one with 3 offers. All in the under 400,000 price range. There are buyers who want and can afford homeownership and it makes sense to purchase vs rent in this price segment in our area. We don’t need this prospective inventory converted into rentals. What do you think?
You Can read the original article here
View Foreclosure Homes in Thousand Oaks, Moorpark and Simi Valley
Showing properties
1 - 5 of 22.
See more Moorpark Bankowned.
(all data current as of
5/20/2012)
-
$300,000 : 4359 Robinwood Lane, Moorpark3 beds, 1 full, 1 part baths
-
$319,000 : 477 North Cornett Avenue, Moorpark3 beds, 1 full, 1 part baths
-
$198,500 : 15258 Campus Park Drive #F, Moorpark1 bed, 1 full bath
-
$395,000 : 4367 Laurelhurst Road, Moorpark3 beds, 2 full baths
-
$354,000 : 6835 Chapman Place, Moorpark3 beds, 2 full baths
Listing information deemed reliable but not guaranteed. Read full disclaimer.
We Are Social.
Connect with me through Facebook, Twitter and other social media.
or you can Email Me
Equal Housing Opportunity. Equal Opportunity Employer.