Real Estate and foreclosure thread

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Oh I'm sure it would become a bit of a pain and cost some money. I did listen to the county attorney talk about a car that was involved in a drug case. Some guy called and complained because the City had kept a kids car for like 5 years. Basically the owners have to come forth and work with the City and the Sheriff to get their stuff back. Of course they knew nothing about this car.
 
The number of big office landlords defaulting on their loans is on the rise, fresh evidence that more developers believe that remote and hybrid work habits have permanently impaired the office market.

 
Still building like crazy in Raleigh NC. Meanwhile...


 

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U.S. watchdog shutters mortgage outfit as high court case looms​

(Reuters) - The U.S. consumer financial watchdog agency on Monday said it had permanently barred California mortgage broker RMK Financial Corp. from the mortgage lending industry, accusing it of repeat violations against military personnel and their families.

The announcement came the same day the U.S. Supreme Court agreed to hear a case that the Biden administration has said threatens the very survival of the Consumer Financial Protection Bureau (CFPB), which was created nearly 12 years ago after the global financial crisis but has faced repeated attacks in the courts.

More:

 
TRENTON, N.J. – In an effort to protect New Jersey homeowners, the state Assembly advanced legislation cracking down on a predatory real estate practice that targets cash-strapped residents. At least 15 other states have taken legal or legislative action against a Florida-based company, MV Realty, for misleading homeowners about the terms of their long-term listing contracts.

 

 


Fewer new listings, fewer contracts/buyers.
 

Its starting to look and feel like the market is just going to freeze up. Also, some seem to think that Fannie Mae/GSE's are funneling REPOs to the big buyers. Trying to flip them themselves or giving some to Blackrock/Zillow etc.

Got a nastygram from an agent today. It was probably the biggest difference of opinion that I've seen yet. Little does he know or care that he's breaking state law.
 
This one's a bit different. It's an eviction gone wrong story out of Philly.

Linky stuff:

A landlord-tenant officer shot a woman in the head during an eviction process on Wednesday morning in Philadelphia's Fairmount neighborhood, officials said.

According to law enforcement officials, the incident occurred just after 9 a.m., when the rent server – an employee of the landlord tenant office – was serving eviction paperwork at the Girard Court Apartments along the 2100 block of N. College Avenue.

The landlord tenant office is a private entity that carries out court orders. The officer is not a servant of the City's municipal court. A spokesperson for the court explained that a landlord-tenant officer is instead paid by a landlord.


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Where I live evictions are carried out by uniformed constables and uniformed cops. And in all of the cases I've heard about, the peeps are given at least one chance to catch up (maybe more depending on circumstances), a good bit of time to get things together and split, and are long gone before the required date.
 
I had a rental house back in the day. Went good for a few years, then got some no payers in. Gave them chance after chance to pay what they owed, but no go. Finally became apparent they just were not gonna pay. House was a little 800 sf. millhouse with 2 window unit air conditioners. Caught them out of the house one morning and pulled both ac units. They didn't last long in Alabama in August, they were gone by that afternoon.
 
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Isn't Blackstone heavily invested in commercial real estate??? Shit meet fan........


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Blackstone is all over Real Estate. They mostly charge management fees to manage portfolios like this one. I went and looked up BREIT fund.

So it's not really a commercial focused fund but does have a lot of industrial.

 
Another walk and talk with Michael.

Real Estate Investors Starting To Get FORECLOSED ON​

Apr 15, 2023

21:59

A record $151.8 billion in U.S. mortgages backed by rental apartment buildings are set to expire this year, and $940.1 billion are set to expire over the next five years. This combined with multiple recent defaults on large commercial real estate, things are starting to get real.
 

 
So we may never see a decent number of REO's come on the market. The reason is Time. It is taking Longer and Longer for the process to complete.

Average time to foreclose increases annually

U.S. properties foreclosed in the first quarter of 2021 had been in the foreclosure process an average of 930 days, an 8% increase from the previous quarter and up 38% from a year ago.

States with the longest average time to foreclose in Q4 2020 were Hawaii (2,491 days); New York (1,529 days); Pennsylvania (1,502 days); Louisiana (1,476 days); and Florida (1,378 days).
 
So stop making CC payments before you apply for a mortgage.

Yea, its idiotic stuff like this that will have all kinds of weird undesired outcomes. Need a mortgage, tank your credit now. I mean, I guess expect a lot of unpaid credit cards in the near future.
 
Another walk & talk.

HIGH Insurance CRUSHING DREAMS Of Home Ownership​

May 7, 2023

20:08

Besides your mortgage payment, toda your homeowners insurance premium along with property taxes is likely going to be your LARGEST monthly expense related to housing and unfortunately, these 2 expenses of getting ridiculous over the last few years and most new home buyers cannot afford it.
 
Not news. Just a neat story with a few pics and a short vid.

Trainee realtor sold his first home in ’68. Now he’s selling it again for 100 times more​

Story by Talker News • Yesterday 9:23 AM

A realtor who made his first sale in 1968 is selling the same house again before he retires – for 100 times the original price.

Andrew Morris was aged 18 when he helped Michael and June Stafford buy their first home in Hereford, UK.

The couple paid £6,000 ($7,500 USD) for the four-bedroom detached Victorian property in the fashionable Broomy Hill area of the city.

More:

 
Man, Jermoe Powell is NOT going to be happy,. Certainly doesn't look like inflation is softening here Jerome. In Fact, that looks like it just started going vertical.
Stuff you need stuff you don't.
 
Still location dependent. Just outside of DC rents were about 3200 3 years ago. Now if your looking to get close to the area it's over 4k. Housing prices just keep going up as well and any quality house gets multiple offers over ask. Of course they are in somewhat of a bubble and insulated from the rest of society.
 
Another walk & talk.

Home Sellers FINALLY GIVING IN and SELLING FOR LESS​

May 28, 2023

23:59

Home sellers are starting to give in. According to Redfin Home sellers gave concessions to buyers in 42.9% of U.S. home sales during the three months ending April 30, up from 25.5% a year earlier. That’s just shy of a 45.6% record high hit in February. This is yet another sign, the housing market is starting to swing the other direction.
 
I've said for awhile that the retail foreclosure wave will be most seen in AUTOS this go round. Hence, this recent video with a significant increase in hells Fargo and Capital One car repos.


However, looking at this graph from a recent ZH article.

Look at this HUuuge Gap potential coming decline in home prices (far right black line). However, I think the dollar value dies before we ever really see that kind of decline.
 

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I was just listening to the radio today from the larger city local Sunday show. They sell some add time to a home show group. Basically just 2 Realtors talking about the market.

I found their conversation a bit interesting. A guy who talked a little more about the market statistics but the lady was more interesting to me. You can tell she is starting to feel a little stressed. Not enough to consider this bad or leaving but on the way. She throws out a couple bad advice doozies where they are just talking their book. Who cares about the interest rate? You are just gonna move again soon or you can just refi.

This is where people get stuck in Recency Bias. Sure, refi's were great as interest rates kept on a downward slope. But on the upside Refi's will be idiotic/non-exsistent.

Another interesting part of the states were sales had declined from over 6,000 during Covid YTD to like 4600 this year. They had something around 2500 homes on the market but like 56% of that was NEW construction. They also noted that new Construction was only like 23% of the Pending Sales. So this points me to the higher end slowing down (makes sense as higher rates affect them more).
 
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