Posted on 09/30/2009 10:45:33 PM PDT by TigerLikesRooster
Amherst Sees 7m Foreclosures Poised to Distress House Prices
By DIANA GOLOBAY
September 24, 2009 10:34 AM CST
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Recent analysis by the Amherst Securities Group indicates the housing industry will not only worsen as a delayed pipeline of foreclosed loans begins to liquidate, but that the Administration’s Making Home Affordable Modification Program (HAMP) will have no lasting effect on keeping delinquent loans current.
The early signs of stabilization seen among housing industry observers may soon recede as an overhang of the shadow inventory of foreclosures waits to enter the market.
The general outlook that the housing market has bottomed is “premature” optimism, according to analysis this week from Amherst.
“The single largest impediment to a recovery in the housing market is the large number of loans that are either in delinquent status or in foreclosure that are destined to liquidate,” analyst Laurie Goodman said in an insight report Wednesday.
(Excerpt) Read more at housingwire.com ...
A speculator has bought a small house on two acres adjoining my property. I met him two days ago and he told me he is asking $89000. for it. This was after he had told me that the company which had foreclosed on the place had asked $79000. and then cut it to $69000. and then cut it again and he, “made them an offer”. I gather that he paid no more than $50000. which is less than it sold for five or six years ago when it was bought by the owner who was foreclosed on.
Not only does he tell me he wants what sounds like at least a fifty percent profit but he proposes to cut off a small lot on either side of the house and asked me what I thought of that. I told him I didn’t think it was a very good idea. I suspect he may wind up taking a loss before all is said and done.
If he doesn’t turn it quickly then by late March he will be facing huge maintenance costs for the lot, a few weeks in the spring here without maintenance will make it look like a house abandoned in the woods.
US to Home Prices: Come on DOWN!!!
If there is a way to rid ourselves of these people, we should do so.
“you should do him a favor and graffiti the house.”
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Oh, no, I would never do that. I don’t resent the man for trying to make some money on the property. I just think he is misjudging things and I thought it a little odd that he told me how much the mortgage company cut their price before he made them an even lower offer and bought it and then turn around and tell me he is asking ten thousand more than the mortgage company wanted at the start. Why does he think he can do so much better than the mortgage company could do?
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