patrick.net

Hello Misc,

First, I would wonder why you are looking to buy. If it is for a place to live, I think the majority of the bubble has already unwound and even if it is not the absolute bottom you won't be hurt by buying now. If it is for an investment, I would say don't do it. Remember, house prices doubled during the bubble (at least in my area), and now they are just coming down to the same normal price (adjusted for inflation) that they have been for decades. As such, prices now are just average, and are not any big bargain (except when compared to the peak of the bubble).

I don't know anything about buying bank-owned homes, and all I know is that all the financial advice shows say that buying things with a friend is complicated and often doesn't end well.

mlisaj1111

mlisaj1111 says

Remember, house prices doubled during the bubble (at least in my area), and now they are just coming down to the same normal price (adjusted for inflation) that they have been for decades

It depends largely on an area you are talking about. I am looking at 94087 and houses are still listed at 2004-2005. so, we are not even back at normalcy. I agree we ran too high too fast, so return to the normalcy will be done largely after being skewed to the negative a little, like may be 97-98 prices before coming back to 99-00 price+inflation.

To answer your question misc, it again depends on the area. In certain areas, may be its already bottomed, but, if you are looking at the desirable areas of bay area, no, we are not even close.

I place an offer for a foreclosure. I can use my Relo benefits which pay off the closing fee and points (I still have a few months before the benefits expire). However, I got a counter offer that said that there are multi offers (2 other ones from my agent) for the house. Should I go into a bidding war for this house or just keep moving on? Is it possible that agents also fake bids on foreclosure? The house need some fixed up but is listed at about 40,000 lower than the Zestimate.

Also saw a comment posted on a website: " I bought a foreclosure to flip it. With only offers below what I paid, I now can't even find a renter to carry my payment. I may end-up being a foreclosure victim myself This sucks!" Maybe foreclosure isn't the best deal at all.

Personally I would be cautious about having a friend co-sign for anything. Money is an easy way to destroy friendships because between friends it is extremely hard to differentiate between what is business and what not. I personally have not seen a large enough price differences between foreclosure prices and home values in my area to find it worth it to use a friend for financing even if they are offering to help.
My 2 cents

d3 says

Personally I would be cautious about having a friend co-sign for anything. Money is an easy way to destroy friendships because between friends it is extremely hard to differentiate between what is business and what not. I personally have not seen a large enough price differences between foreclosure prices and home values in my area to find it worth it to use a friend for financing even if they are offering to help.
My 2 cents

That advice is worth more than 2 cents. Business is a wonderful way to ruin friendships.

New@SD says

I place an offer for a foreclosure. I can use my Relo benefits which pay off the closing fee and points (I still have a few months before the benefits expire). However, I got a counter offer that said that there are multi offers (2 other ones from my agent) for the house. Should I go into a bidding war for this house or just keep moving on? Is it possible that agents also fake bids on foreclosure? The house need some fixed up but is listed at about 40,000 lower than the Zestimate.
Also saw a comment posted on a website: ” I bought a foreclosure to flip it. With only offers below what I paid, I now can’t even find a renter to carry my payment. I may end-up being a foreclosure victim myself This sucks!” Maybe foreclosure isn’t the best deal at all.

why going into a bidding war when there are so many houses for sale?

is the agent faking the offers? you will never know

dont get attached to the house. use the rent/price ratio to make an offer.

New@SD says

I place an offer for a foreclosure. I can use my Relo benefits which pay off the closing fee and points (I still have a few months before the benefits expire). However, I got a counter offer that said that there are multi offers (2 other ones from my agent) for the house. Should I go into a bidding war for this house or just keep moving on? Is it possible that agents also fake bids on foreclosure? The house need some fixed up but is listed at about 40,000 lower than the Zestimate.
Also saw a comment posted on a website: ” I bought a foreclosure to flip it. With only offers below what I paid, I now can’t even find a renter to carry my payment. I may end-up being a foreclosure victim myself This sucks!” Maybe foreclosure isn’t the best deal at all.

If I were you, stick it to the realtor and tell him that you are not interested in the house/bidding war. One offer and final price, no negotitation, period.

elliemae says

d3 says

Personally I would be cautious about having a friend co-sign for anything. Money is an easy way to destroy friendships because between friends it is extremely hard to differentiate between what is business and what not. I personally have not seen a large enough price differences between foreclosure prices and home values in my area to find it worth it to use a friend for financing even if they are offering to help.

My 2 cents

That advice is worth more than 2 cents. Business is a wonderful way to ruin friendships.

Amen!!

I have a friend who with her husband co-signed on a $400K house, despite my warning her against it. The daughter decided five years in that she just wanted to move in with her (soon to be) ex and walked away. Mom and dad-in-law now have to sell house, which fortunately is easy where they live (not CA). Moral: NEVER EVER EVER CO SIGN FOR ANYONE. These arrangements almost always turn out badly.