Why do I have a bad feeling about this proposed legislation in Washington:
Bottom Line - White House wants to convert foreclosed houses to rentals

I doubt that small time investors will benefit from this govberment sponsored program. Most likely it will be the guys on Wall Street who have created this mess that stand to benefit the most from the bulk purchases of the properties that now sit vacant in every neighborhood in America. I speculate that if this comes it will be very bad for the rental market and small time investors like myself and many others on here.

__________________
1987 Mercedes 300SDL; SOLD
1985 Mercedes 300D; SOLD
2006 Honda Pilot - wife's ride; 122K;
1995 Toyota Land Cruiser - 3X locked; 182K

Probably take another year to get into full swing -- in the mean time, buy, buy, buy. Planning to fly out to San Diego later this month to look at some properties. Quite a few things going at auction at prices that should fetch an 8%+ cap rate if you know where to look.

Basically, I want to get two or three rentals nailed down before the free money gets into the game. This being said, don't know if this will be happening in all areas, or just areas where they can't sell homes otherwise. And I've heard of this happening before, well before the program was even mentioned ...

http://m.jacksonville.com/business/2011-06-19/story/houses-200-foreclosure-bargain-not-you

Range Fuels just sold at foreclosure for 5.1 million. Last I heard the loan was for 70+million. Heck it was probably worth that much in scrap metal.

Seems there is a company from New Zealand that is going to try to run it and make aviation fuel using wood chips.

Good time to be buying if you are interested in accumulating property.

__________________
Jim

Cool, doubt anything will come of it though. The government is inept at this kind of thing.

OTOH I'll buy whatever Uncle Sam has in CT that's not in Bridgeport, for .10 cents on the dollar.

__________________
1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Is this a precursor to getting the banks further clear of their liabilities? If taxpayers buy delinquient properties from them it sure sounds to me like it is.

Also, a lot of the foreclosure inventory is owned by private banks as opposed to Fannie Mae and friends -- they don't really want to take a huge haircut on selling it.

You'll be able to buy only if you can buy homes in bundles of 1000 or more... I doubt that you can pick and choose small lots, and then only the big companies can play....

__________________
1987 Mercedes 300SDL; SOLD
1985 Mercedes 300D; SOLD
2006 Honda Pilot - wife's ride; 122K;
1995 Toyota Land Cruiser - 3X locked; 182K

It will go over just about as well as cash for clunkers. Big success in getting foreclosed homes off the books but tons of negative repercussions.

__________________
1985 500SL Euro w/ AMG bits 130k
1984 300SD Turbodiesel 192k
1980 240D Stick China 188k
2001 CLK55 AMG 101k
2007 S600 Biturbo 149k Overheated Project, IT'S ALIVE!!!

This doesn't affect private bank owned inventory, only government corporation inventory (Fannie, Freddie, maybe FHFA).

What other option they have? Siting on this properties for years to come or cash out whatever they can and move on?
It is tough out there. If you are owner you are not losing money till you sell, If you could stay put during the storm you will be good in a long run, but the banks need cash flow more than anything, so not much choices for them.

__________________
http://i680.photobucket.com/albums/v...7/scotflag.gif http://i680.photobucket.com/albums/v.../scot2flag.gif

"If women are so bloody perfect at multitasking how come they can't have a headache and sex at the same time?"
Billy Connolly

Dump them on the private market at 50% of value rather than selling them in bulk for 10%.

PS - I see nothing wrong with dropping housing prices due to this. I own somewhere where there are next to no foreclosures. As to the pigeons who bought during the bubble, they're getting what's coming to them and good riddance.

Oh YES PLEASE I will make the most of it if they do so.

__________________
http://i680.photobucket.com/albums/v...7/scotflag.gif http://i680.photobucket.com/albums/v.../scot2flag.gif

"If women are so bloody perfect at multitasking how come they can't have a headache and sex at the same time?"
Billy Connolly

As will I.

If they want to move them fast, how about auctions? As is, no reserve, and dump them. They'd get more money than this sell in bulk idea, and it would help the local economy more than large companies and the 1%.

They could be rid of all their properties inside a year. Get pre-approved and ride around in a bus with an auctioneer who gets 1% on 12 properties a day. Promote the crap out of it like cash for clunkers.

__________________
1985 500SL Euro w/ AMG bits 130k
1984 300SD Turbodiesel 192k
1980 240D Stick China 188k
2001 CLK55 AMG 101k
2007 S600 Biturbo 149k Overheated Project, IT'S ALIVE!!!

some friends of ours from s. cal said they had heard that some banks that would usually foreclose on properties were not doing it for fear of when the house sat empty with a sign on the front yard it would be looted to the bare studs. having someone in the house and not paying was money ahead in the long run.