If you had $50,000 to spend, but you had 45 days to pay it back, what would you do?

Banks aren't stupid. (Well they have been but are stopping) They won't be doing those deals at the figures you quoted, unless there is something underhand going on at some stage. Banks need to put the house on the open market for a set period of time to recoup as much as possible.

If the house is "worth" 150k (ie someone is willing to pay 150k) they wouldn't (or shouldn't) sell it for 40k, especially if there is 55k still owing on it.

Houses are worth what someone is willing to pay for them on an open market.

Why would they then want to loan you 120k on something they have sold you for 40k, if they have tried to sell it on the open market, but failed.

You say you know people who do this, that's great. I don't really care to be honest.

I do know it's this kind of liar financing and cheap credit that has got the whole market screwed.

I'm not a realtor.

Banks don't make money by the act of loaning cheap money, there needs to be the money actually coming back to them in either repayment, or by them repossessing the asset to cover what has been lent. Their write downs have shown that this hasn't been done in the past very well, they *should* have got a bit more wise to this basic understanding.

Anyway I'm not going to go on about this, each to their own. I don't "need to go away and learn", I am perfectly happy knowing what I know and keeping out of buying depreciating assets during downward cycles in the market. Long term common sense and understanding of economics and human nature might not make the fastest buck, but will always make a honest buck. I don't think this mentally is being "out of my mind". I much prefer the notion of common sense and the simple idea of doing something to be proud of in order to make a living.


By the way, capitalizing words doesn't mean they are more true.

Anyway... good luck
Lard

 

once again you are clueless

this is not CONVENTIONAL

1) the house is in foreclosure...banks have to set aside the money owed separately for that....they WANT TO GET RID OF A FORECLOSED PROPERTY

they have that property ont he books...its not the SAME AS HAVING A LOAN ON THE BOOKS

2) banks inDEED want to loan out money....they just don't want to own property

nothing shady about it.... giving money on loan at interest on an asset worth more than the loan is what 90% of MORTGAGES ARE

you havent done it, you don't know about it...your not in the industry...

so all you know is what you read in the newspaper???

The key in my scenario is foreclosuers...which you OBVIOUSLY have no clue on how it affects the bank and how desparate they are to get rid of them at any cost.

again, we are talking apples to oranges...the fact you are not willing to go talk to EXPERTS because you "know so much"



shows its pointless to even discuss this with you, because facts are irrelevant to you when compared to your own opinion.

 

By the way...stringing together a bunch of technical terms doesn't make your point true.


FOR THOSE WHO ARE confused... read this blog from an average joe, who I think does a good laymans term of just a FEW of the reasons why banks HATE to have property

http://lawlegislationandlunacy.blogspot.com/2008/05/why-banks-hate-foreclosures.html

He doesnt talk about regulatory issues they face, like the fact they have to maintain a balance of how much cash they have versus how much property owned...but lard doesnt really know about finance...he just knows "common sense"

which only gets you common dollars by the way.

and will HAPPILY SELL IT TO YOU BELOW VALUE!

in a booming market...sure, banks might try to sell for the value of the home...when they have 1000 new homes this month alone....trust they want to get rid of them quickly.

 

Yes, obviously, but in your instance you are saying that a bank would happily sell a house "worth" 150k and with 55k still owing the bank for 40k. The figures are unrealistic. There is no way a good bank would write off 15k, as they would take a view that they would get a buyer at 55k or more.

Lard does know about finance, sorry. But that link just went into the reasons for the discount being that the houses were in bad conditions. This is an understandable discount.

They do. That is why they will sell at good prices, in order to get as much of their money out. But not at unrealistic prices.

When they are taking on 1000 a month, they also know that the market can only go one way, making their lending terms and valuations even stricter.

But maybe you are right and you know of these banks...however, these banks won't be around for too long though if they run their business like this.

Anyway I'm having fun. There's nothing like a pointless internet discussion...especially when you need to get your post count up to 25.

 

two words

SHORT SALE (certain realtors SPECIALIZE in this) Look it up

ONE acronymn

REO again...look it up

now either you "get it" or you "don't"

well I guess Bank of America wont be around long

It is amazing to me how adamantly a person will spew out DISINFORMATION to the public..when they are clueless

For those INTERESTED IN WHAT "I" said

visit this site:

http://bankofamerica.reo.com/

Also CALL ANY OF THESE NUMBERS:

Ameriquest Mortgage
800-211-6926

Citi Mortgage Inc.
636-256-5088

Bank of America (BOA)
716-635-2982
Citi Financial Mortgage
800-422-1498

Household Mortgage
800-395-4489
Household Finance
800-333-5848

OCWEN
800-746-2936

City Mortgage
866-558-3662 .

GMAC Mortgage
800-850-4622 And/Or 800-766-4622

Ditech Mortgage
800-852-0656 And/Or 800-449-8582

Washington Mutual (See Below Also)
888 456-5353

Wells Fargo Mortgage LM
866-261-5642

Countrywide Mortgage
888-453-3102

Chase Manhattan Mortgage Corp
800-446-8939 x 3553

US BANK Mortgage
888-780-3997

Greentree Mortgage
877-816-9125

National City Mortgage
1-800-367-9305 x54949
www.nationalcitymortgage.com
Also, take note, you can access their hardship package online.

Homecomings Financial
800-206-2901 , 858-874-7417
Wells Fargo Mortgage
877-216-8448
Chase Manhattan 800-446-8939
(Wells Fargo Bank and Wells Fargo Home Loans are two different Mortgage Brokerages and
have two different LM departments)

Wells Fargo Home Loans: 877-216-8448
Wells Fargo Bank: 866-470-5230
Washington Mutual Mortgage
866-926-8936 or 866-WAMU-YES

Countrywide Home Loans
Loss Prevention / Workout Department / Loss Mitigation
Tel: 800-262-4230
Tel: 800-669-4576


talk to them, ask questions....in July 2008....US BANKS HAVE TOOO MANY FORECLOSED PROPERTIES THEY MUST GET RID OF

They will most definitely work with you based on the value of the defaulted LOAN and not the HOME

lastly,

since for YOU this is hypothesis and me its EXPERIENCE

"never take advice from a bald man how to grow hair"

and with THAT, I'm done...no point arguing with a fool

 

LOL I do like your style BusinessCoach...plus it's been a fair while since someone called me a fool.

I'm agreeing the banks have got a lot of property on their books.
I'm agreeing that they want and need to get rid.
I'm agreeing that they will sell based on their interest (ie the money owing) and not the debtor.

I'm dubious about them taking a 15k writedown on something "worth" over twice the sold price, just to give them some liquidity. It isn't the style that I have previously seen (ie drop prices 5-10% weekly until a buyer, if not go to auction at anything above mortgage value)

Until you prove that this happens, I'm going to remain sceptical.

If this is the case, then these banks really are in trouble. This is not a good business model for them. Especially if as you say they then loan out to the buyer. They really are in trouble if this is the case, much more than I have previously understood to be the case.

The names you throw around are big names, but then again so was Bear Stearns.

If things are really that bad, I suggest any profit you make you invest in tins of food, as rioting is on the horizon.

I know you won't be able to resist to post again. Come on, it's good discussion.

 

1) I told you how to prove it to yourself LOCALLY and/or you can come visit...but it's not for me to prove to you the sun exists simply because you are blind.

2) not THATS FUNNY!

 

You aren't saying something as simple as the sun exists. You are saying something that goes against logic. Plus you have said that you have experience. So proof should be relatively straightforward for these kinds of figures you have stated.
If you had a proof of the sun which you could give to a blind man, you should easily give it to prove your theory, instead of making him travel to the sun to feel it exists.

I'm glad I got a laugh.

I knew you would post.

 

I can;t offer proof through the forum

I can let you talk to banks and see for yourself

i can put you in front of people so you can see the paperwork

u can go locally and see all the same

I have offered proof...talking about it is not proof

so whats it gonna be

you comin to florida to see the sun

or you gonna go in your own backyard and see it

have you ever heard of a REIA???

if not, then there is not just the sun, but a WHOLE WORLD you have never seen

 

$50k in 45 days is not enough time for me to make a return to pay back the money.

Lucky I know a few millionaires (makes me feel a lot more poor than I am when I'm around them)

I would contact them and most likely double my money in 45 days maybe more, depends on how much they want for doing the work.

 

I'm a realtor. The only way. You'll make money in 45 days in R.E. Is if you're the lender.
it takes 60 days to close a house. Ivenever seen one close in less then 21 days.

I think that I'd invest in iPhone case & accessories then rent a kiosk at a busy mall ($3500 per week) and bust your ass with some hot eye candy and sell cases.

You buy a skid or two at $3/ea. And sell for $15.

Just a thought.

Or like businesscoach said.... Do the teen party but instead of organizing it yourself, invest in a solid party company for a return of your investment plus 20%

 

Start a business, cant help you on how, but think of a unique service then sell, you can surely find very much profit there...

 

As a realtor, i would expect you to not have seen one close in lest than 21 days

but are you saying you have never HEARD OF IT...when its a CASH BUYER?

 

put it in one of those bank accounts that you earn interest on it. its the safest thing to do.

 

I know R.E. investors that close as fast as 3 days.

 

Amount is $50000 and Must be Returned in 45 days. Well if you buy a real estate are you sure you will find one profitable and can make a profit , finish closing and make a sale in 45 days? Starting any business same thing.
If it was me I can earn secure without any time wasted $739.35 in 45 days and thats is the best, sure and safe I can do.If anyone know a better way I want to know too!
I think possibility of earning more does not come Unless you put your self in some kind risk.

 

I would use the $50K to buy a bunch of low earning websites (for sale for around $200), outsource to India, and sell them back for $3K each.

 

I would flip a house

 

diversify it in the market instrument. still have a risk but i do take the chance if i had.

 

a deal can close in three days if the conditions are perfect. As in the buyer has found the property (and how long would that take?) the property is vacant and the buyer has already been pre-approved foe credit.

It may be doable but its risky and more likely to fail then succeed.