Sacramento REOs "Up a Whopping 989 Percent"
From BusinessWire:
The nation’s Southwest faces a long road to foreclosure recovery as the region yet again far surpassed the rest of the nation across the board in numbers of foreclosure filings in April.From the Sacramento Bee:
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"Because the Southwest is home to some of the nation’s highest average housing costs, many people in the past have relied heavily on creative adjustable-rate mortgages and financing to afford the American Dream of homeownership," says [president of ForeclosureS.com] Alexis McGee. "Now they’re paying the ultimate price of overextended credit—foreclosure. The region likely won’t see a serious drop in foreclosures for many months."
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San Joaquin County, California led the nation with a 1,056 percent increase in number of REO filings year-to-date 2007 vs. 2006 (659 filings).
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Among the western region's counties hit hardest by foreclosures year-to-date include:...Sacramento (pre-foreclosures up 197 percent; auctions up 383 percent, and REOs up a whopping 989 percent).
Alexis McGee talks about as fast as anyone you'll ever meet. She has to, for this is her time.
"The stars are aligned, guys," she tells a national audience of foreclosure investors, each paying $19.95 to hear her 90-minute conference call from Kauai's Poipu Beach, where she is on a working vacation. "The time has never been like it is right now. We have more chances to buy than we've ever had before."
In the world of home foreclosure there are legions of get-rich-now gurus, opportunists and house buyers who live with the label of "vultures." And then there is Alexis McGee, 46, of Fair Oaks, who tells people they can profit from other people's financial crises without selling their soul, without lying, cheating or stealing or "crossing the gray line of integrity and ethics just to make the deal."
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Though her privately owned firm doesn't release financial information, McGee says she is doing well on the downslope of the housing boom. She makes no apologies for the wealth her peculiar real estate niche has delivered.
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McGee, who came to California via New York and Arizona, has reason to beam: This month the company that began in 1992 as the Daily Default, a sheet faxed to investors, is doubling its space and moving its staff of 12 to a 5,000-square-foot building.
3 comments:
Do I see the beginnings of a new bubble?
A new set of knifecatchers believing they have a 'deal'?
Perhaps not realizing that in a years time their 'investment' will sink them, too?
If you can't make pencil out the math that a house will pay itself thru the rent you can charge, you are still paying too much
SMF.
I agree if you're looking to buy and hold. I know a few people who have the resources to actually buy at an auction (which 99.9% of the world cannot do due to being required to pay in cash on the county courthouse steps). For those people... they pick up at 70% of current market value (and not the "market value" of 2006 or even earlier this year). Most of them are extremely critical of properties and would rather leave it to the lender.
Many of them are only looking to hold the properties a few days or weeks. These are classic "flippers", not the kind of pergraniteel know-nothing diy-ers of yesteryear. They get in, fix the basics, get out. And, they even take losses when needed. Cash flow is the name of the game here. If your cash is tied up in a house, you can't move to the next one.
These guys are actually good for bubble sitters because in the case of a falling market, they create lower and lower comps by slashing prices.
Unfortunately, (and this is probably why we are all skeptical) is that there are wannabe vultures who think they can do the same thing without the same knowledge or resources. The world is awash in a sea of dumb money extracted from painful HELOCs and it won't be until you remove all of the idiots that the real deals will be coming.
This is a wholehearted agreement, but we need to go through this phase to get to the next one. You'll regularly be looking at good deals in 2010 or 2011 in my opinion. Until then, it'll be spotty.
Chuck Ponzi
Here's an indicator - how long a lease did he sign? 1,2 4 years?
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