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Deja Vu? __no Money, Zero Down, Avm's + No Appraisals "virus" Is Back

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Julio E. Sune Jr. (FL)

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Florida

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
swordofDamocles_2.jpg
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
DEJA VU ????

http://www.miamiherald.com/news/business/real-estate-news/article155732859.html

"They were all the rage — then the scourge — of the housing boom and bust. Now they’re back, big time: Home mortgages that require tiny or zero-down payments from buyers"
==========================================================================================

They did the same with car loans.

Google DPA loans and witness two Forbes articles. One from 2008 and one from 2017.

.
 
D

Deleted member 134708

Guest
But what about risk?

Oh, no one and I mean no one actually cares about risk when it's not yours.

What do people care about when it's not theirs?

Growth, growth at any cost. And I mean any cost. If the cost is death, growth is still the answer when it's not yours.
 
D

Deleted member 134708

Guest
Here's how reality on realties terms works.

20% down for 3 years. You eventually run out of customers and growth. You find more growth.

15% down for 3 years. Ditto

10% down....ditto.

3% down...ditto.

-5% down. But boss, This will mean certain death of the company. Boss, "we need to show investors growth by any means"

Here's how textbooks work.

Customer satisfaction, safety to the consumer, safe lending habits, educated customers. Safety, safety and more safety by any means necessary.
 

Riick

Elite Member
Joined
Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
It's Deja Vu, all over again.

Realtors are busy scaring buyers that they will be frozen out of the bidding/market, and never ever be able to buy a house, if they don't pay OVER the asking price.
(Stupid Buyers, are effectivly not represented, as usual.)
Who TF do they think they're doing a favor for...
Whoops... stupid question,
Realtors are doing it to beat their competition, the other Realtorz.

*Sally Higheels Strikes Again*
 

Michael S

Senior Member
Joined
Mar 18, 2009
Professional Status
Certified General Appraiser
State
New Mexico
It's Deja Vu, all over again.

Realtors are busy scaring buyers that they will be frozen out of the bidding/market, and never ever be able to buy a house, if they don't pay OVER the asking price.
(Stupid Buyers, are effectivly not represented, as usual.)
Who TF do they think they're doing a favor for...
Whoops... stupid question,
Realtors are doing it to beat their competition, the other Realtorz.

*Sally Higheels Strikes Again*

Agent's and buyer's interests are not aligned. The buyer wants to purchase the best property at the lowest price. The agent wants the buyer to buy a property as quickly as possible (so they can move on to the next deal) at any price, preferably a higher price so they get a bigger commission. On the sale side it's not much different. The seller wants to sell for the highest price possible within a reasonable time frame. The agent want's them to sell as quickly as possible and the difference between $230,000 and $240,000 ends up being pretty miniscule once everybody gets their cut. 6% on $10,000 is only $600 but then the other agent gets half so it's down to $300 and then the office gets say another half and all of the sudden the agent is only motivated by $150 to sell your house for $10,000 more. Given the option between the sure sale at $230,000 that will close quickly and get them their commission and spending days or weeks to try and find a buyer willing to pay $240,000 which one do you think they'll pick. Which one will they convince the seller to pick?

That's not to say that there aren't any agents out there honestly looking out for their client's best interest - but the incentives are not really aligned.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
I was talking with a RE broker yesterday and the current financing trends came up. Te broker agreed that we were trending back to what got us into the 2006-2008 mess again. If brokers can see this and be worried, then the only ones not concerned are those who are supposed to be regulating lending to keep 2008 from happening again, but are not doing their job.
 
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