nvchaz's Q&A

Wow! I'd nail that REA.I'd talk to her broker first.

Take heart: there are many good ones out there too!

Once the deed is recorded, employment considerations vanish, (excluding, of course, your ability to pay the mortgage.)

One other point that I'd like to add:Like the travel agent, the internet is subverting the realm of the REA. I did most of my own leg work and my agent did not provide leads. He was very helpful in the contract phase of the deal, however.Consequently, I believe that compensation of the agent at 3 or 4% is too high in my circumstances. I think a flat or hourly (billable) fee is more appropriate. Or perhaps a 1.5 - 2% fee structure.It appears that unless you are a fat-cat insider, an REA does not provide inside deals. I did my own research and comps and walked and talked in the neighborhoods I was interested in. For example, I was always giving directions to my REA for the homes I wanted to see. It would have been nice to have an REA that knew the neighborhoods and values as well as or better than I. I spent countless hours in doing this work and I think I should benefit by a 2% kickback from the 4% my agent made. I actually previewed homes by trespassing and peeking in windows of unoccupied REOs before schedulind a cracking of the lockbox. I used to report my findings to my agent as the REOs came out ... give him a helping hand with other buyers.

I just closed on my REO and understand your frustration. I was looking since January and put in many bids. I am FHA financed. Here are some of my personal conclusions based in Reno NV, (your mileage may vary):1) In some cases the banks aren't really interested in selling the REO even though listed. Why? -- I'm not sure, but it must be some sort of behind the scenes game having to do with valuations on the books vis a vis other pending methods of disposal.2) FHA is a very distinct disadvantage. A few of my bids went directly in the trash, I'm sure, while the asset manager looked for cash or conventional offers. The appraisal situation is all messed up and it is worse for FHA.3) Timeliness probably is not as important as you'd think, but it is one factor that you can control so get there first with your offer.4) Qualify with all the major lenders. This is a HUGE advantage, (I am convinced but have no direct evidence). I THINK that a bank getting both sides of the business means that the REO loss can be mitigated somewhat on the books by the new business. I won two bids this way. You have to be careful though because one hand can collude with the other to screw around with (you as mine did).5) Get your realtor to fill you in on  the listing brokerage. We have one brokerage here that churns through the majority of REOs in the county and they don't give a hoot about the small guy. If the REO is with a smaller brokerage I think it is better.6) Pretty much ignore listed prices ... they are all over the map. Find a price formula for you neighborhood and offer on that. Don't even think over or under the list ... just your formula. Mine was 1998 or earlier pricing plus 3% per year and I bid well under that and won.7) Patience is not a virtue... it is a necessity.

P-PIP has be re-energized. There will be no more incentives because PIMCO and Blackrock and 3 others will be absorbing the toxins like a sponge.Who's bearing the risk? Taxpayers, of course. Who's getting the upside? The fat-cats, of course.Obama, man of the people? I think not. By November a good deal on a REO will be very hard to find, indeed! The moratoriums will stopper up the flow until the fat-cats cut their deals.What ever happened to this great country of ours? Andrew Jackson or Abe never would let this happen.

Mr. Allison expressed confidence that so-called public-private partnerships to cleanse toxic assets from the balance sheets of banks will soon be started. The partnerships are intended to pair private investors with the government to finance purchases of poorly performing mortgages and other holdings that might then be sold in the future at a profit while relieving banks of carrying them."We've made a great deal of progress," Mr. Allison said. "It shouldn't be long before we announce the first stage in that program."http://dealbook.blogs.nytimes.com/2009/06/25/us-to-launch-toxic-asset-plan-soon-tarp-chief-says/

If the current sales surge is just a spring-time bounce fueled somewhat by the $8K, then the fall numbers may be dismal indeed.It took me 6 months to get into a REO, I finally get the keys today. FHA, which is funding the majority of the current loans for "first-time" homebuyers, is a nightmare of red tape.... they did everything but check my DNA. Therefore, those who sign a contract later than September may (probably) not make the Dec. 1 deadline. If sales drop like a stone in October, then I think we are looking at 3 possibilities: extension of the program under current parameters into 2010; some sort of subsidy on interest rates (which probably will be at 7% or higher by the end of the year); or dropping of the program because other measures (p-pip) are more effective and new money is simply running out. My bet (and I have one literally with BMFPitt on this) is on the last alternative with the first two a possibility.I just do not see the program expanding to $15K -- a measure of its effect will surely be debated in Congress and its effect is totally superficial and not at all fundamental.A lot will be determined by the bond markets... and thus the prognosis for inflation.

The market forces are beyond control of ANY political entity.Obama can take advantage of the chaos to further his agenda: in chaos is opportunity.Re: $8000 give away. Does anyone honestly believe that this has relieved the housing problem commeasurate with its cost to our next generations? How could it? when it does nothing to resolve the untractable "problem" of adjustment of houslng values to their true level.Politcal solutions to economic "problems" merely cushion the blows to vested interests. I'm not vested, so please give me $8K to shut me up.I'll take it, thank you, as I would be a FOOL not to.I wonder how the good doctor would have handled this. LP has my faith and vote, and I'd like to see the council of economic advisors reside in the Cato Institute.

Then don't come back. It's that simple.