Written by Bob McGuire on July 10th, 2009

Awwwww Darn, We are running out of house repossessions

Please read the following spam!

Attention:

Sellers have been actively accepting offers on properties prior to the Minnesota, Wisconsin and Michigan auction. We have Pre-Sold approximately 20% of the properties in the Minnesota, Wisconsin and Michigan area.

Please refer to our website to verify if your property of interest is “Still Available.”

Thank you,

HUDSON & MARSHALL

America’s Auction Authority
———————————————————

I know you don’t want to read someone elses spam on a blog but here it is anyway, furthermore that is the news we have been waiting for. As you can see the above auctions have pre-sales for cash customers and people are buying repossessed houses up left and right. At first there was a lot of investors ready to buy some of these and fix them up and rent them out to pay for the costs and then later when the market balances out, and the prices go back up, sell them for a huge profit. And this is very true. The basic people that were buying houses were the individuals with more money than brains. The gamblers and real estate investors. But now the people that need a house are entering the market. That is where the customers are going to have to come from to get this huge backlog of houses off the market.

I know some people in that boat. The economy seems to be stabilizing somewhat and regular people are buying houses. People that had an apartment and because one of a couple got laid off, they moved in with mom and dad or Uncle Jim and they have had enough of that, and want their own place and with financing they realize they can buy their first house for less than the rent on an apartment. It is true that these people have protected their credit ratings and they have good credit and have like I said have been putting away for a down payment. Well guess what? The ten or 20 percent down payment has been cut in half or more with some sweat equity.

I also understand, because my tie-ins with the real estate industry, I know some people that are the investors I first mentioned. I went with them to look at plenty of houses and check the conditions of the houses. That was late last fall I started doing that. At that time we could take our time and look at lots of houses. We could throw in bids from 25% to 50% less than the banks were asking. Now lately the to get a house we have had to over bid by about 5% to 10% to get the property. Also we have seen a lot of the banks remove the house from the list during our negotiations.

Well so what does that all mean? There is getting to be a scarcity of these under priced, reposessed houses. The prices have been progressively rising over the last 9 months. I realize that there are still people in financial trouble and hanging on by  a thread and may yet lose their house. But the real truth is that the supply of these houses is starting to dry up. People in general are not clued into this. They won’t figure it out till it is too late to buy one for investment.

The upshot is that all the people that have legitimate reasons to sell their house, like job opportunities and divorce along with grandpa dying and retirement might be able to unload their homes pretty soon at a reasonable price.

The actuality is that people are becoming convinced that the financial system has stopped getting worse. That is all it is going to take, for people to start spending again. The government laid out almost a trillion Dollars to boost things but that was a smoke screen because very little was really sent out. Only where they needed it the most. Something like 10% was sent out. I think the government did all the right things. Rescued some companies that needed to be salvaged. Convinced people that they (the government)are doing something. Got lots of publicity about helping people and companies by the complainers. Built a huge smoke screen. It was or is a very complex plan and it is working.

People don’t realize how ghastly things could have gotten in the world financial system. There had been a huge recession in the economy every 65 to 70 years since the Roman ages. It materializes after everyone is dead that went through the last one and there is no one left to educate the lessons. So I guess the next one will not occur till 2075 or so. How’s That?

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