Hop on: Foreclosure Bus Tours
By: Diane Tuman Content Manager | April 1, 2008
Sports Illustrated has a feature — or, maybe they stopped running it (dunno, since I haven’t picked up the magazine in a while) — named something like, “This Week’s Sign That Apocalypse is Upon Us,” which deals with some bizzaro incident (usually sports-related) that defies comprehension.
Here’s one for real estate: foreclosure bus tours. I understand that someone’s loss is someone’s gain, but to pack a bus with a bunch of people on the hunt for foreclosed properties just seems a bit, uh, vulture-like. Here’s the Foreclosure Bus Tours’ description:
“We know that buying foreclosures can be risky and can make buyers a little uneasy, so how beneficial would it be to have a team of real estate professionals, foreclosure specialists, and rehab experts right there by your side to help you every step of the way? This is what Foreclosure Bus Tours is all about. We take the pain out of finding and fixing your foreclosure deals.”
I can’t imagine rumbling down the street on a bus with a bunch or foreclosure experts, driving past “stable houses” and then a foreclosure is looming up ahead, on the right. Oooh, ahhh. So, is this the best time to hop on a bus and get a foreclosed home for dirt cheap? According to the Housing Time Bomb, the bottom hasn’t fallen out yet since “…banks have only marked them down 10-25%.” When is the right time to hop the bus? HTB says 2009-2010… by that time, everyone will be aboard, wanting that one crazy deal.
- Stumble it!
- Categories: Real Estate, Zillow
Comments
10 Comments so far
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Rebecca Levinson on April 1, 2008 8:03 am
Hi Diane,
I actually have a post up today on our corporate blog on this very topic. I am not sure that it isn’t a good idea. Reading a few articles and viewing video footage, it appears that some of the members of the foreclosure company are trying to educate buyers and investors on the foreclosures.
I strongly recommend that anyone interested in the foreclosure market should still get the advice of a licensed real estate agent. This being said, there are many markets where foreclosures are a problem,and a big one. These properties need to be moved and sold, not only for the banks, but the surrounding neighbors who still own their homes to help protect their property value and safety agains t vandalism and drug houses.
If these tours can move foreclosed houses than I say, “Driver, move that bus”.
Shane Wilson on April 1, 2008 9:04 am
As long as the bus isn’t targeting pre-foreclosures where people are still living in the home and the people running the bus are not trying to push new and unexperienced investors into buying bad deals then I believe it can be a good thing.
We need anything we can to move the inventory so the market can start clearing up. I talk about this a lot at my real estate investing blog http://www.georgiabuyer.com
Ogden on April 1, 2008 8:23 pm
That’s Hilarious. And I’m sure they give you a snack, and get you to sign up for their real estate investing boot camp while you’re touring.
Landflip on April 2, 2008 11:30 am
At first I thought this post might be a joke. But after reading the entire article, I realized there was no punchline. I immediately felt sorry for the homeowners, but then I decided that they probably need to get out from under their existing mortgage.
As I read others comments, I will agree that as long as it was handled in a professional manner and the tour guides were knowledgeable then “ALL ABOARD”!
Right now I think that tour bus might need to run in some other states.
jeff on April 12, 2008 12:53 am
Diane
Thanks for spreading the word. Buying foreclosures right now is crazy IMO.
The banks are just now starting to tighten lending standards and buying foreclosures now is very risky. Prices are continuing to drop even though its the spring selling season. The Cse-Siller index is showing that prices are free falling faster then anytime in its 20 year history.
I think we are heading back to the “old school” lending standards of 20% down and good credit because the banks don’t want to lend due to the credit crunch, due to the fact that many of them are insolvent.
Fiancials are currently in the process of harding cash in order to stay alive.
Please avoid the tour bus for now. You never want to buy on the way down. Let the bottom be established and then hop on the bus for good deals. I expect it might take 1-2 years before these bus rides are worthwhile.
Feel free to check out my real estate blog for information.
http://thehousingtimebomb.blogspot.com/
flat fee mls on April 15, 2008 4:13 pm
Very interesting idea. Pretty funny.
Tax Lien Properties on April 26, 2008 8:41 am
I have a real problem with the government using my money to bail these people out. Most simply bought more house than they can afford. It isn’t the banks fault. People should take personal responsibility.
I also have a problem with my money being used to bail out these banks. They made the risk and stood to make huge profits. That obviously didn’t work out, so hate it for you.
Ken on April 29, 2008 12:48 pm
I AGREE WITH NOT WANTING THE GOV TO USE MY TAX DOLLARS FOR BAILING OUT HOME BUYERS WHO CAN NOT PAY AFTER ALL THEY SIGNED A CONTRACT AND WERE SAT AT A TABLE WHILE THE CONTRACT WAS EXPLAINED TO THEM, BUT THE BANK IS TO BLAIM AS WELL. THEY ARE SUPPOSED TO QUALIFY THAT PERSON NOT BY JUST WHAT THEY CAN AFFORED AT THE TIME THEY BUY BUT AT THE TERMS OF THE CONTRACT IF THE PAYMENT IS PROJECTED TO ENCREASE. THEY NEW VERYWELL WHAT WAS GOING TO HAPPEN AS SOON AS THE PAYMENT STARTED TO ENCREASE ON THE HOMEOWNER? SO WHAT THE BANK DID IS SOLD THE LOAN AS QUICKLY AS POSSIBLE AND GOT THEIR MONEY AND LET THE AMERICAN PEOPLE AS A WHOLE SUFFER FROM IT. THE BANKS SHOULD PAY AS WELL AND THE GOVERNMENT SHOULD STOP USING MY TAX DOLLARS FOR THOSE WHO HAVE NOT PAID AND GIVE US PEOPLE WHO ARE MAKING THOSE HARD MONTHLY PAYMENTS THAT MONEY IN THE FORM OF TAX BREAKS… THAT IS WHAT IS FAIR. NOT GIVING MY MONEY TO PEOPLE WHO KNOWINGLY GOT THEM SELFS IN TROUBLE. I AM SURE ALL OF YOU WHO STRUGGLE BUT MAKING PAYMENTS EVERY MONTH AGREE WE DESERVE THE BREAK NOT THE BANKS AND THE PEOPLE WHO BOUGHT TO MUCH HOUSE.
Tax Lien Properties on April 29, 2008 4:28 pm
Hi Ken,
I’m not trying to take over as the moderator of this blog, but please let me address a few things you said.
“THE BANK IS TO BLAIM AS WELL. THEY ARE SUPPOSED TO QUALIFY THAT PERSON NOT BY JUST WHAT THEY CAN AFFORED AT THE TIME THEY BUY BUT AT THE TERMS OF THE CONTRACT IF THE PAYMENT IS PROJECTED TO ENCREASE. THEY NEW VERYWELL WHAT WAS GOING TO HAPPEN AS SOON AS THE PAYMENT STARTED TO ENCREASE ON THE HOMEOWNER?”
I disagree! What are the banks to blame for? We live in a free market economy. Banks have money. They choose which risks to take and which risks not to take. They make choices with their money with the hopes of making more of it.
If they choose to lower their standards and loan money to people that will not be able to pay, WTF do I care? It is their money to risk. I don’t blame them for making what choices they deem appropriate.
“SO WHAT THE BANK DID IS SOLD THE LOAN AS QUICKLY AS POSSIBLE AND GOT THEIR MONEY AND LET THE AMERICAN PEOPLE AS A WHOLE SUFFER FROM IT. THE BANKS SHOULD PAY AS WELL”
I agree with you 100%. The banks risked THEIR money and lost. They didn’t risk MY money, YOUR money, or the governments money. It was THEIR money to make decisions with and they lost THEIR money. No corporate welfare as far as I am concerned. They can shut the doors if they need to. I don’t care. Their greed got the best of them.
AND THE GOVERNMENT SHOULD STOP USING MY TAX DOLLARS FOR THOSE WHO HAVE NOT PAID AND GIVE US PEOPLE WHO ARE MAKING THOSE HARD MONTHLY PAYMENTS THAT MONEY IN THE FORM OF TAX BREAKS…
Amen! If they government wants to help these homeowners and corporations then help us all. Don’t help me by giving me anything. The government doesn’t have anything to give.
Help me by not extorting me to pay in over 40% of my income in taxes. If I don’t pay, guess what? There will be people to show up with guns and put you in prison. This is extortion.
Help these corporations by lowering the corporate tax rate. We have one of the highest corporate tax rates in the world. 25% would be more than enough to take from even the wealthiest individuals and corporations.
Foreclosure Bus Tours???!! Post 82 on May 4, 2008 7:47 am
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