Kevin Jones 818-955-SOLD (7653)
KEVIN JONES Real Estate & Loans

The banks are in trouble and it isn’t getting any better!  Mortgage companies are closing on a daily basis!  Real Estate agents and Mortgage Brokers are leaving the business by the boat load!  There are Bank Foreclosures, REO’s (Real Estate Owned), also called Bank Owned properties on almost every block in Southern California!  Short Sales are the pre-foreclosure properties where the home owner owes more than what the property is worth and to sell the property the home is usually in default and the bank negioates below the balance owed.

The standard operating proceedure after the bank has foreclosed on the property they traditionally assign each individual property a Real Estate agent with the listing.  The property is then sold on the retail market for as much as the market will bring, usually fair market value!  The banks do well at recovering the majority of their money through this process of selling in a retail environment!

As the Real Estate market and the overall economy is not getting any better, more and more homes are being lost by their owners and are accumulating at the banks quicker than they can hand them out to Real Estate Brokers.  This creates the “Bulk Reo Niche”

Buying REO’s in BULK is the way to go!  You can save up to 70 cents on the dollar!  The minimum buy in is usually ten million ($10M), the process is simple, it is an all cash deal, usually takes a couple of weeks to close!  It is usually that fast and sometimes takes less time!  We can arrange bundles in most ares and most prices above $10M.  Sometimes depending on the location we get smaller bundles.  The majority of the requests are large purchases such as $50 &$100M, the sky is the limit!  For more information call 818-955-7653.

With all the Neg-Am loans coming due, it really can have a major impact on a home owner, for example here in Los Angeles a home at One Million Dollars, buyers would get 100% finaning, a Neg Am first and an Interst Only second.  Even with 100% financing, the payment was still less than $4000 a month ($2667 + 1250).

But once that loan comes due and it can adjust some are at hese, at 8% $5870 mo (+3203), 9% $ mo (+$3770) and 10% $ mo (+$4354 ).  These figures were just the mortgage, even at the best case scenario your first loan only moves up to  $5870, this is a $3203 increase!  Where are most of these people going to get the money to make the difference, it is almost like buying a second home without any of the benefits!  At a 10 percent  loan the payment would almost be double the monthly payment of the first on a Neg Am loan.

All of these properties have a great chance of becoming an REO when the loan adjusts and these Huge payments come due!  The correction of the market will enable many to buy at an affordable rate, and the cycle will start all over again!

Kevin Jones  818-955-SOLD (7653)
KEVIN JONES Real Estate & Loans