Lender listings drag down Twin Cities home prices

Lenders created this mess

Your missing something here. There is this document put together by the likes of AIG and others insurance concerns that declares what zip codes are what they call the "declinig value" typse. Virtually all of Hennepin, Ramsey, Dakota counties are included. Bank credit analysts look at this document when they consider you for a loan on your property. Take a good to excellent FICO score, excellent credit history, long established and current employment, plenty of documentation as to current wages and see what that mortgage banker will want from you and what you get in return. You had best hope that your neighbor has not recently dumped a property and or/given their house back to the bank.
I'd say you might want to see your optometrist to change out those rose colored glasses.

Whats the problem...this is great news for those of us who are buying. Sure, its a bad thing that sellers have to reduce their price but this is awesome for a person like me getting into the market. My dream house recently dropped $30,000...now it looks attractive. Houses are OVERPRICED...just accept that FACT.

I completely agree with Mark. My husband & I have been renting for 3+ years, waiting for the market to level out and prices to come down to reasonable levels in a good school district. We just bought a house last week, that the owners had been trying to sell for the last 3 years in the $240,000 range, which was way overpriced for it's condition. We bought it last month for $185,000. below our budget, in the location we wanted. those like us that were smart and continued to either rent or remain in their houses during the "housing boom" are going to see themselves rewarded with the prices and selection we have now.

Now NO BAILING OUT by the government the people who jumped at more then they could afford, and maybe we will continue to see houses fall back into realistic, sustainable prices.

I've been watching the southeast metro real estate listings for several years, in my efforts to move back to my hometown area.

I've checked the lender listings and they are mostly overpriced, compared to other listings, and especially since many of these homes need major repairs. When comparable homes in the area list at 215,000 and the lender has a similar home listed at 190,000 which easily needs 50,000 in repairs, I don't see any bargains in these lender listings.

Of course, each individual listing, lender or not, has to be weighed on its own merits.

Good point, though, about potential buyers not getting the best deal on mortgages if there are foreclosures in the immediate area. I will be sure to discuss that with my mortgage broker today.

Mom wrote:

I completely agree with Mark. My husband & I have been renting for 3+ years, waiting for the market to level out and prices to come down to reasonable levels in a good school district. We just bought a house last week, that the owners had been trying to sell for the last 3 years in the $240,000 range, which was way overpriced for it's condition. We bought it last month for $185,000. below our budget, in the location we wanted. those like us that were smart and continued to either rent or remain in their houses during the "housing boom" are going to see themselves rewarded with the prices and selection we have now.
Now NO BAILING OUT by the government the people who jumped at more then they could afford, and maybe we will continue to see houses fall back into realistic, sustainable prices.

Mark and Mom are exactly right. Part of the recent foreclosure mess has to do with overzealous buyers, coupled with greedy realtors and mortgage brokers/lenders pushing up the price of homes beyond what they actually are worth. Those who waited out the "frenzy" are now in position to take advantage of more housing stock/choices for reasonable prices.

I'm also one of those people. Agree that I don't think there should be a full scale bail out but perhaps individuals receiving proper foreclosure counseling should be able to get back into houses in a few years (versus 7 to ten).

I agree with people about not bailing out people who just lived beyond their means. However, many people actually qualified for a better loan product, but they were steered towards subprime loans because it was more financially attractive to the lender's bottom line. These loans had many nasty hooks to them. Most people don't read the 60+ odd pages of papers that come with a loan package. If they do read them they don't understand them. They trust what the lender says.
If anything good does come out of this it is to educate people to take those loan papers to an attorney. Spend the $200. and maybe save yourself a fortune.
I think congress should step in and stop ALL predatory lending and that includes what credit cards are doing now. This is what happens when you deregulate an industry that operates so closely to our pocketbooks.

I,m 60yrs old and have bought nine homes or properties in my lifetime. If you are buying any property- Get an attorney, inspector and appraiser. Hire them yourself, don't use anyone thru a realty office. These people should work for you and be paid by you. It will be the best money you've ever spent. Realty agents can be helpful but they have a vested interest in having you buy. If you can't afford to do this- Don't buy- you shouldn't be buying a house!