Are local home buyers being sold out to investors?

[Johnnie Sue Bridges]

Are local home buyers being sold out to investors?


Are the banks being on the up and up with the local folks that are looking to buy a home for themselves?

The reason why I ask, I wonder if there are others out there that have made a “cash only� bid on one of the foreclosed properties that supposedly no offers were pending.

Only to be told “Hurry and make a higher bid; we have other bids now. But, all bids are now closed, so hurry up and offer more and try to beat out all those other bids already there. �

A higher bid was made. We were told we’d hear the answer the next morning. Lo and behold, four days later we heard “Nope.�

Funny thing, a friend of mine experienced the same thing, during the same time and was told on the same day, “Nope.�

I have to wonder if the banks are only pretending to offer these homes to us and our children, and then telling us all bids are closed, while all along they stand by waiting for other bids.

This home was for a single mom that is struggling to find a place to live and would have made a good home for herself and her children there. I betcha a million bucks an investor got that place. I am gonna find out.

It is my opinion that our own people should have priority to purchase the homes before outside investors are allowed to purchase. Fricking Aye! I am ticked off!

[Meddle]

It is my opinion that our own people should have priority to purchase the homes before outside investors are allowed to purchase.

"Our own people"?

The best qualified buyer with the ability to pay wins.

Cash will beat out a mortgage.

[Johnnie Sue Bridges]

This was a "cash only" offer.

[Johnnie Sue Bridges]

And what I meant by "our own people" are folks that live in the area. Perhaps people that have already lost their other homes and could possibly afford one of these properties.

[REL]

And what I meant by "our own people" are folks that live in the area. Perhaps people that have already lost their other homes and could possibly afford one of these properties.

Sorry, but I don't understand.

How would people who already lost their homes [[I presume because they weren't able to pay their mortgage) be able to suddenly come up with a cash offer for a house?

[smoniqueking]

Sorry, but I don't understand.

How would people who already lost their homes [[I presume because they weren't able to pay their mortgage) be able to suddenly come up with a cash offer for a house?

Just to set the record straight for people that "presume"..
Thank you for your post Johnnie Sue, I know personally what misfortune this is.
I am a single mother and have been renting the same house for the past 6 years. My landlord recently foreclosed on my house due to a ballooned rate that took the payment quadruple its original rate. With being recently laid off from GM I knew I would not be able to afford a $2000/m mortgage plus the rest of my bills, being a single mother. Not to mention my landlord also has 1 income and makes less than unemployment! Needless to say the ballooned rate that did not allow a refinance was out of the question and the foreclosure was the only option.
I was receiving letters from companies to save the house for as little as $24k etc.. but no matter how hard I tried I did not qualify because I was a renter. So I consulted the owner and we submitted a short sale offer for that price. I never heard back from the bank so I decided to have a realtor take care of it.. I then submitted another offer separate on my own through a realtor. I could not get the realtor to answer any questions or call me back and then finally he called me and advised me to move forward, that I am a single mother and should not wait till the end to find a new place. That just seemed weird to me...
So now I have 1 month left to find a place to live for me and my daughter and move.. I found a new realtor because I could not get any replies from the old realtor... I then went house shopping per a list of houses he chose for me to look at based on the area of my daughters school and the CASH money I had proof to offer. I finally found one after looking at homes people have trashed and left obviously very angry.. I did find one that was small and needed a little TLC but other wise clean.. and made the offer for $20k, since there was no other offers I wanted to start low but close to the asking price. Then after going through all of the paper work, proof of income and so on... 3 days later my realtor tells me there is multiple offers on the house and I need to come back with a high and best offer. I go back over to the property to take another look at it to get a feel and there was another realtor there.. She said she was looking at the property for her client that was an INVESTOR from CALIFORNIA...... I wanted to throw up.. I could not believe my ears... As if Michigan is not already as low as could be.. I knew that a being a single mother laid off, only having the money I had saved.. was going to have to bid against a wealthy investor from another STATE!!! This just did not seem fair... I pay Michigan taxes... I live in Michigan.. and now I cannot buy a home because someone with and "in" with the banks from another state with obviously more money than I would absolutely out bid me.. So I offered my total amount of $25k which was the limit for me to come up with cash.. I did however try to get a mortgage for more but was declined based on "too low of a mortgage".. not because I did not have the credit.. or money.. but because it was not worth it for the bank to do so... just seemed weird also because I have had car loans for the same price numerous times and never was an issue...
Just as I expected... a week later I get the news.. I was out bid by an investor..
You know I would not even be as angry if the investors were Michigan investors.. people here that are trying to do a job and make money.. but it wasn't...
I cannot move my daughter to a house that has no floor or roof.. I am not looking for a $100k home.. I am obviously only looking in the lowest bracket.. but I want to live in a decent clean home.. These investors are taking all the cheapest homes for there own to rent or resell for profit.. and yet do not even live here or pay Michigan taxes!!!!! So what if they pay the house taxes.. that is a right off for them.. Our state is struggling as one of the worst in the nation... They leave us with NO options... and the banks/government doesn't give us any options either! If I only had $20k more than I do.......... but I don't.. I don't know what to do..
and as for people bashing the people that foreclosed and making more "presumptions".. each individual has there own reason for what they did.. to place blame on them as a whole is wrong.. I think people need to really stop presuming and look at the manipulation and suppression the government is doing to us... This all just seems like part of some plan...
I am not trying to scold anyone or put anyone in there place.. I am truly trying to open the eyes of people that may be on the other side of the fence...
If anyone has any positive feedback or advice... maybe any pointers? I would love the help..
Also I wish the news would pick up on this.... there is a scam going on.. and local Michigan residents are being bought out of our own land. I know it is happening all over the US but I live here and I am living it, this is where I am going to start reaching out and trying to get the point to people..
God bless and sorry this is so long! I just want everyone to know..
SmK

[REL]

Just to set the record straight for people that "presume"...
Thank you for your post Johnnie Sue, I know personally what misfortune this is.
I am a single mother and have been renting the same house for the past 6 years. My landlord recently foreclosed on my house due to a ballooned rate that took the payment quadruple its original rate. With being recently laid off from GM I knew I would not be able to afford a $2000/m mortgage plus the rest of my bills, being a single mother. Not to mention my landlord also has 1 income and makes less than unemployment! Needless to say the ballooned rate that did not allow a refinance was out of the question and the foreclosure was the only option.
I was receiving letters from companies to save the house for as little as $24k etc.. but no matter how hard I tried I did not qualify because I was a renter. So I consulted the owner and we submitted a short sale offer for that price. I never heard back from the bank so I decided to have a realtor take care of it.. I then submitted another offer separate on my own through a realtor. I could not get the realtor to answer any questions or call me back and then finally he called me and advised me to move forward, that I am a single mother and should not wait till the end to find a new place. That just seemed weird to me...
So now I have 1 month left to find a place to live for me and my daughter and move.. I found a new realtor because I could not get any replies from the old realtor... I then went house shopping per a list of houses he chose for me to look at based on the area of my daughters school and the CASH money I had proof to offer. I finally found one after looking at homes people have trashed and left obviously very angry.. I did find one that was small and needed a little TLC but other wise clean.. and made the offer for $20k, since there was no other offers I wanted to start low but close to the asking price. Then after going through all of the paper work, proof of income and so on... 3 days later my realtor tells me there is multiple offers on the house and I need to come back with a high and best offer. I go back over to the property to take another look at it to get a feel and there was another realtor there.. She said she was looking at the property for her client that was an INVESTOR from CALIFORNIA...... I wanted to throw up.. I could not believe my ears... As if Michigan is not already as low as could be.. I knew that a being a single mother laid off, only having the money I had saved.. was going to have to bid against a wealthy investor from another STATE!!! This just did not seem fair... I pay Michigan taxes... I live in Michigan.. and now I cannot buy a home because someone with and "in" with the banks from another state with obviously more money than I would absolutely out bid me.. So I offered my total amount of $25k which was the limit for me to come up with cash.. I did however try to get a mortgage for more but was declined based on "too low of a mortgage".. not because I did not have the credit.. or money.. but because it was not worth it for the bank to do so... just seemed weird also because I have had car loans for the same price numerous times and never was an issue...
Just as I expected... a week later I get the news.. I was out bid by an investor..
You know I would not even be as angry if the investors were Michigan investors.. people here that are trying to do a job and make money.. but it wasn't...
I cannot move my daughter to a house that has no floor or roof.. I am not looking for a $100k home.. I am obviously only looking in the lowest bracket.. but I want to live in a decent clean home.. These investors are taking all the cheapest homes for there own to rent or resell for profit.. and yet do not even live here or pay Michigan taxes!!!!! So what if they pay the house taxes.. that is a right off for them.. Our state is struggling as one of the worst in the nation... They leave us with NO options... and the banks/government doesn't give us any options either! If I only had $20k more than I do.......... but I don't.. I don't know what to do..
and as for people bashing the people that foreclosed and making more "presumptions".. each individual has there own reason for what they did.. to place blame on them as a whole is wrong.. I think people need to really stop presuming and look at the manipulation and suppression the government is doing to us... This all just seems like part of some plan...
I am not trying to scold anyone or put anyone in there place.. I am truly trying to open the eyes of people that may be on the other side of the fence...
If anyone has any positive feedback or advice... maybe any pointers? I would love the help..
Also I wish the news would pick up on this.... there is a scam going on.. and local Michigan residents are being bought out of our own land. I know it is happening all over the US but I live here and I am living it, this is where I am going to start reaching out and trying to get the point to people..
God bless and sorry this is so long! I just want everyone to know..
SmK

Pardon me, please read my post again before you start making assumtions yourself about what I wrote. Johnnie Sue Bridges wrote, "people who already lost their homes". So I said, as most resonable people would presume, they lost their homes because they couldn't afford one. As in, homeowners. And no, I'm not judging folks who got/are getting forclosed on. It's happening everywhere, for many reasons.

I will, however, judge people who get foreclosed on, only to turn around almost immediately and try to buy another house [[!). Perhaps those folks should consider renting for a little while to get back on their feet and allow their situation to stabilize before they commit to another mortgage. What's wrong with renting?

This argument of "they leave us no options" doesn't make logical sense to me, with all due respect. I don't know who you mean by "they", first of all. The banks who own the properties? The banks not willing to give you a mortgage? The realtors? The state? Who? We have options. We can buy a house, rent an apartment, rent from a friend, live with family, live in a co-op, find public housing, etc. There are plenty of options out there, we each just have to find what's right and available in our own situations. But homeownership isn't for everybody, and it isn't the only option. According to you, you are blessed to have good credit and access to cash for a deposit on another place while you look for a home. I'm glad you're in this situation, as many renters in your shoes don't even have either.

You appear to be a renter who is getting squeezed out of her home because her landlord was foreclosed on [[which is very unfortunate, and unfair, and I'm genuinely sorry about that), which is a different situation than what the original poster mentioned. And, by the way, Johnnie Sue said she didn't even know if the property went to an investor, this was just a theory she had. It could have gone to someone who [[shock) put in a higher bid. It could have been another Michigander, for all she knows at this point. So this thread was based on a hunch and a theory, not even a true event because we don't even know what the outcome truly was.

As you are finding out the hard way, buying real estate is a risk. The home usually goes to the highest bidder, regardless of their zip code or intentions for the property. So you may want to follow your realtor's advice and find alternative housing for you and your daughter while waiting to buy a home. That will buy you more time and help you find what you really want instead of living under the gun.

However, there is no scam here. There is no secret government conspiracy. You are dealing with houses in the $20,000 price range, which is pretty darn cheap. No wonder the offer was outbid, even after the offer was upped to $25,000. You're hovering in a price range that is definately getting competative, because that's less than some new cars.

As for the mortgage being too low a dollar amount to qualify, you're right. But you may want to think twice before comparing a mortgage to a car loan. Yes, you can buy both a car and a house for $25,000 each nowadays, especially in MI. But if you really look at those 2 loans, they are completely different. One is for an asset that [[supposedly) appreciates, and one depreciates. The terms are dramatically different: 1 lasts in the neighborhood of 48 months, the other for 15-30 years. Banks don't make money off of a $25,000 mortgage for the time they're out the capital. They would on a car loan because of the short term. Just because a loan is for the same amount of money, doesn't mean it's apples to apples.

I'm sorry for your situation, and sincerely hope it improves. Good luck to you, smk.

[canuck]

Why is it such a big deal to get out of the mortgage deal the banks initiated in the first place. If a family has been paying for a house with a low or a high deposit for x amount of time and the bank decides to jack up the interest on account of high risk, then the bank properly assesses the risk. It has to take the shot. Then the family plays by the rules available to it; namely: getting out of it and buying a short sale property with a very low cost since everything is so devalued.

Were not talking hold-up here, nobody's armed and dangerous, the bank and the buyer arent frauds. It's all in a day's work.

[smoniqueking]

Rel,
you should think twice before judging people and presuming you know the answer to everything.. you come off rather rude and cocky..its very unappealing.. not intelligent like I think you could with a different tone.. I compared the mortgage to the car loan because they were both for 5 years.. same amount of money and actually the same bank. I have had 3 loans for this amount from them yet I was denied this with almost 2/3 of it down?? hmmm seems fishy to me.. just like all the stuff I posted in my statement below.. something is definatly going on..

[donpablo]

HUD homes are offered to homeowners before investors and you will be able to view all the bids after they accept. My wife and I found a beautiful brick home with newer windows and the furnace still worked. We did have to replace the wires in the basement and get a water heater though. I am replacing kitchen cabinets and countertop even though the ones that were in there were fully functional. We paid $8200.

What you need to do is go to this site: http://www.mcbreo.com/st_mimain.htm and search by zip code.

I used this site for a zip code map; http://hipcodes.com/Michigan/Detroit/

I would find 5 - 10 houses that looked decent. I made a list and looked at them from the outside. If i found any i liked i would call my real estate agent and set a time to look inside. I probably looked at 50-60 houses. I looked inside about 15 of them and bid on around 5 or 6 before one of my bids were excepted. It was a bit of a pain but i was picky. Most of the houses will need new wires, pipes, furnace and hot water heater. The price differences are mostly how nice the street is. Find a real estate agent who can bid on the home for you and let them know what you are doing. If they know you are on the mcb site and can see bid results, etc. They will know they cant BS you. My real estate agent charged me $250 for their service so make sure you find out what they will charge you.

Good Luck!

[smoniqueking]

HUD homes are offered to homeowners before investors and you will be able to view all the bids after they accept. My wife and I found a beautiful brick home with newer windows and the furnace still worked. We did have to replace the wires in the basement and get a water heater though. I am replacing kitchen cabinets and countertop even though the ones that were in there were fully functional. We paid $8200.

What you need to do is go to this site: http://www.mcbreo.com/st_mimain.htm and search by zip code.

I used this site for a zip code map; http://hipcodes.com/Michigan/Detroit/

I would find 5 - 10 houses that looked decent. I made a list and looked at them from the outside. If i found any i liked i would call my real estate agent and set a time to look inside. I probably looked at 50-60 houses. I looked inside about 15 of them and bid on around 5 or 6 before one of my bids were excepted. It was a bit of a pain but i was picky. Most of the houses will need new wires, pipes, furnace and hot water heater. The price differences are mostly how nice the street is. Find a real estate agent who can bid on the home for you and let them know what you are doing. If they know you are on the mcb site and can see bid results, etc. They will know they cant BS you. My real estate agent charged me $250 for their service so make sure you find out what they will charge you.

Good Luck!

WOW Now thats some good information.. thank you kindly sir!

[LeannaM]

It's called Capitalism, my dear Watson.

I understand your frustration, but stuff like that happens sometimes. The sellers can sell to whomever they choose.

[Johnnie Sue Bridges]

Thank you, donpablo

Your info was very helpful.

[donpablo]

Thank you, donpablo

Your info was very helpful.

Your welcome.

One more thing. Make sure you check out what the property taxes are on the house. Most likely you will not get it lowered and any house that sold for high dollars in the past will have a high tax bill.

[Johnnie Sue Bridges]

REL,
If you only knew how silly that reply was, you would not have bothered.

[Meddle]

I don't see that it was silly at all.

[Newhorizons]

Your last statement donpablo is not quite true... You can appeal the tax on the property as to the current value .... Just need to be patient and determined....

[canuck]

A lot of people get out of their underwater mortgages because their homes are worth a fraction of what their mortages are. They may be in dire straits or not, in either case they can leave their keys to the house, and buy into a cheap house for cash, remodel some for a little more cash and not be strapped with a 100%-40% mortgage-to-market value house.

[Meddle]

A lot of people get out of their underwater mortgages because their homes are worth a fraction of what their mortages are.

You might leave the house, but you still owe the debt unless you file bankruptcy.

[donpablo]

Your last statement donpablo is not quite true... You can appeal the tax on the property as to the current value .... Just need to be patient and determined....

That is the reason i said "most likely not be able"

I just went through the process and was turned down. The property I bought for $8200 was valued close to $60,000. It sold for 63,000 in 2000. I decided not to go to the March review [[sort of like an appeal) after hearing multiple stories about people getting turned down and how you almost need a lawyer to get it lowered. The taxes are around $2700. It is about $700 more than I hoped for but it is still workable for me.

[Goose]

smoniqueking, that story really sucks.. keep trying and I would keep looking for other realtors.... the ones you have now don't seem to be able to serve your needs properly

out of curiosity, what general area or around what schools are you looking.... i want to see whats going on in the area....

[REL]

Ummmm, can you please repeat that in English?

[smoniqueking]

I am sorry but the many factors that go into one losing a home.. such as i-rates going up, banks not offering refinancing, houses not being worth what they were appraised for, being upside down on a mortgage because of these things, economy losses, job losses, etc... these things are good reasons to look for an affordable home.. and why cant people working and caring for there families take advantage of what all these investors are taking advantage of? I personally would not want to be stuck paying ridiculous rates in a time of recession or anytime for that matter..The banks are very aware that the economy is in trouble and people are losing there jobs... yet they continuously raised interest rates that people could not afford and would not work with people to be able to afford living.. they practically forced this situation... that is what I meant when I said "they don't leave us any options".. its BS.. it absolutely is a scam.. whether you say it is or not..
first they, as in the banks... give people a mortgage for what the house is WORTH...
then.. they raise the interest rates with no option to refinance when our economy is in a recession and people are losing jobs and sanity..
leaving people/families angry and scared.. not able to pay the mortgage.. really? that's the answer...? and you wonder why people are looking for another house they can afford after foreclosing on a house they would never be able to pay for?? and that is not WORTH what they were loaned the amount for in WORTH?
all the while the government gives banks and wall street all this money "bailout" so the economy wont fail.. that THE PEOPLE have to pay back in taxes.. [[sorry kids).. something doesn't seem right here.. this doesn't seem as "normal" as you are trying to put it..
and you ask what is wrong with renting??? NOTHING..I have been renting my whole life... and now I am forced to move from the house I am renting.. thanks to the wonderful fat cats raising interest rates to an ungodly amount.. I live in GC not Birmingham.. I am not paying $2500 a month in Mortgage for a little house in GC.. not even if I could afford it!
Do not judge people unless you have been through it.
I truly thank you for your kind words but your rude and judgemental words are ridiculous.
Ok.. sorry for the rant but I just needed to put it out there.. everyone wants to point the finger.. well point the finger in the right direction then.. I know too many wonderful honest people that have tried every possibility to keep there home and just could not make it.. and with NO help from the bank but to get OUT... It has devastated people... Including myself..
I hope I am not sounding bold, that's not my point.. I am just bummed..
Its BS that these wealthy investors from other states are snatching up all our property when they do not live here or pay taxes here! What about us? the banks are aware and in on it.. its all about the $$$$$$$$ thank you government...
Michigan tax payers should have the opportunity to purchase homes before Non Michigan tax payers.. SIMPLE
omg.. I need to shut up.. i could go on forever about this..
haha sorry so long..

SMK

[miketeevee]

Hey SMK-

Are you still looking for a place to rent? I have a home in Ferndale that is in need of tenants. Let me know if you'd like more info.

Thanks,
Mike

[smoniqueking]

Hey SMK-

Are you still looking for a place to rent? I have a home in Ferndale that is in need of tenants. Let me know if you'd like more info.

Thanks,
Mike

Hey thanks for the reply! i am actually looking to purchace a house but if it does not pan out i will have to rent i will let you know and if your house is still available thanks again