Will Less Foreclosures Help the Housing Market?
Adam Leitman Bailey explains deals to look for when searching for a home
- Duration 12:56
- Date Apr 3, 2012
Adam Leitman Bailey explains deals to look for when searching for a home
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Pointing out -- about having all the time here because I really do think that -- housing has to turn in order for this economy to truly turn.
Sure we have a stock market that at the best first quarter we've seen in a really long time.
But I don't think main streets -- on it I just don't.
-- because on the film and home might just -- nobody -- to assume that I could be wrong but there's a huge amount of foreclosures on the market -- and rid of them.
Well this housing market once and -- -- Adam -- Lewis and -- terrifying me uncommon deal.
Tons of foreclosures coming to market these days.
On there actually not -- for coming to market why not enough because it's an election year.
If we flood the market where foreclosures.
And has a lot of suppliers lot of houses the buy from what's gonna happen prices are gonna go down so the administration and congress everybody running for office.
Does not -- comes on the market -- you're probably worth lasting you're saying they're controlling the amount of foreclosures at a kind of Smart inflation control of the steroid how began his Suisse not controlled during the robo signing deal mean.
Yes and it's not that was just the other continue but the rubble -- yelled as -- -- -- settlement which is why window dressing right.
Where you're helping -- I can't get them worried of the rewarding them which makes sense to me right that's a different story so now you have a pipe that's that's glided and it won't can't move out.
And everything it can't move out is because there's millions of foreclosures that are not being sold.
So what's the only way to -- market where your -- is where your house is worth the same as it was four years ago or close to it only 3% last we do is you.
The new administration plan -- -- sell.
Many of these homes in three states Chicago land bank -- Los Angeles.
And went and just know they they're gonna -- -- -- So those people can't live in -- -- gonna rent them fact that that will then keep the market from the South Park artificially coming down.
That's not gonna work audiences that -- still holding you still holding back the economy the housing economy at least five to ten year OK so what do you tell completely different now you tell people to go buy foreclosed homes a fantastic.
It's a fantastic -- return to be one of the best.
Opportunities in the market this is the greatest primary history of the world to buy a home.
I agree with you but I also know that especially myself I have three kids if I'm moving.
I don't have the timeframe required to deal with -- administrative BS behind buying a foreclosed property.
Correct and and it's not the easiest thing -- all this race is very complicated right need to lose your shirt very easily she got really doing you -- to basically -- at least -- when he.
Our weak job or ten hours a week over a few months -- really become an expert -- foreclosures go to a couple of auctions.
First become an expert in the market -- at a price -- go for.
You get and you're gonna get a list the homes that are in foreclosure he got to go visit them.
But most of them can't get inside them what do you do well then you're you're guessing that three parity these -- aren't to great.
You got to make sure there's no -- yes it's a big gamble I guess the other problem of -- whereby there may be -- in the house that aren't taking care of yet.
And you may be responsible for those so you need to run a -- search.
She can finally inserts you can -- -- -- -- -- any escrow title company kind of company northeast.
West midwest the caught escrow companies they will run a search for you for very cheap.
And tell you what kind of -- on a property.
OK so wait let's back up a little bit so I wanna buy foreclosed property in north Jersey I know the homes go for -- I starts you're an expert on a few minutes -- mall area the right.
-- -- -- -- -- Out of San Diego -- -- -- OK so I'm -- -- any county in New Jersey and I start to look at -- first -- how do we know how do we delisting of all of foreclosed homes.
What you don't you're gonna be reading the newspapers where they have to publish them.
You're gonna be visiting the courthouses but a better way -- that they visiting your local courthouse -- and then -- called the New Jersey notice of pendency.
In other states this -- and every time is -- -- -- filed your foreclosures involved.
And it's putting the world on notice that there's going to be a foreclosure auction you've just -- a properties affected.
Secured their courthouse and -- enlist all the properties that are in foreclosure it didn't like -- -- it into what is it real -- like.
Going once going twice kind of thing yes it is two kinds of there's two kinds of foreclosures is free foreclosure then is the actual auction.
Dutch auction auction going to be -- newspaper you're gonna go to the auction you're gonna bid.
You gotta bring five to -- cents.
Right -- certified funds to the auction he had to get ready to rock and roll but that but that's different state to -- -- I'm mistaken -- -- 20%.
-- hands any -- attacked when you see the noticed a newspaper or on the courthouse steps and accounting -- or anywhere else your -- about a from a friend again this really different -- so it's money.
They -- -- data tell you do the minimum bid is acts.
And here you know if you're an expert in the market how much you're willing to spend and else that -- cash know you're gonna return to my checks and very small amounts.
Could you you can't you don't overpay just to be -- 20000 dollars -- you're spending a hundred you've overpaid.
To bring certified checks and a 1005000 dollars so you don't give too much to the off I got -- -- unclaimed money managers saying yeah okay this is the -- the total now -- is -- Is it where it's probably worth going to some of these options and just stand back and watching for awhile yes you need to go to several you can get a lot of time -- the club there these are experts by doing it every day.
I'm gonna hear about it and and these -- buying in bulk.
Every time you're finding homey o.s and foreclosure you already visited you -- and adore you made friends and Avery what chocolate or flowers you're allowed inside the shuttle is -- none of those other people.
At the auction -- allowed inside auction you're allowed inside maybe even lawyer engineer.
Maybe you know maybe these reseller of the person getting for clothes on.
Told you some of the problems that the unit.
The years saying that people should go out I mean I understand it's worth it financially but this is part.
But my primary residence the primary resident I should go -- I should go through this exercise.
You -- remember these are these you're at foreclosure auctions they're not on the market the whole world as we get to see him.
Very few people -- the -- the energy the expertise to go to foreclosure sell if you're one of those are probably gonna get a better deal than anyone else in the market.
Got the best deals and a Waldrop foreclosure auctions the second as his or pre foreclosure auction what's that that's where.
The property -- foreclosure actions started but hasn't finished.
You know bank -- sign up close and I started for close the person now realizes they have to sell you wanna buy it from the person selling with corporation the bank.
And then you're also gonna get a really good you know usually now.
Often times these assurance they could be short sells -- that is a short sell right.
That's and that's now word read that pre foreclosure is going to become a short sale right so short sales again come back to the initiated nonsense could take.
Before and -- in fact the buyer may change their minds yet the backlog a modification and walk away.
But if this is this is not buying a car or house and have -- about buying a car clothing this is the biggest investment your life -- you may be.
Living in for thirty years you may give it give inherent in your kids -- heritage property this is worth the time it's -- house it's -- property it's worth.
The time of Reading a book like -- someone else's and becoming an expert and I go being aggressive -- going after that.
Best home for the lowest price is worth that this is -- home the American dream.
Do you think then that.
Once the election passes we will see more foreclosed homes out there that's a great question whether there will be election.
-- -- -- How do you ministry should -- -- who -- probably this election isn't always another election short term fed but it rob let our system but if the president United States.
And congress decides we want to do what's good for America.
Then they will realize what's best for -- let the free market rain.
Push a foreclosure doubt that the market fought -- gonna fall.
And then love as soon it will be sooner that promised land where the markets back to normal and we could see people that can afford homes buying them.
And then our economy actually you know if our economy improves we're actually gonna have a pretty decent market and we should've seen that I -- six months ago we -- -- possible.
Fannie Mae and Freddie Mac have that but -- Taken from our federal tax dollars a 121 billion dollars since the start of the crisis.
121 billion dollars yes taxpayer money to bail them that's just -- IRA and keep the foreclosures out of the system so your home value is higher so if you're going to buy a home it does is going to increase the third thing.
Add that hundreds when he thing there was and it's ridiculous so what I'm saying is we should have allowed the market to courage two years ago right but.
You with the consumers on educated there -- enough should there aren't enough -- on TV.
Educated consumer is very complicated on what's wrong with the housing market and thank god -- doing so.
God is right.
Right let me ask us.
I decide -- this.
I thank you must have a ballpark Greg I -- kids and family and a New Jersey I meant let's say let's go back to Jersey how long would this take me to figure out what.
Well let's first remember it's it's got to -- they have got to that the glove.
Yes OK yes and right -- and -- -- so you are buying it for primary residence yankees Jersey yes correct but -- -- -- give yourself a long time first you're gonna go shopping what's a long time.
-- you're -- go shopping how long is how much how much how many hours you spend a week.
Going shopping looking for health that you wanna buy just on a regular market and you just saying go out -- look at -- gonna become an expert AM to have an expert just like you you're buying a home and general.
Not as a reason what you're saying -- Easy six months may -- there -- to think that's trying to leverage this is this is coming maybe -- that there are lots unsafe start to finish it.
Here it -- it could be thirty days depending on how well you get if you spend if you if you don't ravaged this job and your full time looking in the -- -- may be ready thirty days.
It does is by the way inventories not that great because -- -- foreclosures.
Somebody foreclosed homes so many homes on the market that the inventory is a great.
You know -- I'm like that in two -- me and I actually know -- housing market pretty well my area I would love to go to an auction just like for kicks it's it's fun I'd.
I think you're -- bidding it's like you're going to racetrack -- city or Las Vegas it's fun and you say though that there are group.
Groups of professional about how they do this for a living but they didn't make a killing when this market turns.
-- but they're making a killing up because if you're getting one or 2% in your savings account.
You're getting these people are getting at least ten to 20% -- reading my -- are a little -- them rental reading -- -- So they're they're making -- -- they've always done well they continue to do well it's a great business against.
You know speaking of renting I think one of the things that people are missing and and again this is not easy to do by any stretch you're making it sound I think much diesel especially.
Very -- -- but -- but if you.
-- you read this book that I spend the time you're aggressive you're Smart.
You know what you want you can do well.
Why did it one of the calculations on -- -- catch up that you can do and that is very simple is that.
Renting vs buying a foreclosed property it is really only different because rental prices are on the rise so people are paying Wayne Shorter rent -- they -- to purchase.
So that's the case you know the markets coming back when it cost -- rent that it identified because the data foreclosure that's not a regular Braly fresh property.
-- all for all properties.
In other words as soon as it cost more -- -- buy in all those -- I think right things really cool yes I don't -- -- that's step number one for market it's not gonna happen until we dealt with the steroids we don't what you artificial stuff we dealt with paying taxpayer money just to -- for closes off the market -- -- -- -- -- you're an expert in the market the next step is either find out if you're reading -- right Paper.
Were going to -- courthouse the find out which properties are going to foreclosure.
You got your list you gonna go check him out.
Now you can't enter their property trespassing and illegal so what do you do well you're gonna knock on the door anyway and try to meet the owner.
Or you're little you're gonna bring an expert like an engineer around the house look outside had a little flock.
You could seal off from the outside where they're neighbors may know the names you know -- -- -- -- to be liquid you need cash rove ever going need ten to 20%.
510 or 20% of the auction price we are surprised the problem is is once you pay that money.
It's very strict time -- -- to close reading -- he's been having -- its quick.
And you gotta have you -- lone lined up so you're your mortgage broker or your banker -- getting -- -- from should be called the mideast a look at.
Right right right -- -- having -- let you got advocate that liquidity to put down at auction and you mentioned at the -- secured don't go shopping unless you know how much of the -- call a mortgage broker call on expert that gives out loans.
Find out first -- you call by.
And watching marginally qualified -- you have the spend.
And what your range and what are you most importantly comfortable with what if you lose your job right sure I that I say 20% or Deborah sat.
Make sure that you have savings in case something goes wrong because.
We know what happened and then starts -- whole thing all over again.
I didn't really read his book finding the uncommon -- there it is you make it's an easy I know it's not but I think.
It is something worth -- Smart I think it's a wonderful way to get this -- got a little happens I do.
Of course you do -- bad tenants in the home.
OK Jessica so soon enough you can do you know it's been to it's fantastic investments.
Iowa I will come back in a couple of months and -- outside the -- -- for everyone.
And you're going out and update on what you're doing -- New Jersey.
I'm I'm living island aha I think yeah.