Forclosure Investment Opportunity in California

[kate]

I found a great foreclosure investment opportunity that is 25%-30% below market. The only significant savings I have, however, is my 401K from my old company. Does anyone know if I can cash out my 401K to buy this investment property?

[Codythebest]

Wait another 12 months and you'll get foreclosures even lower...

[gregory]

Wait another 12 months and you'll get foreclosures even lower...


What makes you think that prices will go even lower on foreclosure houses?. I am not an expert and that is why I would like to know since I am looking into purchasing my first house but at this prices in southern california I just can not afford one.

Regards,
Greg

[CRVT427]

I found a great foreclosure investment opportunity that is 25%-30% below market. The only significant savings I have, however, is my 401K from my old company. Does anyone know if I can cash out my 401K to buy this investment property?

I'm looking at cashing out my IRA. I have a self directed IRA with Schwab that I'm thinking of pulling out. Look into - myrealestateira.com - This website answers your specific question. This is my first post and I cannot direct members to another website until I have 15 posts.

[CRVT427]

What makes you think that prices will go even lower on foreclosure houses?. I am not an expert and that is why I would like to know since I am looking into purchasing my first house but at this prices in southern california I just can not afford one.

Regards,
Greg

The market is always dictated by the basic laws of economics. SUPPLY/DEMAND. Many of us do not see a big demand for buying houses any time soon. If you are a seller and want to get rid of your house ASAP, you will have to lower your price until it becomes attractive to somebody else.

[Codythebest]

What makes you think that prices will go even lower on foreclosure houses?. I am not an expert and that is why I would like to know since I am looking into purchasing my first house but at this prices in southern california I just can not afford one.

Regards,
Greg

Nothing. 6th sense...I just feel it...I don't know...as I didn't know why I should sell all my potfolio in Florida 6 months before the big bang...
I think rock bottom will be in may-june 2008...I might be wrong since I'm putting some hope in there...And that's not good...

[brianlaughlin]

May or June for rock bottom?

I'm hoping. :-)

Unfortunately, it looks like from just looking at banking data that it will go till at least 2009. Countrywide gave a talk to Realtors about short sales and they are indicating that they'll have more short sales and bank REOs continuing all this year. Just in CA they have 5500.

Getting out and coming back in if the taxes make sense, might not be such a bad idea.

Someone posted about foreclosures, if you're going to flip it...be careful.

Regards,

[mstevenson]

The market is always dictated by the basic laws of economics. SUPPLY/DEMAND. Many of us do not see a big demand for buying houses any time soon. If you are a seller and want to get rid of your house ASAP, you will have to lower your price until it becomes attractive to somebody else.

Yea, but theres a lot more to it than that. Right now were in a mortgage crunch because subprime borrowers arent able to make their payments from adjustable mortgages, a decreased economy, and equity issues.

In the next year were going to continue with these subprime borrowers, but also add in an absolutely incredible influx of PRIME borrowers from the real estate boom whos option ARM loans are going to reset to higher rates. These prime borrowers are literally going to walk away from their mortgages just because they dont want to pay. :eek:

Theyll be owing more than their homes are worth and with the huge monthly payments they might as well go buy that nice foreclosure down the street for WAY less money! Ahh we are in for an interesting ride :p

[Codythebest]

Humm...I see more activities in East TN where I am. Not sure if it's only me or if it's general. If it's the case, I was wrong and we might have seen rock bottom last february-march...Wait and see...