Hello. Welcome to Todd Miller TV. Quick update today, this is for all the people who have been frustrated getting a house and those investors as well who said they’re going to wait a couple of years when all the REOs hit the market.
Well, there is nothing to indicate that is going to happen. So I know that there’s this conventional wisdom or common misbelief going around that there’s going to be this flood of properties. We’ve been hearing about this now for three years. It’s not going to happen.
There are a lot of reasons why. OK. First is, there’s legislation going to a fact that it’s going to make it even harder to foreclose. This is SB-321. So that’s number one.
Number two is banks don’t want to do that. It doesn’t make sense to do that. It doesn’t make sense to trash the marketplace. They won’t be able to loan in here. They will create more REOs if they make it worse.
The next reason is the mortgage settlement. There was a mortgage settlement that happened last year. It gives the banks three years to do all of these loan mods and principal reductions and get the $17 billion of relief out to people.
So they can’t foreclose and then give them relief. So they’re not going to do anything for two years. The only two amnesties [0:01:17] [Phonetic] that are going to have REOs are Fannie and Freddie. Everybody else is just going to sit around.
So if you’re going to buy a house, buy a house. If you’re an investor and you would think in two years that the market is going to tank and people have said that, it’s not going to happen.
Nothing is showing that will happen and so, anyway, I thought I would share that opinion with you. Stop trying to guess what’s going to happen. It’s just like the guys I met with 18 months ago that told me that the market was going to fall 30 percent and they could buy everything they could get their hands on, 30 percent under market value where it didn’t make sense. I said, “Good luck,” and obviously that didn’t happen.
So that’s sort of my outlook, news, forecast, whatever you want to call it for the real estate market here in Las Vegas. No, it is what it is. What we have now is it’s more likely to be how it is now in a year than to be different from how it is now.
So will we see slowly properties come on the market? Yeah, it’s going to keep happening because Fannie and Freddie are still foreclosing and the investors or people that own are going to flip. But a lot of people are getting letters from their banks saying hey, just call us and we will just drop your interest rate to two percent, which is what the HAMP program does and they’re like fine, I will just make a lower payment and hope the market catches up to the debt I owe on the house.
That’s the strategy out there. We also know that because a lot less people are short selling right now. So, if you’re waiting around for something to happen, you’re going to be waiting for a long time and it probably is not going to happen. So that’s my update for today and hope to see you on another video. Thanks.