Thanks!! I read your post on here all the time and in all honesty that does make me feel better. I keep telling myself that we will be good in the long run..... on the other hand, it's a crazy time that no one has seen before!

While appraisers are weird that is not the cause. It's a run on capacity for entire lending industry. Appraisers are working 6 sometimes 7 days a week right now. Your lender is responsible for them so there is where you keep going.

Your realtor should of told you that

Thanks.... also.. maybe the wrong thread but what happens to closings when these shelter in place start happening?

Title companies already have procedures in place for closings. Most of them don't want realtors or lenders there. Just each separate party in there to sign.

I don't imagine things would change much for shelter in place.

Thank you

For the last two years I've asked realtors what their opinions are if we were to get back to a "buyers" market. Not a housing crash, but simply back to 6 mos inventory. Almost all of them had their heads exploding at the thought.

Housing is also exposed to a correction. Can't say for sure how deep or bad it can get, no one can make that prediction. But low oil plus a recession will be hard on the local economy.

Diggity said:

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Title companies already have procedures in place for closings. Most of them don't want realtors or lenders there. Just each separate party in there to sign.

I don't imagine things would change much for shelter in place.

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Around here the real estate agents probably attend 95% of the closings.

But I agree . It is certainly not necessary and unless the represented party wants them there they should stay away.

BQ05 said:

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Also.... I ordered my appraisal on the purchase home week before last and it has not been done..... I asked my realtor why and he said "appraisers are being weird" right now.

Called my lender yesterday to ask him and no response.

Not sure what to make of that.

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It's is busy as it has ever been. I'm on track for my best month ever and have passed on way more than half of the work I have been offered. If I had the time, I could have doubled my best month ever.

We are backed up and there isn't much we can do about it. We'll see how this virus wrecks shop. For now, we are still swamped.

I'm just speaking to what I've been seeing from title companies recently. It was definitely the norm that we would attend before this scare.

Gotcha

Next thing you're going to tell me is that open houses aren't effective!

I'd hate to kill a sacred cow.

People can't pay their house payment. There will be massive foreclosures. End of story.

Let's see how forbearance works first before jumping to that conclusion.

TxAG#2011 said:

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Austin/DFW aren't reliant on oil at al

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Energy has a larger presence in DFW than most people realize because a lot of it is private equity and private (ex. Bass, Hunt). Add onto that publics like ExxonMobil, Pioneer and Range and the damage can add up.

Don't forget Jerry Jones, Kelcy Warren.

agneck said:

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When oil gets cheap in Texas you have people lose their jobs and lose their houses. Lenders will repossess then after a while they'll sell them cheap. Sometimes auctions have occurred. Save your money it's coming. They'll be lots of commercial properties get repoed too. Way over lended on that. N

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Oil prices will have their effect. I do not agree with comment regarding repossessions. I believe Freddie, Fannie and Sallie hold the majority of the residential mortgages, and with a drastically small equity position due to the 3 1/2 down loan product which has been offered for the past several years. Such a poor equity position will not allow the mortgage holders to foreclose and sell at drastically reduced prices. We will probably see something more like the past recession during Bush/Obama with loan forgiveness and short sales. The commercial market will be another story. We shall see what transpires.

jja79 said:

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Let's see how forbearance works first before jumping to that conclusion.

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Jefferson Bank in San Antonio is offering two options for now:

1. If you are paying taxes and insurance with escrow, you can forego those for three months and pay P&I for now.
2. You can stop payments for three months no harm to credit or penalty other than the 3 extra months of no principal reduction and the extra interest.

edit, posted in wrong thread

If they're following the Freddie/Fannie forbearance plan it can go up to 12 months but at the end of 12 months all 12 payments are due. It doesn't extend your term by 12 months.

agneck said:

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People can't pay their house payment. There will be massive foreclosures. End of story.

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Massive foreclosures? End of story? Good grief.

The market is still undersupplied. Why would there be massive foreclosures if the folks could go ahead and sell their home? There are still market segments in DFW that have zero inventory.

There are also going to be forbearance and other programs to help.

Shooter McGavin said:

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agneck said:

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People can't pay their house payment. There will be massive foreclosures. End of story.

---

Massive foreclosures? End of story? Good grief.

The market is still undersupplied. Why would there be massive foreclosures if the folks could go ahead and sell their home? There are still market segments in DFW that have zero inventory.

There are also going to be forbearance and other programs to help.

---

You're assuming there will be buyers lined up at that point. And that the sellers aren't significantly underwater if they sell at the new lower market value.

I'm planning on buying at that timeframe. But I have a lot saved, and ready to spend. But you're damn sure I'll be lowballing the hell out of folks, taking advantage of desperation and a larger inventory with lower demand. And I won't feel bad about it.

Maybe my patience won't pay off. In which case everyone's rebounded nicely and we all win. But I won't be surprised if there are lots of opportunities because of unfortunate circumstances.

WoMD said:

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Shooter McGavin said:

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agneck said:

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People can't pay their house payment. There will be massive foreclosures. End of story.

---

Massive foreclosures? End of story? Good grief.

The market is still undersupplied. Why would there be massive foreclosures if the folks could go ahead and sell their home? There are still market segments in DFW that have zero inventory.

There are also going to be forbearance and other programs to help.

---

You're assuming there will be buyers lined up at that point. And that the sellers aren't significantly underwater if they sell at the new lower market value.

I'm planning on buying at that timeframe. But I have a lot saved, and ready to spend. But you're damn sure I'll be lowballing the hell out of folks, taking advantage of desperation and a larger inventory with lower demand. And I won't feel bad about it.

Maybe my patience won't pay off. In which case everyone's rebounded nicely and we all win. But I won't be surprised if there are lots of opportunities because of unfortunate circumstances.

---

This situation is new to us all, and the process will take some time. The 86 crash didn't hit bottom in the real estate market until 1989-90, and reached past highs within 10-12 years. The last recession never had a bottom or the same kind of sell off at massive discounts, and it cycled to past highs in about 14 years. As happened in both, those over extended will be exposed while credit requirements will steadily rise and eliminate many more, so patience, sound financial planning while building cash reserves is the play. This thing has just started. The economic ramifications will show long after the medical crises is controlled. Most posters on this board are prepared and will prosper.

Realtors go to closing to make sure the deal doesn't fall apart. They act like it is for support, but as a realtor and one that has had one at a closing because the deal was in another market, it is to protect their revenue.

Weird. I've never had a deal fall apart at closing, and I go so that I can help answer questions and support them since they've been working with me far longer than the random lady at the title company. They also get their closing gift at closing.

What kind of "gift" is this that you speak of?

WoMD said:

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Shooter McGavin said:

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agneck said:

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People can't pay their house payment. There will be massive foreclosures. End of story.

---

Massive foreclosures? End of story? Good grief.

The market is still undersupplied. Why would there be massive foreclosures if the folks could go ahead and sell their home? There are still market segments in DFW that have zero inventory.

There are also going to be forbearance and other programs to help.

---

You're assuming there will be buyers lined up at that point. And that the sellers aren't significantly underwater if they sell at the new lower market value.

I'm planning on buying at that timeframe. But I have a lot saved, and ready to spend. But you're damn sure I'll be lowballing the hell out of folks, taking advantage of desperation and a larger inventory with lower demand. And I won't feel bad about it.

Maybe my patience won't pay off. In which case everyone's rebounded nicely and we all win. But I won't be surprised if there are lots of opportunities because of unfortunate circumstances.

---

I make a living in the real estate business, for 36 years now. I think I have a pretty good finger on the pulse. The market is not going to dry up so badly that someone is going to be able to swoop in and buy a house wildly under market in the areas where people want to live.

The DFW market, where I work, is under built and under supplied. Will some of the buyers go away? Yes, but there will be buyers. Will some folks default? Yes. Will there be areas where there is an oversupply? Probably, but I'll bet that isn't somewhere you will want to buy, hence my comments. Is there going to be desperation? Perhaps, and you might get lucky enough to find someone like that, but rest assured there will also be other buyers with the same mindset. If you are looking in the Houston, Midland or other oil related markets then you probably will score a big win, but I don't think you're going to do it in the nicer areas of the Metroplex.

If you plan on going in and making low ball offers in the better areas, I suggest you utilize a very patient Realtor.

For you? How about a nice single malt?

Shooter McGavin said:

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WoMD said:

---

Shooter McGavin said:

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agneck said:

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People can't pay their house payment. There will be massive foreclosures. End of story.

---

Massive foreclosures? End of story? Good grief.

The market is still undersupplied. Why would there be massive foreclosures if the folks could go ahead and sell their home? There are still market segments in DFW that have zero inventory.

There are also going to be forbearance and other programs to help.

---

You're assuming there will be buyers lined up at that point. And that the sellers aren't significantly underwater if they sell at the new lower market value.

I'm planning on buying at that timeframe. But I have a lot saved, and ready to spend. But you're damn sure I'll be lowballing the hell out of folks, taking advantage of desperation and a larger inventory with lower demand. And I won't feel bad about it.

Maybe my patience won't pay off. In which case everyone's rebounded nicely and we all win. But I won't be surprised if there are lots of opportunities because of unfortunate circumstances.

---

I make a living in the real estate business, for 36 years now. I think I have a pretty good finger on the pulse. The market is not going to dry up so badly that someone is going to be able to swoop in and buy a house wildly under market in the areas where people want to live.

The DFW market, where I work, is under built and under supplied. Will some of the buyers go away? Yes, but there will be buyers. Will some folks default? Yes. Will there be areas where there is an oversupply? Probably, but I'll bet that isn't somewhere you will want to buy, hence my comments. Is there going to be desperation? Perhaps, and you might get lucky enough to find someone like that, but rest assured there will also be other buyers with the same mindset. If you are looking in the Houston, Midland or other oil related markets then you probably will score a big win, but I don't think you're going to do it in the nicer areas of the Metroplex.

If you plan on going in and making low ball offers in the better areas, I suggest you utilize a very patient Realtor.

---

How did it play out for you in 2008?

It will likely be a regional situation, I'd expect. In California (SoCal and sf areas) it looked more like how I described, and nothing like what you did. So perhaps it's better in the Texas market, so the thousands of suddenly vacant houses I found over there was an anomaly.

Or maybe the issues we saw back then were unique and nothing like what could happen now?

My point is, regardless of all of your decades of experience, this scenario is looking to be nothing like what we see now, so the fact that many areas are currently undersupplied will likely be irrelevant.. We have no clue how things will play out. But I bet it won't be as pretty as what you're describing. We won't know how it will play out for some time, of course. Either way, I'd expect that if millions end up unemployed, we will see a large number who can't pay their mortgage, as well as fewer people in a position to buy, shifting the supply and demand ratio dramatically. Or am I misunderstanding supply and demand somehow?

WoMD said:

---

Shooter McGavin said:

---

WoMD said:

---

Shooter McGavin said:

---

agneck said:

---

People can't pay their house payment. There will be massive foreclosures. End of story.

---

Massive foreclosures? End of story? Good grief.

The market is still undersupplied. Why would there be massive foreclosures if the folks could go ahead and sell their home? There are still market segments in DFW that have zero inventory.

There are also going to be forbearance and other programs to help.

---

You're assuming there will be buyers lined up at that point. And that the sellers aren't significantly underwater if they sell at the new lower market value.

I'm planning on buying at that timeframe. But I have a lot saved, and ready to spend. But you're damn sure I'll be lowballing the hell out of folks, taking advantage of desperation and a larger inventory with lower demand. And I won't feel bad about it.

Maybe my patience won't pay off. In which case everyone's rebounded nicely and we all win. But I won't be surprised if there are lots of opportunities because of unfortunate circumstances.

---

I make a living in the real estate business, for 36 years now. I think I have a pretty good finger on the pulse. The market is not going to dry up so badly that someone is going to be able to swoop in and buy a house wildly under market in the areas where people want to live.

The DFW market, where I work, is under built and under supplied. Will some of the buyers go away? Yes, but there will be buyers. Will some folks default? Yes. Will there be areas where there is an oversupply? Probably, but I'll bet that isn't somewhere you will want to buy, hence my comments. Is there going to be desperation? Perhaps, and you might get lucky enough to find someone like that, but rest assured there will also be other buyers with the same mindset. If you are looking in the Houston, Midland or other oil related markets then you probably will score a big win, but I don't think you're going to do it in the nicer areas of the Metroplex.

If you plan on going in and making low ball offers in the better areas, I suggest you utilize a very patient Realtor.

---

How did it play out for you in 2008?

It will likely be a regional situation, I'd expect. In California (SoCal and sf areas) it looked more like how I described, and nothing like what you did. So perhaps it's better in the Texas market, so the thousands of suddenly vacant houses I found over there was an anomaly.

Or maybe the issues we saw back then were unique and nothing like what could happen now?

My point is, regardless of all of your decades of experience, this scenario is looking to be nothing like what we see now, so the fact that many areas are currently undersupplied will likely be irrelevant.. We have no clue how things will play out. But I bet it won't be as pretty as what you're describing. We won't know how it will play out for some time, of course. Either way, I'd expect that if millions end up unemployed, we will see a large number who can't pay their mortgage, as well as fewer people in a position to buy, shifting the supply and demand ratio dramatically. Or am I misunderstanding supply and demand somehow?

---

You are not misunderstanding supply and demand, but I'm doubtful that the situation is going to be similar to 2008. And, obviously, the markets will change but to say that markets currently undersupplied is irrelevant is like saying that everything completely resets. It doesn't. You say it won't be as pretty as what I describe, but it won't be the bloodbath you are predicting either.

Real estate is local. Even in DFW, the submarkets are dramatically different. I wouldn't compare one regional market to the next, heck I wouldn't even compare Dallas to Houston. Totally different markets. What happens in "SoCal and SF" who knows. That state and real estate market is a little "out there".

Millions are going to be "temporarily" unemployed. The world isn't just going to stop down completely and in the aftermath things will pick up rapidly.

As in any situation like this, there will be winners and losers. It sounds like you have a chance to be a winner. Good luck to you.

Shooter McGavin said:

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WoMD said:

---

Shooter McGavin said:

---

WoMD said:

---

Shooter McGavin said:

---

agneck said:

---

People can't pay their house payment. There will be massive foreclosures. End of story.

---

Massive foreclosures? End of story? Good grief.

The market is still undersupplied. Why would there be massive foreclosures if the folks could go ahead and sell their home? There are still market segments in DFW that have zero inventory.

There are also going to be forbearance and other programs to help.

---

You're assuming there will be buyers lined up at that point. And that the sellers aren't significantly underwater if they sell at the new lower market value.

I'm planning on buying at that timeframe. But I have a lot saved, and ready to spend. But you're damn sure I'll be lowballing the hell out of folks, taking advantage of desperation and a larger inventory with lower demand. And I won't feel bad about it.

Maybe my patience won't pay off. In which case everyone's rebounded nicely and we all win. But I won't be surprised if there are lots of opportunities because of unfortunate circumstances.

---

I make a living in the real estate business, for 36 years now. I think I have a pretty good finger on the pulse. The market is not going to dry up so badly that someone is going to be able to swoop in and buy a house wildly under market in the areas where people want to live.

The DFW market, where I work, is under built and under supplied. Will some of the buyers go away? Yes, but there will be buyers. Will some folks default? Yes. Will there be areas where there is an oversupply? Probably, but I'll bet that isn't somewhere you will want to buy, hence my comments. Is there going to be desperation? Perhaps, and you might get lucky enough to find someone like that, but rest assured there will also be other buyers with the same mindset. If you are looking in the Houston, Midland or other oil related markets then you probably will score a big win, but I don't think you're going to do it in the nicer areas of the Metroplex.

If you plan on going in and making low ball offers in the better areas, I suggest you utilize a very patient Realtor.

---

How did it play out for you in 2008?

It will likely be a regional situation, I'd expect. In California (SoCal and sf areas) it looked more like how I described, and nothing like what you did. So perhaps it's better in the Texas market, so the thousands of suddenly vacant houses I found over there was an anomaly.

Or maybe the issues we saw back then were unique and nothing like what could happen now?

My point is, regardless of all of your decades of experience, this scenario is looking to be nothing like what we see now, so the fact that many areas are currently undersupplied will likely be irrelevant.. We have no clue how things will play out. But I bet it won't be as pretty as what you're describing. We won't know how it will play out for some time, of course. Either way, I'd expect that if millions end up unemployed, we will see a large number who can't pay their mortgage, as well as fewer people in a position to buy, shifting the supply and demand ratio dramatically. Or am I misunderstanding supply and demand somehow?

---

You are not misunderstanding supply and demand, but I'm doubtful that the situation is going to be similar to 2008. And, obviously, the markets will change but to say that markets currently undersupplied is irrelevant is like saying that everything completely resets. It doesn't. You say it won't be as pretty as what I describe, but it won't be the bloodbath you are predicting either.

Real estate is local. Even in DFW, the submarkets are dramatically different. I wouldn't compare one regional market to the next, heck I wouldn't even compare Dallas to Houston. Totally different markets. What happens in "SoCal and SF" who knows. That state and real estate market is a little "out there".

Millions are going to be "temporarily" unemployed. The world isn't just going to stop down completely and in the aftermath things will pick up rapidly.

As in any situation like this, there will be winners and losers. It sounds like you have a chance to be a winner. Good luck to you.

---

I hope you're right. Many very informed people aren't nearly as optimistic on that outlook, however. Or perhaps I'm not as optimistic from how I understand this disease to behave (I'm in medicine), and the current and potentially lasting impacts on our economies, but it's best to mentally prepare for worst case scenario.

I know nothing about the Dallas area, to be honest, as I have little interest in that region. Hopefully your area takes a minimal hit. But if things progress, there will be large areas in this country that will have a dramatic increase in inventory as the foreclosures add up everywhere, with nobody in a place to buy, just as they did in 2008. If I had the cash back then there were thousands of foreclosures everywhere with minimal competition that were ripe for the picking, where value had dropped by 50+% (which has since obviously shot well past where they were previously). This actually could be worse, if the millions who are unemployed can't instantly return to the financial stability of just a few weeks ago.

While it won't be a decade long "get back to normal" mess, I would be shocked if there's anything close to an instant bounceback, "pick up where we left off", event. My point was simply if things bounce back, while unlikely, fantastic. We haven't lost anything, everyone wins. But if it's more drawn out, which is what many financial experts are concerned about, there will be a cascade of effects that dramatically impact millions. In that scenario, defaults and foreclosures will happen. And it won't be just a few. And while it will be regional in the range of severity, there is nowhere in this country (or the world) that won't have some acute (and likely lingering) hit. The more resilient markets won't have as much of an issue if this is resolved within the next 6 months, hopefully. But while Dallas may weather this storm well, other places, like Vegas for instance, will be hammered.

The best way to approach this (for me anyway) is to prepare and be ready to roll with the changes. It may come to nothing, and putting money in the stock market is a guaranteed win for those willing to put it in in the next few months. Or it may swing the other way, and real estate will be an opportunity for those who have been waiting on the sidelines, which unfortunately means taking advantage of the suffering of the millions who are impacted. Honestly, I'd rather we have that bounce back and we continue with the how things were a few weeks ago. Unfortunately, it's looking less and less like that will happen everyday.

Maybe I'm letting my medical knowledge (as well as my experience being a business owner in the past and a current CRE property owner) cloud my opinion, and I come off more negative than I intend. In which case, I apologize. I'm not as pessimistic as I sound, but I always make every effort to be realistic. Nobody knows how things will actually play out, which is why stating absolutes in either direction is silly. We can only roll with the punches, and play the hands we're dealt to the best of our ability.