All Encompassing Mortgage and Real Estate Thread

[UTPhil2006 3754]

Bingo.  Take the money and run.  Whatever they do with it isn't your buddy's problem.  

[UT_OB1 2193]

2 hours ago, Gil Bang said:

 

Yeah, I don't get it either, and to me, it smells like some kind of Wall Street hijinks.  

They are straight-up paying too much for houses. And then they are listing them for too much.  Are they holding them on the books as assets valued at their asking prices?   I'm not shitting y'all.  I've looked at total dogshit that's priced over the top of the market. 

And Beantown, it sounds to me like your buddy made a smart play.  If I'm a good realtor and I tell you that your house is worth X, and zillow wants to give you more than you would net from my price, you're crazy not to take it. 

Does it give them somewhere to put their taxable profit while they hold it?  Put the taxes off and bank on appreciation?

[Gil Bang 25509]

I'm not an accounting guy, but it doesn't make sense to me.  Carrying costs are too high. 

[jimmyjazz 45055]

So what's Redfin's business model?  They have my house valued at WAY below Zillow, and even well below TCAD.  In my experience, TCAD is always a floor on actual value.

I'm assuming Redfin just lowballs "value" to owners in the hopes that a few percent of them bite?  I mean, the numbers they show me for neighbors, all of whom have far older houses on smaller lots is typically quite a bit higher.  It just screams "con job" to me.

[Beantown Express 2.0 6490]

NBC literally just did a story about how Wall Street hedge funds and private equity are buying up the housing market throughout the country with cash offers well over asking and then renting the houses out.  They showed some neighborhood outside of Nashville where like 35% of the houses were Wall Street landlords.  I am guessing Zillow might be doing the same thing.  The whole story was how regular people can’t afford to buy houses with all of this PE money being used to snap up all the houses on the market.  They showed one firm that now owns 81000 homes nationwide and rents them out which means the home equity wealth people try to accumulate now goes to the rich guys on Wall Street I guess.  

[Gil Bang 25509]

1 hour ago, Beantown Express 2.0 said:

NBC literally just did a story about how Wall Street hedge funds and private equity are buying up the housing market throughout the country with cash offers well over asking and then renting the houses out.  They showed some neighborhood outside of Nashville where like 35% of the houses were Wall Street landlords.  I am guessing Zillow might be doing the same thing.  The whole story was how regular people can’t afford to buy houses with all of this PE money being used to snap up all the houses on the market.  They showed one firm that now owns 81000 homes nationwide and rents them out which means the home equity wealth people try to accumulate now goes to the rich guys on Wall Street I guess.  

I'm talking about homes that Zillow has listed for sale.   Maybe they do rentals, IDK not my market. 

[Gil Bang 25509]

check this out:  https://www.redfin.com/CA/Oceanside/501-Allspice-Way-92057/home/3313390

 

Zillow bought this dump last month for $525,000, which is only about $75,000 over what it's worth.  They just listed it a minute ago for $495,200.

On what planet does this make sense? 

[Gil Bang 25509]

And by the way, the "redfin estimate" at 508 is also bullshit, because the comps all have new kitchens, baths, etc.  This fucker has the 1977 cabinets and formica tops. 

[Gil Bang 25509]

https://www.redfin.com/CA/Oceanside/4503-Kittiwake-Way-92057/home/3313915

Sold yesterday for $450,000.   Zillow paid $504,000 in August. 

[DonkeyCigars 144]

21 hours ago, Beantown Express 2.0 said:

NBC literally just did a story about how Wall Street hedge funds and private equity are buying up the housing market throughout the country with cash offers well over asking and then renting the houses out.  They showed some neighborhood outside of Nashville where like 35% of the houses were Wall Street landlords.  I am guessing Zillow might be doing the same thing.  The whole story was how regular people can’t afford to buy houses with all of this PE money being used to snap up all the houses on the market.  They showed one firm that now owns 81000 homes nationwide and rents them out which means the home equity wealth people try to accumulate now goes to the rich guys on Wall Street I guess.  

And not only that but PE firms are buying up whole tracts of homes from Pulte or KB or Toll Brothers, etc. (production, mass builders) and adding them to their portfolios, getting these houses at the source now versus buying gently used or later model homes from the original homeowners.

[tokamak 6321]

50 minutes ago, Gil Bang said:

https://www.redfin.com/CA/Oceanside/4503-Kittiwake-Way-92057/home/3313915

Sold yesterday for $450,000.   Zillow paid $504,000 in August. 

Yeah but they make it up in volume!

[UTPhil2006 3754]

We didn’t do a giveaway but here’s our team Plus a couple others 

 

[UTPhil2006 3754]

Lower right first pic is at least 5 of yalls insurance agent 

[Assman 1830]

I feel the need to get quotes on insurance all of a sudden

[Chewbacca 7612]

On 10/8/2021 at 9:48 AM, Gil Bang said:

check this out:  https://www.redfin.com/CA/Oceanside/501-Allspice-Way-92057/home/3313390

 

Zillow bought this dump last month for $525,000, which is only about $75,000 over what it's worth.  They just listed it a minute ago for $495,200.

On what planet does this make sense? 

They did something similar in my neighborhood last summer.  Bought neighbor's house for $550k or so, did a bunch of work to it, and then sold it for something like $560k.  They took a significant loss on that house.

[Catpfish 618]

It's the same all over the central Texas region.  They bought a house in the Pflugerville area and have it listed at 20% over two comps that have sold in the last couple of months (both closed after the school rush, but went under contract during it), and this house is not even in as good of a condition as the others.

Only half kidding, is there some type of money  laundering going on?  

[Neonmoon 38126]

probably taking losses in exchange for market share. They can make money later 

[Wulaw Horn 18917]

30-YR. CONFORMING

3.245% +0.035

30-YR. JUMBO

3.207% +0.080

30-YR. FHA

3.290% +0.030

30-YR. VA

2.848% -0.040

30-YR. USDA

3.173% -0.014

15-YR. CONFORMING

2.457% +0.026

[Wulaw Horn 18917]

MBS Market up 13 bips since 9:30 today. First positive day we've had in seemingly forever.  This means we are looking at something like 3/8 of a point worse in the interest rate market in the last month.

Look at that 15- at 2.457%  I had a guy that I put in at no points at 1.875% 5 weeks ago and multiple people at 1.99% 3 weeks ago on a 15

 

Again- this is national average according to my loan sifter software. We can do better for almost everyone than this. I'm still putting people in at 2.XX on 30's with no points, this is just a comparison shopping for what the average joe is paying out there for those different loan types.

Edited October 12, 2021 by Wulaw Horn

[jimmyjazz 45055]

23 hours ago, Neonmoon said:

probably taking losses in exchange for market share. They can make money later 

How does their market share go up if they flip the house?

[Catpfish 618]

How does their market share go up if they flip the house?

And who would they be trying get market share from? Local realtors? I don't think they'll make much of a dent in that since they still need the locals to sell their houses. Open door and the like?

[jimmyjazz 45055]

Seems to me they're more likely trying to book some losses while increasing their market *presence*.

[Neonmoon 38126]

46 minutes ago, jimmyjazz said:

Seems to me they're more likely trying to book some losses while increasing their market *presence*.

Oops. This is what I meant. 

[TKthunder2 4958]

Maybe when the market was going crazy, buying a house and quickly flipping it was profitable for a short time and now their algorithm is having trouble catching up.  Now it looks dumb but a year ago it looked brilliant when it was likely just catching lightning in a bottle.

[UTPhil2006 3754]

Getting a little reprieve yesterday and today in the market

[Wulaw Horn 18917]

30-YR. CONFORMING

3.248% +0.025

30-YR. JUMBO

3.181% +0.013

30-YR. FHA

3.290% +0.024

30-YR. VA

2.868% +0.040

30-YR. USDA

3.162% +0.007

15-YR. CONFORMING

2.476% +0.029

[Wulaw Horn 18917]

Green is bad- it means interest rates are up.  After having a decent Tuesday- Thursday last week we lost 30+ bips to the Mortgage backed security market Friday and were down another 28 or so this morning at open.  It's since faught back to down 6 bips.  That translates to about 1/10 of a percent since Thursday night that rates were up- giving back all the good from earlier in the week and then some.  

From the update today:

Mortgage Bonds and the 10 year are at critical technical levels.  Bonds are holding above 2 key floors- the 102.313 low from Wed. and the 102.203 Fibonacci level.  The 10 year is at 1.61 and needs to stop right there.  If yields can stay beneath this critical ceiling there is a lot of room for improvement. Begin the day carefully floating to see if the floor on bonds and ceiling on Yields holds. 

 

What this means for you if  you are looking to do something with your mortgage:  I'd suggest a safety lock so that if the technicals don't hold you should be able to get a 30 year with a 2 in front of it- even if its just barely (again- the national average is 3.25-so you'd be doing very well compared to the market with anything with a 2 in front of it).    

If you are looking to shorten your term now is a great time to do that.  15 year has almost a 3/4 of a point spread between that and 30 year where I'd be looking to lock a good credit borrower.  Typically 1/2 a point spread is pretty common between the 15 and the 30.  Earlier this year I saw a spread as low as 1/4 of a point on some pricing and I can say- this is garbage- never go to a 15 if you are only going to save 1/4 of a point- it's not worth it.  3/4 of a point is a huge spread and if the payment doesn't make you house poor it's a really advantageous time to do it.  Dave Ramsey fans rejoice!

[Gil Bang 25509]

Real estate industry giant Zillow has put a pause on its ibuying because the company can’t seem to stay apace of high demand, Bloomberg reported late Sunday night.

The company acquired more than 3,800 homes during the second quarter, following an expansion of the Zillow Offers program in 2018, but today, can’t work quickly enough to satisfy an insatiable demand from consumers.

The pause will last at least through the end of 2021 while Zillow works through its backlog of properties that already have contracts signed and require any renovations. During this time period, Zillow will keep marketing and selling homes through Zillow Offers.

 

“We’re operating within a labor- and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces,” Zillow Chief Operating Officer Jeremy Wacksman said in a statement. “We have not been exempt from these market and capacity issues and we now have an operational backlog for renovations and closings. Pausing new contracts will enable us to focus on sellers already under contract with us and our current home inventory.”

Prospective sellers who might have worked with Zillow Offers will instead be connected with a local Zillow Premier Agent partner.

Following the news, Zillow shares were down more than 6 percent in premarket trading on Monday. As of last Friday’s close, stock had declined 31 percent in the year to date.

Given the company’s market power and huge amounts of data at hand, it has the ability to essentially plan out its inventory and acquisitions in advance, and speed up or slow down business as needed, Inman Contributor Mike DelPrete told the Wall Street Journal. Therefore, the announcement, which covers all Zillow markets, is a bit surprising.

No other major iBuyers have made any similar announcement to halt purchasing homes this year so far. In fact, iBuyer Opendoor reached out to Inman directly to confirm they are still continuing to acquire homes.

“We know how important certainty and convenience are to homeowners seeking to move and we’ve worked hard over the past seven years to ensure we can continue to deliver our experience at scale,” a spokesperson for Opendoor said in a statement emailed to Inman. “Opendoor is open for business and continues to scale and grow.”

[UTPhil2006 3754]

Surly stays ahead of the National curve on figuring stuff out 

[DonkeyCigars 144]

On 10/7/2021 at 1:40 PM, jimmyjazz said:

So what's Redfin's business model?  They have my house valued at WAY below Zillow, and even well below TCAD.  In my experience, TCAD is always a floor on actual value.

I'm assuming Redfin just lowballs "value" to owners in the hopes that a few percent of them bite?  I mean, the numbers they show me for neighbors, all of whom have far older houses on smaller lots is typically quite a bit higher.  It just screams "con job" to me.

Zillow Group Inc. is taking a break from buying U.S. homes after the online real estate giant’s pivot into tech-powered house-flipping hit a snag.

Zillow, which acquired more than 3,800 homes in the second quarter, will stop pursuing new purchases for the remainder of the year as it works through a backlog of properties already in its pipeline. …

In 2018, the company launched Zillow Offers, joining a small group of tech-enabled home-flippers known as iBuyers. In the new business, Zillow invites homeowners to request an offer on their house and uses algorithms to generate a price. If an owner accepts, Zillow buys the property, makes light repairs and puts it back on the market.

With the pandemic setting off a housing frenzy marked by cash bids and fast closings, Zillow’s pitch of speed and convenience has started to resonate with consumers who want to sell their homes quickly as they try to buy a new property.

The iBuying process is powered by algorithms and large pools of capital, but it’s also reliant on humans. Before Zillow signs a contract to buy a house, it sends an inspector to make sure the property doesn’t need costly repairs. After it buys a home, contractors replace carpets and repaint interiors.

Finding workers for those tasks has been challenging during a pandemic that has stretched labor across industries. 

“I’ll pay you $350,000 for your house as long as a human can go out there, look around, and make sure that price isn’t wildly off” is an interesting model but it’s not quite the same as “push this button to sell your house for $350,000.” And “I’ll pay $350,000 for a house and then send out a crew to replace the carpets” is not quite the same as “I’ll pay $350,000 for a house and flip it 20 minutes later for $355,000, collecting a small spread for providing liquidity.” Computerization has come into the housing market, but it hasn’t taken it over yet.

[DonkeyCigars 144]

59 minutes ago, Gil Bang said:

Real estate industry giant Zillow has put a pause on its ibuying because the company can’t seem to stay apace of high demand, Bloomberg reported late Sunday night.

The company acquired more than 3,800 homes during the second quarter, following an expansion of the Zillow Offers program in 2018, but today, can’t work quickly enough to satisfy an insatiable demand from consumers.

The pause will last at least through the end of 2021 while Zillow works through its backlog of properties that already have contracts signed and require any renovations. During this time period, Zillow will keep marketing and selling homes through Zillow Offers.

 

“We’re operating within a labor- and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces,” Zillow Chief Operating Officer Jeremy Wacksman said in a statement. “We have not been exempt from these market and capacity issues and we now have an operational backlog for renovations and closings. Pausing new contracts will enable us to focus on sellers already under contract with us and our current home inventory.”

Prospective sellers who might have worked with Zillow Offers will instead be connected with a local Zillow Premier Agent partner.

Following the news, Zillow shares were down more than 6 percent in premarket trading on Monday. As of last Friday’s close, stock had declined 31 percent in the year to date.

Given the company’s market power and huge amounts of data at hand, it has the ability to essentially plan out its inventory and acquisitions in advance, and speed up or slow down business as needed, Inman Contributor Mike DelPrete told the Wall Street Journal. Therefore, the announcement, which covers all Zillow markets, is a bit surprising.

No other major iBuyers have made any similar announcement to halt purchasing homes this year so far. In fact, iBuyer Opendoor reached out to Inman directly to confirm they are still continuing to acquire homes.

“We know how important certainty and convenience are to homeowners seeking to move and we’ve worked hard over the past seven years to ensure we can continue to deliver our experience at scale,” a spokesperson for Opendoor said in a statement emailed to Inman. “Opendoor is open for business and continues to scale and grow.”

Wow I think we posted almost the same thing at nearly the same time.

[Catpfish 618]

38 minutes ago, DonkeyCigars said:

Zillow Group Inc. is taking a break from buying U.S. homes after the online real estate giant’s pivot into tech-powered house-flipping hit a snag.

Zillow, which acquired more than 3,800 homes in the second quarter, will stop pursuing new purchases for the remainder of the year as it works through a backlog of properties already in its pipeline. …

In 2018, the company launched Zillow Offers, joining a small group of tech-enabled home-flippers known as iBuyers. In the new business, Zillow invites homeowners to request an offer on their house and uses algorithms to generate a price. If an owner accepts, Zillow buys the property, makes light repairs and puts it back on the market.

With the pandemic setting off a housing frenzy marked by cash bids and fast closings, Zillow’s pitch of speed and convenience has started to resonate with consumers who want to sell their homes quickly as they try to buy a new property.

The iBuying process is powered by algorithms and large pools of capital, but it’s also reliant on humans. Before Zillow signs a contract to buy a house, it sends an inspector to make sure the property doesn’t need costly repairs. After it buys a home, contractors replace carpets and repaint interiors.

Finding workers for those tasks has been challenging during a pandemic that has stretched labor across industries. 

“I’ll pay you $350,000 for your house as long as a human can go out there, look around, and make sure that price isn’t wildly off” is an interesting model but it’s not quite the same as “push this button to sell your house for $350,000.” And “I’ll pay $350,000 for a house and then send out a crew to replace the carpets” is not quite the same as “I’ll pay $350,000 for a house and flip it 20 minutes later for $355,000, collecting a small spread for providing liquidity.” Computerization has come into the housing market, but it hasn’t taken it over yet.

It would be one thing is that is what they are doing, but that is not what I'm seeing.  I'm seeing them put houses on the market that have been barely maintained and no repairs or improvements made between the time they buy and list it.  On top of that, they are pricing at the top of the market plus 15-20%.

 

 

[DonkeyCigars 144]

On 10/18/2021 at 2:28 PM, Gil Bang said:

Real estate industry giant Zillow has put a pause on its ibuying because the company can’t seem to stay apace of high demand, Bloomberg reported late Sunday night.

The company acquired more than 3,800 homes during the second quarter, following an expansion of the Zillow Offers program in 2018, but today, can’t work quickly enough to satisfy an insatiable demand from consumers.

The pause will last at least through the end of 2021 while Zillow works through its backlog of properties that already have contracts signed and require any renovations. During this time period, Zillow will keep marketing and selling homes through Zillow Offers.

 

“We’re operating within a labor- and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces,” Zillow Chief Operating Officer Jeremy Wacksman said in a statement. “We have not been exempt from these market and capacity issues and we now have an operational backlog for renovations and closings. Pausing new contracts will enable us to focus on sellers already under contract with us and our current home inventory.”

Prospective sellers who might have worked with Zillow Offers will instead be connected with a local Zillow Premier Agent partner.

Following the news, Zillow shares were down more than 6 percent in premarket trading on Monday. As of last Friday’s close, stock had declined 31 percent in the year to date.

Given the company’s market power and huge amounts of data at hand, it has the ability to essentially plan out its inventory and acquisitions in advance, and speed up or slow down business as needed, Inman Contributor Mike DelPrete told the Wall Street Journal. Therefore, the announcement, which covers all Zillow markets, is a bit surprising.

No other major iBuyers have made any similar announcement to halt purchasing homes this year so far. In fact, iBuyer Opendoor reached out to Inman directly to confirm they are still continuing to acquire homes.

“We know how important certainty and convenience are to homeowners seeking to move and we’ve worked hard over the past seven years to ensure we can continue to deliver our experience at scale,” a spokesperson for Opendoor said in a statement emailed to Inman. “Opendoor is open for business and continues to scale and grow.”

Opendoor was set up from the very beginning to be good at one thing: accurately evaluating the worth of a home, purchasing it, getting it ready for sale, and selling it. Customer acquisition was outsourced to advertising, which is expensive: Opendoor spent $96.5 million in sales, marketing, and operations last quarter (as compared to $158.8 million in gross profits), an increase of $49.3 million over the year prior; $33.4 million of that increase went towards customer acquisition.

It also worked: Opendoor bought around 8,500 homes in the second quarter, more than double the amount that Zillow bought. More importantly, Opendoor, at least according to its public pronouncements this week, isn’t having any trouble turning its houses around, and is eager to buy more. It certainly appears for now that focusing on the core competency of acquiring and selling homes outweighs any advantage that comes from easily acquiring customers.

[Wulaw Horn 18917]

39 minutes ago, DonkeyCigars said:

Opendoor was set up from the very beginning to be good at one thing: accurately evaluating the worth of a home, purchasing it, getting it ready for sale, and selling it. Customer acquisition was outsourced to advertising, which is expensive: Opendoor spent $96.5 million in sales, marketing, and operations last quarter (as compared to $158.8 million in gross profits), an increase of $49.3 million over the year prior; $33.4 million of that increase went towards customer acquisition.

It also worked: Opendoor bought around 8,500 homes in the second quarter, more than double the amount that Zillow bought. More importantly, Opendoor, at least according to its public pronouncements this week, isn’t having any trouble turning its houses around, and is eager to buy more. It certainly appears for now that focusing on the core competency of acquiring and selling homes outweighs any advantage that comes from easily acquiring customers.

Duh. Real estate is so localized that if you don’t have good people as boots on the ground I don’t see how you can make this work- outside of just being a lucky idiot in the right spot at the right time with a sizzling hot market where you can rely on the greater fool theory to bail you out. 

[DonkeyCigars 144]

5 minutes ago, Wulaw Horn said:

Duh. Real estate is so localized that if you don’t have good people as boots on the ground I don’t see how you can make this work- outside of just being a lucky idiot in the right spot at the right time with a sizzling hot market where you can rely on the greater fool theory to bail you out. 

Yea i just thought it was interesting how two (zillow offers and opendoor) SEEMINGLY similar business motions (iBuying) are actually much different.

Quote

 

Remember, Zillow is in nearly every respect already an Aggregator: it is by far the number one place people go when they want to look for a new house, and at a minimum the starting point for research when they want to sell one. They own the customer relationship! What has always been missing is the integration with the purchase itself.  Zillow is making a play to be a true Aggregator — one that transforms its industry by integrating the customer relationship with the most important transaction in its respective value chain — by becoming directly involved in the buying and selling of houses.

The challenge for Zillow is that buying and selling homes is just a fundamentally different business than lead generation for realtors; as I noted in that article that meant potential problems with Wall Street, given the very different margin profiles and capital requirements, and also channel conflict given that Zillow was now competing with its own customers (realtors).

 

 

Edited October 20, 2021 by DonkeyCigars

[Wulaw Horn 18917]

33 minutes ago, DonkeyCigars said:

Yea i just thought it was interesting how two (zillow offers and opendoor) SEEMINGLY similar business motions (iBuying) are actually much different.

 

Oh I thought your post was good and interesting and on point. Agree completely. 

[Gil Bang 25509]

2 hours ago, Wulaw Horn said:

Duh. Real estate is so localized that if you don’t have good people as boots on the ground I don’t see how you can make this work- outside of just being a lucky idiot in the right spot at the right time with a sizzling hot market where you can rely on the greater fool theory to bail you out. 

Yeah, a couple of blocks on the same street can make a BIG difference in value and desirability

 

[CHIEF 5035]

On 10/18/2021 at 3:27 PM, DonkeyCigars said:

Zillow Group Inc. is taking a break from buying U.S. homes after the online real estate giant’s pivot into tech-powered house-flipping hit a snag.

Zillow, which acquired more than 3,800 homes in the second quarter, will stop pursuing new purchases for the remainder of the year as it works through a backlog of properties already in its pipeline. …

In 2018, the company launched Zillow Offers, joining a small group of tech-enabled home-flippers known as iBuyers. In the new business, Zillow invites homeowners to request an offer on their house and uses algorithms to generate a price. If an owner accepts, Zillow buys the property, makes light repairs and puts it back on the market.

With the pandemic setting off a housing frenzy marked by cash bids and fast closings, Zillow’s pitch of speed and convenience has started to resonate with consumers who want to sell their homes quickly as they try to buy a new property.

The iBuying process is powered by algorithms and large pools of capital, but it’s also reliant on humans. Before Zillow signs a contract to buy a house, it sends an inspector to make sure the property doesn’t need costly repairs. After it buys a home, contractors replace carpets and repaint interiors.

Finding workers for those tasks has been challenging during a pandemic that has stretched labor across industries. 

“I’ll pay you $350,000 for your house as long as a human can go out there, look around, and make sure that price isn’t wildly off” is an interesting model but it’s not quite the same as “push this button to sell your house for $350,000.” And “I’ll pay $350,000 for a house and then send out a crew to replace the carpets” is not quite the same as “I’ll pay $350,000 for a house and flip it 20 minutes later for $355,000, collecting a small spread for providing liquidity.” Computerization has come into the housing market, but it hasn’t taken it over yet.

Zillow is ran by fucking idiots that can't even keep their website updated. I don't know how many calls I get from buyers wanting to look at a specific house listed on Zillow that sold 6-9 months ago with no update on status. It's no wonder they failed at this "market opportunity" miserably.

CHIEF

[closetohumping 17258]

My mortgage person accidentally added 10k to my closing cost.  In their favor of course.  Yeah.

[ZB'Tejas 593]

 

Quote

UpEquity, a digital mortgage company that makes cash offers on a buyer’s behalf, announced today it has raised $20 million in equity funding and secured $30 in debt financing.

S3 Ventures led the equity raise, which brings the startup’s total funding haul since its 2019 inception to $77 million, with $29.15 million of that in equity. Next Coast Ventures, BP Capital Management, Alumni Ventures, Gaingels, Launchpad Capital and Early Light Ventures also put money in the round.

There are many digital lenders out there (Better.com being among the higher-profile ones). And there are also many companies that will make cash offers on behalf of buyers. But there aren’t many that do both.

https://techcrunch.com/2021/10/20/upequity-a-digital-mortgage-startup-that-makes-all-cash-offers-secures-50m-in-debt-and-equity/

Edited October 21, 2021 by ZB'Tejas

[Wulaw Horn 18917]

1 hour ago, closetohumping said:

My mortgage person accidentally added 10k to my closing cost.  In their favor of course.  Yeah.

Mistakes were made, we are really sorry about all that (sorry that you noticed), but you have to understand, blah blah blah.  This industry has some morons in it and it has some oily crooks.  Good luck!

[UT_OB1 2193]

I closed with Zeus on a short term rehab loan.  Got a call from the insurance agent saying they hadn’t been paid and when they called Zeus’s office, the secretary they spoke to said insurance was not included in closing and not in escrow. I’ll add this is the insurance agent that Zeus recommended to me (and they were easy to work with and good price). I call my loan officer at Zeus. “Oh, it was in closing.  They should have been paid already.  Who did you say the name was?”  Turns out, they got insurance with a different company.  They had been in contact with the 1st company. The insurance is more or less same price and coverage, but the whole process was a clown show. Had to walk my original officer through the math of what I was supposed to be paying. “Ohhhh….yes that’s what I meant.”  She got moved to a new position after 3 weeks, and I didn’t find out about it for over a week when I was trying to find out what was happening with survey. Won’t be using Zeus again 

[Gil Bang 25509]

3 hours ago, CHIEF said:

Zillow is ran by fucking idiots that can't even keep their website updated. I don't know how many calls I get from buyers wanting to look at a specific house listed on Zillow that sold 6-9 months ago with no update on status. It's no wonder they failed at this "market opportunity" miserably.

CHIEF

That's a feature, not a bug.  "Preferred" agents can keep their listings showing active (when they aren't) so they still get calls from buyers.

My MLS routinely fines agents $500/day for failure to report a status change within 24 hours.  Zillow has no enforcement of any rules, as long as they have your credit card number. 

[UTPhil2006 3754]

1 hour ago, UT_OB1 said:

I closed with Zeus on a short term rehab loan.  Got a call from the insurance agent saying they hadn’t been paid and when they called Zeus’s office, the secretary they spoke to said insurance was not included in closing and not in escrow. I’ll add this is the insurance agent that Zeus recommended to me (and they were easy to work with and good price). I call my loan officer at Zeus. “Oh, it was in closing.  They should have been paid already.  Who did you say the name was?”  Turns out, they got insurance with a different company.  They had been in contact with the 1st company. The insurance is more or less same price and coverage, but the whole process was a clown show. Had to walk my original officer through the math of what I was supposed to be paying. “Ohhhh….yes that’s what I meant.”  She got moved to a new position after 3 weeks, and I didn’t find out about it for over a week when I was trying to find out what was happening with survey. Won’t be using Zeus again 

We may have something coming down the pipe for hard money here hopefully in the next month or so.  Can't say too much now but you have me and Thad's email and such if you want to reach out in the interim.

[UTPhil2006 3754]

3 hours ago, closetohumping said:

My mortgage person accidentally added 10k to my closing cost.  In their favor of course.  Yeah.

Good lord.  I'm curious how it passed fee checks, QC, title, etc with that.  Smh.  Why a good LO/company is worth their weight in gold.  If we screw up you can/will definitely hear about it here.

[Gil Bang 25509]

3 hours ago, closetohumping said:

My mortgage person accidentally added 10k to my closing cost.  In their favor of course.  Yeah.

Wow.  

TRID, how does it work?

[Wulaw Horn 18917]

Alert to lock.  Broke through another technical floor.  Looks like another day with worsening MBS market. I think that makes something like 17 of the past 20 or 21 or something like that. 

[Gil Bang 25509]

Fuck.   I had my buyer in a multiple-counter situation yesterday.  I told her how much to come up, she wouldn't listen, and we missed the deal.  I'm afraid that rates are going to price her out of the market. 

[Wulaw Horn 18917]

9 minutes ago, Gil Bang said:

Fuck.   I had my buyer in a multiple-counter situation yesterday.  I told her how much to come up, she wouldn't listen, and we missed the deal.  I'm afraid that rates are going to price her out of the market. 

It could always bounce back (maybe)? There's no fundamental news out that should be driving this higher since the last fed meeting- it's just been lousy day after lousy day after lousy day minus Mon-Wed of last week. But then all the good was given back Thursday and Friday that week and another lousy week this week so far.  In the last month we've lost 1/2 a point in interest to the borrower- probably.  Today we are "only" down 25 basis points.  Typically 50 basis points makes 1/8 on a rate. If she was ok yesterday she still should be ok today.  A month from now?  Who knows...

[UTPhil2006 3754]

24 minutes ago, Gil Bang said:

Fuck.   I had my buyer in a multiple-counter situation yesterday.  I told her how much to come up, she wouldn't listen, and we missed the deal.  I'm afraid that rates are going to price her out of the market. 

There's no guarantee it's gonna keep going up.  Flip side of that coin is it may trickle up, settle, and that newer high becomes the new normal, rinse repeat.  The main thing to consider from those of you who have emailed, I emailed you, called/texted, etc is that when we do get those trickle downs (when/if they come again) is to strike while the iron is hot.