I am looking at the current subprime mortgage meltdown, which may be a
term which may somewhat overdramatize the situation.

It makes me suspect that a lot of apartment owners who took on too big
mortgages for their incomes, are now selling their apartments at fire
sale prices (perhaps forced by their lenders) and are becoming
renters.

The interest that I have in this situation is that, perhaps, rental
apartments can be purchased at discount prices and renting them is
more advantageous than just keeping cash in the bank.

I would like to know if anyone looked recently at the economics of
buying and renting inexpensive rental apartments, given today's
environment.

Thanks

i

I am looking at the current subprime mortgage meltdown, which may be a
term which may somewhat overdramatize the situation.

It makes me suspect that a lot of apartment owners who took on too big
mortgages for their incomes, are now selling their apartments at fire
sale prices (perhaps forced by their lenders) and are becoming
renters.

the high price until the bank takes it away. Even then, I
have not seen the banks cutting deals to get rid of property.
They also seem to be willing to sit on property right now.
Perhaps they are willing to ride it out.

Ignoramus2170 <ignoramus2170@NOSPAM.2170.invalid> wrote:

I am looking at the current subprime mortgage meltdown, which may
be a term which may somewhat overdramatize the situation.

It makes me suspect that a lot of apartment owners who took on too
big mortgages for their incomes, are now selling their apartments
at fire sale prices (perhaps forced by their lenders) and are
becoming renters.

What I have seen so far is that most of these loans were made with
little or no money down. The result is that the owners have no
equity in the property. That means that they cannot drop the price
because they don't have equity or cash to pay the difference at
closing. The net-net is that they sit on the high price until the
bank takes it away. Even then, I have not seen the banks cutting
deals to get rid of property. They also seem to be willing to sit on
property right now. Perhaps they are willing to ride it out.

On Aug 21, 4:25 pm, "John A. Weeks III" <j...@johnweeks.com> wrote:
the high price until the bank takes it away. Even then, I
have not seen the banks cutting deals to get rid of property.
They also seem to be willing to sit on property right now.
Perhaps they are willing to ride it out.

The banks have the same problem as the hedge funds. Once they sell,
the rest of their properties get marked to market. Repricing their REO
holdings then could push them into a margin call where they have to
sell even more holdings. Quite the vicious loop.

In article <afudnWaDloIgsVbbnZ2dnUVZ_rHinZ2d@giganews.com>,
Ignoramus2170 <ignoramus2170@NOSPAM.2170.invalid> wrote:

I am looking at the current subprime mortgage meltdown, which may be a
term which may somewhat overdramatize the situation.

It makes me suspect that a lot of apartment owners who took on too big
mortgages for their incomes, are now selling their apartments at fire
sale prices (perhaps forced by their lenders) and are becoming
renters.

What I have seen so far is that most of these loans were made
with little or no money down. The result is that the owners
have no equity in the property. That means that they cannot
drop the price because they don't have equity or cash to pay
the difference at closing. The net-net is that they sit on
the high price until the bank takes it away. Even then, I
have not seen the banks cutting deals to get rid of property.
They also seem to be willing to sit on property right now.
Perhaps they are willing to ride it out.

On Tue, 21 Aug 2007 18:25:23 -0500, John A. Weeks III <john@johnweeks.com
wrote:
In article <afudnWaDloIgsVbbnZ2dnUVZ_rHinZ2d@giganews.com>,
Ignoramus2170 <ignoramus2170@NOSPAM.2170.invalid> wrote:

I am looking at the current subprime mortgage meltdown, which may be a
term which may somewhat overdramatize the situation.

It makes me suspect that a lot of apartment owners who took on too big
mortgages for their incomes, are now selling their apartments at fire
sale prices (perhaps forced by their lenders) and are becoming
renters.

What I have seen so far is that most of these loans were made
with little or no money down. The result is that the owners
have no equity in the property. That means that they cannot
drop the price because they don't have equity or cash to pay
the difference at closing. The net-net is that they sit on
the high price until the bank takes it away. Even then, I
have not seen the banks cutting deals to get rid of property.
They also seem to be willing to sit on property right now.
Perhaps they are willing to ride it out.

So, John, in your words, the deep discount prices on such apartments
have not yet arrived.