Dp2! I know you are loving yesterday's FED action. When I heard the word Investor I thought of you.

Good Grief I need my Vitamins just to tread water with you! You Write-- I Study! I hope a lot of people are benefiting from this.

DT did focus more on REOs, but the information he gave does apply for (pre-)foreclosures too. Nevertheless, it makes more sense right now to focus primarily on REOs, since there's so many of them available right now.

Yes, that was the announcement I was talking about. Also check out the one on Wednesday too. I also don't understand all of the jargon, but I do understand the parts that are relevant for me as an investor. Basically, think of it this way: the FED has repeatedly injected the economy several times with more cash ($750 billion more this time), kept the fed rate the same, and is working closely with the Treasury Dept to help jump-start the credit markets (as it pertains to interbank and small business lending). Also, the cash infusion combined with keeping the rate the same, basically, has helped to lower the interest rate for normal borrowers (like you or I).

After those announcements, I noticed several lenders immediately start to re-offer several loan products that they had dropped in October--including down-payment assistance. That's huge for RE investment--especially considering the fact that Fannie Mae's change to allow investors (in good standing) to have up to 10 properties with mortgages on them (for residential) kicks in, in April.

Now that I think about it more, I suspect DT probably also had that Wednesday announcement in mind when speaking with LK, because he should/would have known that the cash infusion should give the banks no excuse for not lending on their properties (since the FED has flooded the banks with lots of cash).

Dp2,
I am glad the video now plays!

OH no no I didn't mean YOU were being pedantic. I loved your explanation of PATTERN LANGUAGE. Don't think anyone would take your commentary as exclusionary (and hopefully not mine). DT wasn't trying to do that either because he nearly jumped at the opportunity to explain the dog gone thing. Problem was when he did he explained one phrase with yet another I wasn't familiar with!

I would love to see DT go someplace and explain further indeed. I'm too pooped after all of this writing to now send a physical letter to the LK show to say, "HAVE HIM BACK, Look at what you caused!" CNN feedback has been useless to me. I did put the same Q on LK's blog. It was totally ignored there. Everyone focused on the AIG bonuses instead of the 99% of the billions that is holed up in vaults. My wee sized issue was drowned out.

I do Thank You Again for being so helpful to me.

PS
I thought the advice was to stay away from PRE foreclosures (you referred to them in your last response).

What Thursday Fed Announcement?
A friend of mine jumped for joy over I believe an announcement from state or fed (she wasn't certain) of a $15000 incentive to buy homes but we didn't get the details. I can't find anything on it beyond what the Senate proposed in Feb that was already reduced. Is that the one you are referring to?

For Thurs all I see is this http://www.federalreserve.gov/newsevents/press/monetary/2009… And that is definitely too much jargon for me to decipher.

I have no clue what that one means.

Qrysta, thanks. I saw the MPEG (also using QuickTime). Donald Trump (DT) was definitely talking about getting banks to seller finance their (pre-)foreclosures/REOs. It's too bad that Larry King didn't let DT elaborate a bit more, because I'm sure DT would have said a few more things that probably would blow your mind--especially since the FED announcement on Thursday.

By the way, I guess using jargon like "pattern language" and pedantic probably means more to us than many others in the forum--not that I intended to exclude. Rather it was the best example I could think of, and I'm glad you got it.

ok I updated the file on http://mysite.verizon.net/vze23rnn/trump to be an MPEG-1 type file. Hopefully that type plays for all. Yes it says eval all over it as I've just gone through so many video software programs that don't work. This time I'll pay after I see if it functions correctly for a few days.

I get you DP2, I am an IT person and I want to underline part of what you said,

"the message isn't meant for anyone who doesn't understand the jargon"

Jargon EXCLUDES and that's why this made me angry and I wanted to get to the bottom of this.

If you are speaking to your own then use all the phrases and acronyms you like (some are tons of fun) but if you are out there to GIVE ADVICE to those who do not know, CUT IT OUT or know your pedantic ways are transparent. We see what you are doing and you wouldn't like it if we did it to you.

Donald teaches for heaven's sake at the Learning Annex in NY. If you call yourself a teacher you ought to know better. And in his defense he did. Once you can play the clip you'll hear him ask Larry, "Do you want me to explain." It was the interviewer's fault for saying NO. The interviewer is not supposed to assess whether HE NEEDS the explanation the good interviewer is suppose to surmise whether the rest of us need the information.

That's where the interview went wrong.

All industries start off using "plain English", and end up using lots of jargon as they continue to mature. In IT and in Architecture circles there is a notion called "pattern languages". Pattern languages can be thought of as a collection of words/phrases/idioms that are used in manner to convey specific things to domain experts (or specialists in their respective fields). Stated another way, pattern languages enable experts to communicate various complex ideas, that are built from a collection several simpler ideas, with other experts in the most efficient manner without omitting any details.

The Winchester Mystery House is often used as the quintessential example for why there's a need for pattern languages. The developers spent nearly 30 years building that mansion to Mrs Winchester's EXACT specifications, and they originally built the mansion without a bathroom--because she hadn't asked for one. Of course, she was irate that anyone would be so ignorant as to build a mansion without one. (Check out the wikipedia entry for the Winchester Mystery House for more details.) The point--actually, I'm glossing over quite a few very technical and perhaps excruciatingly pedantic details--is that the purpose for using jargon (like pattern languages) is to help promote efficient communication between experts.

The implication is also that the message isn't meant for anyone who doesn't understand the jargon, and that anyone who wants to understand the message will learn the jargon. The intent often isn't to be elitist; rather, it's to communicate in the most efficient manner (ie with the fewest words and as fast) as possible.

Hello People, I just want MARIA to understand it wasn't I that was saying DEMAND. If you can play the clip (Quicktime or other mov file player will play it) it is THE DONALD, that says DEMAND that the bank offer 80-90% take back or walk away. His words not mine. I to was wondergin what would put a person in position to demand from a bank if you don't have a lot of money (and Donald specified the technique for those without a lot of money particularly).

I thank you all for explaining a phrase that could have been so simply put as, ...these days... A BANK WILL OFFER FINANCING ON a PROPERTY WHEN IT IS THE OWNER WHERE AS THEY WON'T OFFER YOU FINANCING if someone ELSE is the owner.

Now I know that's what he meant by the phrase. Geez it was hard to unearth!

Why can't all industries use plain English.

It means if your credit is impeccable you should try and convince the bank to finance the property for 80-90% of the purchase price.

Everything is negotiable, but you may need to give something up in another area of the transaction in order to get what you want.

P.S. you don't DEMAND anything; you offer to do business in a way that makes your offer most attractive to the bank's representative. Remember these people are inundated with phone calls, emails, faxes and documents all day every day. If you have an agent who communicates nicely with these people, you will get noticed. Not necessarily preferred, but a kind voice and helpful attitude will certainly go a long way in getting timely responses from people who already overworked and under appreciated. The bank is an entity; you do business with a human being representing the bank; human beings have feelings.

It has been my experience that the bank wants to recoup as much of their loss as possible. So, when they place a property on the market, they list it at what they'd like to recoup. If your offer is close, they may counter. Lately, I have noticed that the banks are pricing their REO's more reasonably and negotiating with buyers offering within 10% of the list price. I don't believe most banks selling REO's are interested in financing another buyer; they expect you to arrange your own financing which means you take the paper when you get a mortgage.

Craig's right, that's exactly what the Donald was referring to. I've heard him speak about this on numerous occasions. Listen, if you have a good credit history and are making the bank a decent offer, they may very well turn around and hold that financing for you, but make no mistake, it's not a means around bank qualification. And, just like everything else involved with REO property, the bank may or may not be interested depending on a lot of factors such as the number of REO's they hold in that area, the condition of the property, the quality of the offer, how long its been on their books, etc... Your buyers agent should be able to help you in this area and put together an attractive offer for the bank.

As Craig said, this usually means that the bank carries the note/ finances the mortgage. I was unable to open the clip so I couldn't listen to all Trump had to say.
States have either mortgage or deed of trust laws. There isn't a whole lot of difference except in how foreclosures are handled. There are states where local banks may deal directly with a buyer, but usually the larger banks have a property department that contracts with real estate brokerages to market the properties they have in inventory.
There are still programs in place to help the buyer with little money buy a home, but credit scores must meet minimums regardless. There are first time buyers, FHA and here in North Carolina some of our areas qualify for USDA funding.
I'm not sure why Trump thought there was a big advantage to the bank taking back paper - perhaps he meant that you might get a better deal if you financed with the bank. I do know that some banks and financial companies have preferred lenders and will cut a better deal for a property if you use them, but that may not always be the best deal.
If you are unfamiliar with buying foreclosed homes it is best to work with an experienced real estate agent who can help you find properties and explain all the ins and outs of buying this type of property.
I hope this helps answer your question.

I'd assume he means that the bank will finance the property for you and have you only put down 10%-20%.