Foreclosure and distressed property topics

NEW -> Contingent Buyer Assistance Program
Asteroid - I get my NOD numbers from the OC County Recorders website. You can't get the address but you can cross reference it to at least the street name at the pay sites like foreclosure.com or realtytrac.

I get the stats I post here from http://www.fidelityasap.com/ts.aspx. This site is free and they are for info on the second stage NTS and REO or if a home actually sells at the auction. The pay sites are not current compared to this site as they update by the end of the day but they are only a portion of the forclosures.
 
Today was a busy day at the county court house. I wanted to get down there today but I was swamped and didn't have a chance to leave. Judging how only one home sold of the 63 scheduled for today that I know of and 20 of them went back to the bank I can safely say I didn't miss much action. Here are the fun ones from today:

47 Middlebury 92620 no bids at $636k back to the bank.

81 Sorenson 92602 no bids at $618k back to the bank.

50 Burlingame 92602 no bids at $641k back to the bank.

6978 East Paragon 92867 no bids at $708 back to the bank. This is a major comp killer since this isn't the first one and won't be the last in this area.

The big one of the day 2484 White River Way 92782 no bids at $1.643 mil back to the bank. This is a huge home in a gated community that has comps around $1.8 to $2mil.

My guestimate for June NODs is 1055 plus or minus 25. It appears not that much higher than May's guestimate of 996 (actual 1021) but there was one less business day in June compared to May. While the guestimate is up 6% the average per day for May was 45.3 and June was 50.2 for an increase of 11%.
 
I've been keeping an eye on the foreclosures and I'm starting to wonder if you're statement ...

"The second stage is NTS notice of trustee sale. This can happens about 30-60 days after the NOD is filed. This is supposed to be a recorded document and public record. However something in this part of the process is messed up right now and I don't know if it is a county problem or a lender problem. You can find these in the newspaper or on a site like www.fidelityasap.com. The notice of sale amount will be the loan balance plus any fees or back interest."

might be a little optimistic. While it is a problem, I don't think anyone is going to do anything about it. The lender reports the loan value because it is in their best interest to keep home prices high specifically and as a whole. Additionally, I'm sure the county is swamped right now and has no time to hunt down fraud, which is what I see it as.

The subsequent REO is put up for sale with the last sale price being the loan value. The new buyer thinks they are getting a steal when they offer 80% and the bank is happy just to get rid of the brick. The alternative, where the lien holder takes back the property and reports the auction price results in an even worse situation. The buyer again offers 80%, now the bank loses twice. I'm simplifying the example, but I think it still is the motivation for the fraud.
 
Darin - I think I am following you correctly but let me put it my own words to see if I am.

The NTS is a recorded document that has to be posted to the public in the newspaper. It is the loan amount plus fees and interest. If it goes back to the bank like 25461 McIntyre in Laguna Hills did yesterday and had a NTS of $730k but the opening bid and the price the bank took it back was $533k. What you are saying is since it wasn't worth $533k and that now is the recorded price but not posted in the newspaper a potential buyer saw the NTS amount in the paper and now the bank has it listed at $600k they think they are getting a discount.

Ok after I typed that I reread what you posted and yes I see your point because some of the banks are taking them back at higher prices and some are taking them back at lower prices. I wouldn't say that it is fraud but more of how the bank wants to value the way they book the loan. The loan could have been bought by someone else for cheap think Bear Stearns. While when Bear had the loan it was valued at $730k but since they sold it for $.75 on the dollar the new investor valued it at $533k.

I see your point on how the numbers can look better for some and worse for others. Hopefully that is why we are all here so we can learn about how these things work.
 
I'm interested in purchasing a bankforeclosed home, and was wondering which are some recommended sites to search. Do you think it's a good idea to go through the pay sites, and do you think Bankforeclosures is a good way to go for a novice?
 
Asteroid

I've learned a lot about buying bank foreclosures without ever paying a cent. Granted, my actual experience is zero. Also, there is no cost, other than your time, to down to the foreclosure auction at the courthouse and listen in. Don't blink though, they are often done in 5 minutes...or so I have read.
 
Uh oh things aren't looking so rosy for our friends in 92603.

41 Rose Trellis went back to the bank yesterday for $1.48mil.
 
http://www.ocregister.com/ocregister/news/local/irvine/article_1754631.php

The ones with 'Y' at the ends needs further investigation.

May Truste sale Listings Last Sale on RedFin

4741 Lindstrom Ave, Sfr $689,000t $689,000 (05/22/2007)

14222 Matisse Ave, Sfr $572,040t $535,000 (03/11/2004)

14911 Sumac Ave, Sfr $663,147t $795,000 (10/28/2005) Y

27 Campanero E, Sfr $729,033t $850,000 (05/24/2006 )

17 Mount Vernon, Sfr $114,006t $967,000 (10/13/2005) Y

14 Carlton, Sfr $678,868t $825,000 (06/01/2006 )

7304 Apricot Dr , Condo $350,350t $300,000 (04/22/2003 )

401 Huntington, Condo $261,275t $146,000 (03/30/2001)

12 Leucadia 98, Condo $730,000p $619,000 (10/20/2006) Y

1602 Timberwood, Condo $484,358t $560,000 (02/21/2006 )

17 Fairside 14, Condo $382,500t $437,000 (01/13/2005 )
 
Darin,

If the houses at the auctions go back to the banks, how do you contact the banks to purchase the foreclosure, can you just ask them there at the auction? Do you just call the banks directly? I want to buy a bank foreclosure, but don't know where to look.
 
Thanks graphrix, very helpful!!... any suggestions about where to look for a good deal on a house, since REO's aren't providing any?
 
I have been lagging on doing some updates here but I will try to make up for it tonight. Below are some homes that were scheduled for foreclosure in Irvine for the past 30 days. If it says sold next to the address someone actually bought and the price listed is what they paid. We should watch the sold properties to see if they try to flip them because I saw an ad in the OCR today for a conference on how to get rich with foreclosures. If it says bank next to the address the bank took it back.

5 Roseleaf 92620 sold for $1.15mil.

3 Moonstone 92602 sold for $461k.

39 Kelsey 92618 bank for $786k.

19 Flowerbud 92603 bank for $505k.

15 Bolinas 92602 bank for $587k.

10 Sharpsburg 92620 bank for $670k.

1405 Elk Grove 92618 bank for $371k.

15 Pacific Crest 92602 sold for $791k.

159 West Yale Loop 92604 bank for $582k. It had NTS amount of $750k.

10 Van Buren 92620 bank for $337k.

There was a total of 40 scheduled the last 30 days, 6 were cancelled, 18 were postponed, 5 sold and 11 went back to the bank. That is a 40% ratio if you include the postponed homes and a 73% when you exclude the postponed homes on homes that received a NTS.
 
From BMIT:

Orange County

08/25/05: 19/4,028 (0.5%)

06/15/06: 152/5,194 (2.9%)

10/31/06: 182/3,094 (5.9%)

11/30/06: 269/3,308 (8.1%)

12/30/06: 331/2,800 (11.8%)

01/30/07: 398/2,890 (13.8%)

02/27/07: 491/3,051 (16.1%)

03/30/07: 613/3,261 (18.8%)

04/30/07: 956/3,368 (28.4%)

05/30/07: 1,239/3,804 (32.6%)

06/30/07: 1,536/3,890 (39.5%)

07/30/07: 1,490/4,092 (36.4%)

I hadn't not realized the conversion factor had increased so dramatically. (the number of defaults that turn into foreclosures -- in parenthesis). This is almost as bad as Riverside County.

Riverside County

08/25/05: 84/7,250 (1.2%)

06/15/06: 420/9,561 (4.4%)

10/31/06: 652/5,798 (11.2%)

11/30/06: 838/6,856 (12.2%)

12/30/06: 976/5,804 (16.8%)

01/30/07: 1,206/6,318 (19.1%)

02/27/07: 1,495/6,814 (21.9%)

03/30/07: 1,989/7,122 (27.9%)

04/30/07: 2,846/7,358 (38.7%)

05/30/07: 3,923/8,478 (46.3%)

06/30/07: 4,519/8,955 (50.5%)

07/30/07: 3,956/9,700 (40.8%)

These are very alarming numbers.
 
These are bad numbers. BMIT uses the cummulative total so what surprises me is the drop in REOs from last month. What caused that? Did the banks unload about 600 OC properties? Because now the OC recorders office has the trustee deeds as a drop down option and in the 16 business days of July there was 409. Considering that number will be higher once the info is available for the whole month and it takes about 6 months to convert to REO from NOD it would be a ratio over 50% since January had 847 NODS.

They also have added the notice of trustee sale as a drop down option. It takes a lot of time but now I can get the info for any year for each step of the process NOD, NTS and REO.
 
Irvine foreclosures and stats from Fidelity for the week ending 8/3:

9 Torrigiani 92606 REO $374k.

30 Crimson Rose 92603 SOLD $1.4mil.

21 Aspen Tree Lane 92612 REO $737k.

4642 Ranchgrove 92604 postponed to 8/14 NTS $637k.

141 West Yale Loop #3 92604 postponed to 8/15 NTS $451k.

49 Chantilly 92620 postponed to 8/20 BK NTS $561k.

12 Mayapple 92612 postponed to 8/31 NTS $655k.

30 Antique Rose 92620 postponed to 8/31 NTS $1.1mil.

59 Nightshade 92603 postponed to 9/5 BK NTS $536k.
 
Fidelity is processing less and less of the foreclosures. So I will be doing weekly updates.

But the July estimates for NODs is 1150-1250 (yeah yeah I am going with a range here but I was short by 100 last month) and foreclosures were 473. NODs were up 3.8% to 12.8% and foreclosures were up 32% from last month.

I will do an update comparing these numbers to 1992 and the amount of housing stock tomorrow.
 
Does bidding at foreclosure auctions require payment in full with cash?

Are there any methods of obtaining loans for the auctions?
 
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