The Foreclosure Pain May Drag on for Years

NEW -> Contingent Buyer Assistance Program
There is also a part 2: http://blogs.wsj.com/developments/2009/09/25/shadow-market-part-ii-banks-avoid-acquiring-foreclosed-homes/

Here is an interesting quote from it:

Sean O’Toole, chief executive officer of ForeclosureRadar.com, a research firm in California, estimates that in August 19% of homes sold in trustee sales in California went to investors rather than to a foreclosing lender, up from just 4% a year earlier.
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How do those come up on Foreclosure radar? Do those come up as B's but then say "sold to 3rd party"? Or does the A just disappear and you can only find it by doing a historical search?

I went to an auction in like April or May and it seemed like only 1 in 10 or 1 in 15 were bid on, it would be interesting to go to one now and see 1 in 5 bid on.
 
25inIrvine said:
How do those come up on Foreclosure radar? Do those come up as B's but then say "sold to 3rd party"? Or does the A just disappear and you can only find it by doing a historical search?
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They come up as "3's". But you must select the "3" box in the "foreclosure details" menu.
 
25inIrvine said:
How do those come up on Foreclosure radar? Do those come up as B's but then say "sold to 3rd party"? Or does the A just disappear and you can only find it by doing a historical search?
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You need to click the brown pin for sold to 3rd party to see the properties sold to investors. Here is Irvine:

http://i35.tinypic.com/mcaipe.jpg

I went to an auction in like April or May and it seemed like only 1 in 10 or 1 in 15 were bid on, it would be interesting to go to one now and see 1 in 5 bid on.
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There was 9 properties auctioned off at Placentia today, and 6 were sold to investors. Some good deals were had too. Like this one in Dana Point that sold for $555k.
 
Wow, that looks like a great deal. I'm guessing it will be on the market in a month or two in the 700's?

I'm confused by the foreclosure radar report. It says the winning bid $444,900. Is there some taxes, late fees thrown in or is foreclosure radar jsut wrong?
 
Weird, FR must be wrong or maybe it doesn't get the updated price until later. I will try to remember to look again later tonight on this one. Even at $555k that is good deal. I think they would create a bidding war at $699k, if they don't already know what the highest offer was on the place from before.
 
FR didn't update it, so it really was $555k and not the minimum bid. I wonder if it gets updated after it had recorded?
 
Investor, possible flippers, knife catcher, buying at auction are helping clear the FC problems. They use cash, so the banks can unload them and limit their loss. If the investors weren't around and the banks keeps them as shadow inventory the supply would be very limited and prices even higher for now. But keeping the FC'ed houses and non-preforming loans as shadow inventory is likely the child keeping the sea back by plugging the dike with his finger.
 
IMO, there are some professional flippers who know how to buy right in any market, and now, as is the same at any time, they are buying at auction or anywhere else at reduced prices, fixing up the property quickly, usually within one month, and then listing the home as fast as they can and selling quickly. The pros do everything quickly and they buy right. That is why they are pros and why all the other "investors" will lose their tails.
 
graphrix said:
FR didn't update it, so it really was $555k and not the minimum bid. I wonder if it gets updated after it had recorded?
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Foreclosure Radar is now updated. Shows the opening bid of 444k, and winning bid of 555k.

House isn't on the market yet.
 
newbie2008 said:
Investor, possible flippers, knife catcher, buying at auction are helping clear the FC problems. They use cash, so the banks can unload them and limit their loss. If the investors weren't around and the banks keeps them as shadow inventory the supply would be very limited and prices even higher for now. But keeping the FC'ed houses and non-preforming loans as shadow inventory is likely the child keeping the sea back by plugging the dike with his finger.
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The advantage of a cash buyer to a bank is that it's a (basically) guaranteed closing. Much less chance of the house falling out of escrow. But in the end, even with a loan, the selling bank gets cash from the loaning bank; that is, when it closes, there's no difference.
 
Damn right this thing is gonna get dragged out for years...there were several auctions that got postponed by 2 and 3 months...EXTEND AND PRETEND in full effect!
 
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