- 9 Brentwood
Public records are showing two past sales for 9 Brentwood, one in 1993 for $417,000 and one in 1994 for $122,000. Then a series of refis and 2nds until total loans in 2007 equal $1,198,000 with the first for $1,125,000 being a neg am. The published bid, or amount owed on the 1st, for the trustee sale is $1,249,963. It is very possible that no capital gains tax will be owed and very possible that the current residents have been residing payment free for quite awhile.
The refis stopped in 2007 because as we all know, banks do not refi underwater properties or those with a bad credit history of not paying their mortgage. Ya know, those pesky three C’s of lending.
Anywhooz, the foreclosure auction is scheduled for 1/19/10. 9 Brentwood is not listed for sale, either as a short or otherwise, but as we have recently discovered, that will not stop some free thinkers from making offers. Ya know, it just occurred to me why making a short sale offer on a home which is not listed for sale may be a better buy than one that is listed. There is no listing agent, and very likely no buying agent. That is another 6% discount on the price.
Sighburdewd
January 18th, 2010
I’m curious. Since you’ve been tracking NOD/NOS’s on a weekly basis – I’m not sure how long it has been as thorough as it has been recently – have you also been keeping track of the eventual disposition of each property?
I’m going to go out on a limb here, and assume that not nearly 100% of them eventually went back to the lender, or sold to a 3rd party, at auction. Would that be easy to check, since you probably have archives of your posts?
As for the other matter, to suggest that just anyone can do a FSBO short sale, from lining up a potential buyer – even having someone contact a distressed seller off your list of problem properties – to actually navigate through the maze of lender land mines, shows me that you don’t know much about the inner workings of the short sale process.
The biggest reason a lot of short sales fail – resulting in eventual foreclosure, is because inexperienced people, even Realtors, are attempting to do them. This is definitely one of those “Do NOT try this at home!” scenarios.
A high percentage of agents don’t get involved with short sales, because with their limited knowledge, it is too much work for a 2.5 to 3% fee. An agent who has learned the process is well worth their fee – as evidenced by the fact that both Freddie-Mac and Fannie-Mae guarantee them no less than 6% of a transaction that has two brokers involved.
cdcrez
January 18th, 2010
And not only would one save 6% by doing a short sale without an agent involved, but one would not have to listen to their nonsense about how now is a good time to buy or buy now or be priced out forever or you can’t time the market or you better make an offer if you find a house you love or you can’t complete a real estate transaction without an agent.
Sighburdewd
January 18th, 2010
I’m looking forward to the answer to my question.
C Delroy Spuckler
January 18th, 2010
@Sighburdewd
Probably need to clarify with an “end date”. There are alot of open properties that are stuck in the system… its not fair to say they won’t go back to the bank, nor is it to say they will.
But I think it is safe to say, the recurring theme of cdcrez’s posts have been “things are not going back to the bank at the historic pace, for whatever reason”
The big $20 question is “what is that reason” (and is there a single one)?
IrvineRealtor
January 18th, 2010
Data requested from yesterday are completed.
I’ve linked on my front page here:
http://irvinerealtorsite.com/
A couple of errors I have found so far:
- calculations for SP/LP were originally incorrect using (LP-SP)/SP.
Corrected to (LP-SP)/LP.
- same error for SP/OLP calculation. Now corrected.
Please bring anything else that you notice to my attention. Thank you!
Some other notes:
- differences from MLS reporting and County Records have been noted by highlighting in blue.
- some property changes are not reflected yet in County Records and have been noted by highlighting in yellow.
- IMO, data are far too limited in population size to find any significant value in month-to-month trending for %downpayment numbers.
Enjoy,
-IrvineRealtor
cdcrez
January 18th, 2010
@IrvineRealtor
Thanks. Once again you have out done yourself.
Special K
January 18th, 2010
@cdcrez
Exactly, you would save yourself the nonsense about market direction predictions from the realtor not to mention the 6% fee, which is eggregious for basically a transfer agent. It is too bad realtors can’t get registered like people who work in the securities industry so there would be some consequences for their actions. If you guarantee a stock to rise you get sanctioned in securities, if you do the same in the real estate business you get ridiculed if you are wrong but there are no real consequences.
I think the real reason auctions keep getting postponed is extend and pretend by the banks and mortgage servicers. If they do this the loss isnt realized.
For a street I recommend cdrez do another post on, check out Friar Ln in Covenant Hills. Small street but 7 homes in distress, out of these 7 two are REOs now. Similar to the posts on Christopher St, this street is a disaster.
Sighburdewd
January 18th, 2010
@C Delroy Spuckler I think I’ve given the two biggest reasons on a couple of posts I’ve made over the past couple of weeks. First, an accelerating number of these properties are undergoing a modification. While the loan mod process is going on the lender goes through the motions of their due process, but not at their usual pace.
If the borrower doesn’t qualify for a loan mod, those properties then frequently go to reason number two, the next step for the borrower – if being properly advised – which is to then start a short sale process. That, just like the loan mod, can be on the Q.T. – not immediately visible to the public – just like the recent “pending” listing suddenly popping up on Palma Valley.
It is customary that a lender doesn’t interrupt the foreclosure process for a short sale until the property has received an offer, BUT, I have heard of agents/attorneys submitting a bogus initial offer, just to halt a pending auction sale.
By the time the lender figures out that buyer wasn’t for real, the agent has listed the property for a price that is attractive, received numerous offers, picked one that’s likely to close, and starts the process all over with the lender – who might be unaware of all the shenanigans.
This scenario DOES have the positive effect that the homeowner gets to stay in the property longer, and gets to complete a sale with a tad more dignity. ( With their neighbors unaware of their plight – unless, of course, they read this blog.)
There have been numerous articles posted here recently showing that both loan mods and short sales are growing at a far greater pace than houses being foreclosed – those are good reasons that a growing percentage of the weekly foreclosure list here will never reach the actual auction state. These two factors are also an increasing percentage of the alleged shadow inventory.
cdcrez
January 18th, 2010
@Special K
I want to qualify something. If I trust someone and If I respect the job they do, I am more than willing to pay for their service. An example would be that I am not a good negotiator and if I thought a residential re deal needed negotiating, I would happy to hire a buyer’s agent that I respected and whom I thought could negotiate a good deal, and I would be grateful to pay them. At the same time, I am under no illusion that because someone calls themselves a real estate agent that they know much about real estate, making deals, or is any good at negotiating. I don’t care if I pay 10% as long as I am getting more than 10% worth of service.
IrvineRealtor
January 19th, 2010
for my own clarification: JASR = just another serial refinance?
cdcrez
January 19th, 2010
Close enough, (Just Another Serial Refinancer).
IrvineRealtor
January 19th, 2010
@IrvineRealtor
I found it. (Dec. 10th). Lucky guess.