Condition of REDC and other foreclosures?

User Forum Topic
Submitted by fm on July 20, 2008 - 10:21pm

Has anyone toured the various REDC auctioned properties in the past and/or purchased any? I'm curious as to what the condition tends to be for these properties in middle class and better areas.

‹ Proposal to limit commissions of realtors and mortgage brokers Does anyone know ballpark how much a teardown/rebuild would cost? ›
Before the April auction I
Submitted by esmith on July 20, 2008 - 10:44pm.

Before the April auction I visited four REDC properties in upper-middle-class areas. Two were in perfect condition. One was missing an entrance :-O - previous owner tried to do some kind of remodeling, turned front porch into a mini-balcony, and apparently ran out of money before he could finish the path to the side door. One was somewhat neglected on the outside. (It had something like 0.75 acres of land, that seems to happen often when big houses fall into foreclosure)

All four ended up back on the market after the auction.

I would say that about 95% of
Submitted by SD Realtor on July 20, 2008 - 11:01pm.

I would say that about 95% of the properties offered by REDC are in neighborhoods that are probably not highly desired areas. Still there are some properties that did raise my eyebrows. For instance the listing on Picrus in 92129 surprised me. It has never been on the MLS as well. Recall that the starting bid is fairly meaningless. On a property like this I am sure REDC has been instructed to not accept anything below a certain price by Wells Fargo. I bet it is near or over 600k. As far as what condition the homes are in? Well to be honest the homes are not going to be any better or any worse then any other REO property.

Just like the last auction, if somebody grabs the addresses of properties, then several weeks after the auction, I can look up the tax rolls to see what they sold for.

What I do believe is true is that these starting prices are shill prices and there is no intent to sell at or near them.

esmith are you gonna hit the
Submitted by SD Realtor on July 20, 2008 - 11:02pm.

esmith are you gonna hit the August auction?

I think it's a sham and I did
Submitted by esmith on July 20, 2008 - 11:05pm.

I think it's a sham and I did not see anything interesting in their listings anyways. So probably not.
I did notice the listing on Picrus. Looked like a gamble to me. You can't even go inside before bidding because it's tenant occupied. WTF?

Yeah I know what you are
Submitted by SD Realtor on July 21, 2008 - 7:16am.

Yeah I know what you are saying... I saw that as well. Investment wise IF you could get a few of these places at or near the start price then you could do very well converting them to rentals. As I said, I don't know of any of the properties going for that sort of price.

I guess I could be not so lazy and at least write the addresses down before the auction. I am just trying to pawn it off on someone else though.

Also any proactive buyer would say screw it and go knock on the door of the Picrus tenants just to try to get in there anyways...at least I would.

esmith wrote:I think it's a
Submitted by fm on July 21, 2008 - 12:53pm.

esmith wrote:
I think it's a sham and I did not see anything interesting in their listings anyways. So probably not.
I did notice the listing on Picrus. Looked like a gamble to me. You can't even go inside before bidding because it's tenant occupied. WTF?

I'm surprised that people can still be living in the places if they are foreclosures.

I'm surprised that people can
Submitted by esmith on July 21, 2008 - 1:06pm.

I'm surprised that people can still be living in the places if they are foreclosures.

If it's tenant occupied, lender can't evict them right away, a 30 or 60 day notice is required by law. This particular property was foreclosed on June 9th. The auction is August 16th. Maybe tenants will move out in time, maybe not.

Can someone list the
Submitted by recordsclerk on July 21, 2008 - 2:11pm.

Can someone list the address.