It’s like buying a vehicle at a US Customs auction from a collection that has been gathering dust on a vacant dirt lot for up to TWO YEARS and none of them have even been driven since they were “detained” in secondary.
A prospective vehicle buyer has 3 hours before the auction to line up single-file through the lot with all the hoods raised and take a look underneath. He/she can’t get under the vehicles or between them (they’re parked side mirror to side mirror) or even look inside the vehicles except through the windshields of “wing windows” at an angle. Often the tires have been taken off by customs to search inside for contraband, then confiscated and the vehicle replaced with bald tires and/or retreads. They can’t look in the trunk and can’t possibly drive it. The dash may have been crowbared by Customs in secondary or by thieves who got into the govm’t lot during the months/years the vehicle was stored there. The reason those vehicles are there in the first place is because the owners couldn’t afford to get them out of secondary storage in the first place after they were detained and searched. Does anybody think these owners could afford to maintain them properly while they owned and drove them??
The last time I attended one of these auctions, opening bids were $200 – $700 and the new buyer had to secure a new license plate from the DMV (extra fee). Many of these vehicles also turned out to have salvaged titles, as well and a bidder couldn’t examine any vehicle documentation before the auction.
It’s the same scenario with these loans, people. Will these TD’s have an opening bids of pennies on the dollar? These properties FNMA now wants to “auction off” or “dump” on Joe Schmuck Investor have the most recalcitrant hard-core squatters living in them who have likely been “working the system” for 3-6 years! And “the system” made them who they are!
When Joe Schmuck Investor (the “winning bidder”) tries to foreclose, the fmr homedebtors/occupants will just file for BK during the proceedings (if they’re still eligible – to obtain more months of squatting). When Joe S.I. finally figures out what he’s doing a few weeks/months later and obtains a release of these deadbeats automatic (BK) stay to continue the foreclosure process, the deadbeats will leave all their non-running vehicles (w/no paperwork, to make it very hard to dispose of them) on the property and dump spoiled food, garbage, weeds, tree branches, discarded household effects and clothing mixed up together all over the property (inside and out) and the curb by the time the sheriff’s dept arrives to evict them and change the locks.
When Joe S.I. investor finally gets possession of the joint, he will notice that every single wall and door has been punched in and several fixtures and appls stripped, the fence broken down, the garage torn up and full of disgusting biohazard and other toxic waste, and he needs to fill a min of 3-30 ft rollaways (at $5-6K)to recover his “shell” of a house. At this point, Joe S.I. may as well knock it down to the studs and start over!
Sorry, but a homedebtor who has been “squatting” off and on for half a decade or more isn’t going to go “quietly and neatly.”
Nobody in their right mind is going to agree to being “forced” to “make a deal” with career-squatters who have already had way too many chances to p___ or get off the pot and failed at all of them (by design).
I’ve seen enough over the years to know that we all pay for exactly what we get in this life. I agree with spd. Prospective “investors” should just buy direct from FNMA or a lender who has cleaned up the property (at least broomswept) and caught up the taxes on it.
