I recently got another email from the auction people. Apparently, not all properties that were “sold” was actually sold. The email showed 22 properties were actually wasn’t sold and the lender are trying to liquidate them again, but this time, not through another auction. They show you the “previous value” price like before and they now show “LENDER LIQUIDATION PRICE”. The ones that I noticed, the winning bid was well below this “LENDER LIQUIDATION PRICE”. So I guess they didn’t meet the reserve price.
Oh, so NOW the lenders are going to get serious about moving those homes.
If I had a winning bid on one of the other homes and there was a way to get out of it, I would. You attend an auction for the sole purpose of getting in on a liquidation value.
Yeah, I know, no American corporation would intentionally employ deceptive marketing tactics …
Actually Bugs, REDC in their disclaimers opening publish the fact that there is a reserve and that they can make multiple consecutive bids until that reserve is met.
As for bear disappointment, that comes from three factors:
1. a very large turn-out (should have been expected in hindsight)
2. multiple reports of fast and heavy bidding (since they’re laced with shills, that also is predictable)
3. indication from our own that went show the properties bidding up to 20% of last valued at price. These last value prices were insane and often not based on current market condition.
Once you shift your focus from how much the “buyers” paid to how much the banks made after expenses, it no longer looks so good. IOW, a little time to cool and your perspective shifts from “oh shoot, there’s a mob of buyers waiting to buy just below current prices” to without the hype of the auction, the banks are really going to need to slash REO prices to move them.
Overall, unlike the Bressi Ranch auction which was clearly a failure from the start with homes not making the reserve, this one appeared to make reserves on most. (thanks to the shills).
nice job NSR,
I think you pulled a gem out of this. The lenders spent alot of money and probably arent pleased with the bottom line after all is said and done. This test could encourage then to cut bait and run earlier.
Kind of reminds me of the loan commercials for lending tree, where they talk about banks getting aggressive you win. I agree totally. Time for them to get aggressive and cut prices to get as much cash as they can salvage
