[temeculaguy]

At the time that was written we bloggers were being lambasted by Chowderhead for being the cause of the RE collapse, Rich was engaging in debates in the media and I was feverishly trying to win a bet with waiting hawk involving beer to be the first one to find a 50% of peak non short sale listing.

Ahhh….the good ole days. It’s fun to be a yahoo.

How come the Obama threads don’t say OT in front of them, c’mon show some decorum.

[temeculaguy]

At the time that was written we bloggers were being lambasted by Chowderhead for being the cause of the RE collapse, Rich was engaging in debates in the media and I was feverishly trying to win a bet with waiting hawk involving beer to be the first one to find a 50% of peak non short sale listing.

Ahhh….the good ole days. It’s fun to be a yahoo.

How come the Obama threads don’t say OT in front of them, c’mon show some decorum.

[temeculaguy]

At the time that was written we bloggers were being lambasted by Chowderhead for being the cause of the RE collapse, Rich was engaging in debates in the media and I was feverishly trying to win a bet with waiting hawk involving beer to be the first one to find a 50% of peak non short sale listing.

Ahhh….the good ole days. It’s fun to be a yahoo.

How come the Obama threads don’t say OT in front of them, c’mon show some decorum.

[temeculaguy]

At the time that was written we bloggers were being lambasted by Chowderhead for being the cause of the RE collapse, Rich was engaging in debates in the media and I was feverishly trying to win a bet with waiting hawk involving beer to be the first one to find a 50% of peak non short sale listing.

Ahhh….the good ole days. It’s fun to be a yahoo.

How come the Obama threads don’t say OT in front of them, c’mon show some decorum.

[temeculaguy]

I say no, there may be some exceptions but for almost all courthouse step auctions by banks (trustees), it is merely a legal step required to take the house back, it has to be offered for the amount of the debt. When the court is liquidating assets that are seized for another reason, there can be a highest bidder scenario but that would be stated in the public notice that you can find online from the newspaper website. The fine print will say something to the effect of the highest bidder as opposed to a specific dollar amount which in todays market is always more than the place is worth.

The other drawback is that nobody has been inside at the point of a courthouse step auction, in some cases the occupant is still there and will need to be evicted. The bank doesn’t get to inspect until after the auction date, nor do you. It’s one thing buying an REO and entirely another buying an unseen property. Just ignore that stage. If it was worth the same or more than the auction amount, it would have already been sold by the FB who lived there. The auction amount is also only for the first, the second and other lienholders have not yet released, after the auction, they are wiped out and you can do a traditional escrow and have title insurance, not so with a step auction.

[temeculaguy]

I say no, there may be some exceptions but for almost all courthouse step auctions by banks (trustees), it is merely a legal step required to take the house back, it has to be offered for the amount of the debt. When the court is liquidating assets that are seized for another reason, there can be a highest bidder scenario but that would be stated in the public notice that you can find online from the newspaper website. The fine print will say something to the effect of the highest bidder as opposed to a specific dollar amount which in todays market is always more than the place is worth.

The other drawback is that nobody has been inside at the point of a courthouse step auction, in some cases the occupant is still there and will need to be evicted. The bank doesn’t get to inspect until after the auction date, nor do you. It’s one thing buying an REO and entirely another buying an unseen property. Just ignore that stage. If it was worth the same or more than the auction amount, it would have already been sold by the FB who lived there. The auction amount is also only for the first, the second and other lienholders have not yet released, after the auction, they are wiped out and you can do a traditional escrow and have title insurance, not so with a step auction.

[temeculaguy]

I say no, there may be some exceptions but for almost all courthouse step auctions by banks (trustees), it is merely a legal step required to take the house back, it has to be offered for the amount of the debt. When the court is liquidating assets that are seized for another reason, there can be a highest bidder scenario but that would be stated in the public notice that you can find online from the newspaper website. The fine print will say something to the effect of the highest bidder as opposed to a specific dollar amount which in todays market is always more than the place is worth.

The other drawback is that nobody has been inside at the point of a courthouse step auction, in some cases the occupant is still there and will need to be evicted. The bank doesn’t get to inspect until after the auction date, nor do you. It’s one thing buying an REO and entirely another buying an unseen property. Just ignore that stage. If it was worth the same or more than the auction amount, it would have already been sold by the FB who lived there. The auction amount is also only for the first, the second and other lienholders have not yet released, after the auction, they are wiped out and you can do a traditional escrow and have title insurance, not so with a step auction.

[temeculaguy]

I say no, there may be some exceptions but for almost all courthouse step auctions by banks (trustees), it is merely a legal step required to take the house back, it has to be offered for the amount of the debt. When the court is liquidating assets that are seized for another reason, there can be a highest bidder scenario but that would be stated in the public notice that you can find online from the newspaper website. The fine print will say something to the effect of the highest bidder as opposed to a specific dollar amount which in todays market is always more than the place is worth.

The other drawback is that nobody has been inside at the point of a courthouse step auction, in some cases the occupant is still there and will need to be evicted. The bank doesn’t get to inspect until after the auction date, nor do you. It’s one thing buying an REO and entirely another buying an unseen property. Just ignore that stage. If it was worth the same or more than the auction amount, it would have already been sold by the FB who lived there. The auction amount is also only for the first, the second and other lienholders have not yet released, after the auction, they are wiped out and you can do a traditional escrow and have title insurance, not so with a step auction.

[temeculaguy]

I say no, there may be some exceptions but for almost all courthouse step auctions by banks (trustees), it is merely a legal step required to take the house back, it has to be offered for the amount of the debt. When the court is liquidating assets that are seized for another reason, there can be a highest bidder scenario but that would be stated in the public notice that you can find online from the newspaper website. The fine print will say something to the effect of the highest bidder as opposed to a specific dollar amount which in todays market is always more than the place is worth.

The other drawback is that nobody has been inside at the point of a courthouse step auction, in some cases the occupant is still there and will need to be evicted. The bank doesn’t get to inspect until after the auction date, nor do you. It’s one thing buying an REO and entirely another buying an unseen property. Just ignore that stage. If it was worth the same or more than the auction amount, it would have already been sold by the FB who lived there. The auction amount is also only for the first, the second and other lienholders have not yet released, after the auction, they are wiped out and you can do a traditional escrow and have title insurance, not so with a step auction.

[temeculaguy]

Not that this is a prime example, but I have seen short sales go up in price, usually not to that extent because the bank rejects an offer at the listed short price and the BPO gives guidance. Shorts are tricky, the bank wont say what they will take, just that they will evaluate each offer.

Here’s an example, the owners are a couple hundred grand in the hole, so 25k isn’t going to matter to them, they get nothing either way. It was listed for 280k for a month, then went up 25k, more than likely the bank balked at the 280k.

http://www.redfin.com/CA/Temecula/32425-Francisco-Pl-92592/home/6489327

The realtor is just throwing darts or got some guidance from the bank that they would take 305k. I had a realtor friend with a short listing and couldn’t get any offers, they begged me to offer half off the list (which would have been 75% off peak) just so it could get rejected and they could get an idea what they bank would take. I would have done it but I hated the house and if for some crazy reason the bank took it, I wouldn’t want it. Someone else came in and lowballed, the bank came back and said no but gave an idea of what they wanted and the realtor repriced and sold it. Some banks are weird and overworked so they don’t function like normal buyers and sellers with counter offers, they just say yes or no.

The banks are stupid not to take the money and run, less than a mile away, better neighborhood, a little older, a little smaller but a 3 car garage and on 3/4 of an acre for 249k, that first bank may never see 280k ever again, because the repos are beating the shorts and buyers would prefer reo to shorts.

http://www.redfin.com/CA/Temecula/45770-Corte-Rodrigo-92592/home/6253359

[temeculaguy]

Not that this is a prime example, but I have seen short sales go up in price, usually not to that extent because the bank rejects an offer at the listed short price and the BPO gives guidance. Shorts are tricky, the bank wont say what they will take, just that they will evaluate each offer.

Here’s an example, the owners are a couple hundred grand in the hole, so 25k isn’t going to matter to them, they get nothing either way. It was listed for 280k for a month, then went up 25k, more than likely the bank balked at the 280k.

http://www.redfin.com/CA/Temecula/32425-Francisco-Pl-92592/home/6489327

The realtor is just throwing darts or got some guidance from the bank that they would take 305k. I had a realtor friend with a short listing and couldn’t get any offers, they begged me to offer half off the list (which would have been 75% off peak) just so it could get rejected and they could get an idea what they bank would take. I would have done it but I hated the house and if for some crazy reason the bank took it, I wouldn’t want it. Someone else came in and lowballed, the bank came back and said no but gave an idea of what they wanted and the realtor repriced and sold it. Some banks are weird and overworked so they don’t function like normal buyers and sellers with counter offers, they just say yes or no.

The banks are stupid not to take the money and run, less than a mile away, better neighborhood, a little older, a little smaller but a 3 car garage and on 3/4 of an acre for 249k, that first bank may never see 280k ever again, because the repos are beating the shorts and buyers would prefer reo to shorts.

http://www.redfin.com/CA/Temecula/45770-Corte-Rodrigo-92592/home/6253359

[temeculaguy]

Not that this is a prime example, but I have seen short sales go up in price, usually not to that extent because the bank rejects an offer at the listed short price and the BPO gives guidance. Shorts are tricky, the bank wont say what they will take, just that they will evaluate each offer.

Here’s an example, the owners are a couple hundred grand in the hole, so 25k isn’t going to matter to them, they get nothing either way. It was listed for 280k for a month, then went up 25k, more than likely the bank balked at the 280k.

http://www.redfin.com/CA/Temecula/32425-Francisco-Pl-92592/home/6489327

The realtor is just throwing darts or got some guidance from the bank that they would take 305k. I had a realtor friend with a short listing and couldn’t get any offers, they begged me to offer half off the list (which would have been 75% off peak) just so it could get rejected and they could get an idea what they bank would take. I would have done it but I hated the house and if for some crazy reason the bank took it, I wouldn’t want it. Someone else came in and lowballed, the bank came back and said no but gave an idea of what they wanted and the realtor repriced and sold it. Some banks are weird and overworked so they don’t function like normal buyers and sellers with counter offers, they just say yes or no.

The banks are stupid not to take the money and run, less than a mile away, better neighborhood, a little older, a little smaller but a 3 car garage and on 3/4 of an acre for 249k, that first bank may never see 280k ever again, because the repos are beating the shorts and buyers would prefer reo to shorts.

http://www.redfin.com/CA/Temecula/45770-Corte-Rodrigo-92592/home/6253359

[temeculaguy]

Not that this is a prime example, but I have seen short sales go up in price, usually not to that extent because the bank rejects an offer at the listed short price and the BPO gives guidance. Shorts are tricky, the bank wont say what they will take, just that they will evaluate each offer.

Here’s an example, the owners are a couple hundred grand in the hole, so 25k isn’t going to matter to them, they get nothing either way. It was listed for 280k for a month, then went up 25k, more than likely the bank balked at the 280k.

http://www.redfin.com/CA/Temecula/32425-Francisco-Pl-92592/home/6489327

The realtor is just throwing darts or got some guidance from the bank that they would take 305k. I had a realtor friend with a short listing and couldn’t get any offers, they begged me to offer half off the list (which would have been 75% off peak) just so it could get rejected and they could get an idea what they bank would take. I would have done it but I hated the house and if for some crazy reason the bank took it, I wouldn’t want it. Someone else came in and lowballed, the bank came back and said no but gave an idea of what they wanted and the realtor repriced and sold it. Some banks are weird and overworked so they don’t function like normal buyers and sellers with counter offers, they just say yes or no.

The banks are stupid not to take the money and run, less than a mile away, better neighborhood, a little older, a little smaller but a 3 car garage and on 3/4 of an acre for 249k, that first bank may never see 280k ever again, because the repos are beating the shorts and buyers would prefer reo to shorts.

http://www.redfin.com/CA/Temecula/45770-Corte-Rodrigo-92592/home/6253359

[temeculaguy]

Not that this is a prime example, but I have seen short sales go up in price, usually not to that extent because the bank rejects an offer at the listed short price and the BPO gives guidance. Shorts are tricky, the bank wont say what they will take, just that they will evaluate each offer.

Here’s an example, the owners are a couple hundred grand in the hole, so 25k isn’t going to matter to them, they get nothing either way. It was listed for 280k for a month, then went up 25k, more than likely the bank balked at the 280k.

http://www.redfin.com/CA/Temecula/32425-Francisco-Pl-92592/home/6489327

The realtor is just throwing darts or got some guidance from the bank that they would take 305k. I had a realtor friend with a short listing and couldn’t get any offers, they begged me to offer half off the list (which would have been 75% off peak) just so it could get rejected and they could get an idea what they bank would take. I would have done it but I hated the house and if for some crazy reason the bank took it, I wouldn’t want it. Someone else came in and lowballed, the bank came back and said no but gave an idea of what they wanted and the realtor repriced and sold it. Some banks are weird and overworked so they don’t function like normal buyers and sellers with counter offers, they just say yes or no.

The banks are stupid not to take the money and run, less than a mile away, better neighborhood, a little older, a little smaller but a 3 car garage and on 3/4 of an acre for 249k, that first bank may never see 280k ever again, because the repos are beating the shorts and buyers would prefer reo to shorts.

http://www.redfin.com/CA/Temecula/45770-Corte-Rodrigo-92592/home/6253359

[temeculaguy]

As long as they weren’t planning on it rising in value and refinancing they can just chalk it up as a bad investment, they weren’t alone. Where people made the biggest mistakes were those who needed to increase in order to stay.

I have a friend who made a similar decision but they sold in a much more expensive and equally bubbly market, took their profit and paid cash out here. They have lost a large chunk of equity because of the timing but they have checked current prices on their old house and would have lost double had they stayed, plus they don’t care, they don’t have a mortgage. They could have done better had they sat on the sidelines for two years and reverse flipped but in their minds, they did o.k., I can’t really argue with them about that, they could have done better or they could have done worse.

Your freind could also look at it this way, they may have lost 300k so far but they are only exposed another 300k, there are people and places that today have more exposure than that, so it can only get a little worse for them.

[Author]

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