[ulostitall]

Originally Posted by Swigchow

You might be right, but I thought there was blood on the streets last year and purchased and prices continue to drop. Although I suspect most of the hemorrhaging has occurred, the patient still might have some blood left.

Yes, continues to drop, but look at it from a YOY perspective so your suspicion that most of the sangria has left the bottle is on point. My larger point was that "experts" are rarely right at tops or at bottoms.

[khuntrevor]

I rather quickly rented my 22000 Dollar condo out for 569 per month in Phoenix. I'm sure you can do the same in LV. Condo prices are down about 80%, but rent is only down about 20%. Try to find a solid HOA. Some very plain looking older condos have good boards and reasonable fees. Some of the glitzy ones were right up there in the front of the train wreck.

[Robustus]

Originally Posted by khuntrevor

I rather quickly rented my 22000 Dollar condo out for 569 per month in Phoenix.

Wow, that's fantastic.

[LVPoker1]

Wonder if anyone has had luck putting a little more down, say 30% and then using a private lender for the rest?

I tried. Putting more down didn't make things any better. Maybe at the highest end homes but if I started putting 30-40% down the value of the actual mortgage would suffer. Banks don't like to loan under a certain amount.

[007 license to sell]

This is just one example of why it's going to take years to get through the foreclosure inventory.
Bank of America: Overturn order halting 8,900 Nevada foreclosures

[vegaslocal55]

Originally Posted by 007 license to sell

This is just one example of why it's going to take years to get through the foreclosure inventory.
Bank of America: Overturn order halting 8,900 Nevada foreclosures

So does this mean BOA hasn't added any foreclosures to the market since Jan. 11th? If the answer is "yes", would all the backed up units hit the market at the same time? Thanks

[WestieJeff]

According to the article, yes, but all the suspended units wouldn't hit the market at the same time for a variety of reasons. This suspension involves when they are sold at trustee auction, not when they are listed on the MLS.

Once the suspension is lifted (which I expect would be soon), Recontrust will start scheduling the trustee auctions. Some auctions may be picked up by flippers and re-listed, others will return to BOA and who knows how long until they are listed, depends on condition and lots of other factors. A bank took back a house down the street from me almost four months ago and it hasn't hit the market yet.

The issue from the article, the reason the foreclosure sales were suspended is something I've seen affecting more and more auction sales recently. Basically the bank has to file the substitution of trustee before the notice of default. I'm not sure why it is so difficult for the banks and foreclosure processors (recontrust) to get this straight, but this is a basic procedural clerical type problem. They can get this straightened out pretty easily. I suspect they were lazy about doing it properly since no one was challenging it. Now that is it becoming a challenge point, they should start getting it right.

Originally Posted by vegaslocal55

So does this mean BOA hasn't added any foreclosures to the market since Jan. 11th? If the answer is "yes", would all the backed up units hit the market at the same time? Thanks

[vegaslocal55]

Great info, westiejeff. You seem to understand the trustee auctions better than anyone & also they don't seem to scare you, like they do most everyone else. Can you explain something to me: When a home goes to the auction, if it is purchased at a low price I understand it. But sometimes it is "bought" (?) back by the mortgage holder for a high price. The "price" (?) that is paid is the amount of the note, I think. So, for instance, a home worth $100k today is bought back by the mortgage holder for $275k. It seems they don't really want to sell the home for a low price. I just don't get it. Could you explain to me? Thank you!!

[WestieJeff]

When the home goes to auction, there are two possible outcomes: 1) The home is bid on and bought by a 3rd party (not the mortgage holder) 2) The mortgage holder takes it back (since nobody bid on it).

When the notice of trustee sale is posted/recorded, it includes the full amount due of the original note plus late fees, etc. Sometimes this is the amount they start the auction at, sometimes it is lower. The auction "opening bid" is usually only posted either the day prior or the morning of the auction. So that's the soonest anybody knows what the house bidding will start at.

So sometimes the opening bid is the full amount due, sometimes it is less, sometimes it is dramatically less. Nobody knows when or why the banks will choose to make some opening bids higher or lower than market value.

The vast majority of trustee sales, the banks are looking for pretty close to market valve at the auction (+/- 5%) or the full amount due (which nobody will bid on either of those). Sometimes the bid is low and great deals can be had. 37 Precipice in Henderson was sold at auction on 1/11 for 190k and listed on the MLS about a week later at 260k and it was under contract within 3 or 4 days.

The flippers earn their money by having to do due diligence on properties they are interested in buying at auction prior to even knowing if the bank is going to set the price low enough to make it worthwhile to purchase.

Originally Posted by vegaslocal55

Great info, westiejeff. You seem to understand the trustee auctions better than anyone & also they don't seem to scare you, like they do most everyone else. Can you explain something to me: When a home goes to the auction, if it is purchased at a low price I understand it. But sometimes it is "bought" (?) back by the mortgage holder for a high price. The "price" (?) that is paid is the amount of the note, I think. So, for instance, a home worth $100k today is bought back by the mortgage holder for $275k. It seems they don't really want to sell the home for a low price. I just don't get it. Could you explain to me? Thank you!!

[olecapt]

Originally Posted by WestieJeff

When the home goes to auction, there are two possible outcomes: 1) The home is bid on and bought by a 3rd party (not the mortgage holder) 2) The mortgage holder takes it back (since nobody bid on it).

When the notice of trustee sale is posted/recorded, it includes the full amount due of the original note plus late fees, etc. Sometimes this is the amount they start the auction at, sometimes it is lower. The auction "opening bid" is usually only posted either the day prior or the morning of the auction. So that's the soonest anybody knows what the house bidding will start at.

So sometimes the opening bid is the full amount due, sometimes it is less, sometimes it is dramatically less. Nobody knows when or why the banks will choose to make some opening bids higher or lower than market value.

The vast majority of trustee sales, the banks are looking for pretty close to market valve at the auction (+/- 5%) or the full amount due (which nobody will bid on either of those). Sometimes the bid is low and great deals can be had. 37 Precipice in Henderson was sold at auction on 1/11 for 190k and listed on the MLS about a week later at 260k and it was under contract within 3 or 4 days.

The flippers earn their money by having to do due diligence on properties they are interested in buying at auction prior to even knowing if the bank is going to set the price low enough to make it worthwhile to purchase.

I think it even more complicated than that. Note that the "banks"in general don't own these properties. They are owned by some form of a securitized investor. The decision on how to proceed comes from the investor and not the bank.

The situation is also rife with the opportunity for hanky pank. And I am sure some of it is going on. A chosen investor gets whispered to that the bank will not bid on a particular property. The investor picks it up on the cheap and resells it for a 30 or 40K profit. Where does that money go? There has never been such an opportunity for fraud that has gone unexercised.

We had one where BofA absolutely knew the place would go for 200K. Investor picked it up for $138K and resold in 6 weeks for $175K. So a 37K profit in a couple of months. Where did the 25K net profit end up? It may well have been a perfectly clean deal...just a selling investor who is unwilliing to take title. But then again...

Interesting stuff and if anyone is getting screwed it is likely the actual investors who have no real direct role and who would be hard pressed to find out that it happened.