What are the chances of buying a decent house at the court house steps?
Last July, these two youtube videos captured a group of houses on the foreclosure list, and was marked as the ‘Trustee Sale Test Group’, so we could follow up later to see how they did.
The first video shows ten houses in Carlsbad:
Of the ten, five have been sold: 2 short sales, 2 REO resales, and the last was the off-market short sale we saw a couple of days ago. Four others were cancelled, and one still has an auction date looming next week.
In the Carmel Valley video below, the first sold as a short sale for $875,000, Winstanley was foreclosed and is still bank-owned but not on market yet, and the other three cancelled:
Almost a year later, here’s how the 15 fared:
Foreclosed, back-to-bene – 3 (two re-sold, one still held)
Sold Short - 4
Cancelled – 7 (probably loan mods?)
Still on Auction List – 1
The can-kicking program is working well if only half of those on the foreclosure list are actually getting sold. It seems like the loan servicers are moderating the flow pretty well too, so we’ll probably keep seeing the same results – postponements, short sales, cancellations (loan mods), and an occasional deal on the court house steps. (click on the category below, ‘Trustee Sale Test Group’, to see the original posts & comments)
This video shows six properties in Carmel Valley that have a trustee-sale date in the next 4-5 weeks – I blew the first one though, it just closed as a short sale for $875,000. There are more, but we’ll add the five to our Carlsbad Nine to use as our test group of fourteen. Do they get auctioned off at the court house steps, do they postpone forever – or do they finally get their loan mod?
What happens to the people who get denied for their loan modification? The free rent program must be addicting, are they saving their money and willing to go back to making their old payments? They may think so in the beginning, but after getting denied there would be a natural bitterness towards the lender after jumping through all of their hoops. We may see some defaulters get their trustee sale cancelled, only to reinstate later.
How many do you think eventually get foreclosed? If you see any you like to buy, let me know and we’ll pursue them – here’s the youtube video tour:
This youtube video is a scouting tour of houses that have dates scheduled for their trustee sale. The loan-modification era is wrapping up, and either you got one by now, or your lender is going to be left with no other choice but to foreclose.
More and more homedebtors are going down with the ship – if you’d like to buy a house on the steps of the court house, contact me!
Here are a few examples of what coming in Carlsbad:
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