There have been more discussions lately about pursuing homes at the trustee sales.
Here is an interesting chart stolen from http://effectivedemand.blogspot.com/
The percentage of homes being purchased by third-parties, rather than going back to the banks, has risen to the mid-20% range.
1. The banks are being more realistic about their opening bids, and are using the trustee sale as a vehicle to efficiently sell product.
2. The investor groups are running at full strength.
In July there were roughly 325 homes purchased at the trustee sales by third-parties.
That’s a lot of flipping!
There’s been more discussion lately about what’s been happening at the trustee sales, and it’s become clear that these investor groups are dominating the action. They are making $50,000 to $100,000 per property on the flips, and are being very aggressive. They are willing to pay a little more to out-bid the individual novice buyer, and, in effect, squashing the hopes and dreams of any small guy getting a “trustee-sale deal”.
For the most part, these investor groups are staying under $500,000, so for those of you who are looking, there should be more opportunities higher up. But checking out the properties, and tracking the foreclosure process is challenging.
I have dedicated and mobilized additional staffing to this effort (in other words, I gave it to wifey), and I think we’ll see some success in having our buyers be successful at the trustee sales – but I think it’ll be limited to those buying a more-expensive home to owner-occupy.