Let’s catch up on some of the properties featured here in the past, leaving out the house numbers to protect the innocent:
Anza REO, Vista, 92084
2 br/2 ba + extras, 1,492 sf on tax rolls
SP: $470,000 10/04
LP: $132,900 10/09
SP: $163,000 10/09 all-cash
65% below previous SP
http://www.youtube.com/watch?v=xbaFPk2RNus
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Harbor REO, Vista, 92081
3 br/2.5 ba, 1,535 sf
SP: $456,000 5/07
LP: $386,400 10/09
LP: $349,900 – nine days after lowering the price to $349,900, it was marked pending (still is). The same model closed for $371,500 two weeks ago.
If it closes at $345,000, it’ll be 24% below previous sales price.
http://www.youtube.com/watch?v=-o_JnvRT8ok
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Allesandro Trail, Vista 92084
4 br/3 ba, 3,110 sf
SP: $370,000 10/2000
LP: $499,000 9/09
SP: $487,500 11/09
An unfortunate occurance here – my seller had decided to cancel the listing and not move. But a couple of weeks later he passed away of a heart attack. His estranged wife re-listed, and somehow I was able to re-generate some enthusiasm from a previously interested buyer without having to dump on price.
http://www.youtube.com/watch?v=Y5oT-kq23-U
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Mango REO, Del Mar 92014
4 br/2.5 ba, 2,646 sf
Loan amount = $996,000, foreclosed 1/09
LP: $629,900 10/09
SP: $705,268 11/09 cash
Our tour of this house is towards the end of this video:
http://www.youtube.com/watch?v=yi1wCQ_WkIY
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Seabright REO, Solana Bch, 92075
4 br/3 ba, 2,370 sf
SP: $930,000 6/04
LP: $899,900 10/09 PEND after 24 DOM
This didn’t take long to find a buyer, and probably didn’t have to discount much from the list price. Not much drop off from previous SP either.
http://www.youtube.com/watch?v=f_A753FtlGo
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Spanish REO, Encinitas 92024
4 br/5 ba, 4,237 sf
SP: $1,535,500 8/04
LP: $ 989,100 10/09
Still not pending due to unresolved dispute with next-door neighbor who wants to buy property, and is threatening to sue over the right-of-access over the shared driveway to get bank to sell to him instead of the highest bidder.
http://www.youtube.com/watch?v=tgbjXnJisXw
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Lago Lindo REO, RSF 92067
4 br/5.5 ba, 4,654 sf
SP: $2,875,000 5/07
LP: $1,879,000 10/09
Yesterday it fell out of escrow for the second time, but you wouldn’t know it because the LA puts it back to CONT, instead of ACT.
They are attempting to re-ignite urgency among the previous offerees before putting it back on the open market. They are hoping to keep some urgency alive with the previous offerees, giving them a private shot at buying. If you throw it back to ACT, all offerees think there must be a problem, and want to hold back.
JtR, any idea when the Mango REO, Del Mar 92014 house first got its NOD? I love seeing the timelines on actual foreclosures (well, back in the day when they actually foreclosed).
Doesn’t ‘CONT’ when it really is not contingent just scream of a MLS violation and another reason people think that Realtors (capital R intented) are slime bags in general (present company excluded)???
Report this chump, let the deal fall out as is the reality, and let the price come down.
If I bought it and found out later that the listing info was intentionally fradulent, well we would unwind that transaction w/o blinking an eye. “Fraud in the inducement” of any subsequent purchase contract is just begging for legal action.
Nothing on Mango, but it had to be at least 18 months ago. There were people living there on the free-rent program.
More of those long-termers are coming to an end.
The Kokonutty lady on Adams in Carlsbad next to St. Pats finally got foreclosed after 2-3 years of no payments (and she didn’t live there), and the last of Jenae’s deals is wrapping up.
drop bids in phoenix:
http://www.azcentral.com/news/articles/2009/11/22/20091122dropbid1122.html
Anon,
I agree with your ‘no fraud’ attutude, but two things to add:
1. The Sandicor MLS won’t let an agent mark a listing CONT, the system does it automatically based on how you choose your ‘mandatory remarks’.
Her only choices were:
‘Offers Submitted Awaiting REO Approval’ or
‘N/K’
Does she have offers submitted? Yes.
I doubt that the clerk intentionally made her choice based on wanting to preserve some urgency in the sales process, I’m sure she just said yes to the first question innocently and moved on, because that was a fact – there were offers submitted. Boom, then the MLS system automatically marks the listing CONT.
2. The listing agent has a duty to represent the best interests of the seller, and doesn’t have an obligation to “let the price come down”.
If going back to the previous offerees first before putting the listing on the open market is compliant with MLS rules, and in the best interest of the seller, I don’t think it’s fraud. The listing agent should do it.
Want to go further? Here’s the flip side:
Is marking it N/K and having the listing go back to ACT in the best interest of the seller?
If you have bird(s) in the hand, it sounds counter-productive to risk letting them go, in search of the two in the bush.
But could marking a formerly-pending ACT listing create the fear of loss among offerees, and get them to rush back in?
Generally I’d say in this market, don’t chance it. Quality buyers are hard to come by, and the buyers’ agents are too inexperienced to depend on them. If you have a shot to make a deal with an existing buyer at the table, I say do it.
But it just happened the other way on Rancho Heights in Pala. The first buyer in offered full price, all-cash, but after inspections demanded $30,000 off the price.
The bank came back with a laughable $1,000 discount, and based on what the buyer’s agent had said about his buyer, I marked the listing ACT again, because I didn’t have any other offers.
The buyer saw it go ACT, felt the fear of loss, and jumped back in, taking the $1,000 discount. It closed yesterday.
So you could make a case either way.
Happy End the Fed Day, everybody!
Here is an article on short sales:
http://www.realestatejournal.com/columnists/housetalk/20080214-fletcher.html
jim,
What is your strategy for making offers on short sales?Knowing that if you place a bid it could take months to get an acceptance or denial.You cant put all your eggs in one basket.Is it common practice to make offers on several short sale homes hoping one will stick?