A number of good things to report in this youtube video:
1. Bank of America knocking 50% off the balance owed for their opening bid!
2. Bank of America not settling for just any old short sale package that gets delivered (hopefully).
3. More decent-quality Covenant properties well under $2 million.
4. Our trustee-sale program is getting back on track!
Nice! If only I had a job in SD… that paid about double what I currently make. 😉
Excellent video. I know I won’t be able to personally afford something like this for a while, however, the word that kept popping into my head while watching this clip was ‘opportunity’. This is a definite fixer, but it’s a diamond in the rough IMHO.
This is a definite fixer, but it’s a diamond in the rough IMHO.
Don’t know about the fixer — the house looks like it may be a diamond as-is — but it’s definitely “in the rough” regarding the grounds. Nothing that couldn’t be fixed in short order, though.
Good may have won in this case, but at the present time the ratio of baddies to goodies is probably closer to 8 to 1. For every 1 property that succeeds to go legitimately to trustee sale, there are many many more that are gamed, have back-door provisions, or are off-hud-1 statement kickbacks, or other shady provisions.
If people haven’t figured it out, much of coastal real estate (at least 1M+) is gamed. If you sit down at the closing table and don’t know who the sucker is, it’s you.
That said, trustee sales are probably some of the safest transactions simply because there’s no benefit or chance to present false information.
Chuck
With situations like these, it seems like the bankers would be well-served to hire someone credible to do inspections before the houses end up on the auction block. That does cut into the ‘no need to trust’ factor that Chuck mentioned though.
NateTG,
There’s a simple answer to that… just provide a kickback to the bank’s examiner. Pay him a few hundred, or a thousand bones to look the other way and rubber-stamp the transaction.
With banks’ current philosophy of jumping over dollars to get to dimes, you’ll never get an executive to justify spending a few hundred thousand per year to safeguard a few dozen millions.
Chuck
The problem with the Trustee Sales is that they have their own level of Fraud going on. For example, I was set-up to bid on a property that was supposed to go to auction (it had a published opening bid and everything) it was not read-off on the regular postponement and cancellation list. Then, about 1:00, the acutioneer called out the property address stating that it had been “suspended” or something of that nature–I had not heard that term before, so I questioned the auctioneer, “Does that meant that it will NOT be going to auction today?” He said that it would 100% definitely NOT be going for auction that day, so I left. It turned-up on the list as sold that same day, and the price was slightly above the opening bid as if it had actually gone for bid. My partner was out there all day waiting on another property and he said that he did not hear it called off ???????? You decide.
Local Boy,
That truly IS an interesting story. Of course, if you so wished, you could file a request under the California Public Records Act.
Section 6250-6270
I suspect that if there was some monkey business you could quite easily find it and sue the local government for damages equal to the spread of the flip.
At the very least, it would put your mind at ease, and if there was some hanky panky, you could raise awareness of any potential problems to prevent it in the future.
Chuck
Thanks for the info Chuck–that is good to know–and by the way–sorry folks for being “Negative” the idea of Jim’s post is to be “Positive”!!! Good Day!
Opening bid this early + currently on the market = Postponed. At least that is what seems to happen a lot lately, but different county + different price point from what I’ve been tracking.
Agreed Keith that pending short sales seem to trigger the constant postponements we keep seeing, but I’m hoping that the fraudulent nature of this SS caused the bank to want to test it on the ‘steps.
Her list price was $1.7 for the nanosecond it was on the MLS (then marked withdrawn, not contingent or pending) and I’m also hoping that the sales price that she submitted was $1.5-ish, which would cause the bank to push for trustee-sale-immediate-gratification at or above the $1.62 OB, rather than arm-wrestling with her.
It’s optimistic, but if it goes that way it could be a sign of change in the landscape.
Walking through those weeds would have given me the willies. Nice property…some possible updating needed on the inside, and maybe $400 worth of gardening needed, and refresh the pool, and you’ve got yourself a decent property. No view, but great street to live on!
Here’s some pictures from when it was maintained:
http://www.dreamhomesmagazine.com/Home134006.html
What did you mean that the La Crescenta house had a $53M loan on it? The house sold for $1.85M and it had that big of a loan on it?
Ok, now I feel foolish…after thinking about it, you were just in hyperbole speak, LOL.
Jeeman,
The one on La Crescenta did have a loan on it for $53M and was most likely cross collateralized with some other properties. I’m doing some research to find out more.
The Assistant
Jeeman,
The $53M loan on the La Crescenta home was a second and it definitely looks like the home was put up as collateral for the owners project in Lake San Marcos, the borrower on title is the same Company and owner in the linked story. In this economy it will be interesting to see just how many of the units will actually rent for the $4000 to $5000 that he expects they will go for.
http://www.nctimes.com/news/local/san-marcos/article_8c773624-50e3-5297-86d4-790af7768c67.html
Richard:
$4000-$5000 rent in San Marcos for 850-1700 ft? What services are included?
Nice home.
Let’s see: great neighborhood, quiet street, large lot, plenty of living space, pool, single story, and all at a reasonable price.
This looks like a good deal.
On a side note: cross collateralization of assets for construction and/or development loans is very common. Builders and developers don’t keep their wealth in cash, so they have to collateralize their loans with hard assets like existing properties they own.
Talk about half-off…JtR, this might be a good one to check out for the blog:
http://www.sdlookup.com/MLS-100021350-7861_Bellakaren_Pl_La_Jolla_CA_92037