Wells Fargo foreclosed on this Carmel Valley home in November. It had been listed on the MLS for the previous 12 months, and it looked like the agent had been trying to process a short sale (it was marked ‘contingent’).
She had it listed for $1,500,000.
Her clients paid $1,650,000 in 2007, and financed $1,137,500 with World Savings. Times were tough for many, and these folks got their notice of default filed in August, 2010. It doesn’t look like they made any payments since.
Wells Fargo’s amount at the trustee’s sale was $1,365,016, which is typically the amount owed. So the former owners got a couple of hundred thousand dollars in relief, but waved bye-bye to their down payment of $512,500.
Wells Fargo then listed the house for sale in January for $1,499,000, and has now sent it to an online auction. The bidding started yesterday, and will remain open until Tuesday:
The auction website also notes that it needs to be a cash purchase, though it’s not mentioned in the MLS listing. The buyer has to pay a 5% buyer’s premium on top of the purchase price, and I assume they want you to close escrow with the occupants inside?
What will somebody pay for the home, under those conditions?
The current bid is $1,199,920, though note sure if that is actually a real offer or just the minimum bid.
Just one more rerun before Kayla introduces our new listing tomorrow night.
This is the 7th most-watched video on Bubbleinfo TV, and is a greatest-hits tour through the REO-listing days. In April, 2008, the Bank of America had dumped twenty of their REOs in my lap, and over the next 12 months the JtR foreclosure extravaganza ensued.
A month after this video premiered here on the blog (March, 2009), I was on the front page of the L.A. Times, which led to the spot on ABC News Nightline:
The auction included an outrageous set of conditions, which many thought would drive down the price to compensate. They included:
The 5% buyer’s premium tacked onto the highest bid.
Tenant-occupied, and buyer was responsible for evicting.
No buyer’s agent commission paid.
Not in the MLS.
5% deposit required upon winning.
They conducted the auction online, which gave participants the convenience of bidding from their couch at home. It should have allowed bidders the chance to double-check the comps as the auction wore on – because every time a new bid was made, they extended the ending by 1-2 minutes.
Those checking the comps would have seen that in the heat of the frenzy last year, three of this identical model sold for $638,000, $653,000 and $679,000. Then in October this sale with nice view closed for $705,500, which was the highest price since May, 2007:
The bank foreclosed in 2011, and nobody wanted it then for $459,088. The opening bid this week was $325,000, and once the auction started the initial bid increment was $25,000.
Most of our readers guessed it would sell in the $400,000s, which would be an adequate buffer to evict and remodel.
Look what happened today:
AND IT DIDN’T HIT THE RESERVE PRICE!!!!!!
Somebody was willing to pay almost $200,000 more than the bank didn’t get in 2011, and that wasn’t enough to reach the reserve price? Hopefully the bank will come to their senses and reconsider before that bidder changes their mind. Counting the 5% buyer’s premium, the highest bid was $678,038!
Our closest and winning guess was $568,050, and submitted by blucore – congratulations!
Usually WaMu would have a REO agent do the normal routine – vacate, paint, and then list the home on the open market for just under retail.
The bank has already foreclosed – but instead selling of the old-fashioned way, they chose to make it an auction.com exclusive listing.
The house is tenant-occupied and can’t be shown, the buyer is responsible for evicting the tenant, plus the buyer has to pay a 5% premium but there’s no buyer-broker commission is offered (it’s not on the MLS) – and oh, by the way, you have to pay cash:
The opening bid is 42% of the previous value, which looks attractive:
P.S. This was foreclosed in 2011 – the trustee sale’s price that nobody wanted to pay then was $459,088.
What will the sales price be? (assuming the reserve price is reached)
The closest guesser will get 4 tickets to Padres vs Rockies on August 13th!
Though this video has a dramatic backdrop – the 7,459sf REO listing high on the hill in La Jolla – the goal is to showcase Kayla’s first real appearance on Bubbleinfo TV. Don’t miss the last five seconds:
There are still a few REOs left – this is another PennyMac deal that no one wanted for $878,000 at the trustee sale in March. Must be on the market for ten days before they entertain offers – buyers will be snoozing by then:
Because their lender is applying pressure to either make payments, short-sale, or be foreclosed. At least that is the old-fashioned way of banking.
It’s possible that, after months or years of delinquency, some might start making their payments again if they receive that magical loan-mod/principal reduction package. I just haven’t met anybody who has.
Maybe I’m a skeptic, but these stats make it appear that the banks aren’t applying much pressure – distressed listings are 1/3 of last year’s total:
NSDCC Detached-Home Listings, First Quarter
It might make sense for banks to be lenient in depressed areas where sales and prices are struggling, but around here we are starved for inventory. The policy is working so well that it may last a long time – the ultimate can-kicker!
Meanwhile, another 85 new listings hit the MLS since our last reading, and we had 81 new pendings with a few cancelled/withdrawns – demand is raging:
NSDCC Active Listings
Avg. LP $$/sf
This is the most important indicator to watch – if the active inventory starts to grow, it means buyers are backing off.
The only people that matter are those who stay in the game.....because you can't win if you don't play. Burned by Hot Housing Market, Some Buyers Back Off https://www.nytimes.com/2021/07/23/realestate/housing-market-burnout.html?smid=tw-share
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