9 replies to this topic

[HiFiGuy]

No bids on 90% of March foreclosures?

Central Valley Business Times - article 4/5/07

California foreclosure sales near $2 Billion in March

DISCOVERY BAY
April 5, 2007 1:39pm

• ‘Unprecedented’ foreclosure activity

• Foreclosure sales now 15 percent of all home sales in California

With the Central Valley leading the way, 5,316 homes were lost to foreclosure sales in March in California, according to figures compiled by Foreclosure Radar, a Discovery Bay-based foreclosure listings and software company.

The homes sold at auction last month represented a 27 percent increase from February and a 264 percent increase in the last six months, the company says. Of the $2 billion worth of properties sold in March, 4,796 went back to the lender after receiving no bids, representing $1.82 billion, it says.

Edited by HiFiGuy, 06 April 2007 - 10:21 PM.

[skott]

the sad thing is probably a lot of the sales are speculators thinking they can flip em and make a quick buck.

[Mtrader]

Headline is big but that is only 3000 houses.

[Rogerdodger]

NO BIDS? What is the minimum opening bid? I didn't see that in the story. Here in Tulsa County, the opening bid has to be 2/3 of the appraised price. In some instances, the Sheriff's listed appraised value is higher than that shown at Zillow.com. For now, it seems that the mortgage companies are keeping them rather than dropping the price.

[mss]

NO BIDS?
For now, it seems that the mortgage companies are keeping them rather than dropping the price.

The local mortgage people have the attitude that ...sooner or later everyone will need a place to live....
they can take them back, wait and write off as time goes by. Just like in the '28-'30s. Resell at a huge profit IF they have the staying power and most of the middle and small size do as they have hookups with banks.
mss

[atlasshrugged]

the opening bid is dictated by the lender who is foreclosing. Usually an amount to cover the loan in foreclosure

[Rogerdodger]

Usually an amount to cover the loan in foreclosure

Therein lies the rub.

[OEXCHAOS]

This is what is keeping the market from falling apart. If they don't blink and only take a small hair cut, then sooner or later demand will come back as folks will say, "prices aren't falling. I guess I'd better move now before they go back up." Personally, though I'm not at all clear how this will play out. Things look to be fairly liquid out there still. I was offered a loan at a VERY appealing rate the other day. Mark

[atlasshrugged]

This is what is keeping the market from falling apart. If they don't blink and only take a small hair cut, then sooner or later demand will come back as folks will say, "prices aren't falling. I guess I'd better move now before they go back up."

Personally, though I'm not at all clear how this will play out. Things look to be fairly liquid out there still. I was offered a loan at a VERY appealing rate the other day.

Mark

prices in Vegas actually went up last quarter with record inventory which defies logic

I still think a slowing economy is going to be the straw that breaks the back

[TechSkeptic]

One thing I've noticed about the California housing market of late, is that market "softness" is highly assymetric between the areas that have always been lower cost compared with those traditionally high end. The higher-end the area, the firmer the prices seem to be. I guess that must be due to the subprime crisis disproportionately affecting loans to those who can least afford them.