4 replies to this topic

[Cirrus]

Interesting RE Read: Just got back from an auction of properties by the builder in my community (I am renting). Auction was a bust. 54 homes were up for auction. All have been built and have been vacant for several months or more. They performed a high bid auction for the first five homes where the highest bidder picked their homes. They opened up the bidding at $300,000 - Nothing. Buyer has to pay a 10% buyer premium on top of the bid. The first round high bid ended up at $250,000 and he selected a home they were originally asking $450,000 Second round high bid was $200,000 Third round high Bid was $200,000 Fourth round high Bid was $170,000 (I opened this round at $150,000) The High bidder picked the home I was most interested in - they were asking $379,000 for that home) Fifth round high Bid was $140,000 The President of the auction company came over to me and asked which house I liked. I told him the one I liked best was gone. He told me I may get another shot at it. Don't know why? Maybe because the guy that bid also purchased the $250,000 home and couldn't come up with the cash. Or what I think is more likely, the builder set a minimum of $200,000 for all homes and probably higher on the choice homes. You see, all bids were subject to "Seller Confirmation". After the high bid round, they started the houses one by one. Opening Bids $200,000. After ten or so houses and absolutely no opening bids, they asked which houses anyone had any interest in. I told them the house I was interested in and the bid I was willing to open with. They asked the same of others. Then they called the auction off. I suspected something like this might happen. The builder has to be in deep doo-doo. There is no way they will get the prices they are asking. There are literally thousands of homes available within a ten minute drive from my house. If the one gentleman gets the two homes he purchased I don't know what he will do with them. In addition to the thousands of homes for sale, there are hundreds if not thousands of homes for rent within ten miles of my (rented)house. This is just starting to get ugly. Anyone that is holding paper on any of the houses sold around here should just flush it. At least they could get one good use out of it that way. I have a neighbor a few houses away that was escaping the housing crash in Michigan. This is not over yet. It hasn't even begun. I am certainly content to be renting right now. Stay Calm! All is well!

[Rogerdodger]

This is just starting to get ugly. Anyone that is holding paper on any of the houses sold around here should just flush it. At least they could get one good use out of it that way.

I've been watching the local sheriff's auctions.
So far the banks have been keeping them when they couldn't get their balance covered by the auction.
How long will that go on?
There have been just over 30 homes per week forclosed here in Tulsa county.

Recently, I heard a figure that it costs mortgage companies an average of $70K to foreclose on one home.

[A-ha]

I posted this chart in another thread but here I will tell you when you will be able to buy a home for free and get cash bonus on sign up...

two years after these suckers cut through those lines

[voy]

Interesting RE Read:


Just got back from an auction of properties by the builder in my community....

Hello Cirrus.
What area do you live in (if you don't mind my asking?)

Thanks,
Joe

[Cirrus]

Joe--this story is from FL. I have a few clients from FL but do not live there. I live in VA.