Foreclosure Auctions

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capocorso_IHB

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<p>I read today about the 100 or so homes being auctioned in OC. Anyone know where these auctions are advertised for OC and LA county?</p>

<p>There is a home I have been watching for 6 months now that is REO and just got pulled off the market in LA county, I'm sure it will show up at one of these auctions but I can't find where they are advertised.</p>

<p>Thanks</p>
 
Thanks guys, Not ready to start bidding yet, just want to watch to see what happens to this house. Maybe in about 6 months to a year.
 
I've just been reading that website. Do the lenders have the ability to refuse final bids? or does the highest bid take the house no matter what?
 
All of them have "reserve" pricing so they can refuse your bid if that targeted price wasn't met. In my opinion, many banks aren't desperate yet so the reserve prices are still high. That will change as we get deeper into the correction.
 
Thanks, Just found that on the terms:


"

<p align="left">All Properties have a Reserve Price, meaning the Seller of each Property has</p>

<p align="left">established an unpublished, minimum selling price. The starting bid is not the Reserve Price. In</p>

<p align="left">order to become the Winning Bidder for a Property, a Bidder must meet or exceed the Reserve Price</p>

<p>and have the highest bid, and such highest bid must be accepted by the Seller"</p>

<p> </p>

<p> </p>
 
Yes, the lenders can refuse the final bids, and they have. I don't know what happened with <a href="http://ushomeauction.com/property.php?auctionID=H-016&itemID=9908&venueId=68&start=0">this property in Aliso</a>, but it was at the last one. It could have been because the lender refused the bid, or the buyer ended up not qualifying, but it is back.





I have also heard, from several sources, that there are shills there, that bid up the prices. At the last auction, a lot of the properties were owned by Impac Mortgage. I figured they got there employees to go down and bid them up. I mean, it's not like they had any loans coming in, so what else do they have to do?





I will probably go, since it isn't in LA this time. It should be entertaining, if nothing else. Just remember, if they are serving Kool-Aid, do not drink it!
 
<p><a href="http://www.hudsonandmarshall.com/calendar.asp">http://www.hudsonandmarshall.com/calendar.asp</a></p>

<p>Another auction house with some OC homes coming up...</p>
 
cap, continue to read those disclosures. It also points out the shills being in the audience, the buyer premium, and a bunch of other bidder unfriendly stuff.
 
I don't know if the reserve prices are really set in stone. At the auction last summer in LA I asked one of the staffers about this. He said the high bid will always be presented to the bank who may decide to accept it even it's below the supposed reserve price. This indicates to me that the "unpublished reserve price" is really just a fuzzy number in somebody's head.



As far as shills in the audience, it's certainly possible, but thanks to modern technology (or the guise of such) even that's a waste of the banks' time since REDC allows bidding via the internet. They have this little blue light that sits up on the auctioneer's podium. Each time the light flashes, that's supposedly somebody increasing the bid online. But no one in the audience really knows where the light is plugged in. It could lead right to the wizard behind the curtain...
 
"Absolute auction" is the term used when the high bidder gets the house, no matter what. They usually begin with a set reserve price. We'll only see these begin when the banks get "absolutely" desperate and innundated with properties.
 
<p>April auction details now out:</p>

<p><a href="http://www.ushomeauction.com/index.php">http://www.ushomeauction.com/index.php</a></p>
 
<p>I just turned on the TV right now. Channel 4 is having an infomercial paid for by REDC. They are telling people about buying foreclosed homes at auction. I can't believe some of the things they are saying.</p>

<p>Are they really that desperate to sell these homes? </p>
 
<p>I saw that commercial. They aren't desperate. </p>

<p>If they were desperate, you wouldn't see the same homes get sold, and then relisted for auction in the same auction time and time again. It's full of shills and has unknown minimums.</p>

<p>It's so unseamly I need to take a shower just from thinking about it.</p>
 
<p>LA times video of an auction</p>

<p><a href="http://www.latimes.com/video/?slug=la-re-foreclosureauction-135120-vid">http://www.latimes.com/video/?slug=la-re-foreclosureauction-135120-vid</a></p>
 
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