REDC Auction Today

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reid_IHB

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<p>I briefly attended the REDC auction at the LA Convention Center this morning. Apparently the turnout exceeded expectations, as they were forced by the fire marshall to halt the auction several times during the first hour to eject those of us who weren't sitting in a seat, which I'd estimate to be about half of the people in attendance.</p>

<p>Anyhow, the following two Irvine properties sold before I got kicked out:</p>

<p>71 Avondale, 3 / 2.5, 1622 sqft., $560,000 (bidding started at $359,000)</p>

<p>62 Chula Vista, 2 / 2.5, 1350 sqft., $500,000 (bidding started at $309,000)</p>

<p>I'm not sure if those prices stuck because there were several cases during the short time I was there that, for one reason or another, certain properties were returned to the auction block for a second (or third) try. Apparently the high bidder in those cases wasn't able to actually pay the price he/she bid.</p>

<p>All and all it was a somewhat educational experience for me. I suspect these auctions will continue to account for an increasing number of residential real estate transactions in the next few years. Hopefully REDC will be a little better prepared the next time around.</p>
 
Reid,





Couple of questions. 1. Was there a fee to attend? 2. Were there lots of bidders for the two properties you saw, or was it 2 to 3 people who were bidding against each other?





Thanks in advance.
 
<p>Not impressive deals $345 & $370 psf.</p>

<p>You could do better with new construction.</p>

<p>I would love to know who the takers were.</p>
 
<p>No fee to attend. In order to participate in the bidding you had to show up with a $5000 cashiers check, made out to yourself.</p>

<p>Things moved quickly (about 3 minutes per property) and there were several thousand people in the room so it was difficult from my vantage point to see who exactly was bidding. But it didn't appear to be a showdown between 2-3 people.</p>
 
<p>Very interesting. I emailed Matt Padilla to see if the OCR covered the auction. I will be interested in what they say if they covered it.</p>

<p>The only thing that sucks is if those prices stick the 7 other properties in that area of 92602 that have received their NTS are in a heap of trouble. Especially for 53 Avondale who received a NTS of $628k. This pocket of 92602 is going to have the highest amount of foreclosures than any other area of Irvine unless 92603 steps up to the plate. </p>
 
I tend to think auctioning is a very wise way for these banks to offload their REO's.





I know there's a sensation when bidding on eBay that people get that it's not about actually buying what you're bidding on, but "winning" the bid.





Obviously a home purchase is far more major than something on eBay, but if they can leverage that feeling of competition and "winning" they might do a lot better than selling the traditional way.
 
<p>hmm, I can't find their disclosures anymore. Does anybody have the list of disclosures that talks about the 5%, reserve price and use of shills?</p>

<p>The audience could have numerous people bidding and they all may be shills except one 'buyer'.</p>
 
<p>Seeing as how Impac is the lender holding the bag on a majority of these properties and they are the REDC preferred lender. I don't understand why you would ever think there could be shills there. I mean all their employees are busy hard at work and couldn't possibly have the time or energy to do something like that. </p>

<p>{sarcasm off}</p>
 
Here the problem with REDC, most of the properties are sold "subject to conformation". This means that there is a minimum reserve amount, and that the bank has to OK the high bid. In the case of the recent 4 day southern California auction, 99 bids were rejected by the banks, and now REDC is trying to sell them with above market reserve amounts. This is a joke, an aution should be just that, an auction. The properties should sell to the highest bidder, with no reserve amount.
 
<p>Interesting...I was offered a house same as a 71 Avondale in <strong>$475K in Oct ' 03.</strong></p>

<p>Didn't buy it and for a while in June '06 I was kicking myself because I didn't do it, comps were being offered around $735K-$750K.





How quickly things have changed it!!





If things keep moving in the same direction, and I don't see anything in the horizon that can reverse the trend, probably next year the $475K Oct '03 price will be reached, amazing!





</p>
 
<p>This guy has some <a href="http://www.johnta.com/realestate/category/foreclosures/">interesting finds</a> on the REDC auction.</p>
 
<p>That looks similar to an article I saw regarding LandAuction.com which is the same corporate headquarters address as REDC, as far as I can tell.</p>

<p>The BBB gives LandAuction.com a B rating. With other DBAs listed: </p>

<p><strong>LANDAUCTION.COM//NRLL</strong> </p>

<p>landauction.com/nrll </p>

<p>National Recreational Properties, Inc. </p>

<p>NRLL </p>

<p>N R L L </p>

<p> </p>

<p>national recreational properties, llc has the same address and a CCC rating. With multiple DBAs: </p>

<p>Arizona City </p>

<p>California City </p>

<p>Holiday Island </p>

<p>Hot Springs Village </p>

<p>Pagosa Lakes </p>

<p>Tellico Village </p>

<p>Sun N' Lake </p>

<p>Lake Shastina </p>

<p>Lehigh Acres </p>

<p>NRPI </p>

<p>Ocean Shores </p>

<p>Palm Coast </p>

<p>Shasta View </p>

<p>Sellyourlot.com </p>

<p>California Pines </p>

<p>REDC, doesn't have an entry.</p>
 
UPDATED: there is another redc auction on 2/2/2008, but after reading the post i would not buy a house from an auction. it sounds so risky for a first time home buyer. anyways.... check the net... someone actually paid 525k for a condo 9/20/2007.... and the tread started in august 26th. so i am assuming that someone got this from the auction. 21 day escrow...... I could not believe it... is there something special about this condo?





62 Chula Vista, 2 / 2.5, 1350 sqft., $500,000 (bidding started at $309,000)
 
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