The Trustee Sale Thread - Califoria Specific

NEW -> Contingent Buyer Assistance Program
How do banks, or flippers, or anyone else for the matter able to check out the condition of the house, especially the interior? Also, what's preventing the current resident from trashing the house after its sold at auction, and can they be held responsible?
 
[quote author="autox" date=1253042708]How do banks, or flippers, or anyone else for the matter able to check out the condition of the house, especially the interior? Also, what's preventing the current resident from trashing the house after its sold at auction, and can they be held responsible?</blockquote>
Well, there are a few ways...sometimes the properties are listed for sale (short sales) so you might be able to see the properties either via a listing or physically going there. The other thing you can do is just go knock on the door and try to bribe the owner/tenant to let you in to see the property. There is nothing that prevents the owner/tenant from trashing the place, but if you provide a cash-for-keys incentive for them it will reduce the risk of that by a significant amount.
 
[quote author="xoneinax" date=1253327861]Anyone hear of Preferred Group Properties in SJC ?

They seem to buy (anyone see them at a TS?), spruce up, and sell.</blockquote>
There are several flippers like that. I've noticed that most flippers tend to stick to certain cities/locations.
 
Can anyone comment on the typical terms in cash for keys agreement? How much money should you offer? How much time should you give?
 
[quote author="David714" date=1253624117]Can anyone comment on the typical terms in cash for keys agreement? How much money should you offer? How much time should you give?</blockquote>
It's all up to the owner/investors...the faster you want the occupants out the more you'll have to give them. I'm heard that a rule of thumb is 1-2 months worth of rent for the property is what most folks offer as "cash for keys" but it will depend upon the home and the upgrades and whether you are dealing with a the previous owners or tenants that have more than 2 months remaining on their lease.
 
It depends on how cooperative they are. You should do your best to find out beforehand how cooperative they will be, especially if they are a tenant vs. the debtor. Sometimes you can work out something beforehand to have them out before the foreclosure, or get them to agree to leave in two weeks, and that is why you will see properties like <a href="http://www.redfin.com/CA/Irvine/1-Blackswan-92604/home/4685821">1 Blackswan</a> on the market 3 weeks after the foreclosure. Like t-man said about 2 months rent or $2k-$5k, with $2k being the norm. But if it means having them out sooner, it might be best to pay more. The sooner you can churn it the better.



Just make sure you have them agree and sign <a href="http://www.foreclosureforum.com/forms/agreement_to_vacate.pdf">the agreement to vacate form</a>.
 
[quote author="graphrix" date=1253627610]It depends on how cooperative they are. You should do your best to find out beforehand how cooperative they will be, especially if they are a tenant vs. the debtor. Sometimes you can work out something beforehand to have them out before the foreclosure, or get them to agree to leave in two weeks, and that is why you will see properties like <a href="http://www.redfin.com/CA/Irvine/1-Blackswan-92604/home/4685821">1 Blackswan</a> on the market 3 weeks after the foreclosure. Like t-man said about 2 months rent or $2k-$5k, with $2k being the norm. But if it means having them out sooner, it might be best to pay more. The sooner you can churn it the better.



Just make sure you have them agree and sign <a href="http://www.foreclosureforum.com/forms/agreement_to_vacate.pdf">the agreement to vacate form</a>.</blockquote>
This is what I don't get about some of these investors/flippers. Are they serious about trying to sell this older home in Woodbridge for $431/sf? I know it's Woodbridge and I know it's a single story home, but COME ON. When will these guys learn from the mistake of the guys over at 11 Laurelglen to price the sucker low and incite a bidding war where buyers get emotional resulting in a higher bid and be in escrow within a week of listing the property. My personal opinion is these guys overpaid for 1 Blackswan (I wouldn't have bid over much over $450k-$470k)....good luck to them in the slow selling season.
 
[quote author="USCTrojanCPA" date=1253628353]This is what I don't get about some of these investors/flippers. Are they serious about trying to sell this older home in Woodbridge for $431/sf? I know it's Woodbridge and I know it's a single story home, but COME ON. When will these guys learn from the mistake of the guys over at 11 Laurelglen to price the sucker low and incite a bidding war where buyers get emotional resulting in a higher bid and be in escrow within a week of listing the property. My personal opinion is these guys overpaid for 1 Blackswan (I wouldn't have bid over much over $450k-$470k)....good luck to them in the slow selling season.</blockquote>


You and me both... seriously, I have a feeling this flipper is going to get burned. I could be wrong, because there has been a few where I have said: "WTF are you thinking? I know Irvine is hawt, but that price is dumb... just dumb.", and they have sold for the WTF price or just slightly below it. We will see, but I think this flipper is going to get burned. Hopefully they do, because that will start to eliminate the amateurs. I wonder if this is one that got bid up by the pros just to fawk with them...
 
[quote author="graphrix" date=1253630263][quote author="USCTrojanCPA" date=1253628353]This is what I don't get about some of these investors/flippers. Are they serious about trying to sell this older home in Woodbridge for $431/sf? I know it's Woodbridge and I know it's a single story home, but COME ON. When will these guys learn from the mistake of the guys over at 11 Laurelglen to price the sucker low and incite a bidding war where buyers get emotional resulting in a higher bid and be in escrow within a week of listing the property. My personal opinion is these guys overpaid for 1 Blackswan (I wouldn't have bid over much over $450k-$470k)....good luck to them in the slow selling season.</blockquote>


You and me both... seriously, I have a feeling this flipper is going to get burned. I could be wrong, because there has been a few where I have said: "WTF are you thinking? I know Irvine is hawt, but that price is dumb... just dumb.", and they have sold for the WTF price or just slightly below it. We will see, but I think this flipper is going to get burned. Hopefully they do, because that will start to eliminate the amateurs. I wonder if this is one that got bid up by the pros just to fawk with them...</blockquote>
I personally think the system needs a bit of a shock to weed the weak links out and for certain people to get burned, including most of the armchair buyers who are looking for their next home to live in. People have gotten a little too comfy thinking that sunny skies are here again and home prices are off to the races.
 
I know I can get 700 Civic Center Drive West, Santa Ana. foreclosure listing info fromhttp://www.fidelityasap.com





But where can I get the auction listing info for the following 2 auctions ?



Orange Civic Center, 300 E. Chapman 3 p.m.



Placentia Civic Center, 401-411 E. Chapman 10 a.m.







Thanks
 
[quote author="greenpot168" date=1254893154]I know I can get 700 Civic Center Drive West, Santa Ana. foreclosure listing info fromhttp://www.fidelityasap.com





But where can I get the auction listing info for the following 2 auctions ?



Orange Civic Center, 300 E. Chapman 3 p.m.



Placentia Civic Center, 401-411 E. Chapman 10 a.m.







Thanks</blockquote>


I don't know of a source for the Orange 3pm auction. I just use foreclosure radar for that auction. But <a href="http://www.rsvpforeclosures.com/#">RSVP handles</a> the AM Orange auction as well as the Anaheim Hills auction.



Placentia is handled by <a href="http://www.priorityposting.com/">priority posting</a>.
 
graphrix,



1.When will Anaheim Hills auction start ?



2. I know Auctioneer LPS handle Santa Ana auction at 12PM.

Which Auctioneer handle Santa Ana auction at 3PM ?



3.One more question , if I bought a house with final bid at $300,000 through Auctioneer LPS and Trustee service is Quality Loan Service Corporation and 1st lender is Indymac



Other than $300,000 check, Do I need to write separate checks to pay commission to Auctioneer LPS and Quality Loan Service Corporation ?



Who is responsible to to pay commission to Auctioneer LPS and Trustee service ?

What is typical commission amount for Auctioneer ?

What is typical commission amount for Trustee service?



Thanks



Greenpot
 
Questions on auctions:



A property I have been following was scheduled to be auctioned today. The published bid was $1,090,050. The opening bid was $862,750. The winning bid was $862,750. Now it is bank owned.



1.) Why is the opening bid much lower than the published bid?



2.) If I had been there with cash and bid, would I have walked away with this home for $862,750 ish?



3.) If there are 2nd and 3rd mortgages on the property, do these go away when the house is purchased with the winning bid?



Thanks!
 
[quote author="Minimorty" date=1255151400]Questions on auctions:



A property I have been following was scheduled to be auctioned today. The published bid was $1,090,050. The opening bid was $862,750. The winning bid was $862,750. Now it is bank owned.



1.) Why is the opening bid much lower than the published bid?



2.) If I had been there with cash and bid, would I have walked away with this home for $862,750 ish?



3.) If there are 2nd and 3rd mortgages on the property, do these go away when the house is purchased with the winning bid?



Thanks!</blockquote>


Somebody who knows more than I could say for sure, but I think the answers are:



1. Because the banks are kooky that way and like to do everything bass ackwards. Very stupid of them, since some people who would be interested in the property might be willing to pay $862k but not $1.09 mil, so they didn't bother to attend, so the bank lost a sure sale.

2. Yes.

3. Yes.
 
[quote author="Minimorty" date=1255151400]Questions on auctions:



A property I have been following was scheduled to be auctioned today. The published bid was $1,090,050. The opening bid was $862,750. The winning bid was $862,750. Now it is bank owned.



1.) Why is the opening bid much lower than the published bid?



2.) If I had been there with cash and bid, would I have walked away with this home for $862,750 ish?



3.) If there are 2nd and 3rd mortgages on the property, do these go away when the house is purchased with the winning bid?



Thanks!</blockquote>


1.) They have already written down the asset to that value or more, so it will be a break even or profit for them if it had sold. Plus, who knows who really owns the loan now.



2.) Maybe, if there was a 2nd or 3rd lien, they could have bid it up. Also, the minimum is not always the "high" bid that the 1st lien holder has in mind and they may bid it up too.



3.) Geotpf is correct. They get wiped out.



4.) You would be responsible for any back property taxes though.
 
[quote author="Minimorty" date=1255151400]Questions on auctions:



A property I have been following was scheduled to be auctioned today. The published bid was $1,090,050. The opening bid was $862,750. The winning bid was $862,750. Now it is bank owned.



1.) Why is the opening bid much lower than the published bid?



2.) If I had been there with cash and bid, would I have walked away with this home for $862,750 ish?



3.) If there are 2nd and 3rd mortgages on the property, do these go away when the house is purchased with the winning bid?



Thanks!</blockquote>
1) There is a law stating that the published bid must be the amount owed.
 
[quote author="awgee" date=1255158864][quote author="Minimorty" date=1255151400]Questions on auctions:



A property I have been following was scheduled to be auctioned today. The published bid was $1,090,050. The opening bid was $862,750. The winning bid was $862,750. Now it is bank owned.



1.) Why is the opening bid much lower than the published bid?



2.) If I had been there with cash and bid, would I have walked away with this home for $862,750 ish?



3.) If there are 2nd and 3rd mortgages on the property, do these go away when the house is purchased with the winning bid?



Thanks!</blockquote>
1) There is a law stating that the published bid must be the amount owed.</blockquote>


Interesting. How can I find out the opening bid prior to the auction?



I checked foreclosure radar this morning and it was not updated.



The amount owed (for the published bid) is only the 1st mortgage, correct?
 
Couple more:



1.) There is no way to see the inside of the house being auctioned, correct?



2.) What if the inside of the house is bare (example...like they ripped out the staircase or something)?
 
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