6 comments

  1. billddrummer

    Guy,

    Thanks for the chart. And you have won me over with the line/bar debate. This is much cleaner and easier to interpret.

    I did some research today on the TDs filed so far this year (13 through 4 PM). 8 of them were Fannie Mae loans that went south. Only 2 had any significant discount between the loan balance and the amount of the TD. The other six were bid by Fannie Mae at the loan balance.

    Does this mean that we taxpayers will eventually be stuck with the losses on these bad loans? And does that also imply that when these homes are relisted, they will just sit forever because the government will price them too high?

    Let me know what you think.

  2. Sully

    Guy, I think you mentioned this before but does Ticor get the numbers from the county or from their own source?

    I have been watching a foreclosure sale and I noticed the county is about 2 weeks behind on getting info posted on the web.

    I wonder if some of these numbers aren’t skewed because of the county being behind. I heard they laid off some people and that was causing a back log in posting.

  3. GreenNV

    Sully.

    Ticor gets their data from the county recorder, just like I do. They used to use a third party service that screened out HOA notices, so their data used to be a lot more precise than it is now.

    The assessor is worthless for tracking TDs. As you said, there is usually at least a 2-3 week lag from the recording date, but not always.

    Title company sites usually up date on the day of the Trustee’s Sale, so they are the fastest source of information http://www.lpsasap.com/. TDs are required by law to be recorded not less than 7 nor more than 30 days from the Trustee’s Sale on the courthouse steps, so the Recorder is much more up to the minute that the Assessor. Recored documents show up almost instantly on the site. The “investors” tend to use the full 30 days, hoping to get the properties back on the market before before the TD prices can be easily researched.

    BDD, Fannie doesn’t bother to bid low, since they don’t have to pay transfer tax anyway. Why other mortgage holders bid the full amount due when they know there will be no other bids is a mystery to me. Probably just lazy. Or maybe securitized loans that are just being serviced can’t bid lower than the amount due?

  4. Irv

    Why other mortgage holders bid the full amount due when they know there will be no other bids is a mystery to me

    I am told the bank officers prefer to show a higher price at the foreclosure sale by which they acquire the property as REO, because a lower price comes back to haunt them when they later list that particular property for sale. The foreclosure price is a public statement that nobody thought that property was worth more than such foreclosure price. So they don’t want to be fighting against their own comp, thus bid it in at the full note amount–then they may not have to discount the property quite so much later.

  5. billddrummer

    To Irv,

    That makes sense to a degree, that you want to set your offering price as high as possible to limit discounting down the road.

    What troubles me is that with these homes bid out at the loan balance, what’s the incentive for a potential buyer to put in an offer at that price (or even slightly lower), when there are myriad competing properties available at much lower price points? Then, human nature being what it is, lower priced properties are snapped up, while higher priced ones languish on the market.

    Just what we’re seeing now.

    My concern is that this situation will get worse, not better, as the year progresses, and that elusive median sale price will slowly drift downward, as higher priced homes sit…and sit…and sit…

  6. Derrick

    I plan on buying an income property in the next 6-12 months..

    I’ll be sure to let the board in on that as well.

    cheers

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