129 properties came up on the courthouse steps for Trustee’s Sales last week. 23 were canceled, 79 were postponed, 22 went REO, and 5 sold to 3rd parties. ALL of the 3rd party sales went significantly over the opening bid price. This could be due to bidding wars or the banks having a secret reserve price, so who knows?
4720 Aberfeldy was a stand out. The amount owing was $779K, opening bid was $256K, and it sold for $330K. It is an old sale, and the 1st transaction I can trace is a refi in early 2002 for $300,700.
NRES is my next door neighbor now. Is that poetry or what? They picked up 4010 Canyon Drive last week for $550,000 on the original $1,500,000 loan amount. Sold for $1,975,000 in October 2007. Think Mardian Development, AKA the failed Ponte Vecchio project downtown, as the losers in this deal. Look for it to list for about $799,000 if NRES tries for its standard 45% gross margin.
An investor bought 4 more Montage units to add to the 1 he bought in March. The prices ranged from $120-168,000, or $117-124 psf. The first REO at the Palladio hit the market today for $132,195, 875 SF at $151 psf. Unit 1005 sold for $352,000 in September 2007 (October 2004 purchase contract), just over $400 psf. Does Palladio command a 25% premium over Montage simply because you can finance the units there?
The octo-adopter Bain family is scheduled for the courthouse steps yet again. REreno has the story here.
Congratulations to our reader geopower who just closed on one of the more intersting and unique properties in the county.
KingBud
Thanks for the info, Mike.
So really there’s no significant demand for distressed properties, if only 5 out of 129 potential sales took place.
To me, even if the 5 sales had somewhat of a bidding war that resulted in prices above the opening bid, the most important takeaway is that 124 out of 129 properties did not sell.
If the banks have secret reserve prices, apparently they are not market-clearing prices.