I conducted several Foreclosure Auctions Today for Mid-Atlantic Auctioneers, a local auction firm here in Baltimore Maryland. They sent me to 5 areas of Maryland. Howard County, Montgomery County, Howard County, Fredrick County and Carroll County. The crowd just sits on their hands! I can understand with the amounts the lenders need to satisfy the note. This is not uncommon now however. I have sold over $3 Million in Real Estate since January of 2007 and I have seen a gradual slowdown in 3rd. party sales (where the property sells to someone else other than the lender). The default rates are increasing and the deed of trusts are showing 2004, 2005, 2006! Very few banks are discounting their mortgages which is leaving investors scratching their heads!
REO's.....Nows the time to investigate the possibilities.
No Robert. They sell for exactly what they are worth :)
The client that will take the property to auction will not aruge values. They don't go absolute because of risk, but will sell for high bid. I price the properties at pretty attractive prices and they go along, but sometimes it is an auction that gets the deal done.
I understand they sell for what they are worth, I did not know if they allowed inspections prior to the sale such as a typical home owner auction. With Foreclosures, as you well know....the vultures...Uh....I mean Investors (I say this tongue and cheek of course) peer through the windows....this is their home inspection! :)
I will allow 1 or two open house periods just like any non-REO deal. Depending on the type of pig, it might be only one open and a short one. After spending some time playing with Jeff Turners product at www.realestateshows.com I am thinking of cutting donw on the open house time since we can put together a series of interior viewings online.
We thought a short sale was going to happen with the bank on a house last week that had $485,000.00 owed using a bogus appraisal.
$350,000.00 net all cash 10 day closing was on the table.
Then a realtor tried to circumvent our exclusive listing and submitted an "offer" with financing contingencies.
This made the bank think there was real interest but the realtor was a registered party representing another registered party and went behind my back to the owner who submitted the "offer"...
In the past 5-years we have never had a single seller who turned down the high bid sell the property for more and most still are holding the properties.
Point well taken Billy. Unfortunately, I am dealing with an agent going behind my back, contacting my seller by phone trying to work a deal. Unbelievable. Ethics seem to only occur in the minds of agents in the circle of a traditional transaction. As soon as they hear "auction" it's "every man or woman for themselves" and ethics goes right out the door!
Robert B. McArtor, REALTOR, AUCTIONEER, BALTIMORE, HARFORD, CECIL MARYLAND
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On the list to investigate for Arizona - REOs and Short Sales - there unfortunately will be significant activity.