Thimblerig Foreclosure - An Old Game with a New Twist

By
Real Estate Agent with Florida Supreme Realty SL514814

Sometimes you may hear it desribed as the "Shell" game or "Cups and Balls" but thimblerig is a magician's staple where three objects cover other smaller objects and seem to jump from one to the other, then back again or disappear completely. The game is almost 5,000 years old and persists unrelentingly.

In the foreclosure version I have seen during the past few weeks it's the disappearing variety I would like to concentrate on. If banks think there's an investment potemtial in a property they buy it. The emotion that humans put into the equation has no value for an investor. Banks sell to banks and attempt to profit by keeping their money always on the go. When people buy houses the buck usually stops there.

The problem is when mere mortals are placed into their game. Recently the banks ignore permit issues and attempt to pass these on to unsuspecting Buyers before the truth is revealed and even if it is disclosed they want nothing to do with it. Clauses like: Buyer assumes all risk for negotiating code violations, fees, fines and liens, if any. Pretty shrewd don't you think. My favorite to date is a property listed at $59,000 with $410,000 worth of fines attached.

The problem that has been bothering me is that of resposibility. Would I place a Buyer into the hands of the municipality holding judgement or should the current owner address these fees? I vote for the latter because as this process continues throughout all small municipalities in this Country there will come a day when the magistrate no longer has the will or ability to negotiate these amounts to a lesser level. I am waiting patiently for the gavel to strike a Pay In Full verdict to the Banks who play this irresponible and often immoral hand to the public. We all have learned the saying fool me once, shame on you, fool me twice, shame on me. It's your turn, make it a wise move!      

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Ambassador
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Kevin- it's interesting seeing how this unfolds.  I can only imagine what the buyer who bought the property for $59K only to find fines for $410K. 

Apr 14, 2015 06:59 AM #1
Rainmaker
683,156
Michael Dagner
Brokers Guild Classic - Denver, CO
Your Denver Homes Realty Expert

Hi Kevin, its a dreadful dual standard when individual sellers have to make disclosures of all sorts, but banks and investors can knowingly game the process.

Apr 14, 2015 11:46 AM #2
Rainmaker
990,591
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

I have an inside track on this particular one but won't touch it with a 10 foot pole as they say. No takers yet but it will be interesting Kathy Streib. I like to call this Do-Due Diligence!

Sloughing it, the responsibility, off to end users is a despicable way to conduct business Michael Dagner. There'll be plenty more opportunity for miunicipalities to step up and gain the upper hand finally. The first will be a landmark case.   

Apr 14, 2015 11:58 AM #3
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Wow this could get messy, Kevin. I know you will be on the watch for your clients so they don't get tripped up.

Apr 22, 2015 01:20 PM #4
Rainmaker
4,796,627
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Kevin, there are a couple of banks that, in my opinion, are acting completely unethically in the marketing and sale of their REO properties.

Apr 22, 2015 10:03 PM #5
Rainmaker
990,591
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Debbie Reynolds , the magistrates are lenient for time being but know that at least 6% of the existing fine amount won't be negotiated away.

Gabe Sanders, we can't fault them for trying and where much of the concern arises is in the Title reports. Due diligence is paramount preventing problems. 

Apr 22, 2015 11:35 PM #6
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Rainmaker
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Kevin J. May

Serving the Treasure & Paradise Coasts of Florida
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