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Housing Bubble Bursting?

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Auction Short Sale Fails

I posted a while back that short sales were going to auction as a way to attract buyers and higher prices. One real case I was following has failed. The lender refused to sell at the highest bid (see link below).

http://homeauctionadv.com/default.aspx

The house is now listed on the MLS at the highest bid price.

It appears to me that the aura once hailed as a way to invest in distressed properties is not producing acceptable bid prices to the lender. Or, can it be the market for distressed properties is beginning to saturate and a bigger discount to market value is required? Bad news either way.
 
Most fc's here are no more than 1-2 year old homes, making purchase as investment, out of the question except to the $99 graduates. However it is finally hard for them because NOW the lender actually wants the buyer to have SOME money. What a concept!!

Then take into the fact that the Big Boys are cutting SP 70,000 +/-

IF only I had!! IF only I had not.
 
The last time we went through this the lenders were getting badly hurt because of losses in the 5-figures. That was back when prices were 1/3 of what they are now. In a few of these markets we're already approaching that point dollar-wise. You really have top wonder what their survivability rate is when losses start to exceed $100k or $200k per deal.
 
George Hatch said:
The last time we went through this the lenders were getting badly hurt because of losses in the 5-figures. That was back when prices were 1/3 of what they are now. In a few of these markets we're already approaching that point dollar-wise. You really have top wonder what their survivability rate is when losses start to exceed $100k or $200k per deal.
Click to expand...

Beyond that, you have to wonder how so many of them were so stupid. I believe there are parts of the puzzle (vis a vis, government) that we cannot see clearly.
 
The World Beyond Residential Saga

I just finished my third appraisal for an assett disposition company on industrial properties. They hire three appraisers for every property. First job I got paid within 30 days. I was told this was highly confidential work involving the SEC in a fraud scam. Six months later I received a call from a banker doing the purchase money loan on the pending sale wanting me to update the highly confidential appraisal done to establish an offering price that he just happened to have a copy of. Said he just wanted a retype. This was a senior commercial LO. The two other appraisers didn't get paid for 6 months on that one.

In doing the first appraisal I discovered that the property owner under indictment for fraud owned another property, so they hired us to appraise that too. In starting that assignment I discovered that a new highway had divided off 13-acres on the oppositse side of the road from the plant making two separate tracts, so they hired me to appraise that too. Found about $350,000 in property they didn't even know the defendent owned.

That was in March and April. I had a written contract to be paid within 30 days. Never got paid. I called the asset company and they would not return calls. Too busy. Met one of the other appraiers and he had not been paid either. He said we were screwed out of the money. I wrote my congressman and outlined the situation. Yesterday I received a letter from him.

The SEC enclosed an explanation of what was happening. The defendent had a huge scam operation and defrauded 400 people out of $25 million dollars and in doing so violated SEC rules, so they went after him. The court in Texas appointed a receiver to sell all of the assets to distribute to the defrauded parties. The judge had to approve the appraisal fees and he had done so and my check would be in the mail in a matter of days.

My beef is how can an asset disposition company representing the receiver not know what the hell is going on? Why didn't they tell us up front what the deal was? They are totally incompetent. I had to explain to them what they needed. Then the receiver who is a lawyer in Texas and holds title to the property knowing all of this is going on never bothered to inform the appraisers why they hadn't been paid. This was an industrial property scam operation. How many more of these scam operations are going on out there. I did a commercial site sale recently and every recent land sale involved a 1031 swop deal. This is another government breeding ground for scam operations. It is a never ending government scam operation. They are from the government and are there to hep us.... They create the envorinment for this to happen so who do you blame?
 
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Arizonian's need to read the Turner Dunn Bankruptcy. Builder Bankrupt took the Bank with them, Not actually sure of figures, article is at work, believe bank loss was 128+ Million. This is the beginning of a couple intresting years.
 
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