Am I the only one that this has happened to? I tried a SS unsucessfully, then tried to buy at auction and bank bid it up and took it back. Then the bank fixed it up in 2 wks and now it is listed on the MLS! This is the second time this has happened to me! Am I missing something? I’m so disgusted with dealing with banks that I’m ready to throw in the towel! >:(
dont get mad it will all come in due time here in michigan i been putting in good offer and some of the houses has been sitting on the market for 6 month at a time and it seem like they are trying to get a full offer so i just sit back and save my money and wait. it will come around trust me
Banks want to try to get at least the minimum of what’s owed plus their costs. They’ll usually bid up to that amount at the auction. I don’t get how this strategy is effective in a slow market. I agree that it will change.
Tres, it’s not just you. Lenders nowadays most certainly are in the real estate biz. It’s all asset management companies and BPOs and FMV and MLS.
What I hadn’t noticed is that they are routinely bidding beyond the owed amount. Yeah, I’ve seen Trustee’s Deeds like that, but never put it together as an actual trend. I’d bet you’re right.
To think out loud here… lenders aren’t allowed to profit from trustee sales. The most they get is payoff. So the only motive they could have is to consciously invest in real estate per se.
Banks have left untold millions on the table in the last couple decades. And they’ve made a lot of bad loans in the last couple years.
Aside from normal desire to stop leaving money on the table, they may be trying to offset the losses they’re probably going to take in the near future. And probably want to have their systems in place by the time they really need them.
At the moment, I can’t see what would change this trend. The “coming foreclosure wave” may be what drives it, and will almost certainly re-inforce it.
It has fallout, too. Jrs may become harder to deal with. Those SS attempts have already told the lender everything they need to know about the property before the auction. Maybe we’re giving them a free education.
Hmmm…
That’s what I was thinking…maybe I gave them too much information. :-\
If what you’re saying is true, thats a pretty scary thought to have Banks as competition. Some aren’t the most pleasant to work with… :grim:
Agree,
I recently had countrywide reject on a SS. More because, i guess
they had too much info.
These days, the loss mitigation team also consults their REO dept
to get an idea of what the value for a property is. They also pull
the Mls data on Active and Closed deals. This way, they are
trying to stay ahead of the guessing game.
The sales slowdown is what is going to kill their strategy. However,
the same is going to put a damper on us the investors as well,
unless of course, if one is going to buy and hold for a rental.
Again not all properties are good candidates for a buy-n-hold.
-Krish