US foreclosures #2 (aka the Emma171 thread)
- Thread starter Sunfish
- Start date
Trustee sales % difference - worth it if you know what you're doing?
Emma,
How much diffeence % wise do you think there is between buying trustee sales at the weekly auctions v's buying REOs. I understand the issues re liens, title etc.
I also notice that only a small % of what goes for trustee sales actually sells to 3rd parties on the day with the vast majority being cancelled/postponed or going back to the bank and becoming an REO.
However that small % must be a fair volume if just the one flipper from previoulsy posted blog has bought five in March - limited by funds.
Have you had any more experience in this area since last posting on the subject.
Have you been tempted to buy at the auctions?
Emma,
How much diffeence % wise do you think there is between buying trustee sales at the weekly auctions v's buying REOs. I understand the issues re liens, title etc.
I also notice that only a small % of what goes for trustee sales actually sells to 3rd parties on the day with the vast majority being cancelled/postponed or going back to the bank and becoming an REO.
However that small % must be a fair volume if just the one flipper from previoulsy posted blog has bought five in March - limited by funds.
Have you had any more experience in this area since last posting on the subject.
Have you been tempted to buy at the auctions?
Offer made prior to listing
Was watching a lv agent Todd Miller on you tube as he visited a couple of REOs his agency had just been "assigned" (his words). The properties were both in good nick, but needed minor fix ups, but were also left open - unsecured!!, front door wide open. One was in what looked like an good neighbourhood (admittedly only from view of street), but had a double garage door missing - anybody could just walk in, vandalise, squat etc - amazing.
Agent said he would have to get "Field Services" to come out and secure it.
Anyway - got me thinking.....
Does anybody know....
Are all REOs assigned to agents by the banks or do banks have a dept that sells direct?
How do they decide who to assign it to?
If assigned, what period of time elapses between receiving assignment, checking it out/securing it and listing it on MLS?
If you were a respected client of the assigned agent and therefore got a quick heads up on the property upon assignment, prior to listing and made an offer - would the bank wait until property was listed and wait a period of time for offers, or would it make an instant decision?
I'm not suggesting trying to take advantage of /work with bent agents, the above assumes that the agent is doing the right thing by his client the bank, i.e has full intention to (and continues to) list the property following normla due process. You have just made an early offer.
Common sense would indicate that the bank would hold on for more offers once listed, but thought I'd ask the question.
Emma, out of interest what is the average time between offer & acceptance and what factors affect it?
Completely seperately from above I think I remember from one of your earlier posts (thousands of pages ago!) that you said your agent sent you MLS listings daily as soon as they list and that you always tried to be first to view a listing, working out in your head cost of repair as you go etc - is speed of viewing and making an offer an advantage? Does the bank take the first reasonable offer or will it wait a few days for a number of offers.
Many thanks for any answers in advance- I appreciate that Im asking alot of questions and not giving alot back in return. Hope to be able to give back more later, after taking some action.
Was watching a lv agent Todd Miller on you tube as he visited a couple of REOs his agency had just been "assigned" (his words). The properties were both in good nick, but needed minor fix ups, but were also left open - unsecured!!, front door wide open. One was in what looked like an good neighbourhood (admittedly only from view of street), but had a double garage door missing - anybody could just walk in, vandalise, squat etc - amazing.
Agent said he would have to get "Field Services" to come out and secure it.
Anyway - got me thinking.....
Does anybody know....
Are all REOs assigned to agents by the banks or do banks have a dept that sells direct?
How do they decide who to assign it to?
If assigned, what period of time elapses between receiving assignment, checking it out/securing it and listing it on MLS?
If you were a respected client of the assigned agent and therefore got a quick heads up on the property upon assignment, prior to listing and made an offer - would the bank wait until property was listed and wait a period of time for offers, or would it make an instant decision?
I'm not suggesting trying to take advantage of /work with bent agents, the above assumes that the agent is doing the right thing by his client the bank, i.e has full intention to (and continues to) list the property following normla due process. You have just made an early offer.
Common sense would indicate that the bank would hold on for more offers once listed, but thought I'd ask the question.
Emma, out of interest what is the average time between offer & acceptance and what factors affect it?
Completely seperately from above I think I remember from one of your earlier posts (thousands of pages ago!) that you said your agent sent you MLS listings daily as soon as they list and that you always tried to be first to view a listing, working out in your head cost of repair as you go etc - is speed of viewing and making an offer an advantage? Does the bank take the first reasonable offer or will it wait a few days for a number of offers.
Many thanks for any answers in advance- I appreciate that Im asking alot of questions and not giving alot back in return. Hope to be able to give back more later, after taking some action.
Tax Question
If I borrow via LOC in Australia for US property but keep rent income in US bank until (hopefully) AU$ comes down can I....
1. Claim my AU interest payments as deductible against the US income; or ...
2. Do I need to send the the US income back to AU to claim the deduction? (In terms of paying US tax)
Does this make sense or have I consumed too much red wine??
If I borrow via LOC in Australia for US property but keep rent income in US bank until (hopefully) AU$ comes down can I....
1. Claim my AU interest payments as deductible against the US income; or ...
2. Do I need to send the the US income back to AU to claim the deduction? (In terms of paying US tax)
Does this make sense or have I consumed too much red wine??
Guys this isn't the "ask Emma every question I have" show. Some folks need to get out there and not sit behind a screen thinking the answers will fall in there laps.
My advice if your looking for answers. Go to biggerpockets or vegas. All or most of your answers are there. Easy
My advice if your looking for answers. Go to biggerpockets or vegas. All or most of your answers are there. Easy
Last edited:
"what is the average time between offer & acceptance"
I recently purchased a property in Vegas. While there submitted a few offers.
One offer submitted Friday afternoon, bank gets back to me on Mon/Tuesday asking for my highest and best offer. Submitted my highest and best,never heard anything back from the bank.
On another offer I made, bank comes back with counte roffer the next day, I counter offer again, no deal there .
The house I purchased the bank took about 1 week to get back to me after my offer was made.
The agent advised me the bank may get to you within hours,may take days/week or never.
"what factors affect it"- dont know,maybe your offer
I recently purchased a property in Vegas. While there submitted a few offers.
One offer submitted Friday afternoon, bank gets back to me on Mon/Tuesday asking for my highest and best offer. Submitted my highest and best,never heard anything back from the bank.
On another offer I made, bank comes back with counte roffer the next day, I counter offer again, no deal there .
The house I purchased the bank took about 1 week to get back to me after my offer was made.
The agent advised me the bank may get to you within hours,may take days/week or never.
"what factors affect it"- dont know,maybe your offer
Guilty as charged
Think this might have been aimed at me!
Understood Reeco.
Already booked for visit to Vegas on 31st.
Biggerpockets is new to me, so will look up.
Just trying to find out as much info as possible before I go so that I don't waste my time and others going down dead ends. I intend to contact Emma directly shortly and prior to going. I see huge value in the services advertised on her website.
I appreciate Emma has provided stacks of info for nothing to date and I thank her and all others for it. Have tried to lace my questions with thanks and understanding if people cannot help, but you know the old saying - if you dont ask, you dont get. Quite happy to get told to quietly burger off.
I will be happy to answer any questions others may have about my experiences upon my return (for what they're worth!)
I understand you have recently returned from LV, I'm sure we'd all love to get your take on things.
Guys this isn't the "ask Emma every question I have show". Some folks need to get out there and not sit behind a screen thinking the answers will fall in there laps.
My advice if your looking for answers. Go to biggerpockets or vegas. All or most of your answers are there. Easy
Think this might have been aimed at me!
Understood Reeco.
Already booked for visit to Vegas on 31st.
Biggerpockets is new to me, so will look up.
Just trying to find out as much info as possible before I go so that I don't waste my time and others going down dead ends. I intend to contact Emma directly shortly and prior to going. I see huge value in the services advertised on her website.
I appreciate Emma has provided stacks of info for nothing to date and I thank her and all others for it. Have tried to lace my questions with thanks and understanding if people cannot help, but you know the old saying - if you dont ask, you dont get. Quite happy to get told to quietly burger off.
I will be happy to answer any questions others may have about my experiences upon my return (for what they're worth!)
I understand you have recently returned from LV, I'm sure we'd all love to get your take on things.
That is an interesting blog.
I like the breakdown of his most recent flip.
He bought it for 67.1 then sold it a couple of days later for 95.9
Its too quick a flip for his purchase to be recorded at assessor yet:
http://sandgate.co.clark.nv.us/AssrRealProp/ParcelHistory.aspx?instance=pcl2&parcel=12513614030
Or on Redfin (zillow equivalent):
http://www.redfin.com/NV/Las-Vegas/7625-Velvet-Mist-St-89131/home/29855328
As a buyer these are important to look out for. If its supposedly REO check the assessor /recorder records to see that the house is in fact bank owned. If it is a flip make sure you know how much markup they are putting on!
In this case the new buyer most likely did not expect it to be REO, but still must have known they were buying it off someone other than ARROYO JOSE S & HAE SUK PAK who are on the deed...
Can't agree with heather more - be very careful to check WHO owns the property - I got caught out with a flip posing as an REO when the previous week they had changed the rules in NV (NOTHING unusual with that - they change every week ...doh!)...
Listing Agents....
A million posts ago I wrote about this but here is the problem - banks use different listing agents - friends who they play golf with etc etc... I used to think AHA! Listing agent, I'm IN IN IN..... I would ONLY call listing agents...... then realised the MASSIVE errors of my ways...
Watch zillow for 5 days - or the daily MLS listings if you are on them...look at the 1960 mobile home in ghetto ville that is an REO that a listing agent thinks should be worth 70k.....then look at the 2001 REO (foreclosure) that is listed at 65k in a GREAT neighborhood.... the listing agents have no clue, are too busy and get given a set stock of properties.... if you aren't in their category, you don't have a chance of getting a property - they rarely do both selling and buying and are so so so specific - either area or type and some are SO off base....
Listing agents get paid commissions based on sales price... if they think you are in their pocket - they will push you to buy something.... anything..... it is not in their contract to ensure they are acting in your best interest... they are, make no mistake, acting for the bank. They have to be fair but their bread and butter is not you and I have learnt this in Alaska the very very hard way...
I get PRE listings from agents.... most of them are hysterical at what they THINK they should be able to get for a property.....
45 days later I get that property at half the original listing.... go through any zillow listing for an REO - watch how it was removed from sale, watch it go back on, watch it come down further..... then watch it being sold at 5k LESS than the bottom list price...
Many recent examples in case.... I haven't been a participant in a property sale that has sold at list or above in about a year....
SOoooooo...... do you think the LISTING agent is going to want to accept less??? They sold the price they put on the property to their client - which is, in case you missed it, the bank.
I learnt the slow way..
Listing Agents....
A million posts ago I wrote about this but here is the problem - banks use different listing agents - friends who they play golf with etc etc... I used to think AHA! Listing agent, I'm IN IN IN..... I would ONLY call listing agents...... then realised the MASSIVE errors of my ways...
Watch zillow for 5 days - or the daily MLS listings if you are on them...look at the 1960 mobile home in ghetto ville that is an REO that a listing agent thinks should be worth 70k.....then look at the 2001 REO (foreclosure) that is listed at 65k in a GREAT neighborhood.... the listing agents have no clue, are too busy and get given a set stock of properties.... if you aren't in their category, you don't have a chance of getting a property - they rarely do both selling and buying and are so so so specific - either area or type and some are SO off base....
Listing agents get paid commissions based on sales price... if they think you are in their pocket - they will push you to buy something.... anything..... it is not in their contract to ensure they are acting in your best interest... they are, make no mistake, acting for the bank. They have to be fair but their bread and butter is not you and I have learnt this in Alaska the very very hard way...
I get PRE listings from agents.... most of them are hysterical at what they THINK they should be able to get for a property.....
45 days later I get that property at half the original listing.... go through any zillow listing for an REO - watch how it was removed from sale, watch it go back on, watch it come down further..... then watch it being sold at 5k LESS than the bottom list price...
Many recent examples in case.... I haven't been a participant in a property sale that has sold at list or above in about a year....
SOoooooo...... do you think the LISTING agent is going to want to accept less??? They sold the price they put on the property to their client - which is, in case you missed it, the bank.
I learnt the slow way..
PS... HUGE Thanks to all who are helping to answer quessies... LOVE IT....
Freedom of information....yay forum!
I always used to say to staff that if one day I just threw my keys down on the table I would expect every one of them to not only have learnt enough to be able to pick them up and take over but probably do better having learnt what not to do from me!!
Ha, half this forum would do better than I ever did starting out in Vegas from reading this! I daily wish I had known what I know now!
MASSIVE RULE - there are VERY few hard rules in this game and every month even those change somewhat
Freedom of information....yay forum!
I always used to say to staff that if one day I just threw my keys down on the table I would expect every one of them to not only have learnt enough to be able to pick them up and take over but probably do better having learnt what not to do from me!!
Ha, half this forum would do better than I ever did starting out in Vegas from reading this! I daily wish I had known what I know now!
MASSIVE RULE - there are VERY few hard rules in this game and every month even those change somewhat
see that's just plain f__king cool....better than owning US stocks, that's for sure.
I'm thinking of messing around with ARM loans. 5/1. Whats your thoughts on those Emma or Lawsys. There quite an interesting concept. I can see how it's largely a speculators product.
ARMs take a bit of balls and fiscal skill. Tempted by them at the mo. Especially since I've been pre approved
ARMs take a bit of balls and fiscal skill. Tempted by them at the mo. Especially since I've been pre approved
not at all - we're so conditioned in this country it's like second nature.
Think this might have been aimed at me!
Understood Reeco.
Already booked for visit to Vegas on 31st.
Biggerpockets is new to me, so will look up.
Just trying to find out as much info as possible before I go so that I don't waste my time and others going down dead ends. I intend to contact Emma directly shortly and prior to going. I see huge value in the services advertised on her website.
I appreciate Emma has provided stacks of info for nothing to date and I thank her and all others for it. Have tried to lace my questions with thanks and understanding if people cannot help, but you know the old saying - if you dont ask, you dont get. Quite happy to get told to quietly burger off.
I will be happy to answer any questions others may have about my experiences upon my return (for what they're worth!)
I understand you have recently returned from LV, I'm sure we'd all love to get your take on things.
I definitely understand your plight. It's the same as mine and several thousands that have come here to this thread. It's funny because I'm sure I get more annoyed about it then Emma.
Biggerpockets is the Somersoft of the US. It's miles more user friendly and well designed. Well it is for a forum/blog anyway. Heres the keys to all your answers. http://www.biggerpockets.com/renewsblog/
Have fun
Last edited:
That's why I said lawsys also.. My Q is more banter then a clamour for knowledge.. Not many people identify with this form of financial leverage. What do you think of ARMs bigfire?
Aren't they responsible for the US housing bubble in the first place?
Tell you what...you answer my tax question and I will provide advice on ARMs
Who needs Emma?
Great movie about how we got here...it's been dumbed down for the masses of course but it gives a really great understanding of what happened and why...
http://www.rottentomatoes.com/m/inside_job_2010/
It's a repeat of what we all know. I just think it's great how it's been conveyed
Channeling my inner David Stratton "Magaret...I give it 5 stars"
http://www.rottentomatoes.com/m/inside_job_2010/
It's a repeat of what we all know. I just think it's great how it's been conveyed
Channeling my inner David Stratton "Magaret...I give it 5 stars"
Pffft. Emma who?
Not after advice. But don't mind opinions, coz as ya know there all like as#holes. We all got em...
I know I'll be using them if I can get full and final approval.I Just like the banter. I find it always reveals more
