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ATTENTION REAL ESTATE INVESTORS. 77k Short Sale...?
First I would like to apologize for the ridiculous header here, but this question needs some attention. For the last year I lived in Des Moines, IA. Iowa is a Judaical foreclosures state so naturally I went to the courthouse got my list of notices of default and started down the list. Also I started attending the sheriff sale auctions on Tuesday's and Thursday's. This is when things started getting weird. About every 3-4 weeks I would watch someone get a ridiculous deal. When I say ridiculous deal I don't mean 20k instant equity, it was more like 40-60k of instant equity! And yes I did the due diligence on these property's nothing big wrong with them and no second liens. Here is the sheriff site http://sheriffsale.co.polk.ia.us/detail.asp?id=5666 Exihbit A. the sheriffs page showing the foreclosure debt and what it went for. The address is listed. Go to the very bottom where it says "Polk County Office Property Database" put the address in and check it for yourself Apparently some hacker got on the site this weekend and wrote "Azad was here" which is perfect for me because you now can't see the address or person in foreclosures name so it is going to be hard do some of this but the next thing to look at is the recorders site http://landrecords.polkcountyiowa.gov/resolution/indexing/idx_simple_name_search.asp When the city corrects the website you will be able to input the defendants name. Look at the liens. This company must have started the bidding at 50k! I guess what I came here to ask is if I can find these deals and just can't outbid the house buyers guy what do I do? Anyone out there want to make alto of money? And to answer the obvious question, no I cannot get the financing to do this. And just so we have the figures right he got the house for 62k and say you could sell it easily for 139-140. Make sure you go to these sites, they have a very good online system. Well I can't say that I'm not shocked. The first person to comment on this is a negative Nancy that thinks I am dumb and uninformed. Couldn't be further from the truth. His first question "Upon what values are you making such an assumption" I have used multiple real estate valuation tool, some that I subscribe to or I could just go with the simple answer I looked at the site that is attached to the first questing! And as I said that site has apparently been breached. But, when it is back up I'm guessing Monday or Tuesday you will be able to use this site to see what the home has sold for in the past and what its assessed value is. Well I can't say that I'm not shocked. The first person to comment on this is a negative Nancy that thinks I am dumb and uninformed. Couldn't be further from the truth. His first question "Upon what values are you making such an assumption" I have used multiple real estate valuation tool, some that I subscribe to or I could just go with the simple ans Well I can't say that I'm not shocked. The first person to comment on this is a negative Nancy that thinks I am dumb and uninformed. Couldn't be further from the truth. His first question "Upon what values are you making such an assumption" I have used multiple real estate valuation tool, some that I subscribe to or I could just go with the simple answer I looked at the site that is attached to the first questing! And as I said that site has apparently been breached. But, when it is back up I'm guessing Monday or Tuesday you will be able to use this site to see what the home has sold for in the past and what its assessed value is. http://www.assess.co.polk.ia.us/cgi-bin/invenquery/homequery.cgi Here is the citys page. Look at the botton for past sales price as welll as more details. choose the general query tab and input the address: 3218 VALDEZ DR
Public Comments
- You need one serious reality check here. Where on earth did you get the notion that someone got $50K of 'instant equity" ? Upon what values are you making such an assumption ? From what source are you deriving 'sale market values' ? I suspect that you have missed about 70% of the homework involved with such purchases. The remaining 30% of that homework could cost you dearly if you don't complete it.
- It's possible but unlikely. You are talking about getting properties for about 50-55 cents on the dollar and that is very rare unless you are talking about a bulk deal. I think what Nancy was trying to say was are you sure about your market values. You can't just look at the property and say well the owe the bank $130k so the property is worth atleast that. You also can't look at what the property previously sold for because maybe the buyer overpaid for the property. You need to look at comps of recently sold homes in that area. See how this house stacks up to those comps. Using this information you can determine what you can reasonably expect to get for the property if you were to sell it tomorrow. Never count on future appriciation to make a buy a good deal. You can never be certain what the future will bring so you need to approach it as if you are selling it tomorrow. Now that you have that information compare it to what they sold for at the auction. I'd be surprised if more than a handful of these houses went for less than 80 cents on the dollar. There is way too many intellegent investors out there to be letting too many of these properties go for 50 cents on the dollar. P.S. By the way this is not a "Short Sale". A short sale is the process of buying a home from a seller for less than what that seller owes to the bank. Short sales are not done at a sheriffs auction.
- Ok jcd...I found your question. Here's my answer. First...you and I should talk. Second...buying properties at sale is not the best way to make the most money. I have been doing short-sales and foreclosure sales for over 7yrs now and I have over 18yrs in mortgage and title experience to back me up. The best way to make money doing this stuff is to get a hold of the homeowner and do the short-sale directly with the bank. While you are doing this, you will market the property heavily and have it sold before you ever complete the short-sale (this is commonly referred to as "flipping"). FYI - There are MANY ways to get the bank to sell you the property short. Once the bank knows you know what you are doing...they will deal with you quickly. When you start asking specific questions, sending them FOIA questions and auditing the loan documents (as a former LO...you should know what I mean) or even threatening them with 1099-OID. There are dozens of ways you can stall a foreclosure sale and cause the mortgage company to incure thousands of dollars in fees...none of which will affect the homeowner because you will negotiate a "deficiency waiver" for them. Here's a little tid-bit for you...Did you know that nearly every mortgage has a 1099-A filed on it? Do you know what a 1099-A is? Most people don't. And even if they did...they probably don't understand why it is filed. Google 1099-A and see what you get. This is part of the fraud behind the curtain. There is so so so so much more to what is happening to the mortgage industry than what 99% of what most people understand.
