Oakland, CA

Now and then someone will ask me, “What’s a trustee sale like?”

Trustee Sales or Foreclosure Trustee Sales in Alameda County are held at 1225 Fallon St. Oakland CA Monday through Friday from noon to 2 pm.

It’s another real estate market, the last step in the foreclosure process.

The investors gather at the courthouse steps. The auctioneer calls out the properties and begins the bidding. It’s hard to hear the auctioneer but the investors can hear him just fine. The buyers are savvy investors resembling a group of Vegas gamblers. In a sense they are gambling, and they are addicted to the thrill of the auction.

The investors walk around with their papers letting no one see their numbers. Their homework done, they mill around waiting for the right deal. Each one has a way of checking out the properties. Some subscribe to special research services. These guys are serious. Many of them have been doing this for 10 to 20 years.

Most of the properties go back to the bank. The bidders know what’s a good deal, and it’s all about the bottom line. If they don’t get something today, they’ll be back tomorrow.

You need to bring cashier’s checks in denominations of ten thousands and twenty thousands. How would you feel carrying a load of cashier’s checks in Oakland?

For most buyers this market is not an option. It takes guts to plunk a hundred or two hundred thousand dollars on a house you know very little about, and once the bid is accepted the buyer can’t back out…not with the deposit anyway.

For curiosity, it’s good to see the trustee sale process, but I don’t recommend it for rookies or for people with low tolerance for risk.

On a side note, just this past month in Alameda and Contra Costa counties, three investors pled guilty to collusion and twenty other ones will be indicted by the FBI for participating in private auctions. Kind of paints a dark picture, doesn’t it?

How can I help an investor? By giving my opinion as to whether or not it’s a good deal and an idea of resale value.

Got a a short sale house listed for $299,000 and an all cash offer for $310,000. One lender. One loan. Bank of America, BAC and Freddie Mac. Bank foreclosed at the trustee sale for $277,000!

The owner had tried to refinance, and to loan mod. Nothing worked, so he was advised by the bank to do a short sale. The owner thought that was best too.

Got an offer for $300,000 all cash. Great.

Bank wanted all the documentation from the seller, income taxes, W-2s, checking and savings bank statements, pay stubs, hardship letter, Request for Income Tax Transcripts (4506-T), Conviction Certification (Dodd-Frank), Request for Mortgage Assistance (RMA), Borrower Financial Information, utility bill, Authorization Letter, Freddie Mac Short Sale Addendum notarized by ALL parties, Estimated Settlement Statement (HUD-1).

From the buyer the bank wanted the offer, earnest money deposit, proof of funds. The usual stuff.

Two months later, the appraiser values the house at $375,000.

Bank counter offers at $350,000 minimum. Buyer raised his offer to $310,000 but bank said NO.

Trustee sale date was coming up and there was no postponing it. At the courthouse steps, the bank took the house back for $277,000.

From my perspective it didn’t make sense. But I know that banks have their own logic…like the horse in the picture.The horse will drink the water when it's good and reay and not before, you know?

What I would like to see in the future: The bank saying what is an acceptable amount from the start or appraising the place right away after an offer has been accepted to determine if the amount is good for them.

Nice going Freddie Mac.

Area Pro Realty Bay Area Villas ask's "Are Thinking of Buying or Selling in Oakland, El Cerrito or four other Alameda County Cities?" Learn the new facts about PSL that you will need to know before you can.

The EPA and RWQCB are requiring the East Bay Municipal Utility District (EBMUD), along with six East Bay cities, and one sewer district to fix old, cracked sanitary sewer pipes to ensure they don't allow the infiltration of rainwater which can overwhelm wastewater treatment facilities, resulting in untreated or partially treated sewage being released into the Bay. As a result, EBMUD and its partners are phasing in a Regional Private Sewer Lateral (PSL) Ordinance in some east bay communities. Affected property owners will be required to obtain a certificate from EBMUD indicating that their PSLs are without defects and have proper connections

Old, cracked sewer laterals allow rainwater and groundwater to infiltrate the sewer system. Excess water in the system can overwhelm wastewater treatment facilities, causing untreated or partially treated sewage to be released into the Bay. Fixing damaged PSLs helps protect the Bay.

A Compliance Certificate must be issued before title can be transferred to a new owner. It is up to the buyer and seller to determine who will obtain the Compliance Certificate and determine who covers what percentage of cost for the lateral line test and repairs if needed.

To learn more contactpsl@ebmud.com or your local REALTOR at Area Pro Realty Bay Area Villas

http://www.michaelroache.areaprorealty.com (925)550-9194

Oakland CA Homes for Sale in January 2012: 55% are short sales and bank-owned

As of today, January 13, there are 779 homes actively offered for sale.

As of January 2012, the current number of distressed properties actively offered for sale is 55% of total. In a previous post comparing 2011 with 2010, distressed properties (short sales and foreclosures) rose from 52% in 2010 to 54% in 2011.

For people looking to make a deal, this may be a good thing since distressed properties generally sell for less than market value of regular sales.

Looking for bank-owned properties

I just received an inquiry via Active Rain from someone who is relocating from Florida to the Bay area. His request: find bank-owned properties in select parts of Oakland.

Although there may be initial sticker shock for new residents coming to the Bay area, this time, their chances to find suitable homes at more reasonable prices have just gotten better.

Related posts

Oakland CA top 5 real estate stories in 2011 including surge in sales and prices

Oakland CA 2011: Short Sales and Bank-Owned Properties are 54% of total sales

Is your buyer thinking of buying a short sale? What your buyer needs to know.

How to write a good (or bad) offer on an REO (bank-owned) property

We always say real estate is local.

So how do the top 5 real estate stories in 2011 look at the local level? I took a look in Oakland CA, specifically at detached single family residences (SFR) and compared them to 5 Top Real Estate Stories in 2011as blogged by Steve Harney)

1. Interest rates remained at historic lows
2. Sales are up over 2010
3. Contract cancellation rate surges
4. Foreclosures were delayed
5. Prices move up, then down

Interest Rates remained at historic lows

Mortgage-X has some of the best graphs to to show the historical trends.

I checked rates for Oakland CA and found this.The highest rate is for a 30-year mortgage at 5.00% with .625 discount point. The lowest rate is for a 15-year mortgage 3.00% with .625 discount point.

Sales up over 2010

In Oakland CA, I reported on year end sales comparing 2011 to 2010 and found this to be true. Total sales in 2011 increased to 29,296, up from 28,874 in 2010.

In 2011, distressed sales (short sales and foreclosures) also increased to 54% of total sales versus 52% in 2010.

Contract cancellation rate surges

From my personal experience alone, delays in receiving short sale approvals resulted in buyers backing out. Buyers who are "gaming" the system by writing several offers and waiting to see what sticks are not writing in good faith.

To ensure that short sale buyers are serious, my short sale sellers and I insist that the short sale buyers agree to open escrow upon acceptance of offer.

Foreclosures were delayed

Although there were more bank-owned properties that sold in 2011 over 2011, they remained at 31% of total for both years, whereas closed short sales move up a notch.

Harney points out that “The robo-signing debacle of late 2010 caused a delay in many foreclosures entering the market. It DID NOT prevent the banks from continuing to put homes into the foreclosure process. The delays just prevented banks from repossessing the homes and putting them up for sale as REOs (foreclosures owned by the banks).’

Prices move up then down

Oakland seemed to buck that trend. Early 2011, prices seemed to move down, then moved up towards the end of the year.

RELATED POSTS

Oakland CA 2011: Short Sales and Bank-Owned Properties are 54% of total sales

Short sales and Foreclosures in Alameda CA Year End Report 2011 compared to 2010

CASE STUDY: SHORT SALE SELLER BACKS OUT OF PURCHASE AFTER RECEIVING TRIAL LOAN MODIFICATION