2009-05-02 — raincityguide.com
"I attended a foreclosure auction in Bellevue, WA last week to discover if the rumor was true that banks are opening their bids below the amount owed. I received confirmation from three professional investors that yes, the banks have been doing that, it’s no secret, and there seems to be no discernable pattern. It’s not one particular bank or lender, it’s not particular types of property or in any specific area. It appears to be random."
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taps65 at 03:40 2009-05-03 said:
how do you think bubbles start. the last one that popped Asphyxiated the entire economy. Permalinkmortgagemess at 04:43 2009-05-03 said:
I can tell you the pattern..look to see if the note had been transferred/sold to another lender in the course of its foreclosure.. What is happening is the Owner of the home has a note at say $300K as the principal balance. Now, during the course of the foreclosure/late payments, the NOTE is sold/transferred to another lender. Now the new lender has bought that note at $200K...a DISCOUNT..so does the lender now have a NEGATIVE reason for selling below the principal? Of course not..the same applies to the DISCOUNTED foreclosed home.. Many people wonder, why is the bank/lender selling the home for a loss..chances are, the note was sold and the new holder is actually not losing money on the property..the HOMEOWNER may not have equity..but the new lender does! Permalinkadd a comment | go to forum thread
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