I’ve only been keeping my eye on riverside county trustee sales (the ones outside the?courthouse)?for the past month or so now?but have started to?notice some insane things with opening bids…for instance:
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SFR?in?Murrieta,??had a notice of sale amount $ $457,667.34…
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Zillow estimated $255,500 which appeared to be in-line with the fair market value…
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The?trustee?said the opening bid?was going to be?$476,268.61…WTF!
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and would’nt you know it…no one bid so it went back to Bene…
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Does anyone have any insight as to the rationale behind these insane?opening bids?because the same day, the same trustee auctioned another SFR in Murrieta with an even higher notice of sale amount (over 500K) (Zillow estimated $277,500 and the opening bid was only $178,530.00…
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and it sold for $178,530.01…
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anyone know whats going on or is this just the nature of the trustee sale beast?
Nature of the beast. Big part of the problem is that lenders are now often just servicers - and how aggressive they can be on the opening bid may have something to do with the particular servicing agreement or investor for the particular loan. As such it can be hard to make rhyme or reason out of a particular servicers actions.
It may also be that is what is owed on the property and the bank wants to get back there orginal loan amount , but with property values going down everything is upside down. They are just gonna have to eat it, like a lot of others out there. Who in there right mind would ever want to bid on such an upside down mess!?
By “lenders are now often just servicers” do you mean like BofA on all countrywide?paper and the US?government on all Indymac paper too? ? Could it be that these types of?properties that have a?high notice of?sale amount (higher than the fair market value) and an even?higher opening bid amount have 2nds? ? ?or do jr lein holders (like 2nd and 3rds) other than the government not get taken into consideration by the 1st?? ? ? does it matter to the 1st if there are 2nds or mechanic leins etc? ? am just trying to put some logic/rational into the banks opening bid amounts…there has to be someone deciding the amounts before the auction…i’ve seen the auctionere (sp)?guy taking calls right before he puts another parcel up. ? Glad there is a place for me to rant about getting into trustee sales :-)? thnx?
Yes some do service loans owned by Fannie/Freddie which I suppose are essentially US government owned at this point. In addition they also “service” the loans that were packaged in to securities. ? Opening bids have nothing to do with junior loans, as a senior loan has not responsibility to junior loans other than to notify them of the foreclosure. ? Yes, unfortunately many lenders don’t make opening bids available until the last minute. Really stupid on their part, especially if they discount, as they’d clearly get more folks to show up if they posted it earlier.
Sean,
Is there a better service out there other than LPS or Priority where you can get the opening bid information any earlier?
Thanks.
Those services actually manage the auctioneers, so pretty much no, and unfortunately they represent only a portion of the auctions going to sale each day. ? That said, we do get opening bid data from certain lenders directly as much as a week in advance — data you won’t find anywhere else.
Which lenders are you generally able to get the opening bid data early?
I have noticed that LPS will update their opening bids the morning of the auction.? Does foreclosureradar update as well based on their information?? I am trying to get the best opening bid data asap every day so I will have a clue as to what will actually sell to 3rd party.
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While some opening bids may be published earlier, aren’t the majority of the discounted opening bids published the morning of the trustee sale?
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Thanks
Unfortunately the majority are not pre-published and are simply announced at the sale. From there nearly all the rest are published the morning of the sale. And yes, we do work to quickly add those to our system that morning – from all the trustees and their posting and publshing co’s that we can. ? And as I mentioned, in addition to those things we also get some opening bids directly from lenders that may not be published anywhere else, and which we may have as much as a week early.