By The Tim on March 16, 2009
Here is your open thread for Monday March 16th, 2009. You may post random links and off-topic discussions here. Also, if you have an idea or a topic you’d like to see covered in an article, please make it known.
Be sure to also check out the forums, and get your word in the user-driven discussions there!
Posted in Open Thread | Tagged open_thread
Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.
Does anyone remember Chad Eaton? well now you can own his foreclosure.
http://www.redfin.com/WA/Monroe/16902-Mount-Forest-Blvd-98272/home/2636400
The joys of being a renter. (AZ renters in a somewhat large building abandoned by the owner.)
http://www.msnbc.msn.com/id/29697413/
Quite frankly I think the article overstates the problems they face–there probably is a lot more certainty over their situation.
I wonder how much of this is due to bank sponsored legislation that gave them increased rights to the rents? That has happened in Washington state to some extent. AZ tends to be a much more creditor rights based state than Washington, so perhaps the state created their own problems. It’s also possible that it’s complete owner incompetence, but just walking away seems to be a very odd solution.
I have a question for you guys I have a friend who is buying new construction, they already purchased the lot and have a contract for the house to be built. She said there was an issue before something about the lot or lots going back to the bank, she did not know any specifics so thats all I could get. I told her to talk to a real estate attorney, so what if any problems could arise out of this situation?
Kary — you had asked what’s up with Viking Bank in another thread. Here’s a link to a Bank Tracking website that may shed a little more light. Troubled Asset ratio is reported at 59% while the nation’s median ratio is about 10%. I don’t know how all that’s going to play out, but not healthy.
http://banktracker.investigativereportingworkshop.org/banks/washington/seattle/viking-bank/
What is National Residential Nominee Services? E.g.:
http://www5.kingcounty.gov/kcgisreports/property_report.aspx?PIN=8818900035
I’ve seen a few property reports where this company (or some other one, now that I think of it) buys a property then within a very short amount of time sells it to another party for the same amount. What is the narrative behind these two transactions? Interestingly two pages’ worth of Google results haven’t enlightened me, so now my idle curiosity is revving. Thanks for any info.
RE: DaveyDave @ 4 – Thanks for the link. I see that number is higher than both Washington Federal and Homestreet–two other local banks.
RE: Civil Servant @ 5 –
I can’t specifically say who national Residential Nominee Services are, but Nominee Services in general is a setup where there is a nominee designated as a signer of all documents to protect the identity of the real owner.
Ira — Appealingly sneaky! Thanks. But in the case above, where one party sold to the nominee on 3/10/06 and the second party bought *from* the nominee twelve days later, both for the same price, whose identity would have been protected?
And does the link below indicate that the company in question defaulted on a loan? That would be hilarious.
http://www.livermorereport.com/blogs/loandefaults/archive/2008/08/28/national-residential-nominee-services-inc-form-s-4.aspx
RE: Civil Servant @ 8 –
I don’t know enough to say with any degree of certainty, but if the nominee service is not actually buying the home and is essentially a shell to protect the identity of the buyers, then when there is a loan default is the nominee service still protecting the identity of the buyer when it is in default?
..and why would someone want to hide their identity when they are buying a home, unless they are blogging about how real estate is a horrible investment, and if it were known they were buying homes it would ruin their reputation.
Pehaps The Tim owns a whole slew of homes and is using a nominee service?
RE: Civil Servant @ 5 –
It’s a net zero transaction for tax purposes. It’s a nontaxable event as I recall, like a transfer.
You can hold property in trust to be parceled out later.
This is really stretching my memory, but it will come to me in the middle of the night.
Oh, this makes sense. It’s scuzzy, but it makes sense. Thanks, David.
Ira — the details on what appears to be the nominee service’s loan default are behind a subscription wall, but I think it’s at the corporate level. Nothing to do with the particular transaction I was wondering about.
I know someone who is seriously paranoid, so much that he won’t even give his real name to restaurant reservationists. I think the option of not having his name on any public records, especially now that any joker with an internet connection can access them, would be a service he’d be glad to pay for.
RE: Civil Servant @ 11 –
You’re misunderstanding. Land is owned traditionally for cash. An investor buys a large section of land for cash with an opportunity to sell it off in pieces. When a lender makes the loan for development the Trust gets the money. The transfer is a net zero to avoid being taxed twice.
Banks only lend on dirt that is owned free and clear so they can be in first lien position. No they do not want to take out a first lien position. They want to know some one has some skin in the game.
As far as the National Residential Nominee Services they are a loan servicing cpmpany. You are looking at a REO, foreclosure, or sale of a REO. They also do Asset Management.
Gig Harbor Predictions
What would you say the bottom is here?
I’d say prices will fall to building replacement cost or less (considering the 15 year supply of homes)
That would indicate that a (currently listed) $800K 4300sq foot, circa 2007, 4 BD room home; already down 15-20% from the peak; would sell for around $350-$450K
Am I incorrect in my assumptions? I mean, thats what the builder “really” paid to build the place
Want to buy, but recognize that NONE of the inventory is moving at the current price levels
Listing agents keep talking about a lot of “Activity” and interest; trying to con a bid
Funny thing is that nothing is moving, absolutely nothing – especially in the higher end of that range…
Some feedback would be helpful..
RE: Andy @ 13 – RE: Andy @ 13 –
Andy..nobody here knows the Harbor. Its Seattle Bubble you know. Two totally different worlds. You know more then 99% of the people here (except me). The Harbor is still very slow, and so is Puyallup. However, we have had a HUGE surge in activity this last 5 days. Many Buyers making offers this week that have been in our system for a year and 3 of MY listings are about to go Pending.
Spring Bump to say the least!
RE: Andy @ 13 – Feedback……… You still need ALOT of therapy. At least there was no rants about how crappy it is here based on nothing. Please give us more of your wonderful insight. Or maybe give us nothing, which is about what you give now.
Mon ami Ray, I know the harbor. The real estate section in the gateway keeps getting skinnier every week. I took the tribe to costco last weekend and drove through the ghost town across the street. Like Don Henley said “Call someplace paradise, kiss it goodbye” Man I love this place. Lets view the supply issue as a good thing, it will slow future development. Have you heard anything about the development on pt fosdick where the car dealership was? It’s been 3 years now, no new shopping center as promised.