Everyday for well over a year I drive by this development hovering over Hwy 2 as you head eastbound to Lake Stevens or Snohomish. I noticed this one lonely house (with paint all over it) with a tree surrounded by vacant lots. Late this afternoon on my way home from the office in Everett I decided to drive by (pics below). I had no idea what was painted on this house until I drove right next to it. While a few may find humor in this, I do not. Sign of the times.
This morning I attended the Snohomish Co. foreclosure auction at the county courthouse and spoke with Kathy, an older woman who is a seasoned investor of these auctions. She indicated to me that about 90% of the sales are going back to the lender and will come back on the market as REO at a future date. I left at 11:30 am and I only witnessed one home (of scores on the dockets) being sold. All the other sales up to that point were delayed, postponed or went back to the Beneficiary (lender) if the bid start price was too high for any investor to bid on—generally the bank buys it back for what is owed on the first mortgage.
I think purchasing an REO (bank owned) property could be more appealing to a buyer looking to get a good buy vs. a foreclosure. There are a lot of risks in buying a foreclosure. For example, it is rare to be able to inspect the interior. The home could also be trashed by the owner just hours or days prior to the sale.
On the gable over the windows is writing that says, “Model Home.” You can barely see it.