Flipflops

http://www.redfin.com/stingray/do/print ... id=1683174

I see more and more of these as I drive around. Unfinished, abandoned projects left open for vandalism and an eyesore for neighbors. Not only are home prices declining so are property values for neighborhoods.

Comments

  • Incredible! I bet that thing is so loaded up with liens you'll be out double what you paid for it.

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  • deejayoh wrote:
    Incredible! I bet that thing is so loaded up with liens you'll be out double what you paid for it.

    28073213_0.jpg

    Liens are either paid by seller at closing or the deal doesn't close. A lot of times the banks will pay the leans just to walk away from this.

    There was a whole project of 98% finished homes in Bothell that sold for 50 cents on the dollar.
  • The new owner may be protected from mechanics liens from the title insurance policy. Mechanics liens have to be filed within a specific amount of time or they're not valid (I think it's 90 days but it's been 8 years since I wore a "title insurance/escrow" hat).
  • Funny that the description reads "value is in the land". Really? I thought it was in the exposed moldy medium density fiberboard.
  • ira s wrote:
    Funny that the description reads "value is in the land". Really? I thought it was in the exposed moldy medium density fiberboard.
    No, for me it's the outdoor tub/shower combo--perfect for those closet exhibitionists :wink:
  • How do you finance an unfinished as-is property? Seller carry back?
  • Something like this is financed through a construction loan only. i.e. 30% down, 7-8% interest, ad about 10 months of reserves.
  • The buyer may be protected from liens - but that was not my point. The price is listed as $300k - which probably doesn't take into account any liens.
    Which may not be discovered until the title search. So what the seller (or more likely the bank) really needs to be whole is potentially much higher than the "asking" price.

    Rhonda - I may be misunderstanding your post, but from what I recall in my home buying past - the new buyer isn't protected by title insurance until a title search is done, and any liens that are discovered are cleared. Only then would the title company insure the title. Am I remembering wrong?
  • deejayoh wrote:
    The buyer may be protected from liens - but that was not my point. The price is listed as $300k - which probably doesn't take into account any liens.
    Which may not be discovered until the title search. So what the seller (or more likely the bank) really needs to be whole is potentially much higher than the "asking" price.

    Rhonda - I may be misunderstanding your post, but from what I recall in my home buying past - the new buyer isn't protected by title insurance until a title search is done, and any liens that are discovered are cleared. Only then would the title company insure the title. Am I remembering wrong?

    Title search can be done through http://www.metrokc.gov on this tax parcel. The listing price for this home is what the bank will walk away from it for.
    If there are any liens that are pending or issued before closing the seller either pays them or the buyer walks. I have seen banks cover all the liens without raising price to clear mess ups like this from their books.
    Also an extended title insurance policy would protect the buyer from any future leans.

    The home looks like it hasn't been worked on for at least a couple of months, and since the bank has it, more likely over 3 months. In order to file a lien it cannot be longer then 90 days from work done.

    This is still not bad considering the home looks good. I bet the bank would even take $250k to walk away from this failure.
  • Given that it is a foreclosure, I'd agree.

    As of yesterday -there was no indication this was a bank foreclosure. The suspicious text was "Property sold as is, buyer to verify to their satisfaction all information regarding the property". That did not say REO to me. It said "short sale"

    RedFin actually launched FSBO/Foreclosure feature today

    http://seattlepi.nwsource.com/business/ ... fin30.html

    nice
  • Very.

    Have you zoomed out in Redfin and checked out the south-towns yet?

    Yikes. I wouldn't want to be selling in Auburn.

    I can get in right now, however. I have a feeling FSBOs and foreclosures were more popular than they thought.

    They need to hire Akamai or someone if they want to retain their page views.

    I'm finding myself gravitating towards Estately these days, due to both speed and the fact that they maintain a history of your saved properties and what happens to them (sold, off-market, price reduction etc...). You can also screen based on keywords like "-townhome", which is nice. Then I pop of to redfin to see the exact property location and purchase history. Could get that from Zillow as well, I suppose.
  • Did some digging. The guy got it a divorce settlement. Took a promissory note out from a private lender and they became beneficiary. How would one qualify to buy this POS?
  • biliruben wrote:
    I'm finding myself gravitating towards Estately these days, due to both speed and the fact that they maintain a history of your saved properties and what happens to them (sold, off-market, price reduction etc...). You can also screen based on keywords like "-townhome", which is nice. Then I pop of to redfin to see the exact property location and purchase history. Could get that from Zillow as well, I suppose.

    lol. I pop b/t estately and redfin too. I met with one of the guys at redfin and told him I found the personalization a bit lacking. But I do like the sales and price history (which used to be only at Zip). The perfect R/E site is still out in the future somewhere.

    I LOVE the RSS feeds for searches from estately
  • Cougar wrote:
    Did some digging. The guy got it a divorce settlement. Took a promissory note out from a private lender and they became beneficiary. How would one qualify to buy this POS?

    By laying down cash. And then shouting "Booyah!"
  • If I'm not mistaken, FHA has a 203k? loan combining purchase price and renovation costs. Still, I can't imagine they'd want to loan $$ for every POS out there.
  • Construction loan guideline has changed so much, who knows anymore. Biggest hurdle of selling this crap is how to financing the damn thing...
  • I just looked at this property. It's pretty horrid. Location is under high-voltage power lines. The house itself is gutted and wires are everywhere. Plenty of surprises I'm sure. It looks like a tear down and , start over. Basically, they are asking 300K for land which is way too high given location (next to high-voltage power lines, I-405 traffic noise) and costs needed to tear down the thing.
  • This house actually is REO and supposely bought in action for 400k.
  • Cougar wrote:
    Did some digging. The guy got it a divorce settlement. Took a promissory note out from a private lender and they became beneficiary. How would one qualify to buy this POS?

    The only way is to get a construction loan. You need a GC (General Contractor), bids to finish, appraisal, and all the other requirements as 30% down, and blah blah blah.
  • mukoh wrote:
    The only way is to get a construction loan. You need a GC (General Contractor), bids to finish, appraisal, and all the other requirements as 30% down, and blah blah blah.
    GC license is easy, hardest part is getting the bond and insurance, rest takes like a day. Appraisal is easy too, given the amount of overpriced comps available. Rest is up to the lenders, and I can tell you at one point, none of the listed is necessary. Especially not 30% down, in fact, Nationalcity was giving 10% away at closing with no money down.
  • GC license is easy, hardest part is getting the bond and insurance, rest takes like a day. Appraisal is easy too, given the amount of overpriced comps available. Rest is up to the lenders, and I can tell you at one point, none of the listed is necessary. Especially not 30% down, in fact, Nationalcity was giving 10% away at closing with no money down.

    I did not say GC License. General Contractor is what a lender is going to want. Very experienced one at that to take over a mess left that way. By experience is the meaning of having built quite a few homes in the last two years.

    Bonds and insurance is easy, with good assets and credit history.

    Uber, try to go get a construction loan right now, and it doesn't matter who you are every bank will give it to you pending:
    Verified income of $150k+ a year for this type of loan.
    Extremely good credit history.
    Assets which are at least close to a yearly income that are liquid
    Cash reserves of at least 8-12 months of interest
    30% down payment at closing.
  • Well, having a GC license makes you a GC. I don't doubt construction loan is hard now, I was just sharing that it was very easy.
  • No really - it's STI!
    Taking bets,
    #1 Teardown
    #2 ReHab
    #3 STI falls thru

    I vote #3
  • I'll pick curtain #3. You just couldn't buy that POS subject to inspection, and we really don't know what it sold for.
    Maybe it'll burn down, and they'll blame it on the Earth Liberation front.
  • Looks like the STI fell through~ just a home for the birds.
    Source: Bank-Listed Foreclosures
    Status: Bank Owned
    http://www.redfin.com/WA/Kirkland/12433 ... ome/511968
  • My question, is on a house like that what, at what price does it become a reasonable purchase?

    It needs a lot of work, but unless there is considerable damage due to exposure it doesn't look quite like a tear-down to me. The location isn't bad, the lot size is pretty good, and the house itself is fairly large.

    So if you could find a shell of a house, and it needed a lot of work - like this one - what would be a fair value for the house? For instance, could this house be repaired for $150k? If so, $200k might actually be a good deal for it.

    Thoughts?
  • Note the two land values: $104K and $258K. Whatever the true value is, it's a key criterion.
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