When we searched for a bank REO, a concern was the home owners' association (HOA) being in default. The HOA basically covers the exterior common areas as well as security for guards. I looked this up on the internet and really couldn't find any information.
One reason why this HOA was a concern is lenders were not lending on many condo and planned communities that had HOA in default or arrears. The banks did some kind of preliminary report that showed how many condos are owner occupied vs rented as well as how many properties had notice of defaults(NODs) filed or already bank owned (REO). Most of this information is not readily available online, so you don't learn about this until after an offer is made.
We did visit some condos and master planned communities and you could physically see the maintenance wasn't being done. I just found this video and this is what inspired me to revisit this issue on HOAs.
Where did the Billions in Bank Bailouts Go? - Sand, Dirt, Fines & Ghost towns
A personal account in my journey to find, select, and obtain a bank REO to live in. I hope to help and give insight to others searching for a bank REO from bidding, buying, and all the way to escrow.
Wednesday, November 25, 2009
Tuesday, November 10, 2009
Newport Lofts in Las Vegas
During my search for my first bank REO, my wife made a special trip out to Las Vegas to check out this highrise bank REO. It was the first one owned by the bank at that time. I think the prices were in the $180,000 range for a studio on a high floor for a resale and brand new lofts at the time were still in the $300,000 range.
One day while looking at my regular real estate sites I check out, this bank REO came to market at $131,000 and I thought this is a steal. I called the real estate agent up and set up an appointment to be there in 2 days and to sign a contract after looking at it. When we arrived that day, the real estate agent told us that an offer was already made and it went to escrow. My wife and I were suspicious but also very disappointed.
This is what the condo loft looked at.
My dream loft stolen
There was a second loft that went to the bank about a month later and that also had an offer on it before we could look at it. We did look at 3 other lofts during our initial trip and thought they were great.
I look back now and think my wife and I got lucky because we found something much better in a great location. That building never sold out and the flipper who bought the condo loft wasn't able to rent it out and has it up for resale. At that time that was a crazy price. Now most of those lofts are about just above $100,000 with a few that are listed just below at $85,000. We would have probably had a paper loss of about $50,000 in one year.
Other issues that have come up are the HOAs there might increase or could possibly go bankrupt because the building looks to be less than 20% sold or occupied. I heard the actual building went back to the bank. Then I read the bank filed for bankruptcy. Anyways, sometimes blessings are in disguise.
I hope that helps you in your search.
One day while looking at my regular real estate sites I check out, this bank REO came to market at $131,000 and I thought this is a steal. I called the real estate agent up and set up an appointment to be there in 2 days and to sign a contract after looking at it. When we arrived that day, the real estate agent told us that an offer was already made and it went to escrow. My wife and I were suspicious but also very disappointed.
This is what the condo loft looked at.
My dream loft stolen
There was a second loft that went to the bank about a month later and that also had an offer on it before we could look at it. We did look at 3 other lofts during our initial trip and thought they were great.
I look back now and think my wife and I got lucky because we found something much better in a great location. That building never sold out and the flipper who bought the condo loft wasn't able to rent it out and has it up for resale. At that time that was a crazy price. Now most of those lofts are about just above $100,000 with a few that are listed just below at $85,000. We would have probably had a paper loss of about $50,000 in one year.
Other issues that have come up are the HOAs there might increase or could possibly go bankrupt because the building looks to be less than 20% sold or occupied. I heard the actual building went back to the bank. Then I read the bank filed for bankruptcy. Anyways, sometimes blessings are in disguise.
I hope that helps you in your search.
Labels:
Bank,
Las Vegas,
Loft,
My First Bank REO,
Newport Lofts,
REO
Wednesday, November 4, 2009
Where are the Bank REOs
I have always suspected the banks were withholding bank REOs for accounting purposes. I ran into this video and it makes things more clear now. Check it out with these local agents explaining why the change.
Las Vegas Real Estate Update-Where are all of the bank owned properties?
Las Vegas Real Estate Update-Where are all of the bank owned properties?
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