One year ago today: July 5, 2014, brain surgery while-u-wait.
Five years ago today: July 5, 2010, what’s a spokeshave?
Six years ago today: July 5, 2009, I still can’t speak German.
MORNING
Courthouse auctions. It has become intriguing to peel back the layers on this matter. I went the extra mile and read up on tax liens, hidden costs, and even the criteria the bank uses to determine the minimum bid. I see right off it is not in the bank’s best interest to allow these auctions to take place unmolested. I would conclude the bank always has a shadow buyer in the crowd just in case. These auctions are not for the lazy.
And don't we love it where the auctioneer keeps trying to up the next bid by a thousand where you are prepared to bid up by only a hundred? You can shout out the lower bid and have the auctioneer sneer at you like you're trying to starve his kids. I’ve also found most of the extra fees charged at house auctions, but not how or which of those fees would apply to a given property. Buyer’s premium remains a euphemism for screw job.
Next revelation is how real estate fees have, over the years, become adapted to rising house prices, so they are now a significant part of the cost of the house. When prices fell, these fees remained high. The buyer takes an immediate loss. While we are familiar with the process because it is so similar to the “bar charges” when dealing in precious metals, I doubt the average home buyer even knows how to calculate the minimum payback period. These costs can easily run into tens of thousands. That’s difficult to absorb, even by professional flippers.
Put another way, you’ll need a float of around $20,000 to be on the safe side. Otherwise, you’d better plan on living in the house five or ten years before you’ll live out those fees. Another disincentive is that the rumored “cash only” basis of a courthouse auction may apply only to a 10% deposit. This gives another advantage to those who buy on credit—precisely the factor which caused the foreclosure in the first place.
The directions say to contact the home owner to see if he will sell, which apparently he can do right up until the auction. But I doubt he would take a loss. The same directions say to research values of nearby properties, but if you were prepared to pay the going rate, why would you go to an auction?
NOON
“I started out with nothing. I still have most of it. ~Michael Davis (He’s some neo-hipster movie director.)
Here’s a satellite of the Okeechobee train station. I thought that’s odd, because every time I’ve rode the train through Okeechobee, I never saw a station. Well, I have the explanation. First, I ride the early train, which does not stop there. Second, the Amtrak guide says it has no waiting area, no restrooms, no ATM, no lounge, no ticket office, no elevator, no pay phones, and no wifi. Sounds like my ex-wife talking. “But other than that, it’s a train station.”
In the end, it all works to the conclusion that these real estate auctions are not real auctions at all. They can be canceled at the last moment and I’ve now see videos on people saying the only realistic way to bid is to keep showing up and taking your chances.
Hence, unless I start showing up at these things, I’ll never know. There are 1,059 foreclosed houses in the town where I live. (And one of them looks exactly like my old drummer’s place over on Hayes. Couldn’t happen to a nicer guy. He’s the one that tried to put the other man’s conflict of interest in my ball park. Remember that? He said because one of other band members was multi-banding, we had to take a New Year’s gig for half what we were worth before the other guy decides to play with the other band. Duh. I'm not staying up until 4:00AM on New Year's for $160.)
Another consideration is that these auctions are risky to the buyer. Back in my day, it was a crime to sell something that you did not own. That’s moral behavior that doesn’t seem to apply when the courthouse does it. There appears to be a general lack of rules or guidelines concerning consumer protection when it comes to foreclosures.
As things stand, I’ve learned only more details about the auction system and no information as to whether our situation (having money) is any real advantage. Out lady friend in the market says it does. Not as far as the court works, everything I’ve read indicates the court really makes you work right up to the last minute. The net effect is a court bias against the buyer, sort of you are a bottom-feeder, so wait your turn. There is, so far, no strong resemblance to a real auction.
NIGHT
I finally got to see “The Farewell Party”, the movie that was sold out last week. Except, it is not about what I thought from reading the ads—a couple that decide on a party while they can. It’s concerned with a euthanasia machine. The impression from the advertising was that this was a comedy. In fact, it was quite morbid, although there were plenty of canned laffs.
It was okay but don’t drive downtown to see it unless it’s free. The theater was nearly full although I think I was the youngest person there. Also, the only single. I mean, there were groups of ladies and such, but I mean by myself. Before you read anything into it, I know lots of women who like these kind of movies (if you're paying), but didn't ask any our. Since I was in my late twenties, I prefer to go to movies alone. It’s other activities, like riding the motorcycle, that I miss not knowing any women who are interested.
JZ called and we’ve canceled the second planned trip into the interior until I spend some time with our real estate negotiator. She probably knows about things like the pre-sale offer prodecure. Until I know more, there is no sense spending extra travel dollars. Besides, I need time to get my brakes done in case it transpires that I head out alone. If we get anything on the first try, it is pure dumb luck. But it is not lost to me that I doubt most buyers do a lot of research.
For example, the lady who took a shine to JZ told us about another man who had bought a house at auction. From what she said, he did not check for back taxes and such, and now has so much sunk into the place that he cannot sell it except at a loss. So much for the theory that everyone except us are total experts.
Last Laugh
Return Home
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
