Las Vegas Homes, Condos, Land and Commercial Real Estate Blog

Not all foreclosed homes Las Vegas become bank owned, bank repo or REO

About Las Vegas Trustee Sale Auction and Las Vegas shadow home inventory Part-1 of 3

So far I have explained that all distressed properties that are foreclosed on by the first mortgage, second mortgage or in rare cases for HOA fees have to be sold through the Las Vegas Trustee Sale Auction with delinquent tax auctions being the exception.

Not all of the properties that are sold through Trustee Sale Auction are single family homes, a significant number of these foreclosed properties are condos, town homes and lofts in addition to vacant land, industrial properties and retail and office buildings.

2: Two types of foreclosed properties are sold through the Trustee Sale Auction in Las Vegas and herein may lay the discrepancy.

A: Properties like Las Vegas homes or condos that sell back to the bank at the Trustee Sale Auction. Most of the homes that are foreclosed on and sold back to the bank are listed with Las Vegas, Henderson or North Las Vegas Realtors and sold through Las Vegas MLS; commercial properties in Las Vegas are listed with commercial real estate agents.

B: Foreclosed properties that are sold to a third party. These can’t be included in the shadow inventory of Las Vegas bank owned properties since the title will be changed to the new buyer’s name and the bank just gets the money. No headaches for the bank. The bank saves on two or three closing costs since the bank has to pay once to put the Las Vegas property in their name and pay the closing costs again when they sell it. Banks often pay the closing costs for the buyer too. Don’t forget the Las Vegas Realtors commission either. The minimum saving for the bank is 10% if they get rid of the foreclosed property at the auction.

This is the reason that the best deals are purchased at the Trustee Sales Auction, savings of 20% or more over properties that are sold through Las Vegas MLS. The trustee sale auction is by far and away the best way to get a bargain for Las Vegas real estate. However do not attempt to buy if you don’t know exactly what you are doing, even professionals make mistakes like buying the second loan and being stuck with the first mortgage, the bidder lost $40 grand.

Only those homes that have been sold to the bank and have not sold yet should be included in the total number of shadow inventory of Las Vegas homes which the banks are sitting on in order to protect the market from big price drops.

The formula to calculate the number of shadow inventory homes is:

(The number of shadow inventory homes in Las Vegas, Henderson and North Las Vegas) = (Number of homes that have been foreclosed and sold back to the bank) – [(number of bank owned homes that have been sold through Las Vegas MLS) + (Number of homes that have been wholesaled or sold through various real estate auctions in Las Vegas)]

Related Website pages: buy Las Vegas homes for sale, buying Las Vegas bank repo homes, short sale homes or fixer upper HUD homes, buying from Las Vegas foreclosure real estate auctions

Social networking: Las Vegas homes, condos and commercial real estate page on Facebook

Even though I feel selfish for asking for prayer in today’s disastrous environment, I am a shameless beggar for prayers and would appreciate some since I have been having a lot of trouble with my back and neck lately.

I will finish the series about shadow inventory homes in Las Vegas next.