What Happens to All Those Foreclosures?

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Las Vegas Real Estate leads the nation in foreclosures.  Every month, we have anywhere from 8,000 to 15,000 scheduled homes to be auctioned off on the courthouse steps.  So, what happens to all of them?

Well the easiest way to figure this out is to get the latest stats from the trustee’s auction.  September’s stats just came out so we’ll just use those.  In September, there were exactly 12,049 Las Vegas homes scheduled for foreclosure.  Here is the breakdown of what happened to them:

-2,669 of them were canceled.  Why?  Could be a number of reasons.  It could be that they were also on the market as short sales and the short sale went through.  It could be that the owners worked out a new payment plan and refinanced.  Or, it could be a situation like Bank of America where they indefinitely canceled their sales.

-5,947 of the scheduled foreclosures were postponed.  This is very common in the process.  Again, it could be due to a number of reasons.  Many banks simply don’t have the manpower to correctly pursue a foreclosure, so most of them get postponed until the bank has all of their ducks in a row and can properly proceed with the sale.

-2839 were sold to the bank that help first position on the mortgage.  When no one places a bid on the property, or the bid is not low enough to cover the asking price for the holding bank, the note defaults back to the bank.

-594 were sold to third parties.  These could be investment companies, people looking to flip properties or even owner occupants.  The important thing to note about buying at an auction is that you get the title as is.  If there are ANY liens other than the mortgage, YOU are now responsible for negotiating those and making them right.