Friday, March 30, 2007

Madison Equity has enough!

Per their website:
Due to well publicized current market conditions affecting the entire mortgage industry, Madison Equity Corporation will no longer be accepting applications nor registrations from our wholesale and correspondent channels. Madison Equity will be transferring our wholesale pipeline to Imperial Lending LLC, who can be contacted at 866-566-3426. Please mention you are a Madison broker.


AnalysisGuy said...

I went to a home auction in the Northwest this morning to see the action. The home was 2900+ sf with a beautiful pool. The home was poorly layed out, but the lot was big and I was curious.

The guy owed about $150K on the house, but was mad that he got no offers at $699K or $599k so he decieded to have an auction. According to the auctioners he was "very motivated."

So here's what happended and what I learned:

1. You needed to bring $25K (via casher's check) in order to participate in the auction - This killed some action

2. The auctioners tack on 10% to the final bid price

3. The action started at $100K and within 15 seconds was at $400K - this is where some of the fun began

4. Now the auction kept on stating that homes are listed near here for than $600K, surely someone wants to bid $500K - then he kept saying "it's only money, the print every day"

5. This however did trigger a bid for $500K, but rather a reluct bid for $410K. Long story short two individuals when back and forth and the final bid was $440K. With the 10% surcharge it comes to $484K or about $165/sf.

6. Personally, I thought the bid was way TOO HIGH.

7. But after learning about how the owner (via a neighbor) refused to lower his price below $599K via a realtor - I think he may opt to not take the offer (no details were provided on this, but often the buyers can refuse the offer, but then has to pay the auction house 5%).

8. Then while walking away an "investor" told his buddy: "I guess that guy wanted to live in the house and not flip it like us" - Yes there are still Bakersfield flippers!

9. Lastly, then a bunch of us all went to an open house on the same street and ridiculed the realtor when he told us the home was priced at $200/sf.

Bakersfield Bubble said...

Thanks analysis guy.

Was this the home listed the last few weeks in the real estate section with a starting bid of $100k. It was the first house in the photo section the previous two weeks?

I don't recall a minimum bid price listed, but I am sure they kept that quiet.

Bakersfield Bubble said...

. Lastly, then a bunch of us all went to an open house on the same street and ridiculed the realtor when he told us the home was priced at $200/sf.


LOL. They begging from realtors is also getting fun.

AnalysisGuy said...

I believe it was the same house. There techincally was not a minimum bid/floor price, however, there was the "option to refuse". Which essentially is the same thing. The only difference from what I've been told is that with a minimum bid the seller isn't out anything if it doesn't hit the minimum price. However, with the option to refuse the seller must pay the auctioner a set or percentage in order to have the right to refuse.