At a recent foreclosure auction in Santa Ana, investors bought eight properties, or 36% of the 22 offered for sale.
I have looked more closely at those eight properties, after blogging previously on the June 26 trustee’s sale. (Read the first post: Frenzied Bidding on Discounted Foreclosures. Property pictured is on Newell Street in Garden Grove; photo courtesy of ForeclosureTrackers.com)
On seven of the properties, the banks or loan servicers offered an average discount of 61% against the debt owed on a first mortgage. (On one of the properties, I could not find the notice of trustee’s sale.)
Those seven properties sold for an average discount of 56% against debt. Even though investors bid against each other, they barely nudged up the sale price from the bank’s minimum bid.
According to Zillow, investors got discounts to current market value ranging from $21,500 to $141,000. Zillow’s estimate is a very rough guide to what a property might fetch on a resale.