patrick.net

Or it could be a sale from parents to child that may avoid a prop 13 tax increase. There is some loophole for that.

Are you sure refis don't show up here? I recall some discussion of this several years ago.

I think that sometimes when the bank takes back a property through foreclosure it shows as a transaction. Possibly the amount is the outstanding debt which is closed, or the discounted amount of debt taken off the books (or put in to another temporary state).

Or could it be a price paid at a bulk auction where several properties were sold to investors as a package ?

After all, an REO is owned by the bank before someone else buys it. Must they show a price at which it is owned ? IF that were the case though, I can think of reasons why they would want to show it owned at a higher price. If only to make it easier to sell at a higher price.

A house got listed for 250K near my parents where they are 500-800 normally. A parent had died, so we guess one sibling bought out the other and it got listed as an actual sale for 250K. My parents then had their property taxes dropped a ton this year, which could just be coincidence considering prices here have dropped a ton, or could be the tax people don't know well enough and count it as a real sale.

Marcus may be right. IIUC when a house becomes REO, the balance on the 1st mortgage shows up as the sales price. The amount of the subordinated debt (2nds, HELOCs) isn't shown.

It's been awhile since I read anything about the isue but when a house is sold to a non-linear relative (not a child or a spouse and it's not an inheritance issue) and the selling price is wayyy below what the (supposed) actual worth is, doesnt the IRS look at this as a taxable issue (possible gift, etc.)?

ptiemann says

If the sale was not through the MLS, then I would not use it as a comp property. Use redfin.com to determine if a sale was through the MLS:

That counts out fsbos, tho.

Prices might be great somewhere, but never where I'm looking it seems. Friend of mine looked at one of these foreclosure units recently and it had 14 offers on it he said.

DennisN says

Or it could be a sale from parents to child that may avoid a prop 13 tax increase. There is some loophole for that.

Feline home appraisers Condoleezza and Dukie

I'd love to know more about this loophole if it does exist.

Marcus is right. A low prices could very well be that is the price the bank is paying to re-possess the house. Essentially, the bank is buying the house from itself.

John Bailo says

So it might be reflecting what's really happening.

Yeah and you try getting mortgage on one of them and bank starts feeling uncomfortable at closing. You have 800 score? It does not matter,that 's how much banks are scared at this moment. Market has to keep tanking as long as banks are in that lending fear. Pretty simple.

What lending fear? My credit score is under 700 and I had zero troule re-financing for the SECOND time this summer.

HousingWatcher says

What lending fear? My credit score is under 700 and I had zero troule re-financing for the SECOND time this summer.

Good for ya. So go ahead and buy more properties. What is the point in hanging around here?

http://en.wikipedia.org/wiki/Post-purchase_rationalization

Huh?

Drudo,

Look here http://www.sccgov.org/portal/site/asr/agencyarticle?path=%252Fv7%252FAssessor%252C%2520Office%2520of%2520the%2520%2528ELO%2529&contentId=8660bb3166b34010VgnVCMP2200049dc4a92____