“A friend of mine is a real estate lawyer that only handles foreclosures. All of the business has been Okanagan and Sunshine Coast but lately he has seen them creeping into the lower mainland.”

“A friend of mine is a real estate lawyer that only handles foreclosures. All of the business has been Okanagan and Sunshine Coast but lately he has seen them creeping into the lower mainland and he saw his first in North Vancouver last week.”
Makaya at VCI 1 May 2012 10:50am

24 responses to ““A friend of mine is a real estate lawyer that only handles foreclosures. All of the business has been Okanagan and Sunshine Coast but lately he has seen them creeping into the lower mainland.”

  1. The beast is here.

    But we knew that already, didn’t we?

  2. I saw a foreclosure that sold in North Van this week. 4525 Prospect Ave which is upper Lonsdale bordering on upper Delbrook. List price was $1,362,250, and sold for $949,000. Assessed value was $1,287,000. Not sure how they came up with their list price.
    West Vancouver is the strangest market at the moment with still some HAM rolling in, and paying crazy dollars for properties that just don’t make sense. It seems that over town agents that these buyers deal with have no idea of values and neighbourhood areas. The craziest one that I have seen this week is a corner property, and lot value(not a good lot in my opinion as it is a 50′ corner lot with setback issues, and a slope to south where if you want get a decent amount of square footage in the home, and not have the basement counted in far you need to sink the home into the lot.) on 11th and Lawson. History: Listed in May 2011 for $1,258,000 and sold May 2011 for $1,250,000 then the new owner re listed in Oct 2011 for $1,380,000 and sold Jan 2012 for $1,358,000 then again the new owner re listed in April 2012 for $1,688,000 and some dumb @ss bought just a couple of weeks ago for $1,655,000. I don’t have to tell you where all the buyers came from. This lot was a $998,000 lot in 2010. In a market where sales are definitely slowing up, it makes these sales stand out as just plain stupid!

    • In your opinion, nsguy, what makes someone do something like that? Is it corrupt money that just needs to be spent somewhere? It it just a matter of doing no due diligence whatsoever? I guess I’m pretty naive in many respects, but I have no frigging idea why some people want so badly to so obviously overpay.

      • Have you ever been to a BingoParlour, Gord…???

      • Happily, Nemesis, no. 🙂 But if it’s pure gambling, why gamble in what is now widely perceived as a monumental bubble top?

      • Sure sounds like washing money. Lets just hope we don’t have too much skin the game via the banks or CMHC

      • Agree fish10. Sounds like straw buyer schemes that proliferated in the US. The last one defaults and/or disappears

      • Beyond Debt

        It could be a scam by real estate agents. At some point, we may see a lot of them in jail.

      • Renters Revenge

        “Another type of real estate fraud which has appeared across North America is property flipping fraud. In May 2010, the biggest fraud case ever prosecuted in Canada came to light. BMO Bank ended up suing hundreds of individuals, including employees, realtors, lawyers, mortgage brokers and even an MP.
        The fraud involved finding recent immigrants who were willing to let their names be used to purchase properties in neighborhoods where many of the homes had high property values. These “straw buyers” exchanged their names for compensation of up to $8,000. The ringleaders of the mortgage scheme then forged paperwork with false work histories to secure mortgages in the names of the straw buyers.”
        http://ezinearticles.com/?Common-Types-of-Real-Estate-Fraud-Canadians-Should-Be-Aware-Of&id=6726831

      • Thanks for that, Renters Revenge. You taught me something this morning. 🙂

    • That 4525 Prospect has been listed at 949K for a while – maybe the 1.36M was the previous sell or initial ask price before foreclosure?

      http://www.realtylink.org/prop_search/Detail.cfm?MLS=V935400

  3. The questions often I ask myself when hearing these sorts of stories are: Would I spend so much for so little real value/yield if I had to work to earn the money? Like how long would it take me to save $1m making an average or even above average wage?
    What about if I won it in the lottery?
    What about if I stole it and had to launder it?
    Different answers for different circumstances.

  4. More to the point… TeeHee!… re: “real estate lawyer that only handles foreclosures”… Hmmm?…. Ah yes!…

    PS – Apologies, OhYe ForthRight Officers of HM Courts… Sign me “Amicus Curiae”…

  5. Bear market indicator. Hard to buy and hard to sell—high prices and no money. Low interest and a limited money supply policy let’s you work and pay, but depreciation is occurring in a range of assets. I’m buying new manufacturing equipment for a big discount with cash. Now comes the test among debtors—who can carry the costs and hold out longest with a shrinking buyer pool. Sorry sellers, nothing you got that I want… yet. When there is adjustment, I don’t think that opportunity to buy low will last long, reserve capitalists are in the wings plucking the low hanging fruit.

  6. On foreclosures, Vancouver has had little in the way of experience with them en masse in a generation. They will turn up, rarely, due to individual hardship such as job loss, divorce, etc. but for the most part, due to rising prices and relaxation of costs of capital, foreclosures have not grabbed hold in Vancouver. Rich Toscano has done some insightful analysis into sales per default, which shows how quickly defaults can pile up after about a 10% drop in prices, in part because markets turn decidedly illiquid when prices start dropping, but also because lenders clam up.

    http://piggington.com/foreclosure_vs_home_sales_foreclosures_are_winning

    I don’t know if anyone has any data on defaults or foreclosures in BC but we could create the same graph as Toscano did. One thing that was true in the US was that defaults exploded far higher than most risk analyses were prepared for.

  7. Oops! My bad! 4525 Prospect was listed for $949,000 and sold for $1,362,250. I don’t know how I read that wrong, but I did. Sorry!

    • That’s better 😉 Despite all the talk of housing bubbles, some people apparently either don’t take what they read/watch in the news seriously or think it’s plain wrong. With a decent credit score and a bucket of downpayment monies it looks like lenders are still willing to oblige.

      • if the MI hardstop is for real, should we expect lenders make a grab for the scraps?

  8. I got the low down on the sale of 4525 Prospect, North Vancouver. Five offers in court room, and the Judge read out all the sealed bids, which is a little unusual as normally just the initial offer goes public so other bidders know. Anyway the winning bid was $1,362,250 as I had said, but interesting that the second place bid was $165,000 less.

  9. I’ll add that that $165,000 overpayment all by itself gets you some pretty nice houses in some pretty decent US neighbourhoods.

  10. I think this is one of the most powerful anecdotes I’ve seen on here – because it’s more than just an anecdote… it’s data.

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