Years Ago, As Myths Go, There Was A Group Of About 40 Investors Who Played The Foreclosure Game In Downtown LA
They dominated all the Trustee Sales around town: cheating lenders, real estate agents, the trustors in trouble, and others out of money.
Example: There Is A Property That Has A True Value Of $200,000
The Opening or Credit Bid is $97,856.43.
Several people show up at the sale and qualify to bid by showing more money than the opening bid. One such person would be one of the 40. The other 39 do not show up to bid against each.
The one Thief at the sale would bid until they were no other bidders as long as the bids stayed below $200,000. They would be the winner, and get their Trustee’s Deed.
Then, he or she would go to the local meeting place and discuss the property with the others. Let’s say that they got the property for $110,000.
They would have a private auction. The winning bid here would be $190,000. The 39 non-winners would split up the $80,000.
Who Should This Money Have Gone To?
If this was the only loan on the property, the money was to go to the foreclosed out owner (Trustor). If there was any junior financing, it would be paid off and the remainder go to the borrower.
Funny thing, I believe that it was not a myth and they were operating when I was a Court Appointed Receiver for Apartment Houses in So. California.
Now, three men were just convicted in Alameda for doing the same thing on hundreds of foreclosed properties
Now, Three Men Were Just Convicted In Alameda For Doing The Same Thing On Hundreds Of Foreclosed Properties
Bad point: the actions were from June 2008 to January 2011 and the conviction was early this month.
I want to follow this case and see what the penalty.
These people through are like the Phoenix Bird and will always rise from the ashes.
I love that you are actively still “watching” and checking on these kinds of notorious things! Thanks for putting a complex and complicated story in laymen terms for us. No longer selling real estate butcant let go of your newsletter. Genuine and entertaining, not a slick pie in the sky publication with things that cost money and know one knows if they work. Like your classes just the facts with a light hearted bit of humor. Thanks for all these years being here for us realtors. 3 years retired, but never out of your blood.
Thank you so much and it is nice to know that someone is still reading. All my students are retiring or reaching 70 years of age and not taking any more education.
Could I use your words for a testimonial? It would be appreciated.
If you are a Yelper, you could say those nice words there.
Keep in touch, where are you located now?
Hi Duane. Always utilize your renewal courses. Since you mentioned and linked this 2017 article in your latest N-L, how about giving your readers an update on what happened to these Alameda criminals? And a link to the / any media articles if possible.
Hi Steve, I am sorry but I have lost track of this case. Not being an attorney, I would have a long time finding your answer. At this time I am working on AB5 and converting all my speakers from 1099’s to employees and that is all consuming. My net income just dropped drastically. You might just try googling the names of the defendants and see where that leads. Finding case info that case is possible but confusing. Thanks for reading my blog and responding. It is appreciated.
I dont have websight any more. Hope you get above comment.