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Rise in Bellevue, WA Bank-Owned Homes, Foreclosures Sold

When foreclosures began to rise in Seattle a few years ago, Bellevue didn't seem to feel the initial hit. Over time, though, there's been a growing inventory of distressed properties creeping into the more affluent communities around Puget Sound, and Bellevue has seen its own inventory of bank-owned homes on the rise.


To be fair, the number of foreclosures in Bellevue is fairly small compared to those in Seattle, even after taking into account population differences (Bellevue is about 1/5 the size of Seattle in terms of population). However, the rate of increase is still a significant trend on the Eastside this year.

Houses:
There were 73 Bellevue bank-owned homes sold in 2010, more than doubling the 37 sales in 2009. In contrast, there were 437 Seattle bank-owned homes last year, and 295 in 2009. Both cities are showing a huge jump in the percentage of REO sales, but Bellevue's inventory numbers show a big difference in the two cities' markets.

Bellevue has just 21 bank-owned homes actively listed for sale today on the NWMLS. Seattle has 216. Although those numbers might seem to put both markets at around 5-6 months of inventory, the Bellevue numbers are so small that they don't give a large degree of confidence, statistically. 21 active bank-owned homes is really just a handful of inventory, and these foreclosed homes in Bellevue seem to sell more quickly than those in Seattle.

Condos:
The condo market can be a bit tricker to gauge statistically, because of the large number of properties that are tied together by their developer. An entire project with 200 condos can be foreclosed upon in one year, even though the project had been going south for the past three years. 17 bank-owned condos were sold in Bellevue in 2009, and 50 were sold in 2010. Seattle had 57 bank-owned condos sold in 2009, and 159 sold in 2010.

  • January 17 2011 - West Lake Sammamish
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Answers (4)

Those are very noteworthy facts Sam.  Thanks for the info.  98 per cent of those foreclosed transactions were fraudulent - meaning the wrong lender, who did not actually hold the note or deed of trust, sold the property.  That means all those people who bought those great deals, and the unsuspecting seller simply trying to get out of a mess, can look forward to the real owner of the note to come back after them in the next 3 years and demand either the money or the house.  Google:  foreclosure fraud cases and Neil Garfield.  There is quite an eye opening education to be found as well as how real estate agents have been sucked into the fraud and now an accessory to that fraud.  I certainly don't expect you to believe me - do your own research.  Your license could depend on it!!
  • January 17 2011
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steve: get lost you dumba$$. quote 1 case, just 1 case, where a buyer post foreclosure has actually lost a home to the pre forclosure owner.

SImply put, most state laws back up the foreclosure sale as absolute. There is after all a reason that the owner was given notice of the sale, that the notice was published and recorded, so the owner could have stopped the sale before the actual foreclosure.

 If a prior owner wanted to sue after all that process, they would sue the bank for monetary compensation, the courts are going to take a very dim view of making a new victim out of an innocent buyer who bought a home from the bank.

Steve, you are the most ignorant misleading poster on zillow. You are a loser and a waste, get lost.
  • January 17 2011
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With a little more respect to Steve's reply on the subject, it appears he is confused as to the difference between the holder of the note and a loan servicer, in rudimentary terms, the funds exchanged for title to the property are ultimately dispersed to the holder of the note.  Bank of America may have been where the borrower applied and posted monthly payments, but that doesn't mean they held the note indefinitely if at all, particularly if it was a loan backed by Fannie Mae or Freddie Mac, as is the case with over half of all residential mortgages.  As mentioned, if it is found that there was an error in procedure regarding the foreclosure process, then the borrower might be entitle to monetary compensation as damages, if proven in court.  Chances are this would be a title insurance issue and they would be responsible in paying a claim, the extent of the same, coupled with who would receive the benefit would depend on the nature of the policy and other factors.  The daily additions of more and more internet posts indicating that all these recent foreclosures will be declared invalid, and the borrower who didn't make payments for several months if not years before foreclosure will be able to reclaim the house years from now when the market has recovered are nothing more that myth.  Keep in mind that foreclosure laws also vary widely from state to state.  Trust the source, not the fact that you read it.   

  • January 17 2011
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John, Rob is only being stern with Steve because Steve spams this stuff all over Zillow, and it's always the same quote.  "98% of foreclosures....etc etc."  He's selling something, and spamming the advice forums with misinformation.
  • January 19 2011
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