i checked title profiles of properties that were foreclosured and went back to the bank. Guess what? Deutsche Bank name comes up as the owner of thousands and thousands of prop across CA alone. I don't have access to prop profiles in other states but i'm guessing the same trend is happening. These props are and will be selling on the market for a lot less than the loan amount, sometimes 200K underwater. So I'm guessing the bank is losing a lot of money. I wonder how much they have to write down in their next report. IT LOOKS REALLY BAD. I don't have a position in DB yet but would like to hear arguments from both shorts and longs on this matter.
Here is the deal...DB is just the trustee of record...regardless of the loss, the securtized trust is the one who will take the hit...DB just was the party to foreclose for this trust, and is now the seller of record, nothing more...this is a profit opportunity for DB frankly, yet know around the country, DB is being challenged to foreclose on these properties as they really don't own them--no legal standing to do so...see Gretchen Morgenstern, New York Times, Nov 2007...but regardless, often time in foreclosure, the suit goes unchallenged, and then DB just ends up as the "owner"...and when it sells, regardless of price, guess who gets paid right off the top for their "trustee services", no matter what...DB...so DB cant lose in this game, as they are not the bondholder...know in every securitized trust, you have the underwriters like ML, MS and GS...then the investors who buy these bonds in the market like PIMCO or a CDO now in trouble, and then you have the trustee who collects fee income for monitoring the transfer of payments...but they collect fee income, win lose or draw, as they are never the underwriter or the bondholder in these deals for there is that seperation in the pooling and servicing agreement...those are the one's with real liability...and yes DB is an underwriter in other deals where they are not the trustee, but then when the deal goes belly up, it is likely another trustee like Bank of NY who then is handeling the sale...but DB is the biggest foreclosure mill in the country, just collecting fee income and not liable for any losses...their losses come in the deals they underwrote or hold in position, which is small compared to what you see in the "ownership" records...also check Cleveland Ohio, there DB owns more houses than anyone in this same scenario, but wont lose a sent as they keep racking up fees until the house is sold at some price...unfortunately much of this crap is subprime, and might take a while to sell, but DB keeps ringing up the fees until the day of reckoning and gets paid before anyone when the property is finally sold, other than back taxes of course
the short version folks
One of these properties is near me in Ca. I’d like to make an offer, but Caldwell’s agent won’t release an offer price and contacting Deutsche is a mess. Their “Property Inquiry” line is a joke.
The property has been vacant for 30+ days. How long should it take for DB and Caldwell to determine a listing price to an interested buyer?
Tell your OWN realtor to keep an eye for it in the local MLS. Qualified buyers are the ones with the upper hand these days so I wouldn't be in a rush to make an offer. If you check out the CME housing futures, you'll see that traders are still betting that the CA prices will fall much further thru 2009 and even beyond. So look for the very best deals only. But then again, even the very best deals of today could turn out to be a falling knife 6 months from now.
It's anyone's guess. You have a lot factors at play. First, you're dealing with a global investor whose probably not adequately setup to deal with the huge increase in foreclosed properties. Even though they typically have a 3rd party manage the sale, the communication between the two flow thru many channels. Also, the realtor's qualified to sell REO's are inundated with these listings right now. My advice would be to have your realtor pull comps so you can determine a reasonable offer. I would then get a loan pre-qualification from either Caldwell Banker's preferred lender, or another large lender. Then, go ahead an have your realtor submit an offer for the property along with the loan approval letter.
Best of Luck
You must get this report from the same title company as I do. I usually never look at this REO report because it jams up my email. For some reason, I checked it out today. I noticed exactly the same thing. DB was peppered throughout many of the listings. I started to do some research to find out about this company, which brought me to this board. I'm still a little confused with this report which can list 3 banks/investors associated with the property as "Owner", "Trustee", and "Lender". I'm assuming whomever is listed as "Owner" of the property will take the hit if it's sold for loss? I don't have a position in the company either.
yes DB is the owner for a lot of these props. although the names can vary like DB national trust, or DB series, etc...it's all under the parent company DB. I see a lot of these already in the MLS listing for 100K to 200K under the loan amount. Many are coming soon and many are still in the pipeline (default status but haven't gone thru trustee sale yet).