foreclosure auctions

Realtors are not reporting the true sold prices on homes.  Here are 2 examples.  If a home is listed on the MLS and then sells at a auction like Hudson & Marshal or RealtyBid, you can see the sold price online or if you attend the live auctions, see the house sell at open outcry auction.  The next day the houses are reported sold on the MLS but always at full price.

The example below sold for $115,000 at Realtybid but is listed as sold for $159,500 on the MLS.

Also, homes are listed on the MLS and sold on the HUD site.  You can see the sold area on HUD and the Bid Stats.  The house listed below sold on the Hud site for $90,061 but again was listed as sold for full price on the MLS $113,400.

These are only 2 examples, I have seen over 100 and assume it is occurring everywhere.  I understand that foreclosures are not included in the sales stats from the Realtor Assoc. but the stats they use are taken from the sold prices listed on the MLS.  They are all false.

Simply said, this means that any pricing data coming off Multiple Listing Services is fatally flawed, and if this observation is verified, could potentially be a simplistic means to misrepresent the true home price by up to 40% higher.

As for the examples, here is property 1 as represented by the MLS: note the price of $159,500

And below is the actual final auction price on the exact same property taken from RealtyBid:

The MLS certainly pulled all the correct information on the property... all except for the price.

Another example: 5572 Goodhue Ave, Rockford IL 61109. The house was sold in auction for a purchase price of $90,061 as the below screenshot from the HUD auction indicates:

Yet the very same property was listed on foreclosure.com, and subsequently pulled by Zillow, as having a value of $113,400

These are merely two examples.

We have a simple question: which price is the NAR, Case-Shiler, and every other resi real estate index service pulling: the higher or the lower. For the ongoing credibility of the suddenly green shoot free recoveryless recovery, we at least hope it is the correct one. Which is why we ask readers to advise us of any comparable bifurcations between paid and listed price on properties they may be aware of.

Suddenly David Rosenberg's claim that no properties over $750,000 sold in the past month doesn't seem all that outlandish...

Amid all this talk of foreclosure, auctions, and tanning salons, The Real Housewives of New Jersey star Teresa Giudice sat down with the ladies of The View this morning to address her family’s financial situation on national television.

According to Teresa, she and husband Joe filed for bankruptcy for two reasons: 1) Failure to receive rent money from the tenants living in the four apartment buildings Joe owns in East Orange, N.J., and 2) Expenses from the lawsuit Joe is currently involved in with his ex-business partner. Like we’ve seen on RHONJ, this explanation seemed rehearsed, and when pressed further, Teresa became flustered (“Is your husband a slumlord?” “What?”). Neither Joy Behar nor guest co-host Bryant Gumbel could fathom how someone could possibly get themselves into such financial disaster (they must not watch the show), and both kept looking for the ultimate reasoning behind the Giudices’ troubles. Behar used terms Teresa didn’t understand, while Gumbel peppered her with follow-ups that included facts about Joe’s mysterious business partner: “Your husband’s partner said it wasn’t just that, that he was collecting the rent but that he wasn’t even paying the utility bills, that the building was in disrepair?…The absence of rent money doesn’t explain $11 million in debt!”

Elisabeth Hasselbeck took a backseat to Behar and Bryant, but did ask Teresa if Joe ever put some of the fault on her outrageous spending. “No, not at all…because I always live within my means. Always,” Teresa insisted. After lavish parties, shopping sprees, and breast implants, viewers of RHONJ may beg to differ, though she insisted that she is careful with her money and no longer uses credit cards. “How can you live within your means if you’re now $11 million in bankruptcy? I don’t get that,” Behar exclaimed. Fellow guest co-host Mario Cantone remained quiet before chiming in about the hard-to-miss diamond ring (a 10th anniversary present from Joe, which is actually fake — phew!), Teresa was wearing (“Do I heard $20 million! 20? 20?”), which provided some much-needed comic relief.

Were the ladies and gents of The View too harsh on Teresa, or not harsh enough? I give her credit for talking about an obviously difficult subject live on national television, but I can’t help but feel that she doesn’t understand (or at least hasn’t divulged) the vastness of her problem. Throughout the morning, she resorted to her old faithful of an excuse: the economy. Yes, it’s timely and yes, the economic crisis may have added to the Giduices’ situation, but “the economy” has become all-purpose solution for Teresa: “Why did you lose your job?” “The economy.” “Why did you chase Danielle around a country club?” The economy.”

What did you think, PopWatchers? Do you believe Teresa’s explanation for her debt? Considering the Real Housewives of New Jersey has been putting up record ratings this season, maybe it’s time the women negotiate some new contracts with Bravo? (If the Jersey Shore cast has taught us anything, it’s how to get more money from a reality show.)

Read more:

‘The Real Housewives of New Jersey’: Teresa Guidice tans, sprays, and brings the heat to New Jersey

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