Thank you for your input Ray.
Just a little background of who we are.
My backgrown is 12years of managing portfolios of THOUSANDS nonperforming loans through the foreclosure process.
My "tech" cofounder's backgrown is business Intelligence , data integration, and analytics.
And my last cofounder's is pool acquisition, funding and boarding.
All in the mortgage industry.
I completely agree with you that there are some companies providing auction data and comparables but they are very basic, close to useless info imo.
Your reasons for cancelations are also accurate, but again i believe this is common knowledge for any respectable foreclosure investor.
What we've noticed is that patterns do exist!
I.e. across the board in Miami dade for the last 5 years "63%-67%" (with a few variances) of monthly sales are canceled...(i know this doesn't help much!) But when it gets interesting is when you start analyzing these cancellations at the "lowest common denominator" we are starting to see different characteristics and commonalities a lot of them share.
I'll put it to you this way...by looking at the court docket, reading the documents, researching the borrower i can give you a very good idea close to certain if a sale will get canceled and why.
There are many telling signs that will increase the chances of a cancelation:
how old is the foreclosure action?is the borrower represented by an atty? Does the property have good equity compared to the debt? is this the first sale scheduled? Is the property homeastead? Just to name a few..
A case with those characteristics will 99.99 of the time get canceled.
Now, our job right now is to map these and many other characteristics and automate this process and be able to run a script against upcoming sales to find these key points and have a solid forecast.
Regarding the highest bids from banks you'll be surprised how common it is to figure out their formula. Again they also have commonalities that will let you know if they will bid close to market value. Are they the originators? Was this loan transfer to another investor who paid pennies on the dollar, is the location of the property flooded with bank reos? And again history is the best predictor.
Quick tip: Look for properties that has had sales resinded or a previous cancelation where bids were taken. That will tell you how that bank will bid the next time that property goes to sale.
Hope this helps.
Your imput is very valuable as we want to bring a solid platform for investors like you, so pocking wholes in our model is what we need to better our process and bring something helpful!
