Rico,

Excellent Question!

Prices have dropped in San Diego. In an area where the average price is $750,000 it doesn’t necessarily tell me that homes priced at $175,000 or $300,000 are a good deal. There are many other factors to consider. These two homes could be much smaller and less desirable than most of the other homes in the neighborhood so they could seem like their priced low. Why don’t you email me the 2 addresses and I’ll do a Market Analysis for you free of charge.

mikelewis@ehomeconnect.net

If you need help finding a new home visit our web site http://www.eHomeConnect.net.

Mike Lewis eHomeConnect Agent

I agree with Mario on you being careful when looking at foreclosures. You can get information about the default from a title company (usually for free-my company does this) and ask for all open trust deed information. You would then know if you were looking at a 1st, 2nd, 3rd etc. If this home is a bank owned (REO) property already, you should not have to worry about unkown liens, taxes etc. You can and should use a Realtor if it is bank owned, since they would be representing and helping you, as they would in a normal purchase. Buying at a trustee sale can be very risky and you wouldn't be represented by an agent.

Many times the foreclosure amount is for only one of the loans against the property. If it is for a junior loan (2nd or 3rd loan) then you will be responsible for the more senior loan. In that case, the senior loan may also be in default with past due payments and late fees. You will also be responsible for any back taxes due. Please do your homework before making an offer on what seems like a great deal.