Foreclosure in San Jose>Question Details

Grace, Home Buyer in Mission San Jose, Fr...

Can you really get a foreclosed detached house in a good neighborhood in San Jose for under 250k?

Asked by Grace, Mission San Jose, Fremont, CA Fri Apr 25, 2008

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No unless it is a short sale. If it is a short sale, make sure it's already been lender approved. Even at short sale, there might be issues with the property or the neighborhood, unless maybe it's a condo that someone claims to be a detached home.
0 votes Thank Flag Link Fri May 2, 2008
Grace -

In my opinion no.
The only thing I have seen under $300K are condos with less than 1000 sq ft on the East side of San Jose.
Or - a home like MLS #788447. Bank owned properties are not always the best deals. Most need a lot of work. By the time you complete the work, you are then up to an investment equal to market value. I have not seen a detached home in a good neighborhood under $550,000.

CJ
Web Reference: http://www.TalkToCJ.com
0 votes Thank Flag Link Sun Apr 27, 2008
Not impossible, but improbable.
You would have to buy it at the county courthouse auction with cash and be very lucky. It also requires a lot of research and preparation. Even so, you could end up with a property with a lot of repair work to do and a tenant to evict. There are several homes that have been available for starting bids lower than $250K. I have not followed through to see what they actually sold for.
Real estate agents can't help you because most rely only on listings from the MLS. These foreclosed properties at the county auction will not be on the MLS. Later, if they do not sell, they may end up on the MLS as an REO. The price will be more than auction, generally.
0 votes Thank Flag Link Sun Apr 27, 2008
Jennifer Kre…, Home Seller in 95124
MVP'08
Hi Grace,
While the market has declined, it has declined less (or not at all) in the most desirable neighborhoods, and the most in lower income areas.
I looked at homes this week under $400k, in East San Jose, and everyone needed work. But, if you have the cash, resources and foresight, these are a great investment. But if you also want good schools, etc, you would be lucky to purchase a condo in that area for that price.
Investors are out snagging up the good properties. It is time to come out and get in the market. But you have to educate yourself. Look at homes out there and see what your money will buy for you.
Happy house hunting!

Linda Baker
0 votes Thank Flag Link Sat Apr 26, 2008
Grace, the truth is no. You cannot buy a foreclosed house in a GOOD neighborhood for that amount. You can buy a good rental in a not so good neighborhood though. Good luck.
0 votes Thank Flag Link Fri Apr 25, 2008
Hi Grace,

It is impossible. Even the market price is lower and more foreclosures on the market, it doesn't mean the value and the price of the houses will go down to the bottom almost equal zero. San Jose has been always a good area for homes with different level of prices depends on the neighborhood and school system. I guess that you just read the headline on the Mercury News on Thursday 4/ 24/ 2008 that mentioned about the population in San Jose might reach to 7 number figures. That means more people less houses. Do you know what will happen when demand exceeds supply? The cost of housing will rise again. We can have more people but we can't have more land. That is the fact. Also, in the next 2 years the job available rate in San Jose and San Francisco will raise to 2.1%. In addition, the cost of gasoline is increasing. Who knows how high it will be? That will make the high rise condos and closer housing where the jobs are more costly. SO you see, in San Jose if you are lucky to get the house around 450K in foreclosure in the area 95116, or 95121 you are making money already. If you can get one in 95148 then you win lotto. You know the market price there and when you buy the bank owned or foreclosure around $500, you know you have some equity at least 100K to make you richer. Good neighborhood always hold value of the homes. I see you are in Mission San Jose. My office is around the corner. You might want to stop by and we can chat about the benefit and what's good and bad in buying foreclosures as investment. Thank you for giving me the question so I can answer.
0 votes Thank Flag Link Fri Apr 25, 2008
I have been looking at sites such as http://www.realtytrac.com and Craiglist.com. Every ad seems to give an impression that you can obtain a house (not condo) for the price of a condo. It does seem to good to be true.

However, I also asked the same question on Craigslist and a few agents stated you can get property in the Bay Area for $0.50 - $0.70 on the dollar.

I am already pre-approved but I don't want to waste my time talking to agents who don't know what they are doing.
0 votes Thank Flag Link Fri Apr 25, 2008
Hi Grace - This definitely sounds too good to be true. That would be less than half price in the least expensive neighborhood. I really can't comment without more information. Where did you see this?

Roland
0 votes Thank Flag Link Fri Apr 25, 2008
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