You always have to consider replacement cost and breakeven rentals. Thats guaranteed to be your floor - infact you ll never seedue to vultures jumping in at about a 7% premium over the two componants of a market recovery.

RealtyTrac listing information is for homes with loans in default only. Make sure you know the true information about what loans and liens are outsanding on the property. Get the real facts and truth about the property situation. Hire a qualified Realtor agent.
Harrison K. Long
Realtor and Broker
Coldwell Banker Previews
949-854-7747 http://www.BuyersExploreHomes.com
or http://www.ExploreOCHomes.com
hklong@cox.net

no
Search all listings below
http://www.homebuyershope.com/custom1.shtml

One more thing about the low prices RealtyTrac is showing.... They are only showing one loan that is in default. There may be three or four loans on the property in addtion to any liens on the home. Red Flag!! Homes will never sale for a hundred thousand dollars under maket!! At best 15 to 20% below current market value. Doug is right.. Contact a Realtor!!

The WSJ article is in the Opinion column, thus the authors opinion. It took seven years of run up in prices to present conditions. Widespread acceptance and media reporting didn't happen until early 2007. I don't see this correction as being fully played out for at least a couple more years. There are still more ARM"s resets in the pipeline those who bought late 06. It will will be interesting to see how long til the bottom. We haven't even factored in credit conditions, high gasoil, devalued U.S. dollar, foodenergy inflation, weak consumer spending. I guess home prices have to compete with all of these factors and at current prices in California especially O.C. they are still somewhat high for most middle earners.

Hi Doug,
The prices from Realty Trac do not reflect the selling price. Instead these are the amounts that the properties will foreclose upon. But this does not reflect the whole story because we don't know how many liens does the property have.

They are in the business to make money. You have to give them your credit card info first and they hope you forget to cancel the free trial membership. Most of their information is dated and some of the prices on the site are whats owed on the loan and don't reflect current market conditions for what the house is worth. Good information on the site and they most certainly know how to get some great free PR time.

It is true that investors pick up deals early. They are many times buying the homes in bulk from the banks so that the banks can liquidate there money in a more timely manner than putting the houses on the market. However in this market we will most likely not see the prices dip to as low as 50% less than their peak prices because this foreclosure market is unique. Many of the people who are being foreclosed on are already looking to buy again. It isn't that they couldn't afford a home, it's just that they couldn't afford the home that they were in when their rate adjusted.
See this interesting article from today's Wall Street Journal:
http://online.wsj.com/article/SB121003604494869449.html

Isn't true that most investors snap up these deals before they even go to auction? I figured that some of the prices reflected loan balances only. Is it even possible to get a deal of 50% off peak 2006 prices? Another thing to consider is condition of the home it's no bargain if you've got to pour thousand into it immediately just to live in it.

Doug,

The listings that I am aware of from Realty Trac are those that are being auctioned. I think that they are roping customers in with this unrealistic price, but if the house is really worth that much more then you know they are not going to let go of it at that price.

My question would be if it is an absolute auction or not. If it is not an absolute auction and they don't get the priced desired then they don't have to sell.

That's just my opinion.......

Diane