Foreclosure in Santa Rosa>Question Details

Antonio Lina…, Home Buyer in Pittsburgh, PA

can you buy a foreclosure home?

Asked by Antonio Linares, Pittsburgh, PA Sun Oct 20, 2013

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Buyers interested in purchasing a property through foreclosures as home loans are low interest. Depending on the condition, year of construction, facilities of appliances included, location and other property-related details are effects on prices of foreclosed homes. With their reduced prices & various financial reasons, investing in a property through foreclosures makes for an ideal real estate venture for home buyers as well as investors.
0 votes Thank Flag Link Tue Oct 22, 2013
Foreclosures have dwindled to very small number and keep falling. The way to buy a foreclosure is using an agent with access to the MLS as all REO properties are listed on the MLS. Buying a foreclosure at auction is all cash, very risk and for super pro's only.
0 votes Thank Flag Link Mon Oct 21, 2013
Yes, I recently wrote a blog about finding foreclosed homes on Trulia. I'll put a link to the article in the web reference below. That should answer all of your questions.

J.R. Thrasher
http://www.SanDiegoRealEstateVeterans.com
619-929-0105
0 votes Thank Flag Link Mon Oct 21, 2013
First let me try to clarify for you, if the home owner is in foreclosure, homes can often not be bought as they simply owe more than what it is worth. When a house is in foreclosure and the bank sets the foreclosure date, You can bid at the foreclosure auction if you have cash and have reviewed the auction terms. IF the bank takes it back, it becomes an REO and the bank will place it for sale usually at market value less damage or needed repairs.
0 votes Thank Flag Link Sun Oct 20, 2013
A small percentage (around 5-10%) of foreclosures are sold at the trustees sale auction for substantially less than what the bank is owed. In my experience they typically start the opening bid at around 20-25% below what the bank believes the fair market value is. I agree with Yarrow that there are many risks involved with buying a home this way as well as the possibility that you may need to evict the former owners (now legally tenants) before you even have the opportunity to see the inside of the house and perform inspections..which may reveal major issues and expenses.

With most foreclosed homes the opening bid at the trustees sale is the balance the homeowner owes, plus arrearages (back due payments, accrued interest and trustees fees. These all typically add up to much more than the home is worth and of course nobody will bid on those properties so the title reverts back to the bank at the trustees sale via a trustees deed. The bank is then tasked with eviction of the former owners...and/or they offer them "cash for keys" and eventually the bank takes possession of the house. Then they typically paint and carpet and list it for sale with a real estate agent who then markets it the traditional way (listed in the MLS) with all of the other homes for sale. At this point sometimes it is still referred to as a "bank owned" foreclosed home or an "REO" which is an acronym for Real Estate Owned, which is what they call the division of the bank that is in charge of selling the real estate collateral the bank ends up taking back. Sometimes instead of listing it with a real estate agent the banks utilize the services of a private auction company (auction.com, etc.) to sell the property, but then too it is usually not practical to have proper inspections of the property since most people don't want to spend $800-$1500 on home inspections, Termite inspections, and possibly well and septic inspections when they don't know if they will win the bid on the auction or not.

The numbers of distressed sales (foreclosures or short sales) has dropped substantially in recent months, and continues to decline as it appears we have worked our way through the vast majority of the distressed properties, and the recent increase in the home values over the past year has converted a lot of the previously "underwater" homeowners to equity (traditional) sellers.
0 votes Thank Flag Link Sun Oct 20, 2013
Not sure what your question is, but if you are considering re-locating to California, please email for a list of foreclosures available and more information about the market out here. Best regards,
Terry Bell, Realtor
CPS Real Estate
Santa Rosa, CA
707-292-5712
DRE#01414808
TerryinSR@aol.com
http://www.TerrysHomes4sale.com
0 votes Thank Flag Link Sun Oct 20, 2013
yes they can be acquired for all cash at auction without the benefit of prior inspections which makes it a very risky process for people who do not have extra money to fix unknown issues. it is not for the inexperienced in my opinion.
0 votes Thank Flag Link Sun Oct 20, 2013
Once foreclosed and auctioned it really is no longer called a foreclosure since that is a process to convert ownership after the owner defaulted. The bank often buys them and then they are bank owned and they can sell it when they get around to it.
0 votes Thank Flag Link Sun Oct 20, 2013
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