Home Buying in Santa Monica>Question Details

Blas, Home Buyer in Santa Monica, CA

If a foreclosure home starts at $10K. Will it sell at that price or will it be much more expensive? Are there normally alot of bidders?

Asked by Blas, Santa Monica, CA Sun Aug 12, 2012

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Foreclosure homes usually go for the highest and best offer is taken by the bank ,all offers which are competitive must be submitted HENA MARTIN BROKER 760-251-2868
0 votes Thank Flag Link Sun Jan 20, 2013
Blas,
Auctions can start low, but they would normally sell at fair market value for that type of property and specific conditions such as tenant occupied, TORCA, etc. Nowadays, the inventory is low and there are a lot of investors looking for properties. Hope this helps, I specialize in foreclosed properties. Contact me if you have further questions.

Elizabeth Sorgen
310-469-0500
0 votes Thank Flag Link Mon Aug 13, 2012
I've been helping First Time Buyers for 22 years as a mortgage professional and I will tell you what I have always told my clients here in New York: If you are a First Time Buyer, steer clear of foreclosures and short sales.

Foreclosures are someone else's headache. The home probably has not been well-maintained and you're a First Time Buyer adjusting to paying a mortgage. Do you really want to walk in the door to someone else's deferred maintenance that YOU will have to pay for? Also, if you're thinking there are deals to be had in terms of lower prices, mostly those "deals" go to professional investors who can pay cash, negotiate hard with a Lender, and close fast.

For Short Sales, my attitude of late is that First Time Buyers should steer clear. Short Sales tend to be a better deal for the homeowner than for the Buyer. You'll wait MONTHS for the homeowner's Lender to approve the short sale; maybe as long as Six or Seven Months. Meanwhile, you're stuck in a contract to buy that home. I closed a short sale recently with a Buyer who, after seven months said this at the closing table, "I don't even want this house anymore."

And he didn't even get the "deal" on price he thought he was getting! The house appraised for only slightly more than he paid for it at the short sale price. He walked into this deal thinking he was buying a home for $100,000 less than it's value. In the end that wasn't the case.

There are plenty of motivated Sellers with their homes listed on your local MLS. Go find a good Local Mortgage Banker, get prequalified, then find a great, experienced Realtor, and buy the home you want at the price you're willing to pay. It's a Buyer's Market, after all!

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Mon Aug 13, 2012
Yes, there a lot of investors attending the auctions. For $10 K you can probably buy a small parcel of land. There's no way a home will go for that price, unless it comes with a large amount of delinquencies that the buyer will be responsible for. The banks always have a reserve price for the auctions. If the property doesn't sell at a reserve price or higher, banks take those properties to their own portfolios and those properties become REO listings. Reserve price and starting bid are often completely different numbers.

Call me if you'd like more information about buying property at the auction. I go to the auctions a lot, going to one tomorrow.

Lena Samigoullina
(310)625-9005
0 votes Thank Flag Link Sun Aug 12, 2012
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