Home Buying in 95628>Question Details

Sirenspan, Home Buyer in Fair Oaks, CA

Looking for assistants to buy a house to stay in.

Asked by Sirenspan, Fair Oaks, CA Thu Jun 6, 2013

My situation: trying to buy a house in area where my kids will go to school (register) before Jan. 2014. I'm qualified to 450,000.00 and could go higher if need be. We have large equity in current home, but trying to purchase a home (foreclosure) is tricky. Seems when we try to contact current owner (lender or person in home) we get no response. Then the same house will go to short sale or to market before getting a chance to buy before hand. Can we get some guidance on what to do please. Try to buy normal marketed house sale seems like someone is getting the information before anyone has a chance to. Please help.
Jeff J.

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6
Hi Jeff! When buying a foreclosed home, you purchase it from the bank and not the current owner. This is because the bank forecloses on the home in order to mitigate their losses. You can purchase a foreclosure by bidding on the courthouse steps (a very competitive process now) or by placing an offer on a property that is listed on the MLS. You will get a negative response if you contact an owner who is underwater in their home.

To no fault of your own it's a common myth that foreclosed homes sell for less than what they are worth. Regardless if a home sells on the courthouse steps as a foreclosure or a home that's a traditional sale that was listed on the MLS, the home will sell at more or less current market value. Therefore, I recommend to get in touch with a qualified Realtor to help you with your home search. I hope that helps but please contact me if you have any questions.

Thanks,

Jason Walter

REALTOR® - lic #01923240
Certified Public Accountant (CPA) - lic #103885
Hammer Real Estate Group
jasonwalter.re@gmail.com
cell ph (916) 716-1341
0 votes Thank Flag Link Mon Dec 2, 2013
There are several real estate markets. Most homes that sell go through the MLS. The next most common type of sale off of MLS is a direct builder or regular seller sale at full market value or above. The next common one is a bulk sale between institutions. Such as a foreclosing bank sells a portfolio of a dozen foreclosed homes to another large corporation. They buy in bulk. not one off. That is why they get a discount. Then there are the non-arms length transactions. Someone sellls to a freind, a relative, an associate, a crony. The least common type of sale is where Joe Consumer finds a discounted needle in the haystack that none of the professionals could find. But if you buy my series of books, cds and videos., I'll tell you how to do it.

Just kidding. I don't have books and videos.
0 votes Thank Flag Link Sun Aug 4, 2013
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
Hello Jeff,
Please let me know if you need any assistance with your home financing! Mortgage interest rates have increased over the past few weeks...contact me for current rates.
Thank you,
Geoff
geoffprettyman@princetoncap.com
0 votes Thank Flag Link Sun Jun 9, 2013
It seems that you're off track in buying a home in today's market. First, a distressed homeowner who is threatened with losing their home is not going to welcome you in with open arms to buy their home out from under them. You are looking at it by thinking that you will be getting a great deal. They are looking at it as losing the safety and security of their home. They will never be interested in talking to you, you have conflicting interests.

First a homeowner will try to save their home and as a last resort, short sale it. It's a better option for the homeowner, but for us in the general public as well. You cannot buy it without it going to the general market so that the lender who is realizing a loss can at least try and recoup the most money that they can from the property.

If you are buying without any competition, I would venture to guess that there is fraud involved. There are ways to buy a home in todays market but expect to compete for the home. You cannot buy it 'beforehand'. it doesn't work that way.
0 votes Thank Flag Link Thu Jun 6, 2013
Hi Jeff,

There is normally a 3 to 6 month lag between a home being foreclosed (going to trustee sale and being bought by the bank) and the subsequent listing of the home by an agent. The assignments to the asset managers happen relatively fast, but the actually listing of the home by an assigned brokerage is what takes time. The banks have a lot of things to do legally before they will release an REO (bank owned home) back into the marketplace. As a result, a lot of homes just sit there and unless you are represented by someone who will take the time to track the release of the home, you are pretty much unable to do anything but wait.
In the case of short sales, the distressed party(s) are bombarded by phone calls and direct mail...all geared towards trying to sell a modification or get a listing. With all that noise, it's no wonder you can't get a hold of them. They are in denial and in full avoidance mode. Another problem is that when an agent finally does get a short sale listing, they usually already have a buyer lined up for it or, if not, the property will get multiple offers... many cash and over asking! It's a tough market for buyers right now..
However, there is hope for the weary.. I started doing my "buy to suit" program many years ago (late 2005) when I first saw what was happening and began counseling homeowners in trouble. To date, my team has helped many families navigate the troubled short sale waters, rebuild their credit stature and become homeowners again. I'd love to share a little more about how we do things a little differently if you are so inclined. Let me know and either way, I wish you the best of luck in the pursuit of your new home.
0 votes Thank Flag Link Thu Jun 6, 2013
Hi Jeff. In our market, it is unlikely that you will be able to buy a foreclosed property ahead of the rest of the market. That situation just doesn't present itself like it seems like it would.

However, in your price range in Fair Oaks, you should have a pretty reasonable chance of getting a house you would make an offer on even with normally marketed home sales.

If what you are looking for is to get a house at below market value, that just isn't very realistic right now, which is probably why you are running into problems trying to get early info on foreclosures. For the most part, buyers are having to compete in multiple offer situations and offer above list price to get their offers accepted.

Call me and I would be happy to look up any houses that you are interested in visiting or finding out more information on. Or I can even look some up for you if you prefer.

Julie Hintz
I.C.A.R.E. Realty
(916) 390-6492
julie@icaresac.com
http://www.icaresac.com
0 votes Thank Flag Link Thu Jun 6, 2013
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