FYI, out of 2397 properties, the only listing I found for under $100K in SF on Realtor.com was a fractional owner condo co-op. Writes Michelle
We have buildings in SF that are known as TICs because they are owned by a group of people as tenants-in-common. Because of our local politics and the constant fight between renters and people that want to own we can only convert 200 properties per year from apartments to condos. So people will purchase a building and create a contract amongst themselves to clarify who lives in which unit and all the other things that an HOA agreement would cover. They have individual loans for this product now.
For more information be sure to work with a local Realtor.
First Team Real Estate
Yes foreclosures are available and they can be a good deal for a first time home buyer as long as you the first time home buyer are well educated in bank owned properties. Often times these homes have various stages of deferred maintenance and could require you the buyer to put some work into the property. There is currently a rehab loan that does allow buyers to finance work that is needed for a property which can be great for the buyer since often times coming up with $40,000 cash to fix a pest report on top of the down payment and closing costs can be difficult.
The homes you see for 10K in San Francisco do not really represent the price that they are selling for. Often times you will see listings for homes that are in the pre-foreclosure stage and these list prices are what the lender is due to potentially lose on the property.
Foreclosed properties are listed like other properties with various lenders hiring Realtors to list and sell these assets for them. REO, or bank owned, listing are listed on the MLS like other listings. Agents who have full access to the MLS can search specifically for REO properties.
I personally think that REO properties can be a good deal for a first time home buyer, especially if you are willing and able to put some work into a property.
If you would like more detailed information regarding the rehab loan I mentioned or more information regarding REO property in your area, please contact me.
Good luck with your home search!
Alain Pinel Realtors
Check out this blog, Real Estate News Without The Schmooze at http://www.NoSchmooze.com
Foreclosure data sellers list the loan amount & the amount needed to cure the foreclosure - these numbers may fall under $100K but would not be enough to actually purchase the home.
Beware of your own greed - remember if the previous people couldn't pay to keep the home, there's usually at least deferred maintenance - and if it had been a good deal would already have been purchased. People in foreclosure will do some awfully destructive things - such as put cement down the sewer lines - not the kind of thing you might even look for.
Do you know anyone who's successfully purchased foreclosures? If so, get a referral from them. Most people who really make money in foreclosures are comfortable with a high amount of risk. If you're a first time homebuyer, I'd suggest you look for an agent who is willing to approach people in pre-foreclosure on your behalf.
Have you been pre-approved by a lender yet?