Home Buying in 94114>Question Details

M, Home Buyer in 94114

What is the real story with foreclosures? How does a first time home buyer take advantage of this market and?

Asked by M, 94114 Sun Jun 22, 2008

benefit from someone else’s unfortunate situation? I see homes in San Francisco for under $100k. Is it truly possible to buy it for that price?

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Hook up with a great agent in the area you're looking. Many times local agents have access to listings that may not be known to the general public. Also, beware of listings on Trulia that are not actual available inventory, rather homes being marketed as Notice of Defaults as lead generators for websites that sell information.
0 votes Thank Flag Link Wed Feb 29, 2012
I think a first timer is best served by looking into bank repo's. These are foreclosures that have been put back on the market. You tend to get a lower price than a standard home without all the headaches of a short sale.
0 votes Thank Flag Link Wed Feb 29, 2012
You can take advantage of the properties very easily. Work with a good Realtor and have patience. You can expect to pay market value for any property in San Francisco proper. There are still more people that want to live here than there are places to buy. If the value is only $100K it can't be much and it can't be in liveable condition.

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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
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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.
0 votes Thank Flag Link Mon Jun 23, 2008
Jed Lane, Real Estate Pro in San Francisco, CA
MVP'08
Contact
Hi there M. It can be a very complex and you need to be well educated, If you go into this not prepared or with some one to hekp and guide you, you could make some bad expensive decisions. Most likely the homes you are seeing is the NOD amount and not the actual sale amount. Check the real information. I would work with a professional realtor who works foreclosures. Here is articel that mighr be helpful, It outlines the basics
http://promo.realestate.yahoo.com/promo/smart-ways-to-profit…

Kind Regards
Michael Barron
First Team Real Estate
(714) 552-6817
0 votes Thank Flag Link Sun Jun 22, 2008
Hi,

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!

Lisa Cartolano
Alain Pinel Realtors
http://www.LisaCartolano.com

Check out this blog, Real Estate News Without The Schmooze at http://www.NoSchmooze.com
0 votes Thank Flag Link Sun Jun 22, 2008
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.

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.
0 votes Thank Flag Link Sun Jun 22, 2008
The only way to know for sure what price a seller will accept is to make a written offer.
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?
0 votes Thank Flag Link Sun Jun 22, 2008
First time home buyers have been hit by the sub-prime market crisis we've all been reading so much about. In San Francisco this includes areas such as the Bayview, Excelsior, Crocker Amazon, Daly City. Many of the few foreclosures we have in the city are properties that are not in very good condition -- I've gone to see a few of these properties and I'm not sure that you'd be getting "a deal," probably more of a "money-pit" scenario is how I see it. I'm not aware of any residential properties in SF available for under $100K -- although there are some business opportunities listed at this price -- my dad used to say, "If it sounds too good to be true, it probably is." You are right in that good properties priced very competitively sell very quickly in our market. The $100K may only reflect a single lien on the property -- perhaps a second, that is not being paid by the homeowner, and wouldn't include the first , and larger, loan on which they are still making payments. Just my 2 cents on our market.
0 votes Thank Flag Link Sun Jun 22, 2008
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