Home Buying in 92831>Question Details

Angela Noelle…, Home Buyer in Brea, CA

how do foreclosures work for new home buyers?

Asked by Angela Noelle Guevara, Brea, CA Mon Jun 24, 2013

Want to buy a home in about a year and a half but looking now. So many foreclosures but it seems if they are priced so low why aren't they already sold?

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Answers

9
If you are looking in Fullerton, specifically 92831 - don't expect to find many if any foreclosures. We have pretty much gone through the defaults in that zip code and I would not expect many new distressed listings to come on the market.
0 votes Thank Flag Link Sat Nov 16, 2013
Each foreclosure is different.
I once showed a house to a client that was listed for 160K.
Nothing was disclosed about 160K lien put on it by the city.
I called the city and found out about the lien.
Now, the price of the house was 260K max, at the time.
Of course, it didn't make sense to buy a house with so much "trouble".
But - you got to know to check on liens, code violations, title issues etc.
You have to work with an experienced professional attorney, and be prepared
for "surprises" that might come up when you are buying a foreclosure.

Also, if the property is in a bad shape - most banks won't lend on it.
Private money could be an option, but it is very expensive.
There could be construction/health hazards as well - so buyer beware!

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Wed Jul 3, 2013
sometimes that bank that foreclosed the house is obligated to fix or resolve any links in the house. Your agent should guide a little more.
Flag Sun Sep 22, 2013
Don't buy REO "exclusive" listings --- what you see is not meant for first time buyers. You will be blind-sided by those odd prices and what comes with it.

($10,000 homes when that's actually just one of the loans-- if that's first lien position you're in luck -- - but that will never happen in your time -- another lien holder will buy that out if the owner hasn't knocked on the door of friends to remedy his situation. It's not so simple and not worth chasing.
)..
there are many other examples of why some are left out to pasture even though it's such a low price.

Deal with a licensed, experienced, AND ETHICAL realtor.
Agnes Lago
714-308-8117
0 votes Thank Flag Link Wed Jul 3, 2013
What you are seeing is not the "actual price" but is the amount that is owed on the mortgage. Those homes with prices like $10,000 usually are redeemed by the owner and taken out of danger of foreclosure. There are real foreclosures out there and they are well priced but there are not as many as in prior years
0 votes Thank Flag Link Tue Jul 2, 2013
Hello Mrs Guevarra,
REO's (bank owned) properties are like any other normal sale except that they are stricter in deadlines and penalize you heavily if you cancel the transaction or fail to close on time (usually 30 days).

Your best first steps are :
1) to talk to a realtor who has been around in the ups an downs of the real estate market in the last 15-20 yrs.(like yours truly) and have handled different kinds of sales, including REO's,
and
2) to get a prequalification now -- so you know exactly what you need to prepare for.

You may find that you may need a cosigner, or would rather have a lower monthly payment, or can 't qualify for a low down if the payments gets too big based on what price and type of a house you're targeting.

Every buyer has a different overall profile and although there are perks for first time buyers to get the lowest down, (there are even 0 down in agricultural zoned areas -- but are you willing to drive to those and are you planning on renting out the house eventually?)
Also, you may not want to deal with the MIP (Mortgage Insurance Premium which could be as high as .6% of what your loan amount will be.. so even if you can do a low 3-5% down, you may want to check all your sources of money (such as you & your husband's 401 k-- check your eligibilities to withdraw from there and how much is the rate and time to pay it back -- or maybe Cash value life insurance and other sources?)

Some banks have loan programs allowing that 10% down with no MIP..but these are seasonally offered and usually for first time buyers, and some based on trade/work of buyer.

Anyway, ask for an estimated closing cost with your loan app from the bank to get a full picture pf the moneys you may want.
Call me at 714-308-8117 ..I used to originate loans and can refer you internally in our office or directly to one of the banks since you're not really ready to buy yet. This i a free service.
I am focusing on real estate sales This is the best way to get you prepared.

And I would need to talk to you further to assess (preliminary of course) what type of a house will fit your needs. I can tell you what price you might be looking at based on the area and your other parameters.
( I sell and list in a wide area lived in Fullerton for the past 20+ yrs but cover Irvine, and very familiar with all the surrounding cities (LA, OC, Riverside, Corona. portions of San Bernardino, portions of San Diego).
- Agnes 714-308-8117
Shore Capital & Vista Pacific Realty


as well to save you the trouble shopping around with different banks.


Also HOA (home owners association) and Mello Roos are optional but if you are hoping for a new property built around yr 2000 & up..those likely has Mello roos for 30-40 yrs)..
With interest rates rising, financing is the your start and end in the real estate purchase. Most bank loan officers 8esp. the younger ones) recklessly just give you a quote for the loan payment for the loan they give you and base property tax forget to ask about the last 2.
0 votes Thank Flag Link Sat Jun 29, 2013
Hello Mrs Guevarra,
REO's (bank owned) properties are like any other normal sale except that they are stricter in deadlines and penalize you heavily if you cancel the transaction or fail to close on time (usually 30 days).

Your best first steps are :
1) to talk to a realtor who has been around in the ups an downs of the real estate market in the last 15-20 yrs.(like yours truly) and have handled different kinds of sales, including REO's,
and
2) to get a prequalification now -- so you know exactly what you need to prepare for.

You may find that you may need a cosigner, or would rather have a lower monthly payment, or can 't qualify for a low down if the payments gets too big based on what price and type of a house you're targeting.

Every buyer has a different overall profile and although there are perks for first time buyers to get the lowest down, (there are even 0 down in agricultural zoned areas -- but are you willing to drive to those and are you planning on renting out the house eventually?)
Also, you may not want to deal with the MIP (Mortgage Insurance Premium which could be as high as .6% of what your loan amount will be.. so even if you can do a low 3-5% down, you may want to check all your sources of money (such as you & your husband's 401 k-- check your eligibilities to withdraw from there and how much is the rate and time to pay it back -- or maybe Cash value life insurance and other sources?)

Some banks have loan programs allowing that 10% down with no MIP..but these are seasonally offered and usually for first time buyers, and some based on trade/work of buyer.

Anyway, ask for an estimated closing cost with your loan app from the bank to get a full picture pf the moneys you may want.
Call me at 714-308-8117 ..I used to originate loans and can refer you internally in our office or directly to one of the banks since you're not really ready to buy yet. This i a free service.
I am focusing on real estate sales This is the best way to get you prepared.

And I would need to talk to you further to assess (preliminary of course) what type of a house will fit your needs. I can tell you what price you might be looking at based on the area and your other parameters.
( I sell and list in a wide area lived in Fullerton for the past 20+ yrs but cover Irvine, and very familiar with all the surrounding cities (LA, OC, Riverside, Corona. portions of San Bernardino, portions of San Diego).
- Agnes 714-308-8117
Shore Capital & Vista Pacific Realty


as well to save you the trouble shopping around with different banks.


Also HOA (home owners association) and Mello Roos are optional but if you are hoping for a new property built around yr 2000 & up..those likely has Mello roos for 30-40 yrs)..
With interest rates rising, financing is the your start and end in the real estate purchase. Most bank loan officers 8esp. the younger ones) recklessly just give you a quote for the loan payment for the loan they give you and base property tax forget to ask about the last 2.
0 votes Thank Flag Link Sat Jun 29, 2013
A foreclosure purchase is like any other purchase. Foreclosure properties however come in all types of conditions. You may have very little to do (paint & carpet) OR you may need to put in a brand new kitchen. Some real estate agents are pricing properties below market value to create a buying frenzy and drive the price up. Unfortunately some websites are out to simply capture buyer leads. There are not a lot of foreclosures on the market here in California. Make sure you work with a Realtor to ensure you are getting accurate information.
0 votes Thank Flag Link Mon Jun 24, 2013
Hello today: The first question which I would ask you is "Where are you obtaining your data from?" Too many sources on the internet provide miss-leading data in order to capture you as a subscriber for their service. Example...they will publish the dollar amount which the owner owes the bank for missed mortgage payments and any penalty fees they owe which is why the amount is so low. The truth about our marker right now, OC and LA County, is that a listing will sell within 7 - 14 days if priced correctly. Homes which are over priced will not sell within this time frame and right around day 25/30 they home owner will reduce their listing price.

Final note here: home appreciation this year is right around 5% so far but some areas have seen a 14 to 27% appreciation YTD, year to day, which is scary when interest rates are rising. Just remember that you can buy a home with a FICO score of 580 with as little as 3.5% down or as little as .5% down if you qualify. Make sure that you are working with professionals who can guide you in the right direction and who are looking out for your best interest.

Hope this sheds some light on your question and I am more then happy to add more value should you have additional thoughts. By the way I have a blog which shares with you both newly listed bank foreclosures for sale and newly repossessed homes that the bank took from the previous home owner at the trustee sale.
0 votes Thank Flag Link Mon Jun 24, 2013
Mrs Guevara,

You would really need to get specific on your foreclosure question. What you might be seeing is the second or third trust deed foreclosing and you want NOTHING to do with that. I would suggestion contacting an experienced agent to assist you in your home search.
If you need any help let me know

Joe Homs/ Realtor
949-625-4533
Joe@Joehoms.com
Web Reference: http://joehoms.com
0 votes Thank Flag Link Mon Jun 24, 2013
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