Audrey Scott, Home Buyer in San Pedro, CA

How do I find out more about purchasing a foreclosed home. My realtor doesn't seem interested in showing

Asked by Audrey Scott, San Pedro, CA Sat Nov 21, 2009

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This question is about this property: http://www.trulia.com/foreclosure/2007179719--Yacht-Harbor-D…

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Hello Audrey,
I hold the key too many different home/ properties including Foreclosure.

In order to be able to attend a Foreclosure - Auction, Your finances must be lined up and a 10% Check of Deposit must be presented. The asking price may sound too good to be true, that’s why you went to the auction and many other people as well, the outcome is disappointing.

The sales price will be in most cases much higher than the asking price.

The disadvantages are:
Property is sold in as is condition, no Warranties, No Inspections and if for some reason you want to withdraw your offer you will loose your deposit!

So much for Foreclosures.
I recommend a regular Real Estate transaction, REO’s or Short - Sale.
In a regular sale the Realtor presenting you in the transaction has a fid usury duty to protect the client’ interest.

In order the serve, my clients better, as a Realtor, I need to know all of my clients needs
,
The area where they want to live, so the children being able to attend the schools of Joyce.
How many Bed-Rooms, Bath-Rooms, Square feet, Living area Lot, Pool, View etc.?

The Home-Buyer has to know: How much home they can afford, what are the monthly payments, taxes, insurance, HOA, utilities etc.....

To come to the point, the Buyer has to be Pre-Qualified in order to get started.

Audry, If your any other question, just contact me.

Ryan Gussman, Realtor,SRES, e-PRO
Altera Wilson Real Estate
Selling-Buying-Close-Escrow-with Ryan

I Specialize in Listings that have not SOLD!
Ryan helps the Community to get affordable Housing and up to $8,000 in Benefits
800-985-0691
818-429-4863
Ca. License # 01214018

http://www.RyanDreamHomes.listingbook.com

RyanReoBPOShortsaleSpecialist@gmail.com

Nosotros Hablamos Español
Wir sprechen Deutsch
0 votes Thank Flag Link Sat Nov 21, 2009
Properties that have been foreclosed on by a bank are eventually listed for sale through a broker and included on the multiple listing service like any other property. One problem with purchasing a home that has gone through foreclosure is that the seller ( the bank ) will be selling the property on an "as-is" basis and will not be able to provide you with any disclosure information about problems that may exist with the house. In addition, many homeowners have left their foreclosure property in poor condition as they have had no incentive to maintain the home, and may actually have been vindictive to the lender and trashed the house before they were evicted. People have an impression that they can get a steal by buying a foreclosure property, but you generally get what you pay for.

As was previously mentioned, buying a property at a foreclosure sale is also a risky process. Again, you are buying the property without being able to inspect it or knowing the problems with the house, and it may very well be a money pit. Attempting to buy a property from a seller who is in foreclosure, especially through a real estate agent, can also be a probloem, as explained below, because of the strict laws in place which are intended to keep people from taking undue advantage from homeowners who are in foreclosure.


Some people spend a great deal of time seeking out properties that are in the foreclosure process. These are known as pre-foreclosure properties. The first source of information in seeking out these properties is to review local papers that publish notices of default or notices of sale. There are other services for a fee and pre-foreclosure data services which research the public records for properties for which a notice of default or a notice of sale have been recorded. Direct contact with the delinquent borrower may provide an opportunity to present an offer to purchase the property at a distressed price below market rates. If the borrower is not able to cure the delinquency during the 3 months subsequent to the initial recording of the notice of default, they may be willing to discuss a sale of the property in order to at least salvage some of the equity that they have in the property. Keep in mind the fact that most of these properties have a large amount of deferred maintenance issues since the borrower has probably not had the resources to properly maintain the home. California, however, has laws protecting property owners during the foreclosure process which prevents someone from taking unfair advantage of a homeowner with a property in foreclosure, as can be seen from this excerpt from California Civil Code 1695.13, .14, and .8 taken from http://caselaw.lp.findlaw.com/cacodes/civ/1695-1695.17.html :

"1695.13. It is unlawful for any person to initiate, enter into, negotiate, or consummate any transaction involving residential real property in foreclosure, as defined in Section 1695.1, if such person, by the terms of such transaction, takes unconscionable advantage of the property owner in foreclosure.

1695.14. (a) In any transaction involving residential real property in foreclosure, as defined in Section 1695.1, which is in violation of Section 1695.13 is voidable and the transaction may be rescinded by the property owner within two years of the date of the recordation of the conveyance of the residential real property in foreclosure. (b) Such rescission shall be effected by giving written notice as provided in Section 1691 to the equity purchaser and his successor in interest..."

The key in the above, is what it means to "take unconscionable advantage" of a homeowner in the foreclosure process. This does not mean that a top price needs to be paid, but it does mean that a significantly below market price, when taking all issues affecting value (such as location, interior lay-out, square footage, age of the home, condition of the home, views, etc.), negotiated with a homeowner in the foreclosure process, may expose the new buyer to not only rescission of the sale for a two year period following the sale, but also to possible criminal prosecution.and a fine up to $25,000

The most important piece of information when investing in foreclosed property is to know the property's market value, taking into consideration its current physical condition. It is usually a good practice to engage the services of a real estate broker when negotiating on a property in foreclosure. They can prepare a comparative market analysis (CMA) on the property, which takes into account both previous sales of comparable properties

For more info on foreclosures and short sales, see http://www.maureenmegowan.com/Nav.aspx/Page=/PageManager/Def… or email me at mmegowan@cox.net
0 votes Thank Flag Link Sat Nov 21, 2009
Audrey:

Your realtor is probably not the problem if you are asking to see properties that are showing in the Trulia foreclosure listings. These properties are rarely for sale. On October 20 I wrote a long explanation of the phases of foreclosure (you can go to my profile and look for this posting or send me an e-mail and I will forward you a copy of it) and how you would purchase property at each phase of the process.

Here is the information regarding the property you are referencing above.

(1) There is a Notice of Trustee Sale filed on this property. The original auction date was in September, it has been postponed to December 2009 due to ongoing negotiations between the home owner and the lender. And the loan in forclosure is not the only loan on the property. There is another loan outstanding on this property and it is recorded as a 1st TD even though it was not placed against the property until Sept 2009 (the loan in foreclosure carries a date of March 2006).

(2) The property is NOT currently listed for sale and may never be available for sale (assuming the home owner and the foreclosing lender can work something out). Therefore, no realtor would be able to "show" you the property.

(3) If you want to purchase a property before the bank completes the foreclosure process, then you have to work directly with home owner (in other words, your realtor has to work with the homeowner) and convince them to sell to you. Obviously, if the bank is negotiating a loan modification or any other type of workout they are not going to entertain selling the property.

Hopes this helps clear up the confusion. As you can see, its not that your realtor is not interested in showing the property, it is that the property is NOT FOR SALE. Let me know if I can answer any additional questions and Dare to Dream.

Shel-lee Davis, CDPE
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
http://shel-lee.listingbook.com
0 votes Thank Flag Link Sat Nov 21, 2009
There are several ways to purchase a foreclosed homes. The first step after a forclosure is complete is the home will be for sale at auction. You would need to go to the county court house with a cashier check (that you would not get back) and bid on the property, if you were high enough, you have a short time to come up with the rest of the purchase price or you lose your deposit. Unfortunately this process generally does not allow you to see the interior or do an inspection before buying.

If the property is not sold at auction (meaning no takers) and most are not, then the bank lists them with a Realtor and they go on the MLS, just like any other standard sale.

REOs in RPV have been selling with multiple offers..so you need to act pretty quickly and generally make your best offer.

The property you listed is not for sale yet, and not available to be shown.
0 votes Thank Flag Link Sat Nov 21, 2009
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