Property Q&A in San Mateo>Question Details

Vishal Krism…, Home Buyer in 94401

How does a person go about buying foreclosure houses?

Asked by Vishal Krisman, 94401 Sat May 2, 2009

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This question is about this property: http://www.trulia.com/foreclosure/2004393154--Peninsula-Ave-…

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4
Vishal
I would not recommend trying to buy a foreclosure on the courthouse steps.
That is activity only suited to professionals who do it all the time.
Most REOs end up on mls and have your agent search the mls.
Short sales are generally a big waste of time - takes 2 to 3 months to get a firm answer from lender - and even then the sale might never come together as lender may refuse to accept a short payoff.
With REOs you will get a response within a few days.
Be careful with condos, Freddie Mac and Fannie Mae have rules that if over 15% of the homeowners are behind in the HOA monthly dues, Freddie Mac and Fannie Mae will not buy the loan which effectively means no lender will make the loan.
0 votes Thank Flag Link Sun May 3, 2009
Hi Vishal,
The condo you are asking about is Peninsula Plaza located at 320 Peninsula Ave, San Mateo. At this time there is one active listing at Peninsula Plaza, a two bedroom, two bath unit priced at $345,000. The unit currently for sale is not a bank owned property, however it is a short sale.....There are many companies like RealtyTrac, that do not provide you with all the details of listings because they want consumers to purchase a service from them...there is a much simpler and less expensive way. All you need to do is reach out to a real estate agent in the area you are interested in. They will assist you with information on all the listed properties and be happy to discuss the pros and cons of buying foreclosed (bank owned), short sales and other listed homes.
Trulia is a great way to find a real estate agent.......you will see agent profiles and answers to questions such as yours.
My Trulia Blog has postings regarding the outstanding opportunities available to buyer today.
http://www.trulia.com/blog/russ_boyd/
Good luck...
Russ Boyd
650 325 7877
Web Reference: http://www.bayareateam.com
0 votes Thank Flag Link Sat May 2, 2009
Hi Vishal,

If you like this complex there is a similar condo which is being sold as a short sale (the lender has to agree to let the owner sell the property for less than the debt that is owed on the property).

Meanwhile, when purchasing a bank owned property there can be more risk to the buyer in that the lender is exempt from providing certain disclosure documents. Since the lender has never lived at the property, some of the nuances of a property will be unknown. This is where being extremely diligent in doing inspections will be very important.

It’s not uncommon for there to be some appliances missing with an REO property (Real Estate Owned) and sometimes some damage caused by the vacating resident. These drawbacks are reflected in the lower than market value price. I’ve helped clients get into REO properties which were actually fairly move-in ready & needed just a coat of paint or a carpet change. There are some great values out there!

Best wishes,


Cheryl Bower, Realtor , GRI, ABR
Cell 415.999.3450
Zephyr Real Estate
Cheryl@cbower.com
http://www.cbower.com
Web Reference: http://www.sfbungalow.com/
0 votes Thank Flag Link Sat May 2, 2009
Hi Vishal - A true foreclosed home is purchased in cash via money order at the front door of the courthouse in Redwood City. Those sales happen every day around lunchtime.

An REO or real estate owned property is typically sold through a real estate brokerage on the multiple listing service.

The property you're inquiring about isn't on the MLS yet. My guess is that it's still in process with the bank to get it on the market.

Best,
Vicki
0 votes Thank Flag Link Sat May 2, 2009
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