Hello, why does it seem like there are so many foreclosures in the san antonio area?

Asked by Al, Lovington, NM Sun Jan 11, 2009

--Hello, why is does it seem like there are so many foreclosure homes in san antonio? We are looking at relocating this coming summer and are looking for a great deal on a home. Is it smart or not to buy a foreclosure? Would we have to pay cash, or would we be able to get a mortgage for a foreclosure? Thanks Al. maral72@netzero.net
This question is about this property: http://www.trulia.com/foreclosure/2003222955--Quiet-Ridge-Wa…

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ApartmentReb…, , San Antonio, TX
Wed Jan 14, 2009
A seller's disclosure is not required on a foreclosure. I would suggest buying a recently built property. What is going to drive your decision, location, price, or time?
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Faye Taylor, , San Antonio, TX
Mon Jan 12, 2009
There are numerous factors that come into play. Most of those have been addressed in the previous answers but another factor that comes into play is the following.
TX has always been a consumer friendly state in their laws or maybe I should say leans toward consumer protection. It was one of the last two states that held out to not allow anyone to take a home equity loan. Then when that was changed, Texas will only allow a 80% equity loan compared to some states like Florida which allowed a 125% equity loan. Can you imagine owing a home worth $100,000 and having a loan for $125,000 on that property?

If you were a lender and you have someone who owes you $125,000 on a 100,000 or someone who owes you $80.000 on that same house which owner would you work think is in your best interest to work with? One on which you are guaranteed a definite loss or one with a possible gain or less loss when you foreclose and sell the home? It make more sense for a lender to foreclose on a home that has equity vs a home that does not. While it is costly to foreclose the bank is in a better position if there is equity in the home vs not. There are tons of home equity loans in TX now. I would say almost everyone I know has refinanced their home since the law was changed.

Also, you have to forgive me for this explanation because it was discussed over 3 years ago by a long term Realtor and I am vague on the information. Someone from CA may be able to expound on the differences between TX and CA loans / title transfer but I cannot. This Realtor was explaining to us something about loan criteria and title transfer in TX vs CA and explained that is why TX numbers were higher than CA as TX is more stringent than CA. The process keeps the home from foreclosure by moving it or the loan in a way we cannot in TX.

I have seen anything from good condition to horrible conditions on the foreclosures. Also consider a short sale home also.
While the foreclosure home may be a good deal, the process is much more time consuming and it will take longer to get your home. You also have to consider other things: if someone is so cash strapped they cannot pay their house payment, why would they do the small things needed to keep their house maintained? May not service the air conditioner, repair or replace roof, fix any non working appliances, plumbing problems such as leaks or slow drains, treat for pests such as termites, may not even do things like change their air filter regularly.

In a short sale or foreclosure, you will always be purchasing a home "as is" with all its problems so the actual cost may be hidden.

Faye Taylor
0 votes
Matt Stiglia…, Agent, San Antonio, TX
Mon Jan 12, 2009

As with most towns at the moment, there are more foreclosures than normal. The factors listed in some of the other answers as well as a general "heightened awareness" of foreclosures because of the constant news about them, definitely makes foreclosures stick out. Foreclosures have grown in most communities over the past few years. Here in San Antonio, our foreclosure posting rate for 2008 is 23% higher than 2007 and has risen 41% over the past 5 years (2003-2008). Banks are doing what they can to get these homes of their books.

You mentioned the home on Quiet Ridge Walk. The community (Northchase) is close to my own home and I can tell you that based on my knowledge of the area, the foreclosure bidding price listed by RealtyTrac ($128,250) seems a bit high. There is currently a house on that street (7019 Quiet Ridge Walk) that is same size, bedroom, and bathrooms and is listed for $124,900. Now of course, it is possible that the homes have some major difference on the inside that I am not seeing by just looking it up on the computer (which is why we go look at houses when looking to buy one - imagine if we bought them all sight unseen!).

Buying a foreclosure can be difficult and a bit more time consuming that a normal purchase, but if you know what you're doing and have an agent on your side who's ready to take the time and work through the process, you can do it with less problems. The kind of foreclosure you mentioned however, is set for auction (it was listed as December 2, 2008). Auctions are a lot more complicated as you have to be prepared to purchase the home then and there if you make the winning bid and the people who are bidding on them are usually savvy investors that do this on a regular basis. I don't recommend it to anyone who hasn't done it before.

As others have mentioned, you can get a mortgage just like on a normal house. If you have cash, it can help a bank make their decision if they get multiple bids, as cash is "safer" for them than waiting for someone to arrange financing. Writing a good offer that protects your interests and gives the bank confidence that the transaction will go through to close is the key.

Hope this help! Any other questions, feel free to ask.

Web Reference:  http://www.mattstigliano.com
0 votes
Frank Bailey, Agent, San Antonio, TX
Sun Jan 11, 2009
Foreclosures are homes the banks want to get off their books; that means despite their price, a "good deal" is what you make it and, what you look to spend in the future. Now, in San Antonio, we are at the lucky end of the spectrum as our homes are affordable; ie. more bang for your buck. On the same note, in a forclosure, in some ways, you get what you pay for. Now if you're looking for "move in ready" that can be done even with foreclosures, it's just how much you want to initially invest to make "home sweet home" that much more comfortable for you and your family,
Web Reference:  http://www.fabailey.com
0 votes
Cathy Becker…, , 78232
Sun Jan 11, 2009
There are numerous foreclosures in every area but I personally feel that San Antonio appears to have more than other large cities due to the lack of suburbs. Even areas such as Helotes, Hollywood Park, Shavano Park etc tend to show up on the San Antonio list though they are within another city's incorporated area.
There are some GREAT deals out there on foreclosed properties and there are some deals that come with a home similar to that depicted in "The Money Pit" movie. They require a knowledge of the area, the prices, the condition and most importantly, the process etc. The time required to negotiate and complete the purchase of a foreclosure can be extensive. I am finishing one that has gone on for 3 months because the banks are so overwhelmed and the paper work is incredible. It will still take another 20-30 days to close. However, every bank is different.
You DO NOT need to pay cash but if the home is currently in a bidding period, the lender looks at "the bottom line" and the ease of the transaction, hence cash helps. I have successfully closed numerous deals on foreclosures and thus far all of these have involved a mortgage.
Should you wish to receive the listings via e-mail for FREE I would be happy to send these properties to you as they come available. I would also suggest beginning your search as soon as possible because you do not want to end up in a situation where you need a place to live and can't wait out the process in order to receive a great buy.
Please contact me for more information on the process, areas or to receive any foreclosure listings.
0 votes
Steve Johnson, Agent, Spring Branch, TX
Sun Jan 11, 2009
Great questions and concerns. Al first of all there are quite a few foreclosures due to the economy. Yes you can get a deal on a foreclosure, just dont expect it to be be like those commercials you see on television for 10r 20K. I recomend getting preaproved because the banks holding the foreclosure want to make sure you are a serious buyer. If you go to http://www.southwestalliance.com you will be able to see some HUD homes for sale in all of Texas and New Mexico. I also get a mothly list of foreclosures that I can e-mail you that come out to me on a monthly basis. If you are relocating I would also target an area in San Antonio that will be fairky close for commuting and school information if you have or are planning for children. I would be more than happy to provide you with any and all information that could help you with your decision.

Thank You,
Steve Johnson
Prudential Classic Realty
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