Home Buying in San Jose>Question Details

Mjey, Home Buyer in San Jose, CA

How come I see Single Family Homes in San Jose sold for $25,000. Is this real?

Asked by Mjey, San Jose, CA Thu Feb 14, 2008

How come I see Single Family Homes in San Jose sold for $25,000. Is this real? How do I find these home?

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Those were foreclosures. There were two liens on the property and it looks like you're only seeing the small lien. The other liens are in the $500k or higher range. If properties were that cheap, we'd all own dozens of them! Darn!
1 vote Thank Flag Link Thu Feb 14, 2008
The information is coming from the Assessor's Records and is not an actual sales price. It could be a number of things.

(Wow -- $1,440,000 in the previous sale to $25,000! And this is funny --> "Information is compiled from public records. We receive regular updates from our data providers, but the data may contain inaccuracies. Please contact your local assessor or recorder office to correct this information.")

I think it would be more appropriate to explain where those numbers could be coming from.

Here is a very good reference explaining what you are seeing ---> http://www.trulia.com/voices/Foreclosure/Las_Vegas_Area_Fore…
0 votes Thank Flag Link Thu Mar 13, 2008
It was either a junior loan or sold to a family member or a really really really good friend :-)
0 votes Thank Flag Link Thu Mar 13, 2008
Hi Mjey,
I looked at the links you provided, I do not believe these are "arms length" transactions. They could be anything from inter-family transfers to delinquent tax sales, to foreclosures where the property title reverted to the bank via a trustees sale..."partial value" transfers. Eventually the average price for a home may come down to half of what they were a couple of years ago in that area....as you can see the average list and sales price according to that database is still in the $600,000 range.
0 votes Thank Flag Link Thu Feb 14, 2008
It's almost certainly a partial value transfer, or a non-arms length transaction. Most likely a property that was foreclosed on, and reverted to the bank at the trustees sale, and will subsequently be listed for sale at the current market value. Several clients have called me with similar questions when they see all the phony ads out there...usually they either want to get Buyers to call them, make a relationship and then sell them another property at the normal market value of the property. Other scams I have seen just want the $30 fee to access the properties on their website. All they find are one or two that are a lie ($20,000 for a decent house in an area where they sell for $400,000) and the other "thousands of great deals on properties for sale" are simply listings at normal market value prices, and you can access those same listings anywhere for free. When the client gives me the property address, the information is not true at all, in one case the property wasn't even listed for sale, and in another the property had sold a couple of months earlier (at normal price, not ten or twenty thousand). If it looks WAY to good to be true...it usually is!!!! (a scam). Good deals can be found, maybe 10 or 20% below market value in some cases...but they involve looking at the available properties....and waiting for the right deal to pop up (could be a month, could be a year). Then (and only then) jump on it fast because the good deals don't last !!! Mike Stone 818-481-8555
0 votes Thank Flag Link Thu Feb 14, 2008
0 votes Thank Flag Link Thu Feb 14, 2008
Where are you viewing these sales? I've never heard of such a thing.
0 votes Thank Flag Link Thu Feb 14, 2008
Have you seen houses that have sold for $25,000 on local assessors records, or have you just heard roomers of these sales? $25,000 may be the starting bid price at an auction.
0 votes Thank Flag Link Thu Feb 14, 2008
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