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Foreclosure in Cupertino : Real Estate Advice

  • All201
  • Local Info26
  • Home Buying101
  • Home Selling16
  • Market Conditions11

Activity 9
Fri Jun 22, 2012
Stu Carson answered:
Amelia, You are mixing up terms that make it hard to understand and therefore answer your question. On the one hand you ask about when and where to foreclosed homes are sold. On the other hand you refer to "tons of houses available at "Sheriff's Sale" in Santa Clara County. I can tell from your questions that you are very new to the subject of buying foreclosure property at the Trustee Sale.

In 2002-2005 I owned a company that bought properties at auction and flipped for profit. I understand the business well. Any one who knows it will tell you it is a risky business, not something for a person to try and do once or twice in a lifetime. Therefore, I highly recommend you hire someone to help you through the process. To do otherwise is like "reading up on appendectomies and then trying to do one on your own to save money. The risks in both cases are just too high. So again like in many areas of life, investing in hiring a professional is money well, very well spent.

That person will serve as your adviser through the process, deciding which properties to bid on, which not, and how high to bid, researching the liens against the property that could become your obligation upon buying it at auction, going to auction with you, etc... to pay them only if you actually buy a property and to pay them 2% in the event you found what you wanted and got it, is a fair & reasonable fee.

Stu Carson
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Tue Oct 11, 2011
Trang Beuschlein answered:
You should contact a local real estate agent to help you. Explain to the agent what you are looking for (i.e., foreclosed properties). Most agents should have access to the foreclosed properties and should be able to separate those out for you (from the regular sales). You may consider short-sales also if you are not in a hurry to buy since those can take up to a year to close. Your agent should be able to advise you on the best type of properties to look for based on your requirements. Good luck!

Trang Beuschlein
San Jose CA Real Estate
CA DRE License #01453711
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Thu Sep 25, 2008
Vicky Le answered:
Any licensed realtor or a real estate attorney can help you with this transaction. I am experienced in short sales and bank owned properties, and would be happy to discuss this with you.

Feel free to contact me if you have any questions on the buying process of a foreclosed property.

Vicky Le, Realtor
Intero Real Estate
office: 408.342.3085
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Fri Jun 22, 2012
Roland Barcos answered:
Hi Christy - There are three ways to buy these homes. When a notice of default is filed, the home is in pre-foreclosure and may or may not be on the MLS. You should hire either a Realtor or a real estate attorney to help with this kind of transaction. Most of these are short sales, meaning the sale will not get enough money to pay off the existing loans. It is a long, difficult, and often disappointing process waiting for the bank to decide to accept a short pay. Secondly, when the legal foreclosure occurs, the property is sold to the highest bidder on the courthouse steps. Look for legal notices to announce sales. There is often no information available about these properties, so be careful. Also be aware that you must pay the full price in cash at the time of the sale. Finally, if the property reverts to the bank's Real Estate Owned (REO) Department, the bank will fix it up to minimum standards and sell it on the MLS, usually at a very attractive price. This is the best way to go, not only to get a reasonable price and timely close, but to also get all of the buyer protections provided by the real estate purchase contract.
Best of luck to you.
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Sun May 11, 2008
Linda Baker answered:
I have several listings, and I would be happy to help you with any of them, or any other listing you have a question on. Feel free to ping me directly and I can address your questions.
Linda Baker
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Sun Mar 20, 2011
Liz Stevens answered:
which home is it? Please let me know the address and the city and I will respond.
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Wed Jan 16, 2008
K. Johnson answered:
Most foreclosures are not a "good deal." You won't necessarily get a price below market and many foreclosures require remodeling.
The best case scenario for getting a house cheap in a foreclosure is if you buy it at the auction (look for Notices of Trustee Sales in the local newspaper) and that you've done your research and can know that you are getting the home with all of the liens paid off. You also need to save a few thousand dollars in case you have to evict the previous homeowner. You would also be getting the home without any disclosures and without a viewing, so you have no way of knowing what the condition of the home is. ... more
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Wed Jan 6, 2010
Jane Allen answered:
I have been a realtor for over 20 years. If I were to make a move to another state I would set up appointments at different houses in my price range with 3or4 brokers. After spending time with each I would choose the one who listened to me the most carefully and answered my questions directly. I would then work with that person. ... more
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Mon Jan 26, 2015
Ellen Chung answered:
These are all really great questions. To first refer to the points you have made: 1) Usually when it is a short sale, the sellers/owners generally are more willing to move out just because in order to start the process of being a short sale, the owner has to be the person to get the ball rolling. Short sales are often the solution chosen to avoid foreclosure, so this point usually is not the reason why short sales fall through from my experience. 2) This can happen--even throughout the process of selling the home, owners are still scrambling and trying to find someone to help them through their financial woes. I have definitely heard of this one happening, though if there is a signed contract by seller and the lien holders, this is generally will not affect the sale unless the owners start being sticklers about it. 3) Once the contract is ratified by all parties: buyers, sellers, banks, mortgage holders, another buy cannot jump in and take over. 4) The reason this falls through is because both lenders, first and second, have to agree on the same buyer. So if the second mortgage holder does not agree then the contract and the transaction cannot go through.

It is not that the second lender has the final say, both lenders have to agree on the same thing. The second lender generally moves much slower than the first because they are not guaranteed to get their investment back. For example: There is a first mortgage on the home for $300,000 and a second mortgage of $50,000. The current buyer of the short sale is offering $290,000. The first lender will most likely jump on the offer considering there are no higher offers and there is no other option but foreclosure on the property. The reason being that the first lender will be paid back most of what they are due--the first lender always gets paid back first (after tax liens, commissions, fees, etc.). But the second lender is basically not getting anything back since all the sale funds will have been depleted by paying the other liens. Since they aren't getting any return on their investment there is no reason for them to cooperate smoothly or to help by agreeing to sell the home because by doing so, they are essentially allowing their investment into the second mortgage, go. They will not be paid back with any future payments and they will not paid back any of the principal they have already given.

There are many other variables in the short sale category and I do know a Realtor in Pinole that specializes in short sales in the Bay Area so if you would like some more details and information, PM me and I can send you her information. Sorry I can't provide you with more information but my knowledge of short sales is somewhat limited.
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