Help, please. I have a quesiton about foreclosure?
Question:
I have question about foreclosure in Southern California.
I’ll give you some examples about foreclosures I found on www.yahoo.com.
I am completely confused about the prices.
They are too cheap to believe it.
I will give you two examples and URL of the houses.
1: a 3439 Sq/ft house in Ruette de Mer, San Diego, CA.
The price of house is $120000.
The URL is:
http://realestate.yahoo.com/california/s...
2: a 813 sq/ft house in Pentecost Way Apt 4, San Diego, CA.
The price is $188000.
The URL is:
http://realestate.yahoo.com/california/s...
As you know the average price per sq/ft for this region is $414.61.
Why are these houses so cheap?
The first one is really incredible because the house is 3439 square feet and should cost $1436166 and more than it is that this house is cheaper than the second house.
Would you mind telling me why, please?
Best wishes,
Answer:
Don't believe that you can actually purchase these properties for those prices -- or even purchase them at any price for that matter. In my experience, about 90% of these never go to auction. For houses that you can actually buy and get a loan, etc. for, try http://www.emailforeclosures.com...
<>These houses are in foreclosure, which means that the lending institution is just trying to get back what is owed to them. The county may also have tax liens that have to be paid. You should investigate these deals carefully to find out everything involved; however, foreclosures can make for very good real estate deals.
The prices are determined by the banks or the financial institutions the money is owed to. Whatever the selling price is the owners who owe the banks/financial institutions money will still need to pay the difference. As far as the banks or financial institutions are concerned, they just want to get rid of the houses to recoup as much monies as they could and at shortest time possible. Sometimes, buyers do get good prices buying foreclosures.
The first example is a property in foreclosure where the loan balance is estimated to be $120K. The figure is an estimate, saying nothing about other liens that are senior and any other costs that might have to be addressed before purchasing. The loan balance does not set the price at which someone can buy the property. People may pay a lot more if the property is worth more.
When the sale happens (prior to the auction or at the trust deed auction) can also impact the price achieved by the seller.
The second property is an REO. It is owned by the bank after the auction has been completed. Likely the opening bid submitted by the lender was higher than people were willing to offer for the property. You need to check the property to determine the condition. With REO properties the lender will generally deal with all the other liens that might have survived the auction. That said you still need to check the facts. What is the right value for this property will also depend on the location and other factors. The size is pretty small. It might need changes before it will attract many buyers (bad layout, structural issue, etc). Or it could be priced to sell as lenders can not legally just sit on property other than offices necessary for operations.
I have purchased a number of REO (CA and other states). If you have more questions get in tough through my blog (see below).
They sound like amazing deals right? Don't be fooled! This may be what is owed, but that doesn't mean that's what they will sell for at auction..I just purchase a home at a foreclosure auction here in Texas..What was owed was $30,000 and it was a beauty (1,400 sq ft 3.2bath, built in 1995)..We ended up paying $111,000..Of course it was still a good deal, BUT NOT A STEAL.Also, if you buy at auction, at least here in Texas, you have to have cash..On this house we will net about $30,000 after expenses..Best of luck to you!
Once you have picked the house you want to buy head over to
http://www.realestatefundingnetwork.com... to get your financing. You can also get a free report there
Those properties will sell at much higher prices. They will go to an auction and sold to the highest bidder.
have the contract reviewed. Get the legal questions
answered by the right person.
could miss something in the fine print.
email me @ cadilllaclover@yahoo.com
I'll try to point you in the right place.
More Related Questions & Answers...