Category Archives: Foreclosures

Foreclosure Listings in South Orange County

Foreclosure sign

Foreclosure properties continue to lead the market in Orange County home sales.  In the last three months, 2,438 out of the 5,907 sales (41%) have been bank-owned properties! 

Sometimes, these homes are agressively priced to immediately attract buyers, which leads to multiple offers and results in selling for over the list price!  The average time on the market for these REOs is only 36 days – almost twice as fast as the average 69 days that non-REOs are taking. 

In order to buy one of these homes from a bank, you need to be pre-approved and non-contingent on the sale of any other property.  They also almost always require that you “pre-qual” with their selected loan officer.

With foreclosed homes making up such a large portion of our active real estate market, I’ve set up a new page on this blog where I will post the REO lists for each city in South Orange County.  If there is an area that I’ve left out, please let me know and I’ll send out exactly what you want!

If you aren’t looking for an REO, take a look at all the other properties available:
 Search ALL the homes for sale in the Southern California MLS  (there must be at least one that you like!)

Don’t miss the next exciting update to this blog – click on the envelope to be notified by email!  )

 Click here to receive updates by email

Thanks for visiting!

Vicki Lloyd

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Happy New Year 2009!

I can tell already that this will be a good better year for Southern California real estate.    To start off, it didn’t rain on our parade (Rose Parade) on New Year’s day, and our University of Southern California (my school) Trojans won their Rose Bowl game under sunny blue skies!  I think this is always a good start for the year, and like to think that all the people living in cold places will suddenly decide to move to California!

 Sunny Southern California!

I’m still gathering all the statistics from 2008, and will be posting my final analysis along with my predictions for 2009 in the next few days.  I already know there were more total sales in 2008 than in 2007, but we were still under the numbers for an “average year.” 

I just updated my “Vic’s Picks” with the better valued foreclosed homes available today, so if you are looking for a bargain, start there.  Almost all of the properties on the list are offered at less than 60% of their last sale value! 

If you don’t like any of the foreclosures  You can Search ALL the homes for sale in the Southern California MLS  (there must be at least one that you like!)

Don’t miss the next exciting update to this blog – click on the envelope to be notified by email!  )

 Click here to receive updates by email

Thanks for visiting!

Vicki Lloyd

Best Deals on Bank Owned Homes

Foreclosure sign

The bank-owned (REO) homes in South Orange County are still looking like the best values available.  I picked out a list of about 15 that are seriously discounted below their last sale price. 

I am planning to resume posting my “Vic ‘s Picks” on a more regular basis – probably once per week.   This week, the list features homes in Coto de Caza, Laguna Beach, Mission Viejo, Newport Beach, Newport Coast, Rancho Santa Margarita, San Clemente and Tustin.  These are all bank-owned and offered for somewhere between $200K and $800K below the last market sale price! 

If you would like to see the actual location on these, click on the little airplane, on the right side of the listing sheet, and it will give you an aerial view of the property.  Some REO agents provide very few photos, so this can help guess what the home may look like.  I’ve also noticed that several of them like to include shots of the bathrooms with the toilet seat up (one is even sideways!)   

Open toilet!

If you have any interest in seeing any of these, please give me a call at (949) 457-0281, and we can go check them out together!

You can Search ALL the homes for sale in the Southern California MLS  (there must be at least one that you like!)

Don’t miss the next exciting update to this blog – click on the envelope to be notified by email!  🙂

 Click here to receive updates by email

Thanks for visiting!

The Most Expensive Bank Owned Homes in Orange County Today

There are 7 bank-owned homes in Orange County that are priced over $2,000,000 today.  While they all appear to be very nice, they will still sell “AS IS” with no repairs to be made by the seller.  If you decide to buy one, make sure you have your inspections done by a qualified professional home inspector!

Click Here to See the Bank-Owned MacMansions

Related posts:
Buying Homes from the Bank
You Want to Buy a Foreclosure?

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Foreclosed Homes in Lake Forest California

Bank Owned Home

The foreclosed home inventory in Lake Forest has been running between 43 and 49 homes for the most of the last year, but today, there are only 33 REOs (bank owned) homes on the market.  The majority of them are condos, and the average list price is $318,700 ($232/square foot.)  They range in price from $116,600 up to $599,900. 

 

The highest priced REO in Lake Forest today, at $599,900, has been on the market since March, and has had the price reduced twice, but not enough to generate the excitement that would make it sell.  Located in a good neighborhood, with 4 bedrooms, a bonus room, and a pool, the price seems ok for the current market, but it is vacant, dirty, and needs just enough work to scare many buyers away.  My guess is that it will eventually sell in the $475,000 to $525,000 range.   

 

In the last month, 39 REOs have closed escrow, with 21 of them selling for an average of 6% over list price after only 13 days* on the market!  The other 18 sold for an average of 96% of final list price, after 58 days on the market. 

* The “days on the market calculation” is often overstated for these properties, because many of them require 7 days of market exposure before they will even look at offers, then they allow another 3 – 5 days for potential buyers to raise their offers to “highest and best.”)

The trustee sales, where lenders actually take back the properties from the previous owners, have slowed considerably in the last 3 months.  As an example, a typical schedule will show 135 properties on the daily foreclosure sale list, but at the last minute, only 10 of those properties will actually be sold or taken back, and the rest will be postponed or cancelled.  

Of the properties where the foreclosure sale was cancelled, some were refinanced by a new lender, some were sold at a short sale, and a few were brought current by catching up the late payments.  The properties that were  postponed, are partly due to the new California law requiring lenders to document that they have attempted to work with the delinquent borrowers, or to some institutions being so overwhelmed with bad loans that they just can’t get them all done.  (I also believe that some institutions are holding back, waiting to see what the government bailout will do for them.)

Related posts:
Buying Homes from the Bank
You Want to Buy a Foreclosure?

 Click here to receive updates by email

Buying Homes from the Bank

Does this look like a bargain?

Does this look like a bargain?

I have been getting a number of calls or emails from buyers who think they want to buy a foreclosed home.  After I ask them why they would want to do that, I usually hear “Because I want to get the most for my money and I’ve heard that foreclosures can be a real bargain.”

Fair enough answer.  Many buyers believe there are lots of bank-owned homes just waiting to be bought for 35% – 50% of market value.  But here is what you should really expect :

  • If the property is priced well, you will be in competition with many other buyers, and it will probably sell for over the list price, after you and the other buyers have submitted your “highest and best” offer.
  • The bank will have a very one-sided contract – you will have to cool your heels and wait, and wait, and wait for them to get the contract back to you in writing, but then they will want you to remove all of your contingencies (“escape clauses”) very quickly.
  • You will be buying the house in “AS IS” condition, even though you won’t know what the condition is until you pay an inspector* to examine it in detail.
  • If you find that the cost of repairs will exceed your budget – too bad!  They will very rarely re-negotiate the price or give credit for repairs.  Your choice will be to cancel the contract, or spend more than you had originally expected.

*Make sure you find an experienced and thorough inspector!  The seller (bank) really has no idea what may by right or wrong with the house and you will have no recourse if big problems reveal themselves after closing!

Click Here to search over 14,000 homes available in the Orange County MLS   (You might find one that you like!)

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Lake Forest Market Conditions

Lake Forest prices now start at $95,000 for a one-bedroom bank-owned condo. It previously sold in 2005 for $260,000 using 100% financing (probably using a “liar loan” without any income documentation!) I seriously question the wisdom of anyone paying that much for a property this size, as you could have rented it for less than $1000/month at that time, instead of taking on a mortgage, taxes, and HOA dues which probably came to a total of close to $2000/month.  This unit has been on the market now for 9 days so far, and I expect it will take a little while longer to find a buyer who wants it and can also afford it using today’s more traditional standards to qualifying for a loan.

The total number of bank-owned homes in Lake Forest today is 45, and they have an average price of $326,000 at $232/square foot.   

Total active homes on the MLS in Lake Forest is currently 287, with only 97 of them available as traditional “non-distressed” sales with a seller who can answer an offer without having to wait for a bank to approve the price.  Of those, there are 30 condos and 67 single family homes.  Prices of the single family homes begin at $459,000 and go up to $1,695,000.  

For buyers who are hoping to pick up a “deal” on a foreclosure property, it is critical to be fully pre-approved in advance and to be educated about the values.  Many of the foreclosure listings are coming on the market priced very low compared to other properties.  They may be in almost any condition, ranging from totally dirty and damaged to pretty nice “move-in” condition.  Alert agents and buyers are finding them and making offers almost immediately.  I have had several experiences where my buyer submitted an offer the first day on the market, then, after waiting for 3 or more days, the bank’s agent asked all the buyers to re-write their offers at their “highest and best” price.  This strategy has created an “auction-fever” environment that leads to the home selling for substantially more than the original list price.  If you plan to make an offer on one of these undervalued properties, you need to carefully review the comps, and make your best offer based on your perception of what it will really cost you to make the home comfortable for you!