Tag Archives: REO

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!  )

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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!

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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You Want to Buy a Foreclosure?

I am getting a lot of calls lately with people telling me that they want to buy a foreclosure.  Maybe it’s the mentality of the market, or the late night infomercials, but many people seem to think that foreclosures, by definition are a “good deal”.  They might be or they might not!

Foreclosures aren’t necessarily priced right, relative to the market conditions, or even relative to other REOs.  I just checked out 2 new foreclosures in Lake Forest today.  Both are within the same (nice) neighborhood, located only 2 blocks from each other. They are the same builder, age, square footage and floorplan, so a direct comparison is very easy.

The first one has a decently upgraded kitchen, scraped ceilings, remodeled baths, and lightly worn Foreclosed Home $545,000carpet. The atrium area is unfinished dirt, and it looked to me like an above ground spa had been removed from that area.  The garage door is the original wood tilt-up (instead of the more popular roll-up door) and it has a wood shake roof that the builder had installed in 1975.  The windows are all original, and the road noise coming in the house at 3:30 in the afternoon was quite loud. That house is priced at $545,000(Update 7/14/2008, new price is $439,900!)
 

 

Foreclosed Home $498,900 The second house, just around the corner has similar kitchen upgrades, scraped ceilings, remodeled baths, professionally installed laminate flooring (it looked pretty good), attractive used-brick walkway and atrium, newer tile roof, and no significant road noise. It is priced at $498,900(Update 7/14/2008 – price is now $466,900!)

 

It’s obvious to me which lender is more serious about getting this sale done!

Please call or email me if you would like valuable information about any home for sale – foreclosed or not.  I’m starting to see some well-priced homes come on the market, and they are selling pretty quickly! 

Search for homes in Orange County    Get your estimated home value by email  Ask a question or get personal advice from Vicki

Hot Buys!

These are the latest REO properties in South Orange County that look like the best values today:

Las Flores

$659,900 – Rancho Santa Margarita (Las Flores) –  4 bedroom, 3 bath, 3 car garage, about 2400 square feet.  Last sale was 9/06 @ $960,000.  Update: in escrow as of 11/30

Telega

$699,900 – San Clemente (Talega) – 4 bedroom, 3 bath, 2300 square feet.  Last sale 4/2006 @ $950,000.  [12/13 – Still available, also 2 others @ same price, similar size and features!]

Rancho Santa Margarita REO

$476,500 – Rancho Santa Margarita Single Family REO – 3  bedroom, 2.5 bath, not quite 1500 square feet.  Prior sale 9/06 @ $640,000  [Still available 12/12! – It must not be very nice inside!  By now, I expect they will accept less!]

If any of these look good to you, or you have questions or would like to receive the new listings as soon as they come on the market, please call or email me!  (My contact info is in the upper right corner of the page.)

Or leave a comment!