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New report shows that, while 2013 foreclosures were down overall, foreclosure sales were up.

We’ve talked a lot recently about the number of foreclosures dropping significantly in 2013, but interestingly enough, a report released recently by RealtyTrac shows All cash home buyerthat foreclosure and distressed home sales were up 2 percent in 2013, and that a good chunk of buyers paid all cash for these homes.

The report showed that 29.1 percent of all foreclosure and distressed home sales in 2013 were purchased by all cash buyers. While you might think that these were all purchased by investors such as private equity groups, you might be surprised to find out that they made up for just over 7 percent of the all cash sales. The market...

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Homeowner Protections Signed Into Law

On January 1, 2013, the California Homeowner Bill of Rights became law to ensure fair lending practices and to protect California Homeowner Bill of Rights Becomes Lawhomeowners from unfair borrowing practices.

This law has been praised by consumer advocates, but criticized by the lending industry. Its protections are necessary in light of recent national economic events that have often put homeowners at the mercy of their home mortgage lending servicer without much recourse. The law insures accountability on behalf of lenders and closes some loopholes in other areas regarding the buying, selling and renting of real estate as well.

Here is a summary of the California Homeowner Bill of Rights

Restricti...

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Many home buyers in today’s market begin their home search by looking for deals on short sales and foreclosure properties, but are they really a better deal?

At the beginning of the real estate and financial crisis a few years ago, as short sales began to increase, many banks and lenders had no streamlined process to handle the nearly record quantities of short sales and foreclosures happening across the country. In many cases, the lenders took the real estate agent’s word as far as the sale price of the home. This led to many homes being sold too far below market value which led to more problems with the undervaluation of surrounding homes without taking into effect realistic fair market value.

Banks have since streamlined the process and have taken a more proactive approach to the valuation and pricing of short sale properties as well as foreclosures and Real Estate Owned (REO) properties. In most cases, a home that is listed as a short sale must still fall within reasonable fair market value based on the recent sales of similar properties. Any “deals” or homes for sale that fall far below market value are usually priced that way for a reason which may include severely deferred maintenance or physical damage to the home.

This does not mean that short sales or foreclosures still aren’t a great deal. If you have questions about short sale or foreclosure/REO properties for sale, feel free to begin your home search at http://bringingyouhomescv.com, or call us direct at 661-290-3802.

Are short sale or bank-owned/real estate owned (REO) properties good purchases?

In this economic climate, there may be deals to be had when it comes to purchasing a home where foreclosure is imminent, or the home has already been foreclosed upon.

When a foreclosure may be imminent, a seller may attempt to sell his home through a short sale. A short sale means that the bank will accept a sale price that is less than the amount owed on the property. There are several requirements the seller must meet before this can happen, and this is usually the last step a seller will take to avoid foreclosure on his property.

A bank owned (or Real Estate Owned) property is where the home has already been foreclosed upon by the bank, but it ends up in the bank’s inventory as they have yet to sell it.

Both of these situations can make for a potential deal when it comes to buying a home, but there are some things you must consider before making this choice:

Most short sale properties are priced aggressively low which may cause a bidding war with multiple buyer offers coming in at one time. It is important to have a clear game plan when considering a short sale purchase. Our team of realtors are skilled and experienced in helping buyers put together a strategy that will give them the best chance of finding a deal on a home. Contact us for details.
Remember that in most cases (including short sales AND REO’s), properties are sold “as-is”; meaning you will not have the opportunity to request repairs to be made to the home you’re purchasing prior to closing escrow. Occasionally in an REO property, the bank MAY consider including repairs on major items such as air conditioning, heating, or items that may cause safety or health issues, but these are done on a case-by-case basis, and all banks have different criteria when considering these repairs.
Lastly, unless you’re making your purchase as an investment or rental property, make sure you buy a home that you love and want to live in. Remember that home prices have not begun to see a rise in value, so it’s best to make a wise purchase that you plan to keep for a while until property values return to their normal rate of yearly increase (typically 3-5% per year).
For more information, or to obtain a list of the latest short sale and REO properties available for sale, go to http://bringingyouhomescv.com.

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