It’s understandable that most people look for a bargain in today’s economy, and they will certainly find just that in the real estate market. If you type in foreclosure on your Internet search and you will get so many results it can make your head spin. If your just jumping into the REO market then there are some things you should be aware of, and if a deal sounds too good to be true, you need to look a little closer. Several website are posing only the amount of loan in default as a pre-foreclosure sale. This means that the owner is late on their payments by the amount posted; it does not mean that the home is actually for sale or that the owner will not be bringing the balance current and in addition to that if it were for sale, there would still be the entire balance of the loan due, not just the defaulted payments... See the story for more insight.
http://www.inman.com/news/2008/07/17/is-preforeclosure-really-sale
Thursday, July 17, 2008
Tuesday, July 8, 2008
Lowball Offers on Bank-Owned Properties Wont Seal The Deal
By NED RANDOLPH
San Diego Business Journal Staff
Bank-owned homes recycling back into the market after foreclosure are being priced well below market value in order to solicit multiple bids, which in some cases exceed their original asking price, agents and analysts say.
Brian Yui, chief executive officer of HouseRebate.com, which tracks listings of bank-owned properties — known as real estate owned, or REO, properties — says banks are underpricing properties and selling them much quicker than traditional home sales.
“The banks appear to be getting fair market value for their homes,” he said. “For buyers thinking to lowball REO listings, they must think again as there are other buyers out there willing to pay (fair market value).”
Foreclosures are skyrocketing as borrowers default on mortgages in record numbers — in many cases walking away from homes because their mortgages cost more than the homes are now worth.
Of all the home sales in San Diego County in May, 36 percent were bank-owned properties — homes that had been foreclosed by lenders in the prior 12 months and then resold, according to DataQuick Information Systems of San Diego.
Many of them sold above asking price, says Yui, adding that he noticed the trend while looking up comparable prices in Escondido of a bank-owned house he was considering buying for himself.
San Diego Business Journal Staff
Bank-owned homes recycling back into the market after foreclosure are being priced well below market value in order to solicit multiple bids, which in some cases exceed their original asking price, agents and analysts say.
Brian Yui, chief executive officer of HouseRebate.com, which tracks listings of bank-owned properties — known as real estate owned, or REO, properties — says banks are underpricing properties and selling them much quicker than traditional home sales.
“The banks appear to be getting fair market value for their homes,” he said. “For buyers thinking to lowball REO listings, they must think again as there are other buyers out there willing to pay (fair market value).”
Foreclosures are skyrocketing as borrowers default on mortgages in record numbers — in many cases walking away from homes because their mortgages cost more than the homes are now worth.
Of all the home sales in San Diego County in May, 36 percent were bank-owned properties — homes that had been foreclosed by lenders in the prior 12 months and then resold, according to DataQuick Information Systems of San Diego.
Many of them sold above asking price, says Yui, adding that he noticed the trend while looking up comparable prices in Escondido of a bank-owned house he was considering buying for himself.
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