Friday, November 09, 2007

Homes in Foreclosure Increases 33% in 40 Days

You can see the increase in the number of homes in foreclosure A.K.A. Bank owned homes in the San Fernando Valley and a few areas in the Santa Clarita Valley above. On October 1, 2007, there was a total of 304 bank owned homes. On November 9, 2007, I calculated a total of 404 bank owned homes. Thats an increase of 33% in 40 days. Reseda had a 63% foreclosure increase in the past 40 days! Wow! There are many great deals on the market and banks are eager to sell their inventory now! If your in the market to find a great home up to 50% off market value, call me now! I've sold many bank owned homes and know how to negotiate to get you the best deal.
Some misconceptions about buying bank owned homes.
1. Can anyone buy bank owned homes? Yes. In fact, its easier than buying from regular home-sellers.

2. Are bank owned homes fixers? Yes and No. What I've noticed is the banks are cleaning the properties by painting inside/outside, new carpet, appliances, kitchen cabinets, etc... to where the homes are in move-in condition. This depends on the bank and their return on investment (ROI) if they choose to rehab the property.

3. Can I ask the bank to pay my closing costs? Yes. Banks are eager to sell their inventory and getting 10K to 12K to help pay your non-recurring closing costs is acceptable in this market.

4. Will the bank pay for my home warranty? No. But, you can ask your agent to buy it for you as a thank you gift. The cost is around $250 for a condo and $400 for a home.

5. Is buying a bank owned homes easier than a short sale? Absolutely. When buying from the bank, you are working with the bank. There are no emotional sellers or any third party lien holders.

6. What are the advantages of buying bank owned homes? You'll be buying a home up to 50% off market value.

7. How long does it take to close on a bank owned home? Expect up to a month delay. This would also depend on the bank and how fast they respond to requests. The bank will also choose its own escrow and title company which may or man not be local. This could cause additional delays.
Do you have a question? Click the Live Chat button below or call me anytime.
Richard M. Johnston, RE/MAX OTB Estates

Source: Socal MLS

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