It's a little bit difficult to figure out if a home is offered for sale as a foreclosure flipper in Sacramento. Because when I examine the tax records to determine transfers and who is in title, it might be a mortgage company that acquired title through a trustee's deed. Such a transfer may lead an agent to believe it was foreclosed upon by the bank, but the opposite may be true. It may have been acquired by an investor.

Do you wonder where some of the shadow foreclosure inventory is hiding? Some of those homes are sold to investors who flip them.

When I find a title transfer on a foreclosure like this, I search the name of the entity that purchased the foreclosure home through the tax records and often discover the purchaser is an investor who is buying a lot of foreclosures, either at auction or through a private deal made by the bank. Agents can also get a clue if the listing notes: no FHA buyers, due to the 90-day seasoning requirement.

The nice thing about buying a Sacramento foreclosure from a flipper is the investor will often pay for a pest report, a home warranty and credit the buyer for closing costs or major repairs. Buying a foreclosure from the bank generally means the buyer is purchasing the home in "as is" condition and doesn't offer those types of benefits.

I ran the comparable sales for a Sacramento buyer who was contemplating making an offer on a foreclosure flipper. The comps clearly showed the listed price was under market value by at least 25%. The buyer made an offer, it was countered and he accepted the countered price, which was less than the list price.

Sure enough, when the appraisal came in, it showed the home was worth 20% more than the buyer paid for it. Appraisers are extremely conservative these days and, if they feel pressed, with no other option for value, most of the time the higher appraisals will come in 2% to 3% over the sales price, even if it's worth a lot more. Why rock the boat?

I was stunned to see the appraisal at 20% over the purchase price. Kinda weird to see my professional opinion of value substantiated for a change. This doesn't happen very often.

Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.

The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.

Sacramento Short Sale Agent, Elizabeth Weintraub, has the answers to your Sacramento short sale questions.

Photo: Big Stock Photo