This seems to be a common question I get here lately in Santa Barbara and Montecito, mainly from first-time home buyers and investors.  Like many things in life though, it simply depends. 

The common myth out there seems to universally be that homes in foreclosure must be the best opportunities to buy a cheaper home or get a "great deal".  Here is the big problem with this line of thought, at least in a town such as Santa Barbara or Montecito. 

First, when you see statistics in the newspapers or online about foreclosures in the Santa Barbara area, it almost always refers to Santa Barbara County which includes the areas of Lompoc and Santa Maria.  Both the Lompoc and Santa Maria areas are extremely different than Santa Barbara proper and really have little to do with the Real Estate market here.  For almost everyone, when you talk about Santa Barbara on a Real Estate scale, you are talking about Santa Barbara, Montecito, Hope Ranch, Carpinteria, Summerland and Goleta.  All of these towns are one continuous area stretching about 24 miles from Carpinteria in the south to Goleta in the north.  Santa Maria and Lompoc on the other-hand are both roughly another 55 minute drive north of Goleta and represent an entirely different Real Estate scale.  So when you see statistics about this area and possibly a listing for a nicer single family 3 bedroom 2 bath home, just needing a little buyer's vision in foreclosure for $475,000, we are not talking about Santa Barbara proper.

Read the Entire Story on Foreclosures in Santa Barbara

Kevin Schmidtchen

Santa Barbara Real Estate Voice