As we discussed previously, in terms of Big Bear real estate, the number of actual bank-owned properties is down considerably (about 75%) from the height of the foreclosure crisis.  Part of this is that many of the bad loans have been washed out of the system and part is that banks have become much more efficient at dealing with short sales, meaning that most of the underwater properties no longer make it to the REO (Real Estate Owned) stage, at which the bank actually assumes possession of the property.  There are still a few left on the market, approximately 6 currently in the 92315 zip code (Big Bear Lake); but they understandably tend to get a lot of competition and sell very quickly.  As the economist at our recent Real Estate symposium stated “investor-landlords have been very efficient at reducing the foreclosure inventory”.  This basically means that investors came in when the foreclosure crisis peaked and started buying many bank-owned properties (usually for all cash and often in bulk sales) and turned them into rental properties.  He also said that, looking at incomes and historic prices in CA, he believes homes are currently under-valued by about 54%.  Whether you believe that last part or not, there’s no possible disagreement with the fact that there are MUCH fewer bank-owned properties on the market than there were 2 or 3 years ago.

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How to Get a Great Deal on a Bank-owned Property (REO) – Part 1