Placentia Bank Repos ~ Placentia, CA Foreclosure Properties 2008

By
Real Estate Broker/Owner with Preferred Home Brokers 00402040

Placentia, California is quiet residential community very well located in Northern Orange County.

The City of Placentia like many others in SoCal is not immune to the housing dole-drums experienced in the Southland.  Placentia's current inventory of existing listings is similar to many other surrounding communities when it comes to distressed sales.

Placentia's current re-sale inventory vs. foreclosures/short sales and "traditional sales":

204  total properties for sale for July 2008 ~ of which only 24 are identified as Bank Repos, slightly fewer than 12% of the total inventory. However, when you factor in current short sale properties that total swells to about 35% of the current inventory. That's right another48 homes (condos and single family homes) are identified as short sales in the Multiple Listing Service. (It's most likely a few others which may not be properly identified in the multiple listing service are also short sales at this point).

If you further break down the numbers between single family homes vs. condos, you will clearly see that almost 50% of the condos currently for sale in the City of Placentia are distressed sales, either short sales and/or are in the process of a foreclosure.

  • Placentia  bank repos are currently priced from a low of $269,000 to $395,000 for condos, 
  • and $225,000 to $720,000 for a single family home. 

328 Molokai, Placentia

This condo on the left is just one example of the currently Placentia bank/lender repos. It's 328 Molokai in the gated community of Placentia Lakes.

Last sale on this property was in August 2006, sales price $395,000. Today's currently asking price for this 2 bedrooms 2 1/2 bath town home is $269,000.

My company Preferred Home Brokers represents a variety of lenders from across the county in bank repos in Orange County and surrounding communities.

 

 

If you're looking to buy a bank repo or a distressed sale contract me, Lynda@PreferredHomeBrokers.com, CA Department of Real Estate License Number 00402040. We've served home buyer and sellers for more than thirty years under the same family ownership.

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So if you're interested in buying a bank reposession/foreclosure property it's important you understand the Common Traits In Purchasing a Bank Repo:

The vast majority of bank repos are sold in "as is" or "present physical" condition depending on your contract.  Most likely the existing condition on the date of purchase,  with very few exceptions if any. Probably (yet not always) a pest control clearance may be provided by the lender/seller.

You also need to be prepared for an avalanche of seller (lender) generated addendum's mostly holding them harmless for almost anything.  Many states exclude banks from traditional property disclosures.  The logic being, since most lenders have never viewed/occupied a property they're usually not required to provide normal seller disclosures on property condition.  And if you're not in agreement to the terms, their attitude is usually, next. Be sure to check the laws of your state and understand your contract!

So what's in it for you as a home buyer? Hopefully a home at a great price!   Lenders are not in the business of owning real estate, they make loans on real estate. Yet depending on your market I've seen some buyers pay more than they should have, especially at some of the live auctions!

As For Short Sales we hope you find this helpful:

Short Sale ~ A term used when a property is offered for and/or sells for less than the current amount owed on a loan. For example, (a)the case where a home buyer purchased a property for  one amount, the value declined and the owner could not sell for the amount owed on  the loan. On the other hand,(b) other short sales may result from a property being re-financed at any period of time and the value declined (c) where an owner has tapped the equity in the form of a home equity line of credit, aka HELOC and again there has been a decline in values. Again where the sales price would be less than the amount owed to the lender.

It's important to understand that on a short sale, each lender must approve the terms of a sale.  Just because something is listed for sale at a reduced price, does not mean it will actually sell for this amount. A fairly recent tactic has been to offer a property and an unbelievable price in hopes of creating buyer interest and therefore an acceptable offer to the seller and his/her lender.

Oh, one more wrench in the works, you may be negotiating with more than one lender making a decision if there's more than one loan on the property. 

It takes real stamina to hang in there for a short sale. I've watched repo sales for over twenty-five years and I urge you to work with someone who understands your local market. Do your homework ahead of time!

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Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Hi Lynda, great recap of the Placentia repo situation and I liked also how you added terminology definition like short sale in the article. Very good.

Aug 24, 2008 05:27 PM #1
Rainmaker
1,073,653
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Hi Lynda - In my area the foreclosers and short sales are on the rise as well. It is good you are writing about short sales as many in your area are probably unfamiliar they have this option.

Aug 25, 2008 12:32 AM #2
Rainmaker
552,739
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co

Hi Gary ~ Thanks for the visit. You know at times I think we/I may take for granted that everyone understands about short sales, not.

Bill ~ Looks like we still have more short sales ahead of us for a while.

Aug 25, 2008 05:06 AM #3
Rainmaker
416,436
Mesa, Arizona Real Estate Mesa Arizona Realtor
Homes Arizona Real Estate LLC - Mesa, AZ
AzLadyInRed

Lynda, lots of good information for Placentia....looks like your market is about like our's in terms of short sales and REO's....;-)

LOVE your explanation of both at the bottom....helps buyers realize if they want to deal with all of that stuff. ;-)

Pepper

Aug 25, 2008 08:51 AM #4
Rainer
18,480
Sweet Viscape
Arlington, VA

Hi Lynda:

Great post! Another great way to get exposure for your listings is by posting them on Viscape.com, a social marketplace site for buying, selling, and renting vacation properties. It's completely free to post your listings. Here's the link to get started: http://viscape.com/properties/wizard/start.

Thanks for the great blog.

Misty

Aug 26, 2008 05:53 AM #5
Rainmaker
173,503
June Lewis
Northwood Realty Services - New Castle, PA
Realtor Northwood Realty - New Castle,Pa Lawrence Co 7247304571

Hi Lynda, Wanted to visit to say thanks for the comment on my post . Your post is packed with valuable information.  Thanks..BTW I can not believe your stats on foreclosures I never would think California would

suffer this economic depression the rest of the country is.

Aug 26, 2008 02:39 PM #6
Rainmaker
299,243
Kathy McGraw
CELLing Realty - White Water, CA
Riverside County CA Real Estate

Hi Lynda- I found myself nodding my head going yep that's right, yep good point :)  This was very well written, and hopefully any consumers that read it will not only get the most valuable information, but call you if they still have questions.

Aug 26, 2008 07:08 PM #7
Rainmaker
552,739
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co

Hi Teri ~ Yes, we've got our share of them in So Cal.

Misty ~ Thanks for the info, I'll cruise on over to your link.

Aug 27, 2008 07:08 AM #8
Rainmaker
552,739
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co

Hi June ~ Thanks for the cross over visit! Yep, we've had our share of declining prices too. It varies depending on the community.

Kathy ~ Thank you for the validation of my post. These things can be so confusing at times.

Aug 27, 2008 07:23 AM #9
Rainer
14,662
Janet French
Silverstar Finance Inc. - Huntington Beach, CA

Hi Lynda,  Definitely foreclosures are a great way to go especially for new homebuyers.  Everyone loves something on sale.  What better time than now.  Love the fact that property taxes are lower as well.  Thanks for sharing about Brea.  Janet

Aug 27, 2008 10:47 AM #10
Rainmaker
552,739
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co

Hi Janet ~ Thanks for the visit.

Aug 27, 2008 12:50 PM #11
Ambassador
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Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Lynda, It's amazing to me the number of distress sales we have here in OC and how much they drive the market. You did a great job explaining REO and short sales for the consumer.

Aug 27, 2008 05:10 PM #12
Rainmaker
337,584
Thesa Chambers
Fred Real Estate Group - Bend, OR
Principal Broker - Licensed in Oregon

nice ratio - the REO is my preference to the short sale - most of my buyers find the same

Sep 04, 2008 01:52 PM #13
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Lynda Eisenmann

Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co
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