Placentia Bank Repo Sales and Short-Sales ~ Placentia, Orange County CA
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":
172 total properties for sale (down from 204 the month before) ~ of which only 20 are identified as Bank Repos, about 12% of the total inventory. However, when you factor in current short-sale properties that number swells to about 38% of the current inventory. That's right another 46 homes (condos and single family homes) are identified as short-sales or are currently in the process of foreclosure 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 $122,000 to $395,000 for condos,
- and $225,000 to $720,000 for a single family homes.
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 exact 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.
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 of your state or area. 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!
Author: Lynda Eisenmann, contact me Lynda@PreferredHomeBrokers.com