Sharon Simonson recently wrote about the local foreclosure situation in the San Jose Business Journal. I found this information especially interesting, since I had just written about foreclosure investors in my post, "The Foreclosure Gurus."
The consensus is that getting a good deal is not as easy as it sounds. Of the more than 12,000 foreclosed California homes put up for sale in October, 97% went back to the bank, according to Foreclosure Radar. (In Santa Clara County, only 7 of 237 homes did not go to the bank)
Even though 30 or 40 more people than usual showed up on the courthouse steps the week after Donald Trump was here to give his "Real Estate Wealth Expo", they must have been disappointed. Bidders at local auctions routinely carry as much as a $1 million in cashier's checks in order to compete, and they must be able to give the auctioneer the full winning price on the spot.(There are very few properties for sale in Santa Clara County for less than $300,000).
Not only is this kind of capital needed, it is also a high-risk business. A bidder had better be an expert on buying and selling and market conditions, and he must be able to search for liens and encumbrances on title. The chance that the market will further reduce the value before the house is ready to sell is pretty high. The odds are also high that the house has been neglected by the owner, and the buyer has no chance to inspect the inside of the house before purchase. Add to this the probability that the occupants may have to be evicted, and it's clear that this is not a game for amateurs.
6 comments:
How do I get information like where and when real estate auction in San Jose, Santa Clara County?
Duke,
You should find www.foreclosuredeals.com to be a useful site. They offer a week's free trial, but eventually charge for their service. You can get detailed info by county or city. Good Luck!
hey your blog design is very nice, neat and fresh and with updated content, make people feel peace and I always enjoy browsing your site.
- Norman
I am doing research for my college thesis, thanks for your great points, now I am acting on a sudden impulse.
- Laura
Hello Bobbie, thanks for providing great info. Here's my delema: I am unemployed but financially stable and believe ill be employed soon (college grad). I have 25-50k to put down on a starter home or townhouse and I am currently paying 1200/month for a studio in Campbell, ca. Also, my credit is above 800. I don't want a mortgage that is to much above what I am currently paying in rent. Do I have any options in Santa Clara county. I want to live in los gatos or Campbell. I don't ask for much!!! Any advice?
Thanks for writing (and reading!)
If you've read any of my more recent blogs, you know that lenders are much more inflexible in qualifying buyers lately. Unless you can arrange a cosigner on the loan, you'll have to wait until you find that job. I'm rooting for you!
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