Most homes sold in Southern California today are foreclosures. According to recent report from DataQuick, Southland home sales up, prices down; foreclosures now half the market, 50% of home sales in Southern California are foreclosures.
Prices are down and sales activity is up. That doesn't mean finding a home is a walk in the park. Finding a decent home among the chaff is a challenge.
Purchasing a foreclosure can be a great way to purchase a home. However, it can be very daunting as witnessed by Peter Y. Hong in his report in the Times.
Peter witnessed first hand what many Buyers and Agents are experiencing in the market today. Among what Peter experienced, here is what else you can expect to find when searching for that perfect home.
Listing agents that won't allow any showings. Listing agents that won't submit an offer. Loans that fall out despite pre-approval status. Sellers (aka banks) that take weeks or even months to accept an offer. Listing agents that flatly refuse to review an offer unless the Buyer agrees to "cross-qualify with the sellers lender" and provide the most intimate of financial details prior to submitting an offer. Buyer's Agents that steal the keys from properties to prevent other agents from showing the property.
Here is probably the best of them. Listing agents that are selling homes as owner occupied "Short Sales" that are no longer owned by the seller. The bank foreclosed on the property and took it from the owner. Within days of the foreclosure, the seller hires an agent to sell the property. The agent took the listing from the seller despite the fact that they don't own it. They just want to expose listings in hopes of getting clients. In most other areas of business they call this deceptive advertising.
Want to destroy your credit score? Try "pre-qualifying" with a dozen lenders over the period of a couple of months. This is what listing agents of REO properties expect you to do. They "require" you to "cross-qualify" with their special loan officer or your offer will not be submitted.
What to do if you are in the market for a foreclosed home? Be patient and persistent. If you continue to present offers you will find the right home with the right seller. Eventually you will persevere and have that home you have been looking for. In the mean time, do everything possible to increase the strength of your buying position by saving as much cash as you can.
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