Archive for the 'Repo Homes' Category

The media’s description of the glut of foreclosed homes evokes images of thousands of cheap repo homes available for picking by homebuyers looking for their dream investments or homes. But to the surprise of Southern California homebuyers, there are not many bargain-priced repo homes available and there are too many buyers competing for a few attractively-priced repo homes.

Especially in areas such as Santa Monica, Pasadena and Culver City, demand exceeds supply in the bottom market for repo homes.

Real estate agent Christopher Hain has an explanation why many homebuyers are unable to buy homes in a market supposedly overloaded with cheap repo homes. He contends that buyers are not increasing their bids because they are afraid the market has not bottomed out and they could be paying too much.

Burt Slusher, a real estate investor, observed that many buyers are offering unrealistically low bids. He suggested that home buyers should focus on inventory of existing homes and repo homes in fine areas.

Another agent, Phyllis Harb, complained that many home buyers are relying too much on published housing statistics, attending open houses and then making offers 20 percent below the asking price.

According to research service MDA DataQuick, around 20,000 houses in Southern California were sold in March, with most of the sales occurring in San Bernardino and Riverside counties, where large numbers of California foreclosures occurred. Across Southern California, sales of repo homes comprised 55 percent of total home sales deals in March.

In Los Angeles County, the cheaper homes, including repo homes, dominated sales in March, with 2,871 houses priced under $300,000 sold.

For houses priced over $1.2 million, there were only 202 units that got sold.

For the middle range – homes priced between $400,000 and $800,000, less than 25 percent of total deals were sold.

Among frustrated Southern California homebuyers are Silver Lake pizza business owners Bunny and Nicky DeMarinis. They said they have inspected about 50 homes already, but they have not bought one. They made a $1 million offer for a conventional house in Los Feliz, but despite lots of repairs that need to be done on the property, the seller refused to budge from the $1.7-million listing price.

Real estate agent Tracy King said that prices of homes, including repo homes, are extremely local, and that a published regional median price does not have an effect on local prices.

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The significant drop in numbers for pre-foreclosure filings and foreclosed homes last October is a good indicator that the real estate industry is slowly getting back on its feet. Levels dropped to its lowest since February. Credit this to the efforts posted by banks, lenders, non-profit organizations and government agencies who worked restlessly these previous months to help beleaguered homeowners avoid foreclosures.

Pre-foreclosure filings last October were 10% down from August levels and 7% down from September. These include notice of default and foreclosure auctions. With only 84,286 repossessed properties during this month, the level dropped dramatically by 22% since September. This trend is the same throughout half of American states according to the U.S Foreclosure index.

Although the current financial crisis have rolled across most of the U.S., pre-foreclosure filings and repossessed houses where mostly concentrated in certain states, cities and counties. These areas include Detroit which was hard-hit by recession and unemployment. The case is different with other states like California, Florida and Nevada which where victims of property speculation in prices and affordability.

The new President-elect has placed the current economic crisis at the top of his agenda when he takes charge in January. Included in this program is this lingering real estate crisis where Obama promised a 90-day moratorium on foreclosures. However, experts say that it will still be up to individual states to impose their own regulations.

While direct intervention by the government regarding foreclosures is still debatable, major banks and financial institutions have starting working out mortgage restructuring and putting monthly payments down to affordable levels. This means cutting down interest rates, extending loan terms, and reducing balances.

Although the last two months have shown good figures and great signs of recovery for the housing industry, work in this area still has a long way to go. Experts say that these figures may not yet be considered conclusive, although it shows sign that the nation is heading in the right direction.

The real estate market for repossessed homes is growing rapidly. In 2006, most of the top metropolitans saw an increase in the number of foreclosure homes. Repossessed homes are basically those homes where the lender has taken possession of the home from the homeowner. This kind of a situation arises when the homeowner is unable to make payments on his mortgage. You will find a huge number and variety of repossessed homes in different parts of the United States. Some of the homes are in perfect condition while others need small repairs. Either ways investing in repossessed homes makes a lot of sense because you get to save approx. 10%-15% on the market price of the property.

Most of the repossessed homes are listed in foreclosure listings taken out by banks, private lenders, HUD and other financial establishments. Repossession of homes is actually the initial step towards foreclosure. There is always a pre-foreclosure period during which the homeowner can pay the loan amount and get the home back. Most people are unable to pay during this period or are unaware of the different options available. As a result a prime property becomes a part of the increasing number of bank foreclosures for sale.

December 2005 had recorded some of the highest foreclosure filings so far with and November 2005 had 114.7% more filings in December 2005. Around 6,455 homes went into foreclosure in Georgia in 2005, which is a huge number. The current situation is not good as far as repossessed homes are concerned because the numbers are increasing rapidly. On one hand it is a good sign for investors and first time homebuyers who can find the property of their choice for a bargain price but it is also a sad situation for current homeowners who are losing their homes.

Start your search for repossessed homes in Florida, California, Texas, New York and all United States.

Every now and then, there are major and even small banks in your locality that conduct or hold foreclosure auctions for repossessed homes. There are more and more people going through and shopping homes through these auctions because there is a prevailing public perception that repossessed homes sold by banks are at cheaper prices.