Warm climate, hot buys in Los Angeles Bank Foreclosures

by Simon Lindsay on cities

This incredibly, diverse, attractive and exciting City of Angels is also known this year as one of the hottest buyers’ markets. Reports from the real estate market in Los Angeles are that more than 30% of single family homes already listed in June reduced their asking prices after listing. Orange County generally saw 45% of listed homes reduce their price. And that’s before we even got to look at the Los Angeles bank foreclosures.

Price conscious buyers and those more experienced in real estate investing have seen the all too obvious signs of a buyer’s market; real estate ads getting flashier, larger, more inventive, hype level up. For Sale signs more numerous and staying out longer. Comparable sale values a little higher than latest listings suggest they should be. Los Angeles bank foreclosures have just got to be the homes you can’t overlook for your next family home or investment.

Sunny California is experiencing a continued increase in bank foreclosures filings, both monthly and over the same period last year. Weak home prices in the Golden State, together with an already large inventory of unsold homes put incredible pricing pressure on those that are desperate to sell rather than face foreclosure, and have limited ability to refinance. Even though a foreclosure overview suggests a large proportion of borrowers do manage to refinance or sell before the foreclosure auction, a significant number fail to sell above the lender’s upset price at auction or are deeded to the lender under the mortgage terms. Bank inventories continue to grow, and REO or real estate owned property is now a very diverse and more significant portfolio of available single family, multi family and commercial property.

And what of the challenges and drawbacks of dealing with the Banks as owners of foreclosed property? Well, you have already avoided some of the pitfalls of buying at auction. You won’t be responsible for the eviction of tenants. You will have the bank’s appraisal, clear title, and now, in mid 2007, you are going to get a good deal of quality time spent on reviewing your proposal with it’s probably audacious discounted offer price! If you don’t win on the size of the discount, there is going to be a range of other factors with which to negotiate in the area where the bank owner has some flexibility to sell Los Angeles bank foreclosures, financing. Just ensure you get a good look at the property you have in mind, and show the Lender/Owner the detail of how you arrived at your offer price, the hidden repair costs you have deducted. You will note a rather more flexible attitude than was the norm when the real estate market was nearly as warm as the climate.