Foreclosures make excellent opportunities to buy Bay Area Homes
March 3rd, 2008 by Peter Frumenti | one response
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Real Estate Market here in the CA Bay Area and specifically the Tri-City continues to hold great opportunities for many. Buyer’s and investors can take advantage of the many below market opportunities such as REO or pre-foreclosure properties.
REO stands for Real Estate Owned. This is because the Real Estate Owned division of the bank handles these properties once the bank has foreclosed on the previous home owner. While these homes are being held in REO department they are on the liability side of the balance sheet. The banks investors do not like to see their assets reduced by these liabilities and therefore these homes offer a great opportunity because the bank must clear these liabilities from their books quickly.
Pre-Foreclosure opportunities come in the forms of Short Sales. A short sale is when the bank agrees to take less than they may be owed on the note and will allow the homeowner to sell and help avoid a foreclosure on their credit. The banks pay a considerable amount of money to foreclose and then must maintain the property, get it into selling condition, plus carry the insurance, utilities and other carrying costs of these homes. It is much cheaper and quicker for the bank to discount what they are owed to move the property and avoid foreclosure. Remember they don’t want it going to the REO department. So, these home offer an opportunity to come in and add up what those costs might be for the bank and then make a below market offer accordingly that will entice them.
Foreclosures are a huge opportunity right now. I just read that “December 2006 to December 2007, the inventory of foreclosure homes in the bay area rose over 450%” this was posted on an article located at http://www.foreclosure-support.com/wp/article-012340.html the full article can be read there. In August I read that “Nationally, foreclosure filings more than doubled since last August, with 243,947 households in some stage of the foreclosure process in August, versus 113,300 a year ago, as posted on RealtyTrac the Chronicle . That is a 36% jump from 179,599 of those filing in July.
With both of these opportunities it is imperative that you have an agent that understands how to work with the banks to get your offer through. You also need to make sure they understand what costs the bank will not pay and which ones they will so you can write your offer accordingly. For example if you make an offer expecting to get a bunch of repairs you will want to make an offer that is reduced by the amount you expect to have to repair as the Bank will rarely make those repairs on your behalf.
For more information on this property or if you just want to talk about the real estate market send me an email: peter@frumenttieam.com.
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The Frumenti Real Estate Team is your source for Tri-City area Real Estate news and advice. Call us today at 510-770-1475.
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The Author: Peter Frumenti
About: A Tri-Valley native, Peter comes from a long line of real estate professionals: his grandfather, grandmother, and father have all served in varying capacities in the real estate industry. Formerly a director of sales and marketing in the hospitality industry, Peter has a strong sales and marketing background, which has served him well at both Keller Williams and Century 21. When Peter is not buying or selling homes for his clients, he serves as a board member for the Viola Blythe Center, a non-profit organization that provides social and humanitarian services. He is active in a number of Tri-City community organizations, as well. Peter serves on the agent leadership council for Keller Williams Benchmark Properties and is a member of the National Association of Realtors and the California Association of Realtors.
This entry was posted by Peter Frumenti, on Monday, March 3rd, 2008 at 8:10 pm and is filed under Featured, Home Buyers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response on the right, or trackback from your own site.
One Response to “Foreclosures make excellent opportunities to buy Bay Area Homes”
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Frumenti Real Estate Team | California East Bay Area Homes for Sale
Search by city to find homes for sale listings and real estate information in Fremont, Newark, Union City, and Hayward, California. 510-770-1475
April 30th, 2009 at 5:39 pm
Thanks for some new ideas. Will put them to good use.