Yorba Linda Foreclosures, How Many in Yorba Linda for April 2009?

EVERYBODY WANTS A DEAL...

People see a "Bank Owned" open house sign and tires skreech, wheels turn, and dozens pull up to the foreclosure. One yorba linda real estate agent in my office said he gets about 50 to 60 people through an Open House just because he uses black and yellow "BANK OWNED / REO" signs.

But ARE foreclosures always the best deal in town?

The answer is "NO." Foreclosures are priced lower by the banks because they're not playing games testing the market and want to get the "asset" (which is now a liability) off their books. So, they hire a Realtor to sell the home and the home is usually priced below market. Sometimes, SO FAR below market that there are multiple offers on the property, a bidding war ensues, and the home sells for tens of thousands above asking price. However, there are some things to take into consideration when it comes to bank owned properties:

1. The home is sold "AS IS" which means you usually will not get the bank to do any repairs, modifications, alterations, or improvements whatsoever. If it's beat up, then the burden of fixing those problems and replacing those items falls directly on you as the buyer.
2. Usually, the bank will not provide you with the customary first year home warranty.
3. The bank takes control. They send an Addendum that is sometimes 15 pages long which indemnifies them from any blame or fault that may arise. Essentially, they want to make sure that after you purchase the home, they're hands are washed and clean and you can't come back and sue them for any reason. The Addendum was created by the bank's (or investor's) lawyers so the language of the Addendum is written in such a way to completely protect the seller from all liability.
4. The Addendum also has provisions that force the buyer to perform their inspections, to get their appraisal done, to receive all disclosures, and to get their loan in a shorter time frame than is usually prescribed in a "regular sale." Bottom line -- hurry up and get it done, is the message they're sending.
5. If escrow closes LATE and it is YOUR fault, then the bank can charge what is called a "PER DIEM" penalty which means you are charged around $100 a day for every day that goes by after the agreed upon close of escrow date. Usually the fault is your lender's with all that goes on with the loan, but it is YOU who are charged the Per Diem. I've heard from an REO listing agent in our office that the banks usually will not hold to the per diem penalty, but I wouldn't roll the dice and drag my feet.

So, how many bank owned properties are in Yorba Linda right now, as of April 6, 2009?

TEN

That is definitely not a lot of homes when you consider that there are 312 total properties on the market in Yorba Linda. Why so few in Yorba Linda? People who buy in Yorba Linda typically can afford their payments and when a foreclosure comes up in Yorba Linda, get out of the way!

Nic Petrossi, Prudential (714) 272-3646

npetrossi@yahoo.com

www.NicPetrossi.com