California Foreclosure Data Mixed

After claiming the top spot for the three previous months, California’s monthly foreclosure total fell to second place thanks to a sharp month-over-month drop in foreclosure activity. The state reported 12,623 properties entering some stage of foreclosure, a 34 percent decrease from the previous month but still up nearly 65 percent from December 2005.

Locally, distressed properties appear up, with more NODs and Trustee's Sales filed. While many sellers are able to cure the default or negotiate an agreement with the lender, the rate of distressed properties coming on the market appears to be on the upswing. One indication of this is the higher numbers of 'short sale' properties making their appearance on the MLS.

While we appreciate the stress that sellers undergo in the pre-foreclosure process, and always treat them with the respect they deserve, the fact of the matter is that when buyers appear for purchasing these pre-foreclosure properties, sellers who are unrepresented often get screwed by these sharks.

If you are a seller who has a notice of default your first call should be to me. Immediately. The more time there is before the home is actually forced to sale, the more options you have. Definitely don't be like the lady I talked with last week, who had waited until the Notice of Trustee's Sale was stapled to her front door. When I asked her if she had been in contact with the lender, she said no. Three weeks (and less, in this case!) from sale is not the point to be getting a Realtor experienced in foreclosures involved. Her only hope at that point was to listen to my advice, price the home way low for fast sale, and try to get the bank to delay the sale and let an escrow close with a short sale.

So you are wondering what happened with the lady? She listened to a novice Realtor who listed the property well over market value, since the lady thought that some fool would come down the street ready to bail her out of her bad financial decisions, and give her some walking away money.

Yes, my friends, there are idiots in the world. The bank will take this property back. We'll see it on the market later on as an REO.

As a buyer, you've got to be doing some work to make it to the 'A' list. Everyone is 'interested in buying a foreclosure for nothing.' If you are serious about it, give me a call. We will get going, but you won't be getting a treasure-trove of leads and information unless you and I are meeting and agreeing, and you talk seriously with a lender and get pre-approved (yes, pre-approved subject to identification of the property and the appraisal coming in -- with no other conditions). There's no fooling around, and don't be big-talking me. You will have to be ready to take action when the opportunity arrives. Think you can make the cut? Give me a call and let's get started.

Buying foreclosures aren't for everyone. To many people talk a good game but fold up and blow away in the end. And if that sentence offends you, foreclosures aren't for you. But for serious people, there is opportunity.

As for the sellers who are in foreclosure... We are really sorry that you got to this point. We really are. But buyers buy foreclosures and pre-foreclosures expecting a discount off market. And in this, a gently falling market, you may very well be upside-down between the note, the late payments, penalties and fees, and sales costs, including sales commission. Yes, commission. This is not a subsidized public service, this is the market. A fair commission is charged.

If you are a seller in foreclosure, give us a call (immediately... right? Nod your head!). We will do our very best for you and get you on your way to your future, where you will hopefully be a little more conservative on your risk-taking, or that you will have better fortune than what life has thown at you lately.

Let's make is a win, win and win.