The biggest oversight most people make when buying Santa Ana foreclosures is getting in over their heads financially, says Leo Nordine, owner of Nordine Realtors in Hermosa Beach.
“If you just can’t afford to obtain a 30-year fixed, you simply cannot afford the house. I can’t tell you how many houses I have sold far more than once due to the fact the buyer didn’t do their homework and ended up losing the home to foreclosure two years down the road,” said Nordine, who has specialized in foreclosure property since 1990.
Thinking about getting Santa Ana foreclosures? Here are five tips from Nordine:
Understand the industry. Subscribe to ForeclosureRadar. The map-based system allows subscribers to track foreclosures throughout California plus the West Coast with 60 criteria (lender, value and map, as an example). The website has a foreclosure learning center and provides a three-day trial (free) or perhaps a monthly subscription ($49.95). “You can target properties and look up the sale date and other info,” Nordine states. “You can know about the property details before the listing agent.”
Purchase smart. “The cheap stuff is bottoming out. The high end is even now going down. So Santa Ana is really a good place to purchase right now simply because it’s at the bottom. Brentwood, in my opinion, is even now going to drop,” he adds. Nordine claims South L.A., Riverside, North Long Beach and East L.A. are excellent bets for foreclosure bargains. “Those are places which are fairly safe for investments, because you are not going to acquire and watch the price drop 10% six months later,” he says.
Be prepared to beat the pack. Very good Santa Ana foreclosures garner multiple offers, so write a clean “as-is” offer that allows for the seller’s “choice of title” and “choice of escrow.” Sellers are drawn to offers that require reduced work for them, Nordine says. So be ready to jump through all the hoops. “If the property is owned by Chase, and Chase requires pre-qualification by a Chase loan rep, as an example, get the pre-qualification right away. If they want proof of funds or even a credit report, have that documentation prepared to go,” he states.
Leave feelings at the door. “It is a tough market with plenty of individuals looking for deals, so it’s easy to get discouraged, Nordine states. “But if you’re thorough and keep trying, you will eventually find a very good foreclosure.”
Get the huge picture. With fewer disclosure requirements on most foreclosures, Nordine claims it is significant to do your due diligence on the history of the home and get data about the property, past and present. Continue to keep an eye out for outstanding liens, loans, fees and tax debts that could transfer and become your own personal post-sale headache.
