Buying Foreclosures In CA?
I am intrested in purchasing a forclosed home in CA, But I have a few questions about what is the best way to go about it. I alreadyt have the NOD and Trustee sale list, and have a couple that look intresting.
My question is how much people in pre-foreclosure are willing to sell for? The price of houses here has doubled in the last 3-4 years, and houses that havce existing loans of 70k-90k are worth close to 200k now. Is it possiable to get them for 80k?
Also with houses that are listed for trustee sale, it it still possiable to go through the owner and purchase it? If not, is it possiable to use bank financing to purchase the house through the trustee?
You really need to take some time and study how this all works. Plus study how it works in CA. Your asking questions that you really need to learn the answers to yourself.
It's true CA experienced great appreciation in the past few years, which translates into homeowners have more equity to play with. For example,
if they cannot make their payments on the mortgage, they can borrow money against their equity, therefore it makes them generally less willing to walk away.
All that said, there is not a general rule of thumb, of what owners in pre-foreclosure are willing to sell for. It all depends on the particulal owner, his/her property and their circumstances.
Your other questions:
"Also with houses that are listed for trustee sale, it it still possiable to go through the owner and purchase it?"
Yes.
"If not, is it possiable to use bank financing to purchase the house through the trustee?"
That Depends.
You are leaving out a huge aspect regarding the purchase price. In California there are VERY strict laws protecting distressed sellers from investors. You can offer whatever you want, but if you don't want to get thrown behind bars, you better give them a very fair price. None of this 60 cents on the dollar, or even 70. Your just asking for trouble.
I have been reading a lot since i posted this question, and have learned the answers to these questions.
to HomeSelling:
I'm new to all this and I'm not fully familiar with all of CA's laws for distressed properties. Can you really get thrown in jail for simply offering an owner 70% of market value. Does this mean that Wholesaling wouldn't work in California?
Thanks
In a wholesale situation the seller in not technicially in a "Distressed Situation"
I have seen on here and on other forums, that you pretty much have to split the equity with the seller.
You have to ask yourself what would the judge think if a seller was in front of him claming that you took advantage of him. There are strict laws protecting the seller that is in foreclosure. So the seller says you took advantage of him, the judge looks at the only face , what you paid. I could see how you can justify maybe as low as 80%, but that is it.[ Edited by HomeSelling on Date 09/14/2004 ]
HomeSelling,
I want to know what are the exact laws for that never heard of it before and where i can look this up.
You see people buying up defaults left and right.
:-?
thanks
One thing you need to understand about law is that it rarely is specific. Do a search for these:
Civil Code Section 1695 et seq. - Home Equity Purchasing
Also some laws for your refrence:
Civil Code Section 890 et seq. - Rent Skimming
Civil Code Section 2924 - Trustee's Sale Procedure
Civil Code Section 2945 et seq. - Foreclosure Consultant