What Is The Best Way To Buy Foreclosures In Roseville, California?
Since the term "best" is relative to each individual situation, I am going to offer you a short list of the pros and cons of the different methods of buying foreclosures in Roseville, California and let you decide which one is "best" for you:
Short Sale - Buying a property BEFORE it forecloses, which may or may not be in default.
- PROS: asking price may be under market value, can have home inspected before buying
- CONS: may take months to get an answer from the bank, property may foreclose while in contract, bank may ask for a higher price or for a seller contribution, 2nd lien holder may not cooperate
Short sales are best suited for buyers who are "hopelessly in love" with a unique property, who don't need to move in right away and are willing to sacrifice their sanity until the close of escrow date...if it ever happens, of course. Chances at buying a short sale are greatly increased if the listing agent is experienced at successfully closing short sales and the property has short sale approval by the bank!
Trustee's Sale - Buying a property at auction (aka "on the courthouse steps").
- PROS: sales price typically under market value, even against multiple bidders
- CONS: cash required to purchase property, cannot inspect home before buying, no title insurance, sales may postpone again and again, liens are not necessarily extinguished upon transfer of title, evictions can be lengthy
Trustee's sales are pretty much for serious investors who do this as a full-time job. It is NOT for the faint of heart and not particularly recommended for anyone solo wanting to "strike it rich" on a one-time purchase. You read many stories online about inexperienced rookies losing their a$$ on a trustee's sale purchase, thinking they bought a home for pennies on the dollar...only to find out they had inadvertently purchased a second mortgage!
Bank Owned - Buying a property from a bank that is listed on the MLS (Multiple Listing Service)
- PROS: may be able to purchase under market value, can have property inspected before buying
- CONS: homes normally not in "move-in condition" and will need $$$ for repairs/improvements, many banks play games and hold out for more and/or higher offers, low prices attract bidding wars
Bank Owned / REO properties are a much safer alternative to buying at trustee's sales, as well as a much shorter alternative to buying short sales. If you are lucky enough to find one in good condition that is owned by a bank who doesn't play games (e.g. have an asking price of $100,000 yet won't respond to offers of $150,000 because they are really holding out for $200,000) then you may consider yourself one very lucky buyer!
BOB & LEILANI SOUZA
Real Estate Investment Specialists
Southwest Placer County, CA
Bob Souza - 925.513.3400 - bob@souzarealty.com
Leilani Souza - 916.408.5500 - leilani@souzarealty.com
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