Santa Ana Foreclosures are Great but Avoid This Mistake

Thursday, September 2nd, 2010 at 4:50 pm

The number one blunder most people make when purchasing Santa Ana foreclosures is getting in over their heads financially, says Leo Nordine, owner of Nordine Realtors in Hermosa Beach.

“If you simply cannot afford to obtain a 30-year fixed, you cannot afford the home. I cannot tell you how many houses I have sold much more than once mainly because 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 buying Santa Ana foreclosures? Here are five suggestions from Nordine:

Recognize the market. Subscribe to ForeclosureRadar. The map-based system enables subscribers to track foreclosures all through California and the West Coast with 60 criteria (lender, value and map, for example). The website has a foreclosure learning center and provides a three-day trial (free of charge) or even a monthly subscription ($49.95). “You can target properties and look up the sale date and other facts,” Nordine claims. “You can know about the property details prior to the listing agent.”

Buy smart. “The cheap stuff is bottoming out. The high end is even now going down. So Santa Ana is usually a superior place to buy proper now due to the fact it’s at the bottom. Brentwood, in my opinion, is still going to drop,” he adds. Nordine states South L.A., Riverside, North Long Beach and East L.A. are very good bets for foreclosure bargains. “Those are places which are relatively safe for investments, simply because you aren’t going to purchase and watch the price drop 10% six months later,” he says.

Be prepared to beat the pack. Excellent 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 attracted to offers that require less work for them, Nordine claims. So be prepared 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 perhaps a credit report, have that documentation ready to go,” he states.

Leave attachments at the door. “It is really a tough marketplace with a great deal of people searching for deals, so it is easy to get discouraged, Nordine claims. “But if you’re diligent and keep trying, you’ll eventually discover a superior foreclosure.”

Get the huge picture. With fewer disclosure requirements on most foreclosures, Nordine says it’s critical to do your due diligence on the history of the house and get details about the property, past and present. Keep an eye out for outstanding liens, loans, fees and tax debts that could transfer and become your own personal post-sale aggravation.

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