Buy San Diego foreclosures now – before it’s too late.

This is another article that pretty much sums up what is going on in the San Diego foreclosure market at this very moment…

By Les Christie, CNNMoney.com staff writer:

NEW YORK (CNNMoney.com) — You’ve heard of speed dating? It’s got nothin’ on foreclosure buying these days. In many places, anyone who wants to buy a foreclosure better act fast, or they’re going to come away with bupkus.

REOs, the industry term for homes repossessed by lenders and put back on the market, are often selling in a day — sometimes in less.

“We’re seeing REOs go very quickly. Offers come in immediately after the listing comes on the market, within 24 hours,” said Brad Geisen, founder of Foreclosure.com. Some homes have been put into contract in less than 90 minutes.

In Stockton, Calif., foreclosure ground zero, the market has changed radically. Last summer, Cesar Dias became famous for founding the “foreclosure tour,” in which he packed potential buyers on a bus and ferried them around to some of the thousands of distressed properties.

Today, the foreclosure tour in Stockton is history. There are too few REOs.

“For every listing that comes out, we have 10 buyers,” said Dias, an agent with Approved Real Estate Group. “We had a lot of inventory last summer. Now we’re down to 1,500 listings — from more than 5,000.”

San Diego buyers face the same trend. “Agents have one or two REO listings now, compared with 15 or 20 a year ago,” said realtor Adrianna Delgado of the Delgado Group.

And there’s almost no negotiating, no back-and-forth, after the initial bid. “We don’t get a counteroffer,” said Delgado. “The sellers just ask for your highest and best bid. If you’re not prepared to send in your best bid the first day, you may as well stop looking.”

In Florida there are so many buyers for foreclosure listings that real-estate investment companies, which had been snapping up properties, are now facing stiff competition, said Vanessa Grout, VP for acquisitions at New Valley, a real estate investment fund.

Even in distressed Detroit, REOs are still in high demand. “For a good house that’s not too beat up, in a good neighborhood, there’s no lack of buyers in this market,” said Andy Sakmar, founder of Century 21 Sakmar in the Motor City suburb of Rochester. “There are a lot fewer of these properties than a year ago, and the super buys get multiple offers.”

Priced for speed

The biggest factor in the feeding frenzy is, of course, rock-bottom prices. Banks are pricing homes to move.

Sakmar tells of an REO that recently went on sale in a community of mostly $300,000 homes. It was in good shape and should have sold for $200,000, in Sakmar’s opinion. Instead, the bank listed it for $129,000.

“It drew thirteen offers in two days,” he said.

That kind of cut-rate pricing is very common, according to Foreclosure.com’s Geisen. Instead of holding onto REOs for the best prices — and paying the property taxes and maintenance and heating costs — banks are selling the homes as quickly as possible.

“In this market, if they can liquidate them fast, it makes more sense to get them off the books,” he said.

The trend is causing intense agita for buyers. “People feel like they’re getting left out,” said Dias, the agent in Stockton. “We show a house on the weekend and it’s gone by Monday.”

read more…

Homes For Sale Used As Rave Party in San Diego

Foreclosure Rave Parties in San Diego… You’ve got to read this from San Diego 10 News,

Million-dollar homes in the San Diego area are being turned into nightclubs by teenagers, and the homeowners have no idea — until sheriff’s deputies arrive to break them up. Several homeowners said it has happened to at least three vacant homes for sale — two in Fallbrook, one home in San Marcos.

The teens first spot homes with for-sale signs, reported television station KGTV in San Diego. Then they call the listing agent to confirm the homes are vacant. In two recent cases, teens found an open bedroom window to gain access.

Robbins owns a home in Fallbrook in a gated community that’s listed at $1.2 million. On July 3, teens broke into his home through an open window and held a two-day party.

“The family room was full of people,” Robbins said.

Photos found online show hundreds of teenagers and young adults with beer and hard liquor, dancing to music played by a disc jockey.

“There were lots of kids and lots of noise,” said neighbor, Matt Premo.

According to a real estate agent who sent KGTV the pictures, the partygoers ripped out some wiring. That enabled them to open the home’s front gate, giving hundreds of partiers a way in.

“I thought it was the owners’ kids having a party,” said Premo.

But that wasn’t the case. Robbins, and his real estate agent, had no idea until police broke up the party.

A neighbor called the authorities, which finally put an end to the party, but the mess the partiers left behind cost Robbins $8,000.

Read More…

How To Read A Plat Map for San Diego Real Estate

The Assessor’s Map is not filed with the official County’s Records. This map is based upon tract maps that are filed with the local County records. The Assessor will include a reference to the maps that have been filed at the County. See the image below to understand how to read a plat map when buying San Diego Real Estate.

In a recent article from the LA Times about the Downtown San Diego Real Estate Market…

Flush with easy credit, developers and home buyers were eager to invest in “America’s finest city,” the nickname used by officials to tout San Diego’s bay-side location and perfect climate.

At the height of the frenzy, hopeful purchasers queued up outside sales offices to plunk down deposits. There were occasional arguments over who was first in line. No one wanted to miss out with condo values riding an elevator to the sky.

Near the peak, in May 2004, median resale prices of downtown condos hit $647,500, a 56% increase in just three years, according to San Diego research firm MDA DataQuick.

One savvy flipper made a $91,000 profit in less than two months in 2005 by reselling a 560-square-foot studio for $340,000.

“There was a little bit of a mass hysteria mentality. . . . People thought they would be priced out of the market,” said Bradford Willis, 47, who signed a contract in 2004 to purchase a $341,000, one-bedroom condo in a planned luxury development. Willis said he bought on speculation because there was little existing inventory on the market at the time, much of it priced above $500,000.

Irrational exuberance has long since given way to buyer’s remorse. Median resale prices for downtown units stood at $370,000 in June. That pricey 560-square-foot studio? It was foreclosed and resold this year for $162,000, down more than half from its 2005 sale price.

Downtown San Diego, a 2.2-square-mile area, is now awash in condos. About 400 new and occupied ones are listed for sale, and more than 450 are in some stage of foreclosure and will eventually be put on the market. An additional 1,000 units that were under construction when the market soured are slated to be completed this year, adding to the glut and putting further downward pressure on prices.

Read More…

Investors Drive Foreclosure Prices Up In San Diego

This article from the Associated Press sums exactly what is happening with San Diego Real Estate that is priced under $400,000 through out the county.

Home shoppers in parts of the country with lots of foreclosures are finding it increasingly difficult to buy. Investors are bidding up prices thousands above the original asking price.

Federal legislation slowing the number of foreclosures is adding to the problem by reducing the number of homes on the market. For instance, in Las Vegas, one of the areas where the bidding problem is greatest, home inventories are down 10 percent since March, according to the Las Vegas Association of REALTORS®.

When a bidding war erupts, the problem is particularly difficult for traditional buyers because investors are usually cash purchasers. They can bid up a property without concern whether the appraisal will prevent them from getting a loan.

Experts say the problem is not unlike the situation at the height of the housing bubble.

“This market is about as abnormal as the hypermarket that we came out of a few years ago,” says Jay Butler, director of the Realty Studies program at Arizona State University.

Source: The Associated Press, Jonathan J. Cooper (07/20/2009)

How To Buy A Home In San Diego, Step 2

Determine Your Needs

Consider location, size and styles to get clear on exactly what type of home you need.

Location
Considering that a home is often the largest single purchase you’ll ever make it is paramount to, as Stephen Covey says, begin with the end in mind. The most recent data shows that most California homeowners live in their home 5-7 years. Eventually when you prepare to sell, after sales price, location will be the next most important consideration. What school district or neighborhood you’re in can make a difference of thousands of dollars. We are knowledgeable local professionals who will consult with you every step of the way.

Style
Possibly you’d like to own a turn key home where the only thing you need to change is your address? Maybe you are looking for a cosmetic fixer that comes alive with your personal style and flair with a bit of sweat-equity? If you don’t know the difference between a semi-detached ranch style home and a single level duplex (they’re the same thing) that’s just fine. In terms of style, you’ll come to know what you’re most attracted to by spending time looking at available homes on the market, surfing the MLS listings and going to open houses.

Size
Are you growing your family size and in need of a bigger home or is your bigger home in need of less family size? No matter your particular situation you’ll want to consider not only what you need right now, but what you’ll need in the near future. We see many first time buyers needing to sell within a few years time because they didn’t buy enough home for growing a family. During our initial consultation this is one of many key points we’ll cover to make sure you are maximizing your long term financial stability. It pays, or should we say, saves, to get professional and caring advice from consultants you can trust.

Amenities
From home owners associations to private gated estates San Diego has every amenity you could want, except seasons. And if sun-sational year round weather is an amenity on your wish list then we can help you find a home to properly enjoy the weather.

Trade-Offs
We don’t like them either, but trades off are a fact of life. The home you eventually buy will most likely have some sort of opportunity cost associated with it. Do you buy a larger condo instead of a detached house to start off? How about moving to a better school system for the kids or moving closer to grandchildren? What about re-location for a job opportunity? Trade-offs can come in any shape or size down to the difference of a flagstone patio instead of a wood deck. Be prepared to get essentially what you want and to let the small things be just that, small things.

New La Jolla Foreclosures

2 New La Jolla, California Real Estate Foreclosures hit the market today and they both start with a 3. Click Here for full details.

California Real Estate Update from Bruce Norris

Just out today is The Norris Group Quarterly Newsletter… a Must Read for experienced and aspiring California Real Estate Investors.

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Click Here for the Newsletter Download Link
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Bruce Norris is perhaps the voice of god when it come to investing in California real estate and I have benefited greatly from following his advice over the years. I a crowded marketplace of so called Guru’s you have my word that Bruce Norris and his team actually do have your best interest at heart when it comes to the world of real estate and investing. This is not an endorsement I make often or take lightly.

Invest the 15 minutes or so it’s going to take to read this newsletter and even considering signing up for a few of the classes Bruce and his team are offering. It will be money and time well invested… in YOU.

The end of 2009 and into 2010 will really be an amazing buying opportunity for Southern California Real Estate. We have a ridiculous amount of foreclosures about to hit the market, some 900,000 Californian’s are NOT making their payments, SAD – but True.

I would love to see all my clients and friends be in the position to retire from a Job and pursue your life’s dreams as a result of having the predictable monthly cash flow that quality rental properties can bring your way. Yes, there are other means to getting this cash flow as well and I am a HUGE fan of developing Multiple Streams of Income to ensure the end result.

Please let me know how we can Mastermind your future success and create a plan for Financial Freedom. Although real estate is not the only method for creating wealth… the opportunity for amassing a secure future with cash-flow rentals in California is actually upon us. Five years ago did you ever think that we’d be in a position in Southern California to buy cash flow properties out of the gate? I sure didn’t think we’d see it like this. Is this the buying opportunity of a lifetime? Maybe… What do you think? Is it time to Buy San Diego Real Estate?

So, get to it… read this newsletter;

The Norris Group Newsletter – July 2009 – PDF

and Many Happy Returns… On Investment.

Travis.

San Diego Foreclosure Inventory – Where Are You?

Ok, I just got this email from Jason Gilbert of  SOCALCIA which was sent to him by the one and only Bruce Norris of The Norris Group.

From: Bruce Norris
Sent: Thursday, June 11, 2009 7:04 AM
To: Jason Gilbert
Subject: RE: Contrarian Activity Charted

Hi Jason,

What’s about to hit California will be very damaging. There are 240,000 properties currently in some stage of foreclosure process, 900,000 owners have stopped making their payments and 3 million California homeowners are under water. The next 18 months will see the sale of a lifetime on California real estate.

We have one student who is concentrating on condos. At the peak, this condo built in 2005, went for $300,000. He just bought it for $31,000. It rents for $1,100.

Bruce

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INVESTORS:  You HEARD Bruce . . . If you don’t act NOW, you will miss out on the “Sale of a lifetime on CA real estate”! The BEST place to get these deals will be revealed at our next meeting, so for details visit www.socalcia.com

So… I went on ForeclosureRadar.com and checked out the Bank Owned inventory. Here are the Maps for San Diego Bank Owned Foreclosures and for North County Bank Owned Foreclosures. They show a total of 3748.

To get through this San Diego Real Estate Fiasco we need to purge the system of this “shadow inventory” of foreclosed homes. The California Foreclosure Prevention Act that was signed last Feburary by Gov. Schwarzenegger was supposed to slow things down even further, but it seems that many of the “major player” banks have received immuity from this new moratorium on foreclosing. Click Here for a good article from the SacBee on this topic.

The time is coming for a landslide of killer deals on California and San Diego Real Estate.

You need a seasoned real estate team that will help you cash in on the opportunities as they appear.

Contact Us Today.

Pricey neighborhoods seeing more defaults

For months, San Diego County’s housing market has been ravaged by thousands of foreclosures in low-priced neighborhoods, where families saw their American dreams vanish as their subprime loans went bad.

Now, according to figures released yesterday, the pain is lessening in those areas while becoming more acute in high-priced neighborhoods.

MDA DataQuick reported 985 foreclosure sales in San Diego County last month, up 9.1 percent from April but off 36.7 percent from year-ago levels. Notices of default, the first step in the foreclosure process, totaled 3,059, a drop of 9.3 percent from April and 2.5 percent from May 2008.

But in certain expensive areas, there were record levels of defaults.

Point Loma, Solana Beach and Rancho Santa Fe and other expensive areas reported numbers several times the level seen a year ago, a sign that the trend may continue upward.

For example, in Carmel Valley, where the median sale price this year is $676,500, there were 44 default notices in May, up from 14 in May 2008. May sales in the coastal community east of Del Mar totaled 54.

“There’s more distress in the high end, and we’ll just have to watch to see if it continues to build,” DataQuick analyst Andrew LePage said.

He and other observers said high-end owners once had the resources to resist defaults and foreclosures, but the recession is reducing their income and investments.

As the middle and upper tier of the market sees more sales of distressed homes, even at a discount, the overall county median price is likely to go up as these properties offset sales at the bottom end, LePage said.

“I think we will see more pain and more foreclosures in the upper end,” said San Diego real estate broker Gary Kent. “Some neighborhoods like La Jolla and Del Mar were almost unaffected by foreclosures, but now there will be some effect.”

read more from the San Diego Union Tribune…
By Roger Showley, Union-Tribune Staff Writer