Ventura County Bank Owned Homes
Ventura County REOs

The last two reasons are the only good reasons to buy a bank owned home. Yes, you may get a better than average good deal. And you may not. Remember that this is a very serious investment and you want to be 100% sure in is right for you.

• Other Links that will assist you in finding a home to purchase in Ventura County
  • http://www.vcpropertysearch.com/
  • http://www.findabeachhome.com/
  • http://www.aboutventura.com/
  • http://www.discoverojai.com/

California Foreclosure Update as per ForeclosureRador.com

As of May 2011. Notice of Default filings fell in May 2011 with a 4.0 percent drop resulting in the fewest foreclosure starts since October 2008 when SB 1137 resulted in a temporary halt in the Notice of Default process. More foreclosures were scheduled for sale at the courthouse steps in May with Notice of Trustee Sale filings up 16.6 percent from April, the first month-over-month increase this year. Notice of Trustee sales remain down year-over-year off by 9.0 percent. Cancellations of foreclosure sales dropped 24.3 percent compared to April after jumping 27.0 percent from March. Foreclosure sales on the courthouse steps were up from the prior month, with 3.4 percent more sales Back to Bank and a 4.1 percent increase in foreclosed properties Sold to 3rd Parties. The average Time to Foreclose continued a steady climb, increasing 10.3 percent to a new record of 344 days. Third parties are reselling inventory more quickly, with the Time to Resell down 7.6 percent month-over-month to 134 days, the fewest number of days since September 2010 — likely due in part to a lack of inventory throughout much of California.

2011 Foreclosure Filings Reports for Ventura County

Ventura County Foreclosure Filings Notice of Default filings are the first step in the foreclosure process. Notice of Trustee Sale filings set the date and time of an auction, and serve as the homeowner's final notice before sale.

Ventura County Foreclosure Outcomes After the filing of a Notice of Trustee Sale, there are only three possible outcomes. First, the sale can be Cancelled for reasons that include a successful loan modification or short sale, a filing error, or a legal requirement to re-file the notice after extended postponements. Alternatively, if the property is taken to sale, the bank will place the opening bid. If a 3rd party, typically an investor, bids more than the bank's opening bid, the property will be Sold to 3rd Party; if not, it will go Back to the Bank and become part of that bank's REO inventory.

Ventura County Foreclosure Inventories Preforeclosure inventory is an estimate of the number of properties that have had a Notice of Default filed against the property, but have not yet been Scheduled for Sale. The Scheduled for Sale inventory indicates those properties that have had a Notice of Trustee Sale filed, but have not yet been sold or had the sale cancelled. The Bank Owned (REO) inventory indicates the number of properties that have been sold Back to the Bank at the trustee sale, and which the bank has not yet resold to another party.

Ventura County Foreclosure Published Bids The Published Bid is the amount listed in the Notice of Trustee Sale and is typically the balance due at the original date of sale. The Opening Bid is the bank's starting bid at auction, and is often discounted from the Published Bid. The Winning Bid is the highest bid received at auction and reflects the amount at which the bank or 3rd party purchased the foreclosure.

Ventura County Foreclosure Discounting This chart compares the winning Bid Amount of properties sold at trustee sale to both the outstanding Loan Amount, and the current Market Value. Banks place an Opening Bid for each property and if a 3rd Party does not make a higher bid, the property will be sold Back to Bank (REO) for the Opening Bid amount. Properties Sold to 3rd Parties will typically have Winning Bids with deeper discounts to both Loan Amount and Market Value as only low Opening Bids will attract investor interest.

Call me: Trent Jones, Ventura County Realtor 805.798.0434

What is a short sale?

Short Sales Explained

A short sale can be an excellent solution for some homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here's a more official definition:

• A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
• A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

  Here's what's really happening with short sales: All too often, they fall short of the finish line.

A short sale means a sale that falls short of the amount owed on the mortgage. They happen only when the seller can't come up with the cash to pay off the difference. Most important, though, is that they can happen only when the lender agrees to accept the shrunken payoff.

Desperate sellers pursue them to avoid a foreclosure, which would be even more damaging to their credit history. Buyers pursue them in hope of snagging a home at a deep discount.

This is where we at Ask Now Investments can help. We are certified to handle short sales transactions.

Lenders aren't in the business of accepting less than they are owed, and their paperwork machinery isn't even set up to work that way efficiently. Their approval of a short sale is always slow in coming -- if it ever comes at all. You need to find out if the bank even has a clue that the seller is trying for such a deal.

Too often, sellers and their agents are calling a listing a "short sale" or saying that "offers are subject to third-party review" without even having talked with the lender. They plan to get a live fish on the hook before they try to tempt the lender.

Do you want to be that fish?

It's important to distinguish between "upside-down" sellers and short sales. If sellers are upside-down on their loan, owing more than the home is worth, they are still expected to make monthly payments. Even if they would like to move, most upside-down owners are stuck until prices recover enough to make a sale profitable.

JUST BECAUSE THE SELLER IS UPSIDE DOWN AND DOES NOT WANT TO OWN THE PROPERTY ANY MORE IS NOT A GOOD ENOUGH REASON FOR A LENDER TO ACCEPT A SHORT SALE. THERE MUST BE A HARDSHIP BEFORE A SHORT SALE CAN HAPPEN. BEWARE, NOT ALL SELLERS WILL QUALIFY FOR A SHORT SALE.

If an upside-down owner must sell, even at the reduced price, he's expected to take money out of savings, cash in the 401(k), borrow from the in-laws or otherwise pay off the mortgage.

But what happens when the homeowner simply cannot come up with the cash? At this point, the homeowner's pain becomes the lender's problem. The lender's options are either to agree to a short sale and forgive the unpaid debt, or to foreclose on the home and re-sell it. Remember, the lender gets to make that choice, not the seller.

For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:

• Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
• Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
• Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

Simple guidelines for buying a short sale.

• Before you waste your time, and possibly your money, on a short sale that stands little chance of getting the bank's approval, gather some intelligence about the sellers, their financial situation and the real estate agent they have hired. You will save a lot of frustration by focusing only on deals the bank is willing to make.
• Make sure that the seller has stopped paying the mortgage and has already received a notice of default. If the lender is still collecting monthly payments, that lender has no incentive to approve a short sale.
• The best short sales are ones that have only one lien. Lenders holding second mortgages, such as home-equity lines of credit, can also kill the sale. Second-mortgage lenders are supposed to be at the back of the line to collect loan payoffs, but they can nix a proposed short sale if they don't think they're getting enough out of it.
• Make sure the bank is ready to deal. Make sure that someone at the bank has either already approved a short sale or has at least confirmed receipt of that short-sale package, including a document showing the lender what it would net after taxes and fees, and a market analysis or appraisal that demonstrates that the home is being sold for a reasonable price.
• Make sure the listing agent / selling agent has experience completing short sales and responds to your inquiries. We at Ask Now Investments are Certified Short Sale specialist.
• The best short sale are one in which the foreclosure is at least six weeks away. It takes at least that long to get a short sale approved, so a foreclosure any time sooner could sweep your deal away. Unfortunately, foreclosure dates aren't always easy to nail down. Several troubled borrowers I have spoken with over the years have told me they couldn't find out exactly when the foreclosure would happen. And buyers who have succeeded at a short sale have told me they could only guess at the looming foreclosure date.
  
• You must be preapproved for a loan before any agent / seller / lender will even consider you offer. Be sure you have all your preapproval / or cash in place before making an offer on a short sale.
• Undertand that there are lots of things that can derail a short sale. For example, although lenders lose a lot of money when they foreclose, the payout from private mortgage insurance could reduce that loss enough to make the lender choose foreclosure.
• Do not get too attached to the property. Short Sales fall out of escrow all the time. On the average you have about a 50/50 chance of getting the property once you get an accetped offer from the seller. In other words there is a good chance the deal will fall apart. Don't spend money on appraisals or inspections until you have received some sort of commitment from the bank. You certainly don't want to give notice to your landlord too early. And keep looking for other, easier deals, just in case.
  

June 2011 Ventura County REOs - Ventura County Foreclosures

Some buyer tips from Melissa Dittmann Tracey

FROM THE BOOK: 5 WAYS TO GET GOOD FORECLOSURE DEALS

Foreclosure rates are spiking and brewing up a hot market for investors and buyers. To get the best deal possible, follow these tips from the authors:

1. Timing is everything. Borrowers often are given a chance to avoid foreclosure with a grace period, typically two to three months, to pay off the amount they owe. The borrower may opt to sell the property during this pre-foreclosure stage if they can’t make up their missed mortgage payments. This is typically the best time to strike a deal, as home owners are looking for ways to avoid foreclosure. Another prime time to buy: prior to an auction date.

2. Look in the right places. Follow the foreclosure trail. Title companies, banks, purchase money escrow offices, and credit unions can be good sources to find out about new foreclosures. Online services, such as RealtyTrac provide national information on foreclosures, broken down into such categories as bank-owned, auction, and pre-foreclosure. The Hudson & Marshall Web site has auction schedules and even lets you make bids online.

3. Know when to walk away. For properties that have been left vacant for any amount of time, it’s important to check for any plumbing or electrical issues, vandalism, foundation problems, and mold. Recommend that your clients spend money on a home inspection to ensure they’re not overlooking problems that would be expensive to fix. Even if the property’s price tag has been steeply discounted, it still might not be the best deal.

4. Do your research. Before buying a foreclosed property, your clients should have the home appraised to get an accurate estimate of value. Also, they should ensure the title is clear and check for any liens — such as builder liens and taxes — that need to be paid off. This is public information and usually can be found at a county’s recorder’s office. Find out how much is owed on the home and make a list of everything that needs to be repaired, with an estimate of costs (add 10 to 20 percent to pad it). Now, you’re ready to make an offer.

5. Buckle your seatbelt. Foreclosure deals often move fast and require constant monitoring as properties wind their way through the process. Home owners who were in shock or denial or banks that have taken over ownership of the property may initially reject your offer. But don’t give up. Follow up is key — especially as an auction or REO time nears, they may change their mind. “The early bird definitely gets the worm in the foreclosure market,” the authors say. Remember, if it looks like a great deal, other buyers are undoubtedly looking too. Therefore, make your offer more appealing, such as by being able to close in 14 to 21 days. While escrow periods are usually 30 days, you can find some banks that can act faster.

SNEAK PEEK

“The owners of homes in foreclosure can be extremely frustrating to work with, but put yourself in their shoes. They may feel embarrassed, ashamed, or inadequate, especially if they have a family. They may feel like they have failed, and here you are, Ms. Money Bags, coming in to take their home from them for lower money than it is worth …. If you insult them, annoy them with phone calls, make them feel lower than they already are feeling, or treat them in a lesser way than you’d want to be treated in this situation, you are sure to lose the deal, not to mention kick someone while they are down.”

Call REO specialist Trent Jones 805.798.0434

More About California Short Sales

C.A.R. Short Sale Lender Satisfaction Survey

March 8, 2011

LOS ANGELES (March 8) – Fewer than three of five short sales close in California, illustrating the complexity and difficulty of navigating lenders’ and servicers’ short sale procedures, according to a Short Sale Lender Satisfaction Survey conducted by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). The survey gauges REALTORS®’ experience in working with short sale transactions – transactions in which the lender or lenders agree to accept less than the mortgage amount owed by the current homeowner.

“It’s disappointing that less than three in five short sales close, despite every effort by the REALTOR®, home seller and potential home buyer,” said C.A.R. President Beth L. Peerce. “Many underwater homeowners who have been hit by the recent economic crisis can no longer afford to stay in their home and just need to sell their home as expeditiously as possible are unable to largely because of the complex and cumbersome short sale process,” she said.

Of the REALTORS® surveyed, 94 percent participated in a short sale transaction during 2010, demonstrating the surplus of short sale listings in today’s real estate environment.

The most frequent problems REALTORS® cited in working with lenders and servicers during the short sale process include unresponsiveness, onerous procedures, and long processing delays.

Nearly three-fourths (70 percent) of REALTORS® said that closing their most recent short sale transaction with a lender or servicer was “difficult” or “extremely difficult,” while only 10 percent said it was “easy” or “extremely easy.”

“The lack of standardization, long approval process, and lack of lender approvals are hampering what should be a 45-day short sale process,” said Peerce. “Instead we’re hearing the typical response time for lenders is at least 60 days, and in many instances, their response time exceeds 6 months.”

More than half (63 percent) of REALTORS® said that lenders took more than 60 days to return a written response of the approval or disapproval of the short sale agreement submitted. Only 4 percent said they received a written response in less than 14 days.

Additionally, 44 percent of REALTORS® said that lenders took more than five business days to return any form of communication to REALTORS®. Only 14 percent said lenders responded “within one business day.”

“The survey results show that the short sale system is clearly flawed and must be standardized and streamlined to reduce the inventory of foreclosures,” said Peerce. “Increasing the number of successful short sale transactions is one important way we can help California families avoid foreclosure and move our economy closer to recovery,” she added.

Further illustrating faulty communication problems, 64 percent of REALTORS® were “not satisfied” or “not at all satisfied” with the timeliness of lenders’ response to their inquiries, while only 22 percent said they were “satisfied” or “extremely satisfied.”

Moreover, nearly three-fourths (74 percent) of REALTORS® were “not satisfied” or “not at all satisfied” with the amount of time it took to hear whether a transaction was approved or disapproved, while 16 percent said they were “satisfied” or “extremely satisfied.”

In overall satisfaction with the lender they worked with, 67 percent of REALTORS® were “not satisfied” or “not at all satisfied,” while 19 percent were “satisfied” or “extremely satisfied.”

C.A.R.’s Short Sale Lender Satisfaction Survey was conducted during the last two weeks of December 2010 to gauge REALTORS®’ experience in working with lenders or servicers of short sales, bank-owned properties (REOs), and foreclosures. The survey was delivered to 20,000 REALTORS®, with 2,150 responding to the survey.

Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.