Buying foreclosed homes...a lot beneath the surface

I just read this great article from this weekend’s LA Times describing the reporter’s experience purchasing a foreclosed home. I have seen/heard many similar stories from my business partner Avantika, a top performing realtor in LA who has bid on and sold several foreclosed properties recently....so thought I'd post this article. Call or email her (av@avantika.com) if you want to ask a question, buy/sell a home, or know someone who is buying or selling and could use a top notch real estate agent....in Los Angeles. ray

How I bought a foreclosed home

There were pitfalls on the the way, but an L.A. Times reporter found that research, strategy and being free of loan baggage helped.

By Peter Y. Hong
November 9, 2008

I did not set out to buy a foreclosed house. ¶ Earlier this year, I wrote about selling my condominium unit in 2005 to rent, rejecting the hyped promise of an always-rising real estate market. Now I've purchased a foreclosed home -- but that doesn't mean I've bought into the new wave of hype in real estate, the idea that cheap, repossessed houses are a sure bet. ¶ There's usually good reason many foreclosed houses languish with no buyers. They may be badly damaged or situated in places that seemed attractive only in the frenzy of a real estate bubble. ¶ The foreclosure inventory is loaded with properties far from job centers, stripped or even vandalized by previous owners or in abandoned developments with no parks, schools or even neighbors nearby. ¶ As a result, finding a decent house amid the wreckage of the real estate crash can be a long, tedious process. Then, actually buying one can also be tricky. When a foreclosed house in good shape and in a desirable location gets to market, it often attracts multiple offers, even in this struggling real estate market.

But a foreclosed house might still be an easier way to get what you want than trying to get stubborn individual sellers to lower their list prices. In both my day job covering the housing market and my own search for a house, I've seen what has worked for many buyers of foreclosed homes.

This is what worked for me.

Click here for the full article:
http://www.latimes.com/business/la-fi-cover9-2008nov09,0,2623620.story?page=1