The biggest mistake most folks make when buying Redlands foreclosures is getting in over their heads monetarily, claims Leo Nordine, owner of Nordine Realtors in Hermosa Beach.
“If you just can’t afford to acquire a 30-year fixed, you can not afford the home. I can’t tell you how many houses I have sold far more than once simply because the buyer didn’t do their homework and ended up losing the house to foreclosure two years down the road,” said Nordine, who has specialized in foreclosure property since 1990.
Thinking about purchasing Redlands foreclosures? Here are five tips from Nordine:
Recognize the industry. Subscribe to ForeclosureRadar. The map-based system allows subscribers to track foreclosures through California and the West Coast with 60 criteria (lender, value and map, for example). The website has a foreclosure learning center and features a three-day trial (free) or even a monthly subscription ($49.95). “You can target properties and look up the sale date and other information,” Nordine claims. “You can know about the property details before the listing agent.”
Purchase smart. “The inexpensive stuff is bottoming out. The high end is still heading down. So Redlands is usually a great place to obtain correct now due to the fact it is at the bottom. Brentwood, in my opinion, is still going to drop,” he adds. Nordine claims South L.A., Riverside, North Long Beach and East L.A. are good bets for foreclosure bargains. “Those are places which are relatively safe for investments, mainly because you aren’t going to acquire and watch the cost drop 10% six months later,” he claims.
Be prepared to beat the pack. Great Redlands foreclosures garner multiple offers, so write a clean “as-is” offer that enables for the seller’s “choice of title” and “choice of escrow.” Sellers are attracted to offers that require much less work for them, Nordine states. So be ready to jump through all the hoops. “If the property is owned by Chase, and Chase demands pre-qualification by a Chase loan rep, as an example, get the pre-qualification right away. If they want proof of funds or a credit report, have that documentation prepared to go,” he claims.
Leave feelings at the door. “It is often a tough marketplace with lots of folks searching for deals, so it is easy to get discouraged, Nordine claims. “But if you’re careful and keep trying, you’ll eventually find a very good foreclosure.”
Get the huge picture. With fewer disclosure requirements on most foreclosures, Nordine states it is important to do your due diligence on the history of the house and get details regarding the property, past and present. Continue to keep an eye out for outstanding liens, loans, fees and tax debts that could transfer and become your own individual post-sale problem.