Problems People Have Buying Foreclosed Property in Newport Beach

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

“If you can not afford to have a 30-year fixed, you just can’t afford the home. I can’t tell you how many houses I have sold much more than once due to the fact 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 getting  Newport Beach foreclosures? Here are five ideas from Nordine:

Know the marketplace. 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 site has a foreclosure learning center and provides a three-day trial ( free) or a monthly subscription ($49.95). “You can target properties and look up the sale date and other data,” Nordine claims. “You can know about the property details prior to the listing agent.”

Purchase smart. “The cheap stuff is bottoming out. The high end is still going down. So Newport Beach is often a good place to invest in correct now mainly because it is at the bottom. Brentwood, in my opinion, is still likely to drop,” he adds. Nordine claims South L.A., Riverside, North Long Beach and East L.A. are superior bets for foreclosure bargains. “Those are places that are fairly safe for investments, simply because you are not likely to purchase and watch the cost drop 10% six months later,” he states.

Be prepared to beat the pack. Excellent  Newport Beach foreclosures garner multiple offers, so write a clean “as-is” offer that permits for the seller’s “choice of title” and “choice of escrow.” Sellers are drawn to offers that need reduced work for them, Nordine says. So be prepared to jump through all the hoops. “If the property is owned by Chase, and Chase demands pre-qualification by a Chase loan rep, for instance, get the pre-qualification right away. If they want proof of funds or perhaps a credit report, have that documentation prepared to go,” he says.

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

Get the big picture. With fewer disclosure requirements on most foreclosures, Nordine says it is critical to do your due diligence on the history of the house and get details regarding the property, past and present. Keep an eye out for outstanding liens, loans, fees and tax debts that could reassign and become your own individual post-sale problem.