DataQuick said 43 percent of all homes sold in Santa Clara County was in foreclosure upon sometime in the previous 12 months. The number for Alameda county is 46.2 percent. Evidently, most of the current sale is being driven by foreclosed properties; that also explains the falling median prices in these counties. But before jumping on the bandwagon be cautioned that not all foreclosed houses are good deal. Most foreclosures sell at a discount, but the benefit of a lower sales price is often negated by the cost of repairs required to restore the home to a livable condition. Foreclosed properties often have not been maintained due to the distressed financial situation of the seller.

Use the table below to learn about the 3 types of properties available in today’s market:

Regular Sale

Short Sale

Foreclosed Property

Owner

Seller

Seller

Bank

Seller

Seller

Seller & Bank(s)

Bank

Condition

Mostly Good Average

Mostly Poor

Mostly Poor

Time to close

30-60 days

1-6 months

45-90 days

Ability to close

Easy

Very tough

Easy Moderately tough

Good deal?

Maybe

Maybe

Usually Yes

 

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