Resale vs REO sale report for Riverside County as reported by Mission Grove Realty:     

REO sales are increasing in Riverside County, CA. During the month of August, real estate owned sales  (Properties owned by lending institutions) increased to 6% of total sales which is up from the years average of 3% of residential property sales. This does not include deed transfers that reverted to HUD, between lending institutions or where an owner has transferred through a deed in lieu of foreclosure. 

                 TOTAL SALES      REO     REO%     YEAR TO DATE REO %
                         2143            129       6.0                   3.0

Sales by lending institutions will continue to rise yet, these sales are not at the drastically reduced prices that some are claiming. Average REO sale prices in Riverside County have, thus far, been at or, just below area averages. A few have transferred at above comparable sales. Property sales that were below market typically required moderate to major repairs.

What does this mean to homeowners or potential buyers? Not much at this point. Those that are looking for, or expecting, for lenders to sell at "fire sale" pices will be dissapoitned. There are some shady characters out there that have had some pretty creative advertising out there that is designed to lure the greedy or uneducated into thinking that they have the ket to buying at 50 cents or less on the dollar. Unfortunately, their victims soon realize that they were taken. Some have paid hundreds or thousands to them for "inside information" or have bought property with undisclosed liens or other title clouds making their new found bargain, a true money pit.

Be careful out there! There is no free lunch.

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Hi,

I absolutely agree with what you have stated about this foreclosure situation and worse, short sales.  People think they

are getting a BIG bargain and most of the properties have loans that are more than the market value.  Are the lending institutions having a fire sale? I don't think so and they are bought AS IS so they don't know what they are getting plus if they change their minds the earnest money does not get returned.

We have the same market here in Phoenix and we do have the lenders mostly to blame.  It is sad when your neighborhood

has an abundance of FOR SALE SIGNS that knock down your property values.  I guess we are just going to have to ride it out. Our Phoenix market got helped when California had its earthquake in early 90's.  I have been selling since 1984 and even then in the late 80's we did not

have as many forclosures. One reason is we did not have that many homes here so developers have contributed to the mess because they sold to who ever as fast as they could.  As you stated- no free lunch or even a snack.