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Homebuyers hop on the foreclosure bus

June 7, 2008 12:00:00 AM PDT
People who want to get into the housing market, or find an investment property are climbing aboard for a unique tour, homes that are about to become foreclosures. Each month, Costa Canyon Realty rents a bus and gives prospective buyers a lesson on how to buy bank-owned homes. There are deals out there, but plenty of competition.

"People are seeing the deal in the low end, were being beat out by investors who have pure cash, and they're closing in four days. That is hard competition to a first time buyer how has to take 45 day because they're FHA," said real estate broker, Rita Tayenaka.

Before making an offer, people on the tour can consult a home inspector, who's along for the ride. Even if the bank says that they're not going to repair or do anything that the report finds, at least the client is going in with their eyes wide open, they know the condition of the home they are going to buy," said Jeff Frawley, a home inspector.

School teacher Henry Awad is looking to buy his first home. He likes the idea of one-stop shopping. "They almost have the whole package deal for you, so even if we don't get a house from them we can use their inspectors. I think it's great," said Awad.

But he's in no hurry to buy, knowing more homes will soon be in foreclosure.

According to data quick information systems, the number of California homes going into foreclosure is at its highest level in more than 15 years. More than 113-thousand homes in the first quarter of this year have gone into foreclosure. That's about a 40-percent increase from the same time last year.

"There's way too much inventory that's foreclosed upon, and once we can work through that and sell all that inventory then the real estate values will start to increase," said lender Tom Sebring.

 

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