“Get Rich Buying Real Estate Foreclosures” is an all-too-familiar headline seen these days by home buyers and first time investors that want to take opportunity of today’s foreclosure market. But despite what all these eye-catching get-rich-quick headlines tell you, it’s not that easy. As an Investopedia article truthfully points out, “Investing in foreclosures is a strategy that requires a level of sophistication and diligence that is far beyond what most people realize.
One of the biggest risks of buying foreclosures at auction is the fact that you don’t know what you’re buying. Sure, you can drive by the house and get a sense of how well the owners have kept the property, but you can’t tour the home nor request a proper inspection prior to your purchase.
A safe way to start out your foreclosure buying journey is to look out for properties that are in foreclosure but are also listed for sale. This is a good way to minimize your risk of buying properties that require extensive repairs, since you’re allowed to tour the property, get an inspection done, and so on. Most of these properties are listed as “short sales”, that is the bank has already approved a sale at a lower price than the amount owed by the distressed owner.
Also in the case of a sale, the homeowner is likely to cooperate, as opposed to a foreclosure sale, where the homebuyer may even have to evict the former owner. Here are 4 interesting properties which are in foreclosure and are listed for sale in San Diego county. Take a look for example at the property on 741 Sea Cottage Way, Oceanside, which sold in 2004 for $730,000. It is a house with an ocean view that is now listed for $462,000. Let’s take a look at the listings.
<strong#1: 17981 El Brazo, Rancho Santa Fe, CA 92067
This luxorious Tuscan style estate was first listed for sale on July 24th, 2011. The 5 bedroom single family residence was built in 2008 and is listed for an asking price of $2,199,000. The total living area is 6,551 square feet. The property went into foreclosure on July 20th, and the upcoming foreclosure auction is scheduled for August 9th, with an unpaid balance of $2,485,800.
<strong#2: 1104 Orangewood Dr, Escondido, CA 92025
This 5 bedroom single family home was first sold on March 26th 1997 for $427,500. It was then resold 3 years later, on March 22nd, for $540,000. In 2011, it got listed for sale on April 16th for an asking price of $800,000. The price was then lowered on May 13th at $775,000, and then to $750,000 on June 1st. The property is scheduled for a foreclosure auction on August 22nd, with an unpaid balance of $586,000. The 4,262 sq ft house was built in 1979.
#3: 741 Sea Cottage Way, Oceanside CA 92054
This 1,801 square feet single family residential has 3 bedrooms. It was built in 2003 and was sold on April 28th, 2004, for $730,000. The current asking price is $462,000, while the upcoming foreclosure auction is scheduled for August 9th, with an unpaid balance of $633,038.
#4: 510 Wala Dr, Oceanside CA 92058
This 2,459 square feet property in Oceanside was built in 2005. It is a single family residence that is scheduled for auction on August 18th, with an unpaid balance of $532,407. It is also listed for sale with for asking price of $420,000. The house features 4 bedrooms and is a mere 2 miles from the beach.