Santa Clara County Short Sale/Foreclosure Update through 3/31/2013

Looking for a distressed property in Santa Clara County? Don't hold your breath. Santa Clara County has very few short sales or bank owned properties this year. Here are the numbers:

Number of Santa Clara County homes for sale (single family and condos): 1123
Active Santa Clara County Short Sales: 32
Percentage of Santa Clara County homes for sale that are short sales: 2.8%
Active Santa Clara County foreclosures: 26
Percentage of Santa Clara County homes for sale that are foreclosures: 2.3%
Percentage of total Santa Clara County distressed sales: 5.1%

This is not enough to have any effect on total home values. Many cities in Santa clara County have no short sales as home values have reached and exceeded the peak in 2007-2008.


Closed sales in Santa Clara County in 2013: 2928
Number of closed Santa Clara County short sales in 2013: 402
Percentage closed Santa Clara County short sales in 2013: 13.7
Number of closed Santa Clara County foreclosures in 2013: 150
Percentage of closed Santa Clara County foreclosures in 2013: 5%

The percentage of closed Santa Clara County short sales and foreclosures is more a reflection of the past, not what is going on in the market now. Santa Clara County short sales can take up to a year to close, and foreclosures can be in the works for years before they hit the market.

The bottom line is, if you are looking for a deal in Santa Clara County, you will not likely find it in a short sale or foreclosure, because their are not enough of them and the total inventory is so low the 90% of all homes on the market get multiple offers.

If you have any questions about buying or selling a home in Santa Clara County please feel free to contact me.

Marcy Moyer
Keller Williams Realty
www.marcymoyer.com
marcy@marcymoyer.com
650-619-9285
DRE 01191194

Can I Buy a Home in Sunnyvale Ca at an Auction?

Buying a Foreclosure

Question: The house next door to me has a notice of trustee sale on the door. Can I go to the auction and buy it?

Answer: That depends. If the owners of the house pay off what they owe before the trustee sale or if they declare bankruptcy there will not be a sale. However if they do not do anything then the home will go to public auction. In order to purchase at auction you would have to pay all cash, you do not get contingencies, and the title is not insured.  The first loan has to be paid off and if the house is worth less than the loan balance you would have to pay more for the home than it is worth.  If the home is being foreclosed by someone who has a junior lien, that is a second loan, or a lien against the home then the first lien holder needs to be paid off before any of the junior lien holders can have the property.  

It is generally a very risky proposition to purchase a home at public auction since there is no way to guarantee that you will have clear title. Even if you pay off the first lien holder there may be other liens against the property that you would become responsible for. The best thing to do is to wait until the bank repossesses a home, and then lists it with a realtor or sells it an auction with an auction company that allows a buyer to use a lender. There are not many auctions like this in Santa Clara County, but they do happen occasionally. It is more common for a foreclosed home to be listed on the MLS after the bank takes it back.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Trust and Probate Sales