Immaculate Santa Clara home in Bower’s Crest neighborhood in Santa Clara. This home is updated and well maintained and features refinished hardwood floors, updated bathrooms, new fixtures, and six panel doors.
Street: 2132 San Rafael Ave.
City: Santa Clara
Bedrooms: 3
Bathrooms: 2
Price: $525,000
Size: 1,078 Sqft.
Lot: 5,000 Sqft.
Virtual Tour: http://www.santaclaravalleyliving.com/2132sanrafael/
Property Flyer: Property Flyer for 2132 San Rafael by Vinicius Brasil
With so many bank owned properties you would think it should be easy to snag one of these properties for yourself. The problem is that you are not the only one thinking that way. Here in Santa Clara County we experience about 40 REO properties a day. Most pertain to areas like Alum Rock, South San Jose, Gilroy and Morgan Hill. More often then you would think a few will sneak in from Santa Clara, Sunnyvale, and Cambpell. These are the rarer of the bunch and generally tougher to get.
Last week I put in 4 offers for clients who are attempting to buy an REO property in Santa Clara and in Alum Rock, San Jose. Three properties were very well priced and offered a good value, the other required so much repair that it was sitting on the market for some weeks.
The 3 well priced homes 3635 Machado AVe., in Santa Clara, 3226 San Juan Ave., in Santa Clara, and 3755 Mondigo in San Jose, were all multiple offer situations with ten plus offers. Machado countered everyone back highest and best while the others just took highest and best offers. The other 716 Kiely Blvd., has not yet responded.
When offering on REO properties, you certainly need to make sure your Realtor has produced a good file for you. This is going to be reviewed by the bank and not anyone that your Realtor can try to persuade. You should make sure you are fully pre-approved with the typical underwriter conditions, provide sources for down payments, and write a clean and aggressive offer.
On the plus side these homes are not selling for much higher than their offering price. Machado sold for $426,500 from $400,000, the others I have no confirmation on the sale price yet.
This week I submitted two offers for REO properties for two separate clients. One was a single family 3 bedroom 2 bath home in Santa Clara that was listed at $400,000. The home was in poor condition but the price reflected it. My experience with REOs (bank owned properties) is that they are seldom in good condition, so a little extra work was no big deal for my client.
We submitted an offer at $407,000 and there were 4 other offers at that time. In this Santa Clara neighborhood alone there were 3 other bank owned properties on the market, the next lowest in price was $461,000 and needed just about the same amount of work.
The response from the seller was a highest and best counter in the form of an email. For those of you who are unfamiliar with this strategy, the seller comes back to all the interested parties and asks them to submit their highest and best offer. We responded knowing that this home was under priced and offered $420,000 as our highest and best. That was 3 days ago and are still waiting for a response from the bank.
3265 MACHADO AVE, SANTA CLARABeds: 3
Baths: 2
List Price: $399,900
List Date: 1/28/2009
Lot Size: 5000.00 SF
SqFt: 1078
Age: 54
Year Built: 1955
School District: Santa Clara Unified
Another great deal being offered by the bank, this time in Santa Clara which isn’t ground central for foreclosures. $400K will get you this simple 3 bedroom 2 bath home in a nice quiet Santa Clara neighborhood. This same home sold for around $650K three years ago, albeit in much better condition. Not much has been done to this Bowers Crest home, but these homes are relatively inexpensive to update. They feature small bathrooms, but adequate room sizes. The 3rd bedroom works well as an office. The living room is large, and kitchen is a meduim sized galley kitchen. It aslo features a 2 car garage, and some back yard space helps to make it a simple and functional single family home. At $400K don’t expect to see this on the market for very long.
I just got my short sale listing 2122 Ventura Place in Santa Clara in contract. The sellers and I initially tried to sell the home where the sellers could possible come out clean without a short sale on their record. As the market deteriorated however, this proved to be an impossible venture and eventually we all agreed that this is the best course.
Now begins the time consuming task of working with the lender, in this case Countrywide Home Loans, to get the short sale approved. For those of you who are unfamiliar with short sale properties, short sale occurs when the proceeds from the sale of a home will not cover the loans or liens against the home. In this situation a seller, in order to sell the home, would have to bring money into closing or negotiate with the lien holders to take less than the amounts owed. The motivation for the secondary lien holders to negotiate would be to get some money as opposed to none. In the event of a foreclosure the primary lien holder would take title, and the property would become an REO or Bank Owned.
In many cases it is to the lender’s benefit to work with a short sale as opposed to waiting for the home to be foreclosed. This is assuming the seller’s are in default and have stopped paying the mortgage. This Santa Clara home has only one loan which makes the negotiation much easier than dealing with two two loans and possibly two separate lenders.
Now that I have received an offer I can submit it to the lender to get the short sale approved. I need to provide the lender a summary of the seller’s monthly earnings and expenses. In addition the lender will also need a copy of the purchase contract, estimated net-sheet, two months of pay check stubs and 3 months of bank account statements. This is referred to as the Short Sale Package, and different lenders require different items. Now that I have submitted the package, I will follow up tomorrow to ensure that they received it in its entirety, and wait for the approval. I will continue to update this blog as the transaction progresses.
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SANTA CLARA, CA Single Family 2009-11-13 | |
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| Median List Price | $575,000 |
| Total Inventory | 125 |
| Homes Absorbed | 20 |
| Days on Market | 123 |
