About Foreclosures

There’s a peculiar little secret about buying Foreclosures: there is no secret. Many clients think there is a special list or special access to the banks that lets Buyers buy foreclosures that aren’t available to most people. Wrong.

In the first place, in the current market, there aren’t many foreclosures in Santa Monica. Prices have risen high enough, quickly enough, that if an Owner is facing financial distress, he or she can sell their property, paying off their debt and walking away with cash in their pocket—I have helped a client complete such a transaction.

Even during the worst period of the real estate market in the early 1990's, there were very few foreclosures in Santa Monica. Most were in places like Palmdale, Santa Clarita, San Bernadino, and central Los Angeles.

Secondly, when properties are being foreclosed, the banks go through a heavily regulated process, including appraisals by 2-3 real estate agents, and then list the property with agents who use the Multiple Listing Service. There is virtually no way to short circuit this process...the banks will not deal with Buyers (or their agents) directly before the property is listed. If a foreclosure does occur in Santa Monica, it will be listed on the Multiple Listing Service along with all the other homes.