Although the amount of Foreclosures in Long Beach is much smaller than the media would have you believe, they are still available. People think of traditional foreclosures as "great deals" and of purchasing them at the court house for just pennies on the dollar.
Now as a matter of practicality you can purchase them at the foreclosure sales, but you better bring your cashiers check! For those who don't have a few hundred thousand in the bank ready to spend on a property you can still get a deal using a traditional search in the Long Beach MLS.
Here are some items to watch for to understand your purchase of a foreclosure in Long Beach.
- Each bank can have a different purchase contract. This can be an addendum to the traditional purchase contract or replace it entirely. Read the contract so you know what they require as many put in penalties for closing late.
- They are usually priced below "retail" inventory. They can be priced 10% below most inventory, but don't expect to get it at 50 cents on the dollar
- They are sold "as-is". The bank has already lost quite a bit of money on the deal so don't expect them to fix anything
- Make sure your offer is complete with FICO scores, proof of down payment, and a pre-approval letter. They want to see that an escrow will succeed like any seller.
Looking through the Long Beach MLS you can find a few foreclosures. Knowing the prices in an area will help you to spot the deals. Remember there are other people looking too so act quickly when you find that deal.
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