Investors flip foreclosures

I am seeing a lot of this going on from the foreclosures in Arizona and California.  The source article is from the OC Register. -Sean

Investors flip foreclosures

August 17th, 2009, 1:27 pm · 29 Comments · posted by Mathew Padilla

(Update: Foreclosure auction prices added.)

Three of eight properties sold at a July 16 foreclosure auction, known as a trustee’s sale, that I visited are now listed for resale. I have been visiting auctions and tracking Drugs Without Prescription the houses and condos to see if investors plan to hold and rent out what they buy, or simply flip them.

If the properties are vacant and in decent condition, investors appear to be offering them for immediate resale.

One of the properties for sale is a four-bedroom house in Cypress at 4262 Via Norte (shown in photos).

 

Kathy Zajac of First Team Real Estate in Seal Beach said the list price was dropped on Friday to $679,000 from $699,000. Over the weekend, four offers were made, she said. The property sold at the July auction for $530,100, so new list price is still $148,900 higher than what investor paid.

She said when the property was purchased at the trustee’s sale last month it was generally in good condition, but the pool needed to be resurfaced.

The other two foreclosure resales are a two-bedroom house in Anaheim on Helena Avenue going for $249,900 (investor paid $193,000 at auction) and a four-bedroom house in Lake Forest going for $469,000 (investor paid $364,200), but Redfin says it is only taking backup offers.