Pasadena Foreclosures; Shadow Inventory

The Pasadena Real Estate Market has been holding steady with home sales going up. What most people don't know is that Pasadena, like many other other cities, is flooded with what is called shadow inventory. What is Shadow Inventory? Shadow Inventory are foreclosure properties not on the MLS (multiple listing service). These properties are comprised of:

• Preforeclosures, homes that have a NOD (Notice of Default) filed
• Auction Scheduled NTS homes
• REO, bank owned homes not on the MLS

Many say that preforeclosed and NTS homes cannot be considered as shadow inventory, because they have not been been foreclosed on. The reality is that most people behind on their mortgage are typically behind due to financial distress. Most banks will not forgive a large debt and most loan modifications are not approved. Hiring a short sale specialist may be helpful to avoid foreclosure, but the chances on a short sale approval is slim.

As a Pasadena resident, I see this Shadow Inventory everywhere. A great way to spot these foreclosed homes is by looking for the following:

• Boarded up windows
• over grown landscaping
• notice of "Do not trespass" typically on the front window(s)

Visit our website to get more info on Pasadena Real Estate for sale and Pasadena Foreclosures

RAMIRO@SOLDBYRAMIRO.COM
626-497-4606

KELLER WILLIAMS PASADENA
445 S. FAIR OAKS AVENUE
PASADENA, CALIFORNIA 91105

BUY FORECLOSURES, PASADENA REO'S

Pasadena Foreclosures

Did you know that you can buy Pasadena foreclosed homes for almost a 100% financed? There are great loans such as FHA, VA, and CALHFA loans (designed for people in education). All of which only require 3% down payments.


There has never been a better time than right now to live the American Dream of owning a home. This is definately a buyer's market, and many banks are unloading foreclosed homes for below market value plus paying the buyer's closing costs.

Search Pasadena foreclosures.

Q: Is there any "Risk" in purchasing foreclosures?

A: Yes, but lets see the reward...

Reward by taking a "Risk"

Purchasing a bank owned home may be an As-Is purchase, but you have the same rights as in purchasing any other home. By hiring a professional inspection company, you can know in detail what faults the home may have. Many times the items will be quick fix-it items. Therefore, make sure you have an "Inspection Contingency Period" and if the home is not what you thought it was, then cancel the deal.

Just think about all those shows like: HGTV's Designed to Sell, Armando Montelongo's Flip This House, and other home improvement shows. I bet you thought.... "Wow, I could have done that!" Be like Nike, and Just Do It!

And yes, the rumor is true that in many foreclosed homes you may see missing doors, missing knobs and in some cases even missing kitchens! You have heard the saying, "Risk vs Rewards." Take the "Risk" in buying a foreclosed home and get a killer deal! After a couple trips to Home Depot and putting a little sweat equity, you will see in the end that it was all worth it.

If you have been considering buying a Pasadena Foreclosure, call Ramiro Rivas & Associates at 626-497-4606 or visit http://www.soldbyramiro.com/ .

Short Sales Defined - Rise of Pasadena Foreclosures

The rise of Pasadena foreclosures have saturated the local market. It seems that almost every neighborhood has at least one home that is in the process of foreclosure. If you don't know what the term "SHORT SALE" means, it it defined as the following:

A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes.

From the California Association of Realtors, "Homeowners faced with stalled appreciation, little or no equity, and subprime adjustable-rate mortgages (ARMs) that are resetting to higher rates are combining into something of a perfect storm. * Many subprime borrowers are barely treading water and others have precipitated a wave of foreclosures that is unlikely to ebb anytime soon. * The statistics are daunting. In April, DataQuick reported that the number of default notices (NoDs) sent to California homeowners last quarter increased to its highest level in almost 10 years. Between January and March, NoDs were up by 23.

For Buyers:

This is a great time to buy Pasadena foreclosure homes. The banks have finally awakened and are ready to negotiate with qualified buyers. Most banks minimum requirements for accepting offers has been 10% down, strong fico scores, and being able to provide proof of income. If you meet these basic requirements, then you can buy many great Pasadena Foreclosure opportunities.

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Where To Find Million Dollar Foreclosures

In Southern California, foreclosure opportunists are going after cheap homes in downtrodden neighborhoods, but there are plenty of million dollar-plus homes out there, in good neighborhoods, which have fallen into foreclosure as the result of shoddy lending practices, speculative buyers and homeowners walking away from a negative equity situation.

Many of those in the high-end foreclosure market were traditionally good borrowers with strong credit scores, unlike the profile of the typical subprime borrower. Still, the same gaffes occurred on the lending approval side, as people were given excessively high loans, based on the presumption that housing prices would continue upward.

Foreclosures have always been present in the top end of the market, but what best accounts for the increase are negative equity situations. For Pasadena homes around the million-dollar mark, it's a case of the home no longer matching the value of the loan. Many of the million dollar-plus Pasadena homes listed as foreclosures and REOs were built in the last five years and are now worth significantly less than the inflated prices the owners originally paid. But it's not necessarily that buyers didn't put down enough money or had a piggyback loan; the owners may have owed more on the house than it was worth, sinking them into a negative equity situation. Banks are often reluctant to list foreclosures for less than the loan's outstanding value because they don't want to take a loss. In addition, they're usually paying a brokerage firm to list the house, as banks aren't in the business of owning and selling property.

Brokerages take foreclosed home listings on a case-by-case basis.
Despite the previous owners not being able to, or not wanting to, make payments, there's nothing wrong with the houses. The best way to find such homes is through a local Pasadena Real Estate Agent that knows the foreclosure inventory. View Pasadena Foreclosure Homes and Pasadena Luxury Homes for sale.

Foreclosures are not all bad news for the high-end real estate market. In fact many buyers see the current market as a financial opportunity. The increase in foreclosures has driven interest from investors, out-of-town and foreign buyers looking to snag a deal in sunny California.

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Pasadena Foreclosures on the Rise!

The number of Pasadena Foreclosures is on the rise. Recently, I have noticed that the banks are finally listening to the news. Since inventory is up to six months on the market, many bank owned properties are getting their prices slashed anywhere from $50K to even $100K off Pasadena market home values.

Now, the surge of home buyer's are coming out of the wood works and are taking advantage of these incredibly low interest rates. Some of the Pasadena Countrywide REO's are being offered at beyond bargain prices.

Go to our professional Pasadena Real Estate website to learn more about the process of buying Pasadena Foreclosure Homes and Pasadena Foreclosure Condos.