WATCH:
Here in Cleveland, watch the market for the best deals!  Some sellers are against the wall and will sell well under market value. Other sellers are really the relocation companies or the banks backing a short sale. Learn the market, learn the values, watch and…

WAIT:
Know when it’s time to hop on a property. Check the history of the price reductions.  Check them every 30 days? Every 40 days?  When it’s close to your price, make an OFFER just BEFORE the price is reduced. If you don’t, other savvy buyers will jump in and grab it.

BUY: 
NOW! The Cleveland market will correct and you will have instant built-in equity. Other locations — including Las Vegas, much of California and Florida — have two corrections to make.  The first adjustment is for over-inflated “bubble” prices. The second is a natural correction to a normal market. Here in Cleveland, we only have the normal correction to go through.

SELL:
Believe it or not there are solid buyers out there looking to buy and there are not a lot of very good choices. Many sellers are waiting until the market at least begins to correct before going on the market. Your house could be the gem among very tired listings in its price range. Sell your current less expensive house and buy-up to a more expensive one. You will lose on the selling end, but pick up much more than you’ve lost on the buying side. Don’t forget that there are good interest rates waiting for you. Call me in Cleveland. I can help!

Contact Evie Braman or post comments below.

Typically when you read about a politician and foreclosure, it’s in relation to some piece of legislation created to combat the recent surge in foreclosures.

But the topic of foreclosure recently became much more personal for one Long Beach, Calif., politician.

Multiple media outlets are reporting that U.S. Rep. Laura Richardson has lost, via foreclosure, the 1,600 square-foot, two-story Sacramento home with three bedrooms and 1.5 bathrooms on a 4,800 square-foot lot she purchased after being elected to the state assembly back in 2006.

Located in the upscale Curtis Park neighborhood of Sacramento, the property has gone through the foreclosure auction process and reportedly been purchased by Red Rock Mortgage for $388,000, a far cry from the $535,000 Richardson paid for it back in January 2007. RealtyTrac estimates the current market value of the property at $503,000.

Details of the property’s history on the RealtyTrac website show that a Notice of Default was recorded against it on Dec. 14, 2007 for $18,356, followed by a Notice of Trustees Sale being recorded on March 19, 2008. The Trustee’s Deed transferring the property to Red Rock was recorded on May 19, 2008, according to the Long Beach Press-Telegram.

At the time of sale Richardson allegedly owed her lender, Washington Mutual, more than $578,000 thanks to the 100 percent financing used to purchase the home and the additional fees and costs incurred by foreclosure. The home’s former owner also claims that she kicked in $15,000 towards Richardson's closing costs, according to the Los Angeles Times.

A story released by Capitol Weekly says that Richardson let the property slip into default when she was running for the seat she now occupies in the U.S. Congress — a seat that was vacated because of the untimely death of Rep. Juanita Millender-McDonald due to cancer.

In addition to defaulting on the mortgage payment, the MercuryNews is reporting that Richardson had a lien against the property for unpaid utility bills in the amount of $154, and was delinquent in property taxes to the tune of almost $9,000.

In a statement released by her office, Richardson denies being foreclosed on or that the bank ever seized the property. Published by the Times, Richardson’s statement says: “I have worked with my lender to complete a loan modification and have renegotiated the terms of the agreement — with no special provisions. I fully intend to fulfill all financial obligations of this property.”

Still, Red Rock’s recorded deed seems to contradict Richardson’s statement.

In the same statement Richardson answers her critics who claim she recused herself from voting on some key pieces of legislation dealing directly with the foreclosure issue.

Politically correct or not, this case goes to prove just how fast personal finances can get out of hand in the current economic environment. Fortunately for Richardson, her primary residence is in Long Beach. Still, few people can afford to walk away from a home like this — unless you’re someone famous like Jose Canseco, who has more than one home.

Real estate investors and potential home buyers who want to find the type of deal that Red Rock apparently realized at the foreclosure auction of Richardson’s property can start mining the foreclosure marketplace. But they should be very cautious in doing so given that there is no clear sign the housing market has reached bottom yet.

There’s a warm wind swirling around this country right now, and it may just blow the hat off of your head…and take along with it everything else you own as well. This breeze that is gaining strength is yet the latest fallout from the foreclosure hurricane sweeping the nation.

The New York Times recently reported in two related stories that in some instances, homeowners who have already lost their homes to foreclosure are now faced with suffering the greatest embarrassment of all — having their personal items auctioned off.

In the case of Newington, Conn., the story says that it’s the town itself that is required by an antiquated 19th Century state law to collect and store the belongings of people who have been ejected from their homes by state marshals. The law requires the town to store the items for a minimum of 15 days before it can auction off the personal property if no one should claim it.

This law used to present no problem at all. However, with the rise in foreclosure activity throughout the state, more and more personal property is being stored, causing a growing problem for municipalities around the state.

Attempts to repeal and reform the law have proven unsuccessful.

By contrast, the other Times article speaks to people who have lost their homes to foreclosure and have stored their personal belongings in pay-as-you-go storage facilities. In the present economic environment, evidence is mounting apparently that people who can’t keep up with their mortgage payments also can’t keep up with paying the monthly rent on their storage unit. This goes on for just so long before the management of the facility auctions off the contents of the unit — basically sight unseen — to the highest bidder.

It’s a growing cottage industry, as the Times notes. And again it is just further proof that the national economy is not getting better fast enough for many people who are being forced to start from ground zero in the aftermath of the subprime crisis that is still winding its way through the system.

It is also evidence that the foreclosure market has not bottomed out yet and that for patient and cautious home buyers and real estate investors, there are people out there who can use your help in the midst of a really critical financial storm that is literally blowing them away.

It’s amazing what’s happening in Corona, Calif., a community in Riverside County Over the last month, I’ve witnessed over 500 properties go into pending status. I’m constantly hearing of agents submitting well above asking price offers on what some may say are above average homes, only to get rejected or beat out by buyer with large cash down deposits.

In Corona, newly built foreclosures, with approximately 3,000 sq.-ft. of living space, are being under-priced by the bank, creating phenomenal bidding wars. The lenders are now starting to really move their inventory in Corona. Bank-owned foreclosure properties with 3,000 sq. ft of living space listed at $350,000 are selling for $430,000.

Some people are still concerned with the smell of the cows, while others aren’t bothered at all by it. If you want to stay away from that country aroma, just go to south Corona. There are very few cows there.

Corona has some beautiful communities. The Retreat, for example, is an area that many foreclosure buyers are flocking to. A couple of years ago, newly built homes — with spiral stair cases and beautiful, wrought iron details, golf course views, huge 16,000 sq. ft lots, custom flooring, dramatic entry ways, custom brick fireplaces — sold for $1 to $1.6 million.

Now those same homes are in foreclosure and are selling for $515,000 to $729,000. What an amazing decline in value. People just walked away from their homes. On some streets in Corona every other home is vacant.

While there are still a few overpriced foreclosures in Corona, the banks don’t really want to lose their shirts. So some lenders are holding out in the hopes that someone that will pay whatever price for these foreclosure properties.

So, if you think you can put in a lowball offer in Corona — don’t waste your time. Corona foreclosures are gone in 2 to 5 days maximum — if it’s priced right. 

I believe this is the perfect market to find a phenomenal deal, but don’t try to underbid these homes too much. Buyers need to remember that there are 25 buyers right behind you.

Good luck on your deals!

Contact Vickie Lobo at (909) 496-2082 or post comments below.

Editor's Note: This is the first in a series of guest blog posts from members of the RealtyTrac Agent Network. The agents will be sharing their insights about what is happening on the ground in their local housing market, particularly as it relates to foreclosures. Your comments, questions and feedback are welcome.

Gloria Tate
Raso Realty, Inc.

I work with buyers in my area; new jargon and issues are making buying a home more difficult than ever before. It is great to see prices drop.  The opportunity to own a home at affordable prices has never been greater, but getting to the closing table is so much more difficult. Many of the best deals in our area are bank-owned properties. The homes sit for a very long time and the property continues to fall into disrepair. In our city, the bank has taken the property back but they may not have paid all the liens from our code enforcement and generally speaking that does not come up until the final title search is done, so a delay is normal.

Many lenders are working with major law firms on the east coast. This presents a whole new challenge, they use mobile closers who rarely have time to speak with you, and all the fees they charge are usually higher than if you close with a local title company. In my most recent transaction I had a law firm, a title company for the law firm, and a title company on this coast for the title company in Miami. The buyer pays a $185.00 fee for a mobile closer that must be used as per the law firm. I am sure there are many people benefiting from this procedure, but it is the buyer who loses some of the joy of purchasing a home and working with local people in the community.

Multiple offers are not new, but have taken on a new meaning in this market. The lender prices the property below market to create a bidding war and then makes a call for the highest and best bid. It is like being at an auction, but you don’t see any of the competition and you have no idea if you are bidding against the listing agent and or listing office, or how high you should bid. We also have bank-owned properties in our MLS that you may only purchase through an online auction although they are in the MLS. Commissions are lowered, and I am okay with that, but I feel like I have a much more difficult time walking my buyer through the process when the listing agent is in another part of the state.

Bulk Sales in developments are almost becoming the normal procedure to really find a great deal. The largest problem I have found with these is that a group of investors close on the properties in bulk, and then they offer the homes at a greatly reduced price; however, they are not able to be financed through FHA because of the investor/flip rule. Buyers are really the big winners in this market, but the key to a successful closing is truly in the hands of the agent representing that buyer.

These are just a few of the issues in my market. Please let me know if you have any questions or comments.

Contact Gloria or post comments below.