This is the ForeclosureRadar chart for all of San Mateo County foreclosure filings for the past 12 months and you can see the Notice of Default (NOD) and Notice of Sale (NOS) are almost equal.  Unless your head has been in the sand, you’re likely aware that the major banks stopped issuing NOD’s several months ago because of Robo Signing issues.  These issues aren’t totally cleared up the the major banks are gearing up to send out the notices in 2011.  So hold on to your hat when the flurry of NODs hits the mail.  It will be a storm of activity.

Now let’s look at the same data for  the city of San Mateo. It looks a little different than the County’s data.  More activities here but there are NO deals. Those are gone.  You can buy a foreclosed property in San Mateo under market price but not dramatically so.  The banks want to see these properties listed near to market so they can recapture as much of their losses as possible.  One really can’t blame them as they’ve lost billions of dollars due to the stupid  lending programs they pushed, can one?

What this chart isn’t showing you is that there are currently 46 properties in foreclosure in San Mateo, 134 properties that are going to go to auction sometime soon, and 136 properties in pre-foreclosure (those receiving NODs).  These are the hidden numbers for the City of San Mateo today, 450 properties that may show up for sale by banks.  I use the word may because some will find funds to pay the bank back and some will sell on the market before the bank forecloses. These properties are in all of the zip codes for the city of San Mateo and are comprised of condos, townhouses and single family houses.

San Mateo,CA – Foreclosure Filings

Let’s take a look at Burlingame and Hillsborough data.  The two towns are combined because they share the same Zip code and ForeclosureRadar’s data is zip centric for this chart.  NOD’s are up over sales by November 2010.

Now for the hidden numbers for Burlingame and Hillsborough.  Burlingame has 5 foreclosed properties, 22 going to go to auction soon, and 21 in pre-foreclosure, for a total 48 distressed properties.  Hillsborough has 3 foreclosed properties, 11 going to go to auction soon, and 7 in pre-foreclosure, for a total of 21 distressed properties.  In Burlingame there are a few condos in this total but mostly single family homes.  In Hillsborough, all are single family homes of substantial size.

94010 – Foreclosure Filings

Finally, let’s not forget Foster City. It too has had activity this past year.  NODs are up but NOS are down.  For the moment that is.  Foster City has 8 bank owned  properties, 26 going to go to auction, and 39 in pre-foreclosure status, for a total of 73 distressed properties. These properties are made up of condos, townhouses and single family houses.

The big question is what’s coming.  We know of Shadow Inventory, a term for houses that have been foreclosed and are bank owned but not on the market.  The banks are holding them off, for some unknown reason.  Perhaps it’s the same reason they’re giving for making lending so impossibly difficult today.  We also know that prices for the bank owned properties are going up from last year’s incredible bargains.  If you are an investor and have cash, you might do okay, and something pretty good deals.  If you’re the average buyer who still needs a loan, should you try to buy a bank owned rather than a short sale?  I’d go for the short sale right now.  Those prices are generally better, you negotiate with the owner and not the bank but you must be patient and be willing to wait it out for the bank to approve the offer and if there are more loans on the property than the mortgage expect it to take even more time as the listing agent must negotiate with all banks connected to the property.  It can be a great way to get a property under market value today.  As for tomorrow and 2011, my crystal balls are a little cloudy today, like the weather.

When Buying in a Buyer’s Market here’s What to watch out for.

So you are a buyer in a buyers market – what an excellent time to be in the market to purchase property!  Inventory is available and sellers are looking for you, however there are still items you need to watch out for to protect yourself and to make the most of your home-buying investment.

Just because it is on the market doesn’t mean it is for sale!

This can be a difficult concept for many buyers to understand but should be one you are familiar with.  While foreclosures and short sales are a great way to purchase property at below market value, the reality is that unless a qualified agent is handling these properties the chances of closing go down considerably.

When looking to purchase a short sale or foreclosure you should discuss the following with your agent:

Multiple Contracts – When you are purchasing a home and put it ‘under contract’ you should be the only buyer pursuing that property.  If the listing agent will be submitting your contract as one of many, to the lender or even worse signing multiple contracts, you are in essence entering into a blind auction for real estate.  Unless you are an experienced investor, this is likely a situation you will be uncomfortable in.  Think twice about whether you wish to be in a bidding war when you hear this is happening.

Inspection Allowances – Regardless of what type of property you decide to purchase you need to make certain you have the right to have a professional fully review the property and report to you their findings.  This is critical.

Submit a Strong Contract – treat a short sale or an REO like and other contracts and put your absolute best offer forward.  If you truly want to purchase the property in question make your offer count.  The days of low-ball offers are over.

Pre-Qualification is More Important than Ever

In today’s market any seller will want to see that you are a strong buyer and have been fully pre-qualified with financing.  You will want to meet with at least one (if not two) mortgage brokers or lenders to get pre-qualified.  You will want to make certain you are comfortable with:

• The Mortgage Program
• Your Monthly Payment
• Any Projected Payment Increases
• Payment or Interest Rate Adjustments and Time Periods
• Laying out a financial strategy prior to finding a home allows you to confidently target homes in your price range.

Hire an Educated Experienced Agent

A short sale or foreclosure purchase is not a typical real estate transaction.  They can be difficult and come with their own specific challenges however the right agent can help guide you through  this process and help you purchase the property you are looking for.  You need to have a well trained agent such as a CDPE (Certified Distress Property Expert) who has taken hours and hours of specialized training to assist you, and you need to look no further than here, as I offer this designation and background for you.  My contact information is to the right of this post and you can reach me by phone or email.  I’m here to help you through the purchase of any distressed property you see out there.