Lake Forest 2 Homes & Neighborhoods

The foreclosed homes in Lake Forest have slowed in recent months, probably due to the new California law that requires lenders to document their attempts to work out the loans with the delinquent borrowers.  Today, there are only 35 REO homes in the active status on the MLS.

Here is the list of the 4 that are within the Lake Forest II association.  I linked this directly from the MLS so that all the photos will show for each listing.  This link will automatically update if the listing status changes and it will expire and no longer work in 30 days.

There are several other bank-owned homes that will be coming on the market soon, after the banks figure out what price to put on them.  If you think you may be interested in buying one of these homes, you will need to be pre-approved by the bank’s favorite lender, and you will have to accept the house in “as is” condition.  Sometimes the “as is” simply means that it is dirty and needs new paint and carpet, but I have also seen a few lately that need serious (and expensive) repairs.  Having a home inspected by a professional home inspector is highly recommended!

PS – I will be hosting an Open House tomorrow afternoon, so if you are out and about, please stop in and say hello!

Several Lake Forest II neighborhoods have had recent real estate activity, but, like the rest of Lake Forest, most of the sales have involved “distressed” properties – either short sales or foreclosed homes.

Even though the national election is behind us, real estate activity is still being slowed by questions of what the economy will do, as well as concerns about the lending environment.  In California, the foreclosures have slowed noticeably, but it’s not clear whether that is because lenders are waiting to see what the $700 billion bailout will offer them, or because of California’s new law that requires lenders to document their attempts to work with borrowers before foreclosing.

It is still extremely frustrating for both buyers and sellers to complete short sales, and many times, the buyers give up and buy another property before getting a final answer.  Also, the lenders are taking so long to reach decisions regarding short sales, that the values are declining below the “approved” price, and the properties no longer appraise for value needed for the buyer’s loan!

There are currently foreclosed homes in almost every neighborhood in Lake Forest II, and the banks are pricing them to attract multiple offers.  Last month, out of 81 homes sold in Lake Forest, 40 of them were foreclosures, and 30 of those sold for over list price, and were on the market an average of only 15 days.  In reality, the 15-day average was inflated by the lender refusing to respond to any offers for the first 7 days, then giving all of those potential buyers another 5 days to re-write their offers with their “highest and best” terms.  I have represented several buyers in this type of “blind auction” bidding.  Since you don’t know how many, or how qualified the other buyers really are, the only way to respond is to think about what value would make you feel satisfied that you “won” without feeling that you were tricked into it.  It’s very difficult!

There are 12 foreclosed homes on the market in Lake Forest II neighborhoods today.  If you have a good imagination and don’t mind spending time, energy and money to update or repair a home to your own taste, one of them may be a good investment for you!  Contact me if you would like further information!

Here are the year-to-date activity reports for several Lake Forest II neighborhoods.  I will be adding the rest of them in the next few days.

Serrano Woods Condos 11-11-08

Forest Creek in Lake Forest YTD 11-11-2008

Park Place YTD 11-11-2008

Lakeside Park YTD 11-11-2008

Parkwood Estates II YTD 11-11-08

With city-owned streets, and the city-maintained park within the tract, Ranchwood has the lowest association dues (currently only $58.53 per month) in the Lake Forest II Association, paying only the basic amount for recreation facilities and CC&R services.

There is currently only one home available in the MLS in this neighborhood and it is another short sale, so it will probably take a long time to sell. Click on the link below to view all real estate activity* in the Ranchwood neighborhood this year.  

Ranchwood Homes in Lake Forest 11-02-08

If you are thinking about either buying or selling in this neighborhood, please give me a call to find out how I can help you!