In Santa Cruz County, as with many other places around the country, the number of foreclosure filings has been on the rise over the past couple of years. Watsonville is leading the county with the highest number of filings, while the number of Santa Cruz foreclosures comes in at second place.
Read more about Santa Cruz foreclosures, or see all Santa Cruz bank CA owned homes for sale below.
Nearly 1 in every 4,200 homes in Santa Cruz is facing foreclosure at the moment, which makes the available inventory very good for real estate investors. The average sales price for foreclosures is approximately $479,374, while the median price for Santa Cruz CA bank owned homes is $556,039. These prices are excellent, and enable a wide range of buyers to enter the much-desired Santa Cruz real estate market.
Buyers looking for foreclosures in Santa Cruz can choose to buy prior to or after the actual foreclosure process. At the foreclosure auction, if no one outbids the lender, ownership reverts to the bank, making the home an REO or bank owned home. Transactions that occur before the foreclosure stage are known as short sales.
A short sale occurs when a home is sold for less than the amount still owed to the bank. Pre-foreclosure transactions like short sales can present a great opportunity for buyers looking for a good deal, for sellers who are looking to get out from under their mortgage, as well as for lenders looking to avoid the time-consuming foreclosure process.
Short sales are also less risky for buyers than buying at an auction because they're able to inspect the property before the sale is final. Also, sellers still have a vested interest in keeping the home in good repair. That said, short sales can take a very long time to complete, and there's no guarantee that the lender will approve the deal. Buyers looking for Santa Cruz short sales are wise to talk to a REALTOR® who is experienced with these types of sales, so they know exactly what they're getting into.