I am often approached by curious home buyers and home sellers who ask: “So Mana, what happens to all these short-sale homes in Ventura County that do not sell?”

I’m thrilled to help answer this very valid real estate-related question, along with all like-minded inquiries from friends, family and clients.

All Ventura County Short-Sale Homes that don’t sell end up in one place, the steps of the Ventura County Court House for sale in an auction. No matter where the home is located in Ventura County, all the foreclosure sales transactions occur at Ventura County Government Center Administration Building- Lower Plaza Assembly Room, 800 South Victoria Avenue in Ventura.

There are many agencies such as REDC that administrate the sale of foreclosed homes. If you are interested in purchasing a property through a foreclosure sale, I urge you to visit the property and thoroughly inspect and investigate the property beforehand.

Lenders may attempt to sell their properties in different counties; however, if the lender is unable to sell their foreclosed home in an auction, the home then become Bank Owned or Real Estate Owned (REO).

The number of REOs in Ventura County are increasing by the month. Why? You may ask. Well, many of the homes that are foreclosed on are homes in which the home owner most likely had very little equity in the property. At the foreclosure sale, the lender will price the home based on the loan balance, any accrued interest, plus attorney’s fees and any costs associated with the foreclosure process.  Since what is owed to the bank in most cases is more than what the property is worth, very few foreclosure auctions result in a successful sale. Consequently, the property becomes Bank Owned.

A Bank Owned Home is free of its Mortgage Loan and is priced usually below the market value for a quick sale. Lenders may also do some repairs and cleaning before the property is put on the market for sale.

Bank Owned Homes in Ventura County seem to be setting the price for our real estate market. As the lenders’ inventory of REOs are increasing, so are the interests of Ventura County home buyers in Bank Owned Homes.

Ventura County Real Estate Summery

Ventura County has become one of the most desired counties in California to live in. The proximately of Ventura County to the Pacific Ocean, and Counties such as Los Angeles and Santa Barbara has made Real Estate investment in Ventura County a sensible choice.  However, Ventura County has not been immune to the epidemic decline in the Real Estate Market.

Below is quick examination of Ventura County’s Real Estate Market for the first half of both 2007 and 2008.

As you can see the number of homes sold in the first half of 2008 compare to last year, 2007, have decreased by 16%. At the same time, Ventura County has seen an increase in the sale of short sales and bank owned home sales.

Below is a snap shot of June’s real estate sale report for Ventura County. As you can see the total number of sales has decreased slightly, but the number of short sales and bank owned sales have increased considerably.

What Does This Mean For Ventura County Home Seller?

Home buyers are now looking for the best deals available. The deals home buyers are attracted to in our current real estate market are those offered by lenders through Short Sales or Bank Owned Sales (also known as REO).

If you are unable to compete with the prices lenders have to offer buyers, I would suggest holding off on the sale of your home. The lenders’ huge inventory has to end one day and the market will bounce back to a place where you can sell your home for your desired price. However, if you have to sell your home in the current market, please listen to the advice of your Realtor and price your home accordingly.

What Does This Mean For Ventura County Home Buyers?

If you are ready to purchase a home and you feel that “Your” time to become a home owner is now, then you have picked a time of vast home inventory. Your choices of short sales and bank owned homes are increasing by the month. Home owners who have to sell in this market are pricing their homes so they can compete with lenders who are also selling their inventory. I highly recommend that you look all over Ventura County and find the right home that fits your budget and is for sale in the “traditional way.”

Why, you may ask? Because when you buy a home from a lender you usually must buy the home As-Is. Whereas, home sellers will disclose to you any known issues that might affect the condition of the home and they might even fix the problem for you before the close of escrow.

No matter how you plan to participate in this up-and-down Real Estate Market I wish you the best of luck.

Also, please feel free to give me a call if you need any advice or help on any Real Estate Related Issues. I can’t single-handedly move the market, but I’ll be more than happy to help you.