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.