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Real estate cheapness, part 2....

If you're interested in learning more about foreclosures/ property auctions, you will also want to take a look at Bid4Assets.com.  I would say don't pay a service fee for "foreclosure" lists when it's so easy to just check this site, or to go on Craigslist (keywords:  bank owned, foreclosure, or I also found alot of good stuff listed under "acres" that was unbelievably cheap).  You could also visit bank sites and look for what they've got on their books at the moment.  You will still need to have decent credit and a down payment (or cash for the whole thing), and good judgment (i.e. don't buy a crack house, even if it's $1,000, because it will be even more expensive to get everyone out and tear that house down).

Here are some other sites where you can look for government-owned, bank-owned, or otherwise under-market property:

Bank of America has literally thousands of bank-owned properties in their database, just in the state of California.  Take a look!

Countrywide Bank has a different (and much longer) list, even though Bank of America now owns them.    Seriously, sit down with some coffee and go through this one.

You can also find a list of lists (I know, usually I don't suggest these types of things, but this is a good one) over at http://www.thedirectoriescompany.com/reos.htm

More about real estate......

Since we're talking about real estate, I would also like to mention that there are some screamin' deals to be out there as long as you're prepared to buy and hold, and (in some cases) willing to do some work.

 

Here in L.A., we have the Los Angeles County Tax Auction twice a year.  This is the auction for property for which the tax has not been paid, but unlike other counties where you could pay the taxes off and essentially own the property, in Los Angeles they auction them off all at once.  If you're interested in learning more, visit the L.A. County Treasurer and Tax Collector.  I went to the auction a few years ago, and will say-- you need to go with basically a suitcase full of cash, as some of these properties get bid up pretty high, although getting a $2 million house for $400,000 is still a very good deal.  

Do it yourself: property tax review

If you own property in Los Angeles that you bought within the last five years, chances are something good can come out of this economic downturn for you.   You might be eligible for a "Decline in Value Reassessment" if the value of the properties in your neighborhood are currently less than what you paid.  Why is this good?  Because if they reassess your property, you pay less property tax.  Visit the website of the L.A. County Assessor to read more about this.

 

Another part of this story is that this process is easy to do yourself, so PLEASE don't use one of the multiple "middleman" services that are sending unsolicited letters to homeowners all over the state.  The L.A. County Assessor's office is even warning against using these services, which you can read about here.  So, do yourself a favor (and save yourself the $179 fee), visit the Assessor's website and fill out the one-page application for reassessment yourself.  This could save you thousands of dollars!