REO’s in North County Santa Barbara

Chicago Title Company has been tracking the Bank/Mortgagee Real Estate Owned properties (properties taken back in foreclosure) in the three marketing areas of north Santa Barbara County. The results quantify that real estate markets are localized. What is happening in the Lompoc Valley and Santa Maria Valley troubled real estate markets is not happening in the Santa Ynez Valley market.

In the first quarter this year Lompoc Valley recordings show 56 out of 97 resale transfers, or 58% REO’s. In 2007 for the same period and with 8 fewer transfers there were only 8 REO’s. In the Santa Maria Valley there were 133 out of 246 resale transfers, or 54% REO’s. In 2007 for the same amount of transfers there were only 7 REO’s.

The good news is the investors have stepped in and the properties are being sold with minimal time on the market. The word is agents have been getting multiple offers within 2 to 3 days of the property becoming available. The sooner these properties are off the market the sooner the turn around. Given the amount of activity and that the mess started about 12 months ago don’t be surprised to see the ratio significantly decrease in these two marketing areas this summer. As for the Santa Ynez Valley there have been only 3 out of 42 resale transfers or a mere 7% and in 2007 there were none. Certainly the sky is not falling in Santa Ynez even though total transactions are off 45%. These figures do not include “short pay” transactions which are sales that the lender has agreed to take less than owed in lieu of foreclosing.

The moral to this story is the general across the board doom and gloom headlines are not necessarily valid. Check with a local real estate expert.