E-Mail
Print
tool name
close
Wednesday, Nov. 18, 2009
Central Valley investors more likely to keep foreclosures
Practice makes existing properties more valuable.
FRESNO -- Housing prices are so low that some investors are changing their strategies, going from "fix up and flip" to "touch up and hold."
Investors are finding that they can buy and rent the properties for less than the cost of building new.
With construction at almost a standstill, that makes existing properties more valuable.
Merced Sun-Star - Isaac Reyes, 22, cleans up after pulling up carpet to discover hardwood floors underneath. This is a foreclosure home bought by TFS Investments, headed by Fresnan Terrance Frazier.
And with values at 2002 levels, investors such as Terance Frazier are changing their game.
"I'm buying more properties and sitting on them," said Frazier, who typically buys, repairs and resells.
He has bought about 30 properties in the last two months, including apartments.
"I'm getting as many doors as I can," he said. Some he resells quickly; others he's holding onto until values rise. "I'm watching the cycles."
Frazier is one of the largest purchasers at courthouse auctions, but is finding that more people are getting into the action, searching for bargains.
The number of foreclosures sold at courthouse auctions in Fresno County in October totaled 73, up from 55 in September and sharp spike from 10 in October 2008, according to ForeclosureRadar, which tracks such activity.
In Kern County, the number climbed to 109 in October from 90 in September and 19 in October 2008.
"It is clear that sales at the courthouse steps are becoming increasingly competitive," wrote Sean O'Toole, founder of ForeclosureRadar.
The increase in activity at the courthouse steps coincides with more houses scheduled for auction -- although banks are choosing not to release all of them to the marketplace.
About 87 percent of the postponed auctions are at the request of the lender or with their agreement.
As a result, more homeowners are in "foreclosure limbo," holding out hope for a loan modification or just waiting for an eviction notice, O'Toole said.
Mortgage giants Fannie Mae and Freddie Mac have started programs that allow borrowers facing foreclosure to rent back their homes.
Frazier often does the same thing, enabling families to stay intact and in the same neighborhoods and schools.
"No one knows if you are renting or owning -- and in the long run who really owns your house anyway," he said. "Just try paying off your house and then not paying your property taxes."
A few rules are needed to help foster a feeling of community. We encourage a free, CIVIL and open exchange of ideas in a climate of mutual respect, but any post that violates someone's right to use and enjoy mercedsunstar.com is prohibited. Before you post, please read the terms of use and obey these simple guidelines. Here are the ground rules:
1. Be yourself. A nickname will be used for posts, but if an editor finds a user without a verifiable name , that user will be warned or banned.
2. Keep it clean. Foul language (defined by prime-time standards) will not be tolerated. Neither will the intentional misspelling of foul language or the use of non-English curse words.
3. Be truthful. Do not lie or link to sites that may be considered libelous, defamatory or false.
4. Be nice. Don't harass anyone. Don't threaten anyone. Don't use racial slurs. Don't post anything sexually explicit.
5. Be an individual. Do not advertise or solicit. Do not harvest any information for business use.
6. Be original. Do not post copyrighted material.
7. Follow the law. Don't do anything or post anything considered illegal by city, county, state or federal regulations and laws.
On most news stories, the commenting period is closed after three days. If you wish to continue a discussion, please use The Sunspot forum.
@Nyx.CommentBody@