I am sure you are hearing all about the foreclosure market on the news!  Did you see the story on the news about the alligator in the pool on an abandoned house?  That was one of mine!! The house gone to Trustees Sale and the previous owner left a 4 alligator.  It made headline news in Los Angeles on FOX and KNBC plus a friend also saw it on the news in Jamaica! So here is the real news about foreclosures in San Bernardino County.  They are up 187% since June 2006. In June 2006 they were about 5% of our business which makes it closer to 10% today.  In truth, I think it is a little higher.  We have 1152 active listings today with 26.6% of those homes vacant.  Vacant homes indicate either a foreclosure, a short sale, or a need to move for job transfer or other personal reason to me. In San Bernardino Co., the City of San Bernardino is #1 in foreclosures and Fontana is 2^nd!  Rancho Cucamonga is 6^th out of 9 cities. According to the Daily Bulletin there are 443 bank owned properties in Rancho, 679 in pre-foreclosure stages and 174 up for auction.  I am not sure where they are getting the auction numbers.  I handle a number for US Auctions which will hold and Auction August 19 & 25^th at the Ontario Convention Center where I have 8 homes going to auction from south Corona to Covina.  Please compare this to the mid-1990s when 50% of the listings in Rancho Cucamonga were foreclosures and 72 % in Fontana!

Much of my time is involved today in foreclosure properties  for GMAC MTG. and for Green River Capital, the auction house for US HOMES  Auction.  They are a lot of work and I could write a book about my experiences just this year from the alligator to flooded houses.  However, I think my job is to educate you. So lets talk about the auction itself.  The properties are always sold AS-IS.  Open Houses are held on three weekend days prior to the actual auction.  You have the right to fully inspect the houses at that time.

Check out  www.ushomeauction.com to see the inventory, the requirements  and to get directions.  You do have a right to a physical inspection but it must be done before the auction during the Open Houses so you have an out of pocket expense before you even know if you are getting the house.  In addition, you do have a right to representation at the auction.  If you are interested in a property, I would be glad to accompany you. You will be view Disclosures on the Internet.  In addition, you must be pre-qualified with their lender!  If your bid is accepted, you will need a check for your non-refundable earnest money deposit.  Once your bid is accepted, the actual purchase price is 10% more than your bid to cover the auction houses services. (Some auction houses are only 8%).  There is always a minimum bid but there is almost always a RESERVE which means that  if they dont receive the Reserve amount, that the house will not sell.  I had two houses on their last auction, one sold and fell out of escrow and is offered again.  The second however did not sell.  Auctions create a frenzy and people tend to get excited and unless well-disciplined bid more than they intended.  In the 1990s we took some clients to an FHA auction.  They did not get any of the houses they had previewed and were interested in.  They were so intent on having a home that they bid on a house, sight unseen and got it!  Fortunately, it was in good shape but it could just as likely have been a dump! If you decide to look into these, do not hesitate to call me.

Last month I talked about abandoned property. Although I have much more on tenant- landlord rights to share, I felt that you need to know about the auction process. so next letter will resume our other discussion. However, I am experiencing my first auction of personal abandoned property this month.  this is property left at a foreclosed home, and worth more than $300. I had to find a company to run the auction.  We needed to give them an inventory.  They then advertise three weeks before the actual auction.  Everything is sold to one bidder and it must be removed from the property that day.  Anything that is left we can trash. There is a 1930s mahogany dining room set,  lots of exercise equipment and lots of junk.   It should be interesting.

Should you want further information or help with your real estate needs, buying, selling or property management,  or the benefits of GMACs Premier Service please call me at 909-553-8332 (cell) or 909-944-6555 (OFC.) Of course, you can always e-mail me at my new e-mail address Heidi@HeidiBurns.com. Please make note of it.  Look for me on the web at www.HeidiBurns.com.   I look forward to being of service to you.