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Perhaps this post should be filed under the category of “Dumb and Dumber.” Guarantee Bank of Irvine, CA foreclosed on a development project in Victorville, CA, that was owned by Matthews Homes, only to realize that the cost of owning the property was apparently more than the homes were worth. In a logic-defying decision, Guarantee Bank ordered the destruction of several brand new model homes along with about 12 other nearly-finished houses. Please watch the video and share your thoughts. (…)

REOs, or bank-owned properties that have been foreclosed on, are the hottest market segment in Orange County. However, if you want to buy one, be forewarned.

As previously reported in this blog, competition is intense for these properties for several reasons: 1) There aren’t many of them on the market (only about 6% of total listings); 2) They are typically priced below market value; 3) Banks make decisions quickly, in comparison to short sales (that could take months), and; 4) Most of them are under $1 million. For all these reasons, buyers and investors flock to these offerings. (…)

In this Bloomberg interview, Dr. Yun, Chief Economist for the National Association of Realtors, points to Southern California as an area that may have reached the bottom and is an early recovery. Please watch: (…)