Los Angeles Luxury REOs

Many investors and homeowners that have the financial capacity to purchase a luxury REO or luxury bank owned property are finding incredible value in these distressed assets. The driving force pushing down prices on these luxury homes is the lack of a secondary investor market for jumbo loans. Homes in some of the most desirable zip codes in Los Angeles, such as Beverly Hills or Santa Monica that were selling for $2 million in 2007 are now on the market as bank owned luxury REOs at 40-50% off of their peak prices. Even at these deeply discounted prices, most buyers are still not able to qualify for financing to acquire these properties from the banks.

A luxury home becomes a luxury REO after the bank purchases the home at auction. Once a luxury home goes to a foreclosure sale, there is usually a second lien holder on the title and sometimes a third. If a minimum price is not met at auction, the bank will purchase the property and the second or third lien holders will realize a total loss on their loans to the former homeowner.

In some of the high-end areas of Los Angeles, many of these luxury bank owned properties are being put back on the market for less than what the banks paid for them at auction. Through our network of banks, attorneys and consulting firms, our specialists can work with you to find a luxury REO that fits both your investment objectives and your lifestyle.