Report: High-end foreclosure inventory shrinking

The foreclosure crisis isn't completely over for

The foreclosure crisis isn't completely over for the wealthy, but the high-end foreclosure inventory is running dry, Robin Camacho of American Realty and Property Management said.

Foreclosed homes that sold for over $1 million are far fewer and harder to find, she said. There's more competition for them.

The opposite is true for the low-end market. Homes that sold for $250,000 or less in 2006 and 2007 are coming back to the banks at a much faster rate than they're selling. The price drops are "ridiculously low," Camacho said. Some of them are going for 30 cents on the dollar, while million-dollar homes are difficult to find for 70 cents on the dollar for 2007 prices.

Camacho is guessing that early foreclosures were from speculators who bought high-end homes with the intention of flipping them for a quick profit. They lost the house when the market tanked. Low-end foreclosures coming onto the market now are the result of the economic downturn, job losses and reduced income, she said.

To help clients make an informed decision on what to offer banks on foreclosed homes, Camacho analyzed February's REO sales and came up with some interesting statistics.

The bank took 60 percent or less of asking price on just one sale; 10 were 70 percent or less; 46 were 80 percent or less; 211 were 90 percent or less; and in 1,145 sales, or about two-thirds of 1,731 total sales, the bank got exactly the asking price. So the closer the offer is to the asking price, the more likely the bank is to accept it, Camacho said.

Some banks accepted lower offers if the terms were cash or if it was an older property in poor condition, she added.