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REOs and Bank-Owned HomesREOs and  Bank-Owned homes are in short supply within our San Diego real estate market. And short sales aren’t much better.

More and more, these transactions are coming to resemble e-Bay transactions. It’s so frustrating for a buyer to submit a bid, only to find out there are 12 other competing bids on the table. But don’t give up. Here are some of the things you can do to increase your chances for successful foreclosure (as well as short sale) bidding:

1. Prior to submitting an offer, we speak with the listing agent to “seek guidance” for our buyer’s offer–especially when we are in a competitive situation. It doesn’t always work, but when we know how other offers stack, we stand a much greater chance of winning the bid.

2. Be thoroughly pre-qualified with a direct lender and have that letter on hand to submit with your offer. If a cash offer, be prepared to show proof of funds that can be submitted with your offer. Feel free to black out account numbers.

3. Propose a fast closing date with no contingencies. Lenders like speed and certainty–at least from you. Lenders may or may not reciprocate.

4. Present a strong earnest money deposit. For example, we recommend at least $5,000. on almost any offer of substance. That deposit, if your offer is accepted, goes towards down payment and/or closing costs. Any excess would be refunded to you. A strong deposit indicates a strong buyer.

5. Finally, and most importantly, do not get emotionally involved with the transaction and the home until you know your offer is accepted.
Another thing we suggest–and when there are no other offers on the table–is to ask the listing agent to place the property as “pending” if you submit a reasonable or full price offer. It’s a long shot that occasionally works–and helps insure a successful transaction. No buyer feels secure with the prospect of overbids possibly trumping his or her offer. We have had this happen on a couple of occasions and watch listing status carefully.

We have found that foreclosures generally close more quickly, compared to short sales in the San Diego market. Lenders are also more demanding with foreclosures and will frequently insert hefty per diem charges into their counters for any delays that result from buyer’s side. We have a transaction now, where lender wants a 3-week closing and $100. per day for any delays beyond that time. Buyer will likely need an extra 15 days and will gladly pay the additional $1500. because the deal still makes a great deal of $en$e.
Good luck in finding your San Diego dream home, whether it’s a short sale, equity sale or foreclosure. Your timing could hardly be better with record low interest rates and dwindling inventory levels.

In the meantime, if you would like to search for those rare REOs and bank-owned homes, you might try searching for those active listings in San Diego and outlying regions below:

1709 Las Posas Road Camarillo, CA 93010

$699,000
3 Beds
3 Baths
4,217 SqFt
Status Active Under Contract
MLS # 11013058
Property Type Single Family Residence
Price Type --
This is a great deal for 2 homes. This property has so much to offer. SHORTSALE PRICE SUBJECT TO LENDER APPROVAL.

2863 Silver San Jose, CA 95135

$780,000
4 Beds
2 Baths
1,655 SqFt
Status Active Under Contract
MLS # ML81239736
Property Type Single Family Residence
Price Type --
Great Location Single Family Home! Great school district! A Must See!

739 E Rowland Street Covina, CA 91723

$540,000
3 Beds
2 Baths
1,790 SqFt
Status Active Under Contract
MLS # 14765527
Property Type Single Family Residence
Price Type --
APPROVED SHORT SALE!! One lender only. There is an swimming pool. Please send your offers for your buyers. Thanks you for showing.

74582 Stage Line Drive Thousand Palms, CA 92276

$59,900
2 Beds
1.5 Baths
1,248 SqFt
Status Active Under Contract
MLS # 214026393DA
Property Type Manufacture 433
Price Type --
This is a Fannie Mae HomePath property located in the Gated Community of Ivey Ranch. With approximately 1248 square feet, 2 bedrooms and 1.5 baths, this is a great price and great opportunity to own as an investment, second home, or primary residence. Enjoy golf in your own community. Ivey Ranch is a Guard Gated Community with golf, community pools, a clubhouse, and abundant greenbelt areas. Come take a look!

1865 Bluebonnet Court Morgan Hill, CA 95037

$550,000
3 Beds
2 Baths
1,612 SqFt
Status Active Under Contract
MLS # ML81431245
Property Type Single Family Residence
Price Type --
Great area in Morgan Hill..Investor special homes does needs some work. Price to sell fast.

207 Hazelwood Drive South San Francisco, CA 94080

$639,000
4 Beds
3 Baths
1,560 SqFt
Status Active Under Contract
MLS # ML81437153
Property Type Single Family Residence
Price Type --
Excellent location in Sunny part of South San Francisco near El Camino Real. Just two blocks away from Brentwood Shopping Center. 3BR/2BA up with updated kitchen and bathrooms. Hardwood floors. Second Unit down with 1 bedroom 1 bath not permitted. Code violation on the property.

627 Terrace Street Salinas, CA 93905

$148,999
3 Beds
2 Baths
1,300 SqFt
Status Active Under Contract
MLS # ML81438218
Property Type Single Family Residence
Price Type --
SHORT SALE, BUYER TO VEFIFY ALL INFORMATION, GREAT FOR INVESTORS AND RENTAL PROPERTY WITH BUILT-IN TENANTS. AS-IS, LOTS OF POTENTIALS, NEEDS SOME WORK.

1692 Beverly Street Porterville, CA 93257

$92,000
2 Beds
1 Bath
1,342 SqFt
Status Active Under Contract
MLS # ML81438801
Property Type Single Family Residence
Price Type --
Short Sale 2 bed 1 bath

30624 Janlor Drive Agoura Hills, CA 91301

$525,000
3 Beds
2 Baths
1,708 SqFt
Status Active Under Contract
MLS # 216006984
Property Type Stock Cooperative
Price Type --
Cash offers only for a quick sale. Need offer immediately for this short sale. House needs new kitchen, new bathrooms, air conditioning. Pool filter does not work. Jacuzzi is also not operational. Great opportunity for a contractor. 3 bedrooms, 2 bath, on cul-de-sac street. Home backs to shopping center on Thousand Oaks Blvd.

516 W Juniper Street Oxnard, CA 93033

$285,000
2 Beds
1 Bath
832 SqFt
Status Active Under Contract
MLS # 216009357
Property Type Single Family Residence
Price Type --
Cute Little Bungalow Home in the Heart of Oxnard. 2bed 1Bath, Hardwood Floors, Cozy Kitchen and Dining Room. Great Starter Home.

1112 W Cedar Street Oxnard, CA 93033

$309,000
4 Beds
2 Baths
1,932 SqFt
Status Active Under Contract
MLS # 217000311
Property Type Single Family Residence
Price Type --
Great Opportunity For Contractor or Investor. This 4 Bedroom, 2 Bath is in need of work, but has lots of potential. Located in wonderful neighborhood close to elementary schools, shopping area, parks, beach and local mountains. Property needs a lot of repairs.

420 Cedar Street Redwood City, CA 94063

$956,800
4 Beds
2 Baths
890 SqFt
Status Active
MLS # ML81684598
Property Type Single Family Residence
Price Type --
Bank Owned !!! Contractor Special ! Lots of Potential ! Public record shows, SFR upon inspection, prop has 2 units. Permit unknown, buyer to verify.