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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:

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7671 La Brisa Rancho Santa Fe, CA 92067

$1,350,000
3 Beds
2 Baths
2,414 SqFt
Status Contingent
MLS # 160007539
Property Type Detached
BACK ON MARKET FOR SHORT SALE. A GREAT BUY IN 92067. VERY PRIVATE, QUIET LOCATION. VERY OPEN NICE FLOOR PLAN. 384 SQ FT GUEST HOUSE WITH 3/4 BATH.

27870 Old Mine Ranchita, CA 92066

$315,000
3 Beds
2 Baths
1,775 SqFt
Status Active
MLS # 160009647
Property Type Detached
Price Reduction! 3R Ranch is 11 acres, A70 zoning, animal O designator, fenced & cross fenced, & not just a house, but a real HOME. Recently enlarged, home is cozy 3 bed/2bath, extra large master bedroom w wood burning stove, handsome original brick fireplace in living rm, large open kitchen. Clay roof. Det garage. Several sep paddocks, pasture. This is the place where so many happy creatures are born & raised, 2 & 4 legged alike.

2412 S Trail Court Chula Vista, CA 91914

$579,000
3 Beds
2.5 Baths
2,238 SqFt
Status Contingent
MLS # 160017055
Property Type Detached
SHORTSALE. SINGLE LEVEL BRIGHT AND OPEN FLOOR PLAN. 3BDRM PLUS EXTRA ROOM/DEN. LOW HOA AND NO MELLO ROOS. CLOSE TO SCHOOLS, SHOPS, I-125 AND COMMUNITY POOLS.

1621 Glade Place Escondido, CA 92029

$1,099,000
5 Beds
4.5 Baths
3,414 SqFt
Status Active
MLS # 160058907
Property Type Detached
Rare opportunity to acquire the largest model in exclusive Rancho Verde - plus a separate guest house and office/artist studio! Desirable, quiet cul-d-sac. Large, level, low maintenance lot. Huge, tranquil, park-like back yard. Gated, side RV parking with sewer & elec hookups. Tons of storage in residence, guest house, office/studio, and sheds. Minutes to shopping, I-15 or beaches. Broker is a Trustee for the Owner.

791 Valley Crest Dr Oceanside, CA 92058

$350,000
3 Beds
2 Baths
1,254 SqFt
Status Contingent
MLS # 160019277
Property Type Detached
Home has lots of potential, needs TLC perfect for the investor or seasoned home owner, has large flat yard.

12635 Pedriza Road Poway, CA 92064

$600,000
4 Beds
2.5 Baths
2,663 SqFt
Status Contingent
MLS # 160043755
Property Type Detached
Short Sale!!! This 4 bedroom 2.5 bathroom home is located in a quiet Cul-De-Sac.

721 Billow Dr San Diego, CA 92114

$249,999 - $299,999
3 Beds
1 Bath
949 SqFt
Status Contingent
MLS # 160042025
Property Type Detached
Distressed property in Encanto that needs to be updated. Major fixer not for the faint of heart. Bring your tools and make this one shine again!

2802 Hopkins San Diego, CA 92139

$275,000
3 Beds
2 Baths
1,520 SqFt
Status Contingent
MLS # 160057528
Property Type Detached
Found some major repairs needed for this property.

450 J Street 7051 San Diego, CA 92101

$290,000
1 Bed
1 Bath
777 SqFt
Status Contingent
MLS # 160065943
Property Type Attached
Beautiful Views from Coronado, Petco Park and Downtown. Great location right on the Gaslamp District. You will enjoy great dining and entertainment close to home. Subject to SHORT SUBJECT TO LENDER APPROVAL

398 El Monte Road El Cajon, CA 92020

$390,000
3 Beds
2 Baths
1,341 SqFt
Status Contingent
MLS # 160065253
Property Type Detached
PRICE REDUCTION AND IT IS NOW A SHORT-SALE! Walk inside of this home and enjoy its beautifully updated living spaces. Located in a great neighborhood conveniently close to shopping and freeways. This property offers spacious curb appeal, drought friendly landscaping, private POOL, outdoor fountain and fireplace. Plenty of space for entertaining and guests. MOTIVATED seller. Please note that property has no garage.

33381 Barley Wildomar, CA 92595

$135,000
3 Beds
2 Baths
1,440 SqFt
Status Contingent
MLS # 170000968
Property Type Modular Home
Investor opportunity

823 Ostend San Diego, CA 92109

$1,075,000
1 Bed
1 Bath
760 SqFt
Status Contingent
MLS # 170001039
Property Type Detached
Property Appears to have unpermitted additions. Serious fixer, needs lots of TLC, structural retrofit and Termite woodwork repairs needed.