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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:

Milpitas CA 95035

$660,000
4 Beds
4 Baths
2,524 SqFt
Status Pending
MLS # ML81323296
Property Type Single Family Residence
Price Type --
Short Sale Tri-level home in a gated community. Amenities are granite kitchen countertops, cabinets, and hardwood flooring. Master suite may need new carpet.

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.

Outside Area (inside Ca) CA 93933

$508,999
4 Beds
3 Baths
2,129 SqFt
Status Pending
MLS # ML81438217
Property Type Single Family Residence
Price Type --
THIS IS A SHORT SALE, SOME TLC AT THE BACKYARD AND FRONT YARD BUT GENERALLY, A READY TO MOVE IN PROPERTY, BEAUTIFUL NEIGHBORHOOD

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

Outside Area (inside Ca) CA 93923

$700,000
4 Beds
3 Baths
2,232 SqFt
Status Pending
MLS # ML81452215
Property Type Single Family Residence
Price Type --
This Single Family Residence property is a Very Large home that sits on A Reasonably sized lot. This may be an opportunity that may possibly be within your grasp! This property situated at 24695 Handley Dr is located in the city of Carmel. within the great state of CA. According to tax records this property was built in 1965, offering 4 beds, 3 bath, with 2232 square feet. This is a bank owned property to be sold as-is. Buyer and agent to verify all.

260 N D St Tulare, CA 93274

$110,580
2 Beds
1 Bath
875 SqFt
Status Pending
MLS # 170005480
Property Type Single Family Residence
Price Type --
Great opportunity for investors or first time buyers. Corner lot house sits on 7,500 Sq Ft of space. Property currently being rented for $ 875.00 tenants may want to stay with new owner. Short Sale. Still need bank approval. Submit your offers. Detached garage was converted to studio. It is unknown if conversation was permitted or registered with the city. Neighborhoods: Tulare Other Fees: 0 Topography: LL

1836 Crenshaw Boulevard Los Angeles, CA 90019

$799,000
3 Beds
1 Bath
2,252 SqFt
Status Pending
MLS # PW20214902
Property Type Single Family Residence
Price Type --
Great opportunity for savvy investors. This property is located in the Arlington Heights area in the Mid City neighborhood of Los Angeles. It is close to shopping, schools and transportation, Centrally located it is accessible to most venues in the City from Downtown LA, Hollywood, Inglewood and the beach cities. Zoned R3 and located in a Transit Priority Area( TOC Tier 3) and not a HPOZ this property is perfect to be redeveloped into a premier property with plenty of potential for you. REO property will be delivered tenant occupied in AS IS condition, No repairs, no termite report. Buyers to conduct their own due diligence. NO PROPERTY ACCESS,DO NOT DISTURB OCCUPANT, CASH OFFERS ONLY!

3364 Nolina Street Baldwin Park, CA 91706

$539,000
2 Beds
1 Bath
939 SqFt
Status Active
MLS # RS20229294
Property Type Single Family Residence
Price Type --
BANK OWNED! Calling all investors. Two bedroom house with a huge lot that may allow you to build a larger home and/or ADU. Nicely located near freeway access and several shopping centers.

1491 Carmen Court San Jose, CA 95121

$630,000
4 Beds
2.5 Baths
1,474 SqFt
Status Active
MLS # ML81859447
Property Type Townhouse
Price Type --
SHORT SALE APPROVED FOR $700,000! Very rare 4 bedroom / 2.5 bathroom PUD with 1,474 living sq ft size located in a quiet neighborhood. Please do not disturb occupants!

5019 Genesta Avenue Encino, CA 91316

$1,750,000
3 Beds
3.5 Baths
2,719 SqFt
Status Active Under Contract
MLS # 21798686
Property Type Single Family Residence
Price Type --
Partial two story older home with 3 bedrooms, 3.5 bathrooms and small bedroom & bathroom behind garage. The property is in need of major repair (seller discloses that home needs new roof, new electrical, and new plumbing) and needs extensive environmental remediation (asbestos, mold, and soil contamination). Fireplace in living room was previously damaged in earthquake and does not function. The home has no kitchen with wall studs exposed. Downstairs has two bedrooms, den, two bathrooms and powder room, and upstairs has one bedroom & one bathroom. Seller discloses that pool has a crack and needs repair. Home is located across from a school and will hear school bell and will experience increased car traffic during student drop off and again during pickup. Two car garage. Property is tenant occupied and tenants will still have possession after closing. No interior photos are available, please see inspection report for any interior photos. Drive by only. This is a Short Sale.

24993 Painted Rock Road Ramona, CA 92065

$651,200
3 Beds
2 Baths
2,513 SqFt
Status Active
MLS # IV21254296
Property Type Single Family Residence
Price Type --
Built in 1958 this three bedroom two bath home has 2,513 square feet of living space and sits on five acres!!! Located in San Diego County, this property features beautiful mountain views!! With a little TLC, this would make a perfect home. The property is occupied so all potential buyers are asked to check with City, County, and Tax and other records to determine actual bedroom, bathroom counts and all details on this property listed above to their satisfaction. This is an AS-IS REO property.

10131 Bell Avenue Lower Lake, CA 95457

$192,300
2 Beds
1.5 Baths
1,440 SqFt
Status Active
MLS # IV21256825
Property Type Single Family Residence
Price Type --
Have you always dreamed about having a home out of the hustle and bustle, yet not far from the water and freeways? This multi-story residence is nestled away and is waiting for you. Relax in tranquility at home or venture out a short distance to many outdoor recreational activities, Clear Lake, a vast array of cuisines, shopping, and entertainment. Excellent opportunity to put your finishing touches on this gem and make it your own. Don’t let this rare opportunity to own a piece of paradise get away from you! All potential buyers are asked to check with city and tax records to determine actual bedroom, bathroom counts and all details. This is a REO Property.