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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:

79638 Dandelion Drive La Quinta, CA 92253

$230,000
3 Beds
2 Baths
2,100 SqFt
Status Pending
MLS # 41458368
Property Type Single Family Residence
Price Type --
Great Family Home in Nice Neighborhood, Open Front Room with Fire Place, Oak Kitchen Cabinetry with Front Nook with Views. Fireplace in Master Bedroom. Aluma wood patio cover. Near to La Quinta schools. This is a short sale and will sell fast. Sold as is. Buyer to verify all information. First and second, first is approved at this price. Bank will not pay anything.

19 Chandra Lane Rancho Mirage, CA 92270

$175,000
3 Beds
-- Bath
2,196 SqFt
Status Pending
MLS # 41461660
Property Type Single Family Residence
Price Type --
Short sale. Needs lots of work.

32135 Desert Vista Road Cathedral City, CA 92234

$144,000
4 Beds
2 Baths
1,632 SqFt
Status Pending
MLS # 41461416
Property Type Single Family Residence
Price Type --
Short Sale approved Price! Rio Vista. Cash Only!

Milpitas CA 95035

$450,000
3 Beds
2 Baths
1,240 SqFt
Status Pending
MLS # ML81304283
Property Type Single Family Residence
Price Type --
Short sale. making offer subject to interior inspection

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.

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.

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.

1446 Caminito Sardinia Chula Vista, CA 91915

$420,000
3 Beds
2.5 Baths
1,810 SqFt
Status Pending
MLS # 160026112
Property Type Single Family Residence
Price Type --
BOM!!! Short Sale Priced to sell at $390k-$420k a must see. This charming home has it all from ceramic tile, dark cabinets, stainless steel appliances, upgraded carpet. The house has 3 bedrooms plus a spacious loft, 2 1/2 bathrooms, 2 car garage, small private court yard. Conveniently situated across the Otay Ranch Mall, Walmart, supermarket, restaurants, and Starbucks; there is no need to drive very far! This is a Short Sale and all terms (including purchase price) are subject to lender's approval.. Neighborhoods: The Summit @ EastLake Equipment: Fire Sprinklers,Garage Door Opener, Range/Oven Other Fees: 0 Sewer: Sewer Connected Topography: LL

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