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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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11538 Venezia Way Porter Ranch, CA 91326

$925,000 - 4Br/3Ba -  for Sale in Porter Ranch
New
$925,000
4 Beds
3 Baths
2,655 SqFt
Status Active
MLS # SR19276668
Property Type Single Family Residence
Price Type --
Its a 4 bed 3 bath with 2655 FT in the area called Porter Ranch that has had the gas leak from the storage facility. Also the fires were near this area. Broker does not know if all the leaks have been repaired, or if other fires will come close again. This house may or may not be involved in the many lawsuits involving the recent disasters. Many home owners did go to the emergency hospital during the gas leaks and some animals did die from the gas. This is a very famous area and prices have gone up in the past. So this could be a great opportunity to buy when prices have lowered. Its a short sale and no repairs will be done, as house needs many repairs and the bank will not fix anything before close. Terms are subject to bank approval.

5250 E Gerda Drive Anaheim, CA 92807

$739,990 - 5Br/3Ba -  for Sale in Anaheim
New
$739,990
5 Beds
3 Baths
2,767 SqFt
Status Active
MLS # 19535064
Property Type Single Family Residence
Price Type --
Large House in a very nice & quiet area of Anaheim. A great deal. 5 Bedrooms and 3 baths. This property need work. Bring your cash investors. subject to Short sale approval.