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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26722 Rolling Vista Drive Lomita, CA 90717

$850,000 - 5Br/3Ba -  for Sale in Lomita
5 Beds
3 Baths
2,557 SqFt
Status Active
MLS # SB19166798
Property Type Single Family Residence
Bank owned. Last sold for $850,000 in 2007, assessed at $875,000. Cosmetic fixer with great bones and unobstructable city/pastoral/mountain views out the back. Rolling Ranchos is adjacent to Rolling Hills Estates, only access is via Palos Verdes Drive North. Wood beams, big brick fireplace, master with view and sliders opening to patio, recessed lighting and wood plantation shutters throughout, central air and heat, 8141 sq.ft. lot. 5 minutes to Rolling Hills Prep School, Rolling Hills Country Club, Jack Kramer Club, Dapplegray Park and George F. Canyon hiking trails.

9112 Los Angeles Street Bellflower, CA 90706

$569,900 - 3Br/2Ba -  for Sale in Bellflower
3 Beds
1.5 Baths
1,092 SqFt
Status Active
MLS # PW19166803
Property Type Single Family Residence
Centrally located in the desirable City of Bellflower is this beautiful and well maintained home. This home has 3 Spacious Bedrooms, 2 Baths. Double Pane Windows, Full Copper Plumbing, New Electricial outlet and light switches in the garage. New Rod Iron Gates. Home also Features Central A/C and Heat & the walls are insulated to keep the cold or hot weather out. Great lot size of 5,300 sq. ft with a long driveway leading to your DETACHED 2 car garage with insulated garage door, GENIE BRAND electric garage door opener. Private fencing and the backyard is perfect for those summer BBQs or Family gatherings. The kitchen features white cabinets, the bathroom has been recently remodeled with beautiful tile, new flooring and BLUETOOTH STEREO SPEAKER EXHAUST FAN with LED LIGHT & REMOTE. Water heater is 3 - 4 years old. NO POPCORN. Indoor Laundry Room. Close to Freeways and shopping Centers.

18809 W Cavendish Dr Castro Valley, CA 94552

$827,000 - 4Br/3Ba -  for Sale in Briar Ridge, Castro Valley
4 Beds
3 Baths
2,262 SqFt
Status Active
MLS # 40874305
Property Type Single Family Residence
A bit dated and very stinky. Not for the faint of heart. Great upside potential for the right buyer. No public showings, headed toward foreclosure, quick sale is of the essence. Pool pump isn't working.