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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:

15203 Leadwell Street Van Nuys, CA 91405

$610,000
4 Beds
2 Baths
1,688 SqFt
Status Active Under Contract
MLS # SR22122808
Property Type Single Family Residence
Price Type --
Short sale. Great opportunity for investors/buyers who are interested in purchasing fixers! Short sale pending lender approval. Due to property condition this property will not qualify for financing. 4 bedroom and 2 bath with tons of potential.

1674 Mulberry Avenue Upland, CA 91784

$799,999
4 Beds
2 Baths
2,502 SqFt
Status Pending
MLS # CV22124558
Property Type Single Family Residence
Price Type --
This Spacious Open Floor Plan home located in North Upland offers 4 Bedrooms, 2 Bathrooms, living room, family room, dinning room, Pool, and sits on a sizable lot of almost 10,000 sq. ft. Sliding door off master bedroom leads into pool and yard area. 2 car detached garage which allows for extra parking. This beautiful home is located in a quiet neighborhood and is in close proximity of the Historic area of Downtown Upland, great schools, shopping centers, restaurants, and minutes away from Mt. Baldy. Relax and entertain in the big backyard and pool. Also offers a long driveway for multiple vehicles, boat or RV. This property is minutes away from the 10 and 210 Freeways. Property is in need of some light TLC, upgrades, and pool repairs. Please do not use showing time. Property is being sold via short sale.

3040 Gibraltar Road Santa Barbara, CA 93105

$2,200,000
6 Beds
5.5 Baths
5,296 SqFt
Status Active
MLS # SR22123740
Property Type Single Family Residence
Price Type --
Just out of foreclosure. REO. Lender owned. New Construction not completed on the main Estate Home (approximately 4300 sq. ft per builder). Main Home is 5 BR / 4.5 BA per seller. The guest house is fenced and has construction containers on the property, also is a fixer 1 + 1 and built in 1982 and is 1,296 sq. feet. per tax assessor. It is currently renting month to month. One of the highest Homes in the Hills with STUNNING OCEAN VIEWS OF SANTA BARBARA, THE COASTLINE, HARBOR AND CITY LIGHTS! This is a once in a lifetime opportunity for the right buyer. The builder ran out of money during Covid restrictions and could not complete the Buildout. Bring your builder or we have Cost Breakdowns and estimates to complete the project and the Builder would love to help complete it. Main house 2 car garage to be built and there's parking for 4 additional cars. Guest house parking driveway can also fit up to 4 cars.

11796 Fernwood Avenue Fontana, CA 92337

$495,000
3 Beds
2.5 Baths
1,433 SqFt
Status Pending
MLS # CV22134904
Property Type Single Family Residence
Price Type --
House is in foreclosure and personal representative has lowered list price to below comps. 1433 square foot home in quiet neighborhood has 2 car attached garage and fireplace. Shares one common wall with neighbor. Needs paint and carpet and some repair.

628 Delmonte Drive Gonzales, CA 93926

$449,000
3 Beds
1.5 Baths
1,152 SqFt
Status Active
MLS # ML81897481
Property Type Single Family Residence
Price Type --
Great Opportunity for Home Ownership! 3 bedrooms 1.5 bath in a Cul-de-sac location with large level lot easy freeway access. This property is owned by Southside Neighborhood Stabilization and was purchased at foreclosure post auction bid pursuant to SB 1079. SB 1079 was put in place to promote homeownership and therefore priority for offers are given to owner occupant buyers. Buyers must provide a notarized affidavit that the agent will supply that states they intend to live in the property. Secondary priority will be given to investors who sign an affidavit stating they plan to rehab and sell the property to an owner occupant. Third priority is to nonprofits who sign an affidavit stating they intend to retail the property to an owner occupant or provide affordable housing. Nonprofits must also present their 501c3 certification.

139 Via Fuchsia Paso Robles, CA 93446

$805,600
3 Beds
3.5 Baths
2,589 SqFt
Status Active
MLS # IV22137185
Property Type Single Family Residence
Price Type --
Welcome to Paso Robles, California. A single-family residence awaits you!! This home appears to have been built in 2002 and is on a good size lot of approximately 30,056 square feet. If you blink it will be sold. This is a great opportunity to put your finishing touches on this gem. Don't miss this unique chance to say ''hello'' to your new dream getaway! All potential buyers are asked to check with City, County, Zoning, Tax, and other records to determine all details on this property listed above to their satisfaction. This is an AS-IS REO property.

905 Kansas Avenue Colton, CA 92324

$380,000
3 Beds
1 Bath
1,190 SqFt
Status Active
MLS # 22172417
Property Type Single Family Residence
Price Type --
Back on Market (9-21-22) Price reduced. Seller must sell! Probate sale, in foreclosure with agreement from servicer to allow for normal probate sale process. No court confirmation required. This home needs minor cosmetic work. Nice corner lot with parking access from 2 entrances. Great opportunity! Buyer should satisfy themselves as to the condition. Seller may consider credit in lieu of repairs. ***Lender is fully cooperating with estate to sell property.

825 W Raymond Street Unit 44 Compton, CA 90220

$386,900
2 Beds
2.5 Baths
1,381 SqFt
Status Active
MLS # IV22147431
Property Type Townhouse
Price Type --
Affordable townhome living in California. Why pay rent when you can own for less. This two-bedroom townhome includes a fireplace and a two-car garage. If you blink it will be sold. All potential buyers are asked to check with City, County, Zoning, Tax, and other records to determine all details on this property listed above to their satisfaction. This is an AS-IS REO property.

11208 Studebaker Road Norwalk, CA 90650

$390,000
3 Beds
2 Baths
1,210 SqFt
Status Pending
MLS # DW22158802
Property Type Single Family Residence
Price Type --
3 bedroom short sale in the city of Norwalk. Property is dated and needs work.

19399 Stonegate Road Hidden Valley Lake, CA 95467

$399,900
3 Beds
2 Baths
2,482 SqFt
Status Active
MLS # LC22161091
Property Type Single Family Residence
Price Type --
Stonegate Lakeview home in Hidden Valley Lake . Inside is main level 2 bedroom with 2 full bathrooms. Formal dining room, living room open to kitchen with laminate flooring in kitchen and dining area , pantry and garage . downstairs is another bedroom with closet and a big spacious room . This is bank owned and needs carpet, paint .

21335 Community Street Canoga Park, CA 91304

$625,000
4 Beds
3 Baths
2,629 SqFt
Status Active Under Contract
MLS # DW22164833
Property Type Single Family Residence
Price Type --
This is a Short Sale, property in need of TLC, close to all amenities and Freeway

1426 Catalina Avenue Thermal, CA 92274

$299,000
3 Beds
3 Baths
1,690 SqFt
Status Active
MLS # 219082757DA
Property Type Single Family Residence
Price Type --
Best time to negotiate Great Deals is Now! Property is in Foreclosure. Re Reduced for Sale & negotiable! Seller will credit towards solar purchase contract to make the deal work! Many options here, try the 2,1 buy down, USDA.. Come get the best of Salton City area and own this excellent 3 bed 3 bath home with a great sized 10,047 sq. ft. lot for your sand toys! Solar powered, buyer to assume solar contract. Seller only pays $160 monthly on electric! Fireplace, jacuzzi tub, walk in pantry, granite counter tops, and conveniently located on West Side, the best side of Thermal Salton Sea area. Wont last long!