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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:

905 Kansas Avenue Colton, CA 92324

$395,000
3 Beds
1 Bath
1,190 SqFt
Status Active
MLS # 22172417
Property Type Single Family Residence
Price Type --
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.

15388 Red Canyon Rd Lower Lake, CA 95457

$560,000
4 Beds
4 Baths
3,420 SqFt
Status Active
MLS # SR22132029
Property Type Single Family Residence
Price Type --
Lender/Bank Owned. Priced for immediate sale. Unbelievable opportunity. LEASE OPTION POSSIBLE. Small ranch, 2820 sq/ft house in reasonably good condition with additional lower level guest unit. Ready to move in. Includes 600 sq/ft detached guest house with full kitchen and bath. Private gated driveway. 5 acre parcel. 5-10 minutes to lake. Fishing, recreation, etc. Great investment for a flip. Market supports several hundred thousand profit. Submit offers.

5217 E Avenue R12 Palmdale, CA 93552

$358,000
3 Beds
1 Bath
1,000 SqFt
Status Active
MLS # 22152415
Property Type Single Family Residence
Price Type --
PRICE REDUCED FOR QUICK SALE DUE TO PRE-FORECLOSURE!!! Amazing Starter Home, located in a nice residential neighborhood. Bright and Cozy 3 Bedrooms / 1Bath home with a fireplace in the living room, and a large back yard. The front yard has a water-resistant landscape. MUST SELL NOW! ALL OFFERS SUBMITTED WILL BE CONSIDERED! This is a Probate Sale, Subject to Court Confirmation and Overbids, Sold As Is - Where Is.

825 W Raymond Street Unit 44 Compton, CA 90220

$386,900
2 Beds
2.5 Baths
1,381 SqFt
Status Active Under Contract
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.

3205 Lanesboro Drive West Covina, CA 91792

$780,000
3 Beds
2 Baths
1,278 SqFt
Status Active
MLS # DW22151967
Property Type Single Family Residence
Price Type --
PRICE REDUCTION was $830 now lowered $50K.Property in excellent condition. Short Sale. By Appointment Only

3029 Broadway Unit 18 San Diego, CA 92102

$389,987
1 Bed
1 Bath
484 SqFt
Status Active
MLS # 220018426SD
Property Type Condominium
Price Type --
Investors looking for a way into the San Diego corporate rental market check this out. I am open to selling a 50% interest for $199,999 This unit is special!! It has a gorgeous granite kitchen with a wet bar & seating area for 2 people. There is a Real Steam room in the unit as well as Air Conditioning, Washer Dryer hookups water plumbed for the refrigerator. A walk in Closet. Upgraded electrical & plumbing. The owner is also very Open to trade this properties equity or the property for another property, house, condo, multifamily, Mobile home park, or land. & Will consider any location in or outside of the United States as long as it makes sense to the seller. Distressed property is preferred & can be in foreclosure. Can be a fixer or in perfect condition. Complex Features: , Equipment: Dryer, Washer Sewer: Sewer Connected Topography: LL Guest House Est. SQFT: 484

25042 Crimson Lasso Drive Wildomar, CA 92595

$583,000
5 Beds
3 Baths
3,322 SqFt
Status Active Under Contract
MLS # IV22161659
Property Type Single Family Residence
Price Type --
Welcome to Wildomar, California. A wonderful opportunity awaits you. Large two-story single-family residence with approximately 3,322 square feet. This five-bedroom three bath home sits on an approximate lot size of 9,148 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.

19399 Stonegate Road Hidden Valley Lake, CA 95467

$459,000
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 Pending
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

1901 E Pine Street Compton, CA 90221

$675,000
3 Beds
2 Baths
1,722 SqFt
Status Active
MLS # IV22165989
Property Type Single Family Residence
Price Type --
2 Units!!! Looking for additional rooms to rent or a home big enough for a large family, Pre-Foreclosure Sale- must sell ASAP This beautiful home has its original 3 bedrooms and 2 baths with an additional unit that includes 2 bedrooms and 1 bath seller bought thinking it was permitted but never verified buyer and buyer's agent to verify for permits, seller offers no warranties. Plenty of parking inside the gate for convenience, plenty or room inside gate for kids to play and enjoy the American dream. Just when you thought things were getting better, the detached garage is also converted as granny living quarters. Must see today!!!

1401 Durham Street Arvin, CA 93203

$164,300
2 Beds
1 Bath
864 SqFt
Status Active Under Contract
MLS # IV22167240
Property Type Single Family Residence
Price Type --
Cozy Ranch bungalow in Arvin, CA. Subject appears to be a two-bedroom single family residence that sits on approximately 19,197 square feet. A rare opportunity to own cheaper than you probably pay your current rent. 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.

1620 Virginia Lane El Centro, CA 92243

$395,000
4 Beds
2 Baths
1,980 SqFt
Status Active
MLS # IV22172985
Property Type Single Family Residence
Price Type --
Why Rent when you can own in El Centro, CA. This single-family Ranch residence sits on approximately 59,677 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.