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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:

719 Larkin Street Unit 203 CA 94109

$525,000
1 Bed
1 Bath
619 SqFt
Status Active
MLS # ML81903115
Property Type Condominium
Price Type --
Huge Price reduction! Original Price was $685,000. Now is $525,000. 1 bedroom, 1 bath, flat unit on 2nd floor, open floor plan with lots of natural light, quartz kitchen counter top. Hardwood floor in living room, kitchen and bedroom. Tiles floor in bathroom. Tile shower wall. Latch smart access system, rooftop retreat with city views, storage space and secure bike parking. Food and drinks are surrounding and walking distance from the unit. This is Short Sale and subject to Lender's approval.

18678 Madrone Street Tuolumne, CA 95379

$196,100
3 Beds
1 Bath
1,298 SqFt
Status Active
MLS # IV22175505
Property Type Single Family Residence
Price Type --
Welcome home to Tuolumne, CA. If you searching for a second home to get away from it all, look no further. This single family residence sits on an average size lot of approximately 5,606 square feet. 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.

9921 Edmore Place Sun Valley, CA 91352

$617,199
4 Beds
2 Baths
2,012 SqFt
Status Active Under Contract
MLS # DW22167389
Property Type Single Family Residence
Price Type --
Cash offers only due to very poor condition of this 4 bedroom, 2 bathroom home that has extensive water damage due to roof leaks in multiple places through out this 2,000 sq ft home. Several other types of deferred maintenance make this a major fixer upper — possibly a tear down. Listing is a short sale, subject to bank approval.

8307 W Ave E-12 Lancaster, CA 93536

$222,600 - 3Br/1Ba -  for Sale in Lancaster
New
$222,600
3 Beds
1 Bath
917 SqFt
Status Active
MLS # IV22179794
Property Type Single Family Residence
Price Type --
Wanna get away!! Single family residence in Lancaster, California with approximately 109,009 square feet of land. 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.

3391 Clifton Avenue Highland, CA 92346

$550,000 - 3Br/2Ba -  for Sale in Highland
New
$550,000
3 Beds
2 Baths
2,050 SqFt
Status Active
MLS # EV22182133
Property Type Single Family Residence
Price Type --
WELCOME TO THE POOL PARTY!! THIS HOME HAS IT ALL. A CORNER LOT, VIEWS OF THE MOUNTAINS FRUIT TREES AND A BEAUTIFUL ESTABLISHED LANDSCAPING. IT OFFERS 3 BEDROOMS, 2 BATHROOMS AND A BONUS GAME ROOM! LOOK OUTSIDE TO THIS INVITING POOL, SPA AND AMAZING CABANA!! THE CABANA HAS ITS OWN UPGRADED SUB PANEL FOR ALL THE TV'S, FRIDGES, STEREOS AND LIGHTS YOU WILL NEED! THERE IS RV PARKING. THE TREE IN THE FRONT WAS JUST TRIMMED BACK. POOL HAS A NEW FILTER. NEW GARBAGE DISPOSAL. THE AC WAS JUST SERVICED AND NEW CEILING FANS TROUGHOUT. DON'T MISS OUT ON THIS ENTERTAINERS DELIGHT!!

1104 S Van Ness Avenue Santa Ana, CA 92707

$710,000 - 3Br/2Ba -  for Sale in Classic Homes I (clh1), Santa Ana
New
$710,000
3 Beds
2 Baths
1,540 SqFt
Status Active
MLS # OC22182158
Property Type Single Family Residence
Price Type --
Cute FIXER in desirable Wiltshire Square SHORT SALE SUBJECT TO LENDER APPROVAL. Near schools and neighborhood shopping. Den could be 3rd BR. Great potential for handyman;