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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:

324 Elm Street Shafter, CA 93263

$215,300
3 Beds
1 Bath
1,290 SqFt
Status Active Under Contract
MLS # IV21228419
Property Type Single Family Residence
Price Type --
Don’t miss out on this is a spectacular opportunity to own a home in a convenient location at an affordable price. This residence features three bedrooms, covered front porch, private yard, and driveway for off-street parking. Conveniently located a short distance to many restaurants, shopping, outdoor recreational activities, and easy access to numerous highways. Don’t let this unique opportunity pass you by. All potential buyers are asked to check with City and Tax records to determine actual bedroom, bathroom counts and all details on this property listed above to their satisfaction. This is an AS-IS REO property.

14126 Pierce Street Arleta, CA 91331

$300,000
3 Beds
2 Baths
1,602 SqFt
Status Pending
MLS # PW21231036
Property Type Single Family Residence
Price Type --
This is a short sale. CASH OFFERS ONLY. Property is a 3/2 with covered porch and carport. PROPERTY IS SOLD AS IS.

5019 Genesta Avenue Encino, CA 91316

$1,750,000
3 Beds
3.5 Baths
2,719 SqFt
Status Active Under Contract
MLS # 21798686
Property Type Single Family Residence
Price Type --
Partial two story older home with 3 bedrooms, 3.5 bathrooms and small bedroom & bathroom behind garage. The property is in need of major repair (seller discloses that home needs new roof, new electrical, and new plumbing) and needs extensive environmental remediation (asbestos, mold, and soil contamination). Fireplace in living room was previously damaged in earthquake and does not function. The home has no kitchen with wall studs exposed. Downstairs has two bedrooms, den, two bathrooms and powder room, and upstairs has one bedroom & one bathroom. Seller discloses that pool has a crack and needs repair. Home is located across from a school and will hear school bell and will experience increased car traffic during student drop off and again during pickup. Two car garage. Property is tenant occupied and tenants will still have possession after closing. No interior photos are available, please see inspection report for any interior photos. Drive by only. This is a Short Sale.

11006 E Avenue Hesperia, CA 92345

$384,900
3 Beds
2 Baths
1,954 SqFt
Status Active Under Contract
MLS # IV21236469
Property Type Single Family Residence
Price Type --
Need a quick all-cash closing due to foreclosure status.

21423 Nicolle Avenue Carson, CA 90745

$720,000
5 Beds
3 Baths
1,876 SqFt
Status Active
MLS # 21799696
Property Type Single Family Residence
Price Type --
Beautiful 5 bed, 3 bath home in Carson City! Enjoy the extra large floorpan in this tucked away neighborhood near Harbor UCLA Medical Center restaurants, shopping, and South Bay entertainment. Interior condition is unknown, home is occupied so buyers must be willing/able to close while occupied and without interior inspection or appraisal access. Do not miss this opportunity for a great deal! 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 investors who sign an affidavit stating they intend to rehab the property and provide affordable housing.

6912 Gallery Drive Bakersfield, CA 93312

$371,000
3 Beds
2 Baths
1,849 SqFt
Status Active Under Contract
MLS # IV21241215
Property Type Single Family Residence
Price Type --
This three-bedroom, two- bathroom ONESTORY HOUSE with two car garage is a bank owned REO. OCCUPIED NO SHOW DRIVEBY ONLY - the seller does not represent or guarantee occupancy status. NO VIEWINGS of this property. Please DO NOT DISTURB the occupant. As is CASH ONLY SALE WITH NO CONTINGENCIES OR INSPECTION”. Buyer will be responsible for obtaining possession of the property upon closing. Important!!!!!! Buyer is responsible for verifying all information contained in this listing including HOA information and fees.

465 N Maple Avenue Fontana, CA 92336

$445,000
3 Beds
2 Baths
1,679 SqFt
Status Active
MLS # 21101455
Property Type Single Family Residence
Price Type --
Bring your TLC to this gated, single story, traditional style home in Fontana with an in-ground pool. Nestled between downtown Fontana and downtown Rialo. Close to shopping, cafes, and grocery stores! Home is occupied and interior condition is unknown, buyers must be willing/able to close while occupied and without showings, interior inspection, or appraisal. Do not miss this great opportunity to create your dream house and private oasis! 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 investors who sign an affidavit stating they intend to rehab the property and provide affordable housing.

240 Hermosa Drive Bakersfield, CA 93305

$292,100
3 Beds
2 Baths
1,333 SqFt
Status Active
MLS # IV21245543
Property Type Single Family Residence
Price Type --
Bank owned REO. OCCUPIED NO SHOW DRIVEBY ONLY - the seller does not represent or guarantee occupancy status. NO VIEWING of this property. Please DO NOT DISTURB the occupant. As is cash only sale with no contingencies or inspections. Buyer will be responsible for obtaining possession of the property upon closing. You can own this 1333 sq./ft. 3 bedroom, two bath house in highly desirable section of Bakersfield Important!!!!!! Please read private remarks. Buyer to independently verify accuracy of this listing

15814 Septo Street North Hills, CA 91343

$686,400
3 Beds
1.5 Baths
1,392 SqFt
Status Active
MLS # IV21247930
Property Type Single Family Residence
Price Type --
Excellent opportunity to to own a pool home in a convenient location at an affordable price. This three bedroom residence features a two car garage plus additional off street parking, private yard, fireplace, and pool. Located near I 405, I 5, 118 and others. Enjoy the vast amounts restaurants, shopping, close proximity to the Veterans Affairs and other hospitals, schools, and outdoor recreational activities. Don't miss this unique opportunity to own this home. All potential buyers are asked to check with City, Tax, and other records to determine the actual bedroom, bathroom counts, and all details on this property listed above to their satisfaction. This is an AS-IS REO property. Do not disturb occupants - drive-by only.

3160 San Pierre Drive El Monte, CA 91732

$545,000
2 Beds
1 Bath
1,161 SqFt
Status Active Under Contract
MLS # IV21249375
Property Type Single Family Residence
Price Type --
Have you always wanted to own your own home? This is your chance! This charming ranch-style home features two bedrooms a large fenced-in yard, and a garage with additional parking, and patio area. Conveniently located a short distance to spectacular shopping, a vast array of restaurants, outdoor recreational activities, and freeways. Don’t miss this unique opportunity! Come make this “home”! The property is occupied so all potential buyers are asked to check with City, Tax, and other records to determine actual bedroom, bathroom counts and all details on this property listed above to their satisfaction. This is an AS-IS REO property.

8025 Bellingham Avenue North Hollywood, CA 91605

$610,000
3 Beds
1 Bath
1,046 SqFt
Status Pending
MLS # DW21249631
Property Type Single Family Residence
Price Type --
Welcome to 8025 Bellingham Ave... This home consists of 3 bedrooms, 1 full bathroom, 7,540 SqFt lot with tons of potential. The garage has been converted into a non permitted ADU. Location is in a good area of of North Hollywood and ideal for a family looking for a fixer or an investor. Property is in need of flooring, paint, plumbing, light fixtures, electrical, roof and landscaping. Large backyard for entertainment. Lots, lots and lots of potential to turn this house into your new home! Property is a short sale and all terms, price and conditions will need to be approved by Short Sale Lender.

2721 Sanborn Avenue La Crescenta, CA 91214

$1,399,000
4 Beds
3 Baths
3,608 SqFt
Status Active Under Contract
MLS # 21105890
Property Type Single Family Residence
Price Type --
**Cash Offer Only** Short sale requiring lender approval. Unknown tenant occupying the property and seller does not have a lease agreement in possession. Seller has no access to the property and buyer is to purchase the property As-is with the tenant in place.