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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

$380,000
3 Beds
1 Bath
1,190 SqFt
Status Active
MLS # 22219427
Property Type Single Family Residence
Price Type --
Probate sale, in foreclosure, subject to short sale approval. No court confirmation required. This home needs cosmetic work and a lender may require roof certification. Corner lot with parking access from 2 entrances. Great opportunity! Buyer should satisfy themselves as to the condition.

4609 W 173rd Street Lawndale, CA 90260

$725,000
4 Beds
2 Baths
1,876 SqFt
Status Active
MLS # SB22244229
Property Type Single Family Residence
Price Type --
First time on the market in 45 years.!!!!!Spacious 4 bedrooms 2 baths home in a nice cul de sac area of S Lawndale. Home features 1876 sq ft living space with a lot size of 5801 sq ft and a two car detached garage. Tons of potential to make this a beautiful home for your family. Spacious living room with fireplace. Large kitchen with tons of cabinets. A formal dining room. Master bedroom with attached bath. Master bedroom opens into the backyard. This is a short sale and all terms, price and conditions are subject to lender acceptance of the short sale

4634 W 153rd Street Lawndale, CA 90260

$775,000
3 Beds
2 Baths
1,330 SqFt
Status Active
MLS # TR22243651
Property Type Single Family Residence
Price Type --
Pre-foreclosure and Trust sale , no court confirmation need it. 3 bedrooms 2bath house with a extra room, easy access to 405 frwy , 10 to 15 minutes to international airport , close to public transportation .Sale is as is conditions but this house is in good shape and is offering a large kitchen with a lot cabinets ,tile and laminate floor, good size of master bedroom ,small backyard , new double panels windows ,air conditioner in each bedroom ,inside laundry area, Fireplace, located in a LNR2 (check with City).Don't miss this opportunity, appointment need it, first look will be Sunday November20.

40365 Trenton Court Temecula, CA 92591

$715,500
3 Beds
2 Baths
1,866 SqFt
Status Active
MLS # IV22243576
Property Type Single Family Residence
Price Type --
Welcome to Temecula, California. This one level single family residence sits on a lot of approximately 4,356 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.

24 Rose Trellis Irvine, CA 92603

$2,244,300
3 Beds
3.5 Baths
2,830 SqFt
Status Active
MLS # OC22247299
Property Type Single Family Residence
Price Type --
This Bank Owned Property (REO) is a tremendous value! This 3 bedroom, 3.5 bath home has over 2800 square feet of living space and features a massive owner's suite with secondary retreat or nursery. You'll love the 2 balconies - one off the owner's suite and one off the secondary bedroom. The formal dining room is perfect for gatherings of family and friends. The gourmet island kitchen has granite counters, stainless appliances, and a casual dining area and opens to the great room with its cozy fireplace. In the back you will discover your own tropical paradise complete with a pebble-tec pool and Jacuzzi for your enjoyment, as well as an outdoor kitchen. Plus, there's a casita with separate entrance - perfect for guests or in-laws. And if that's not enough, this home is located in Irvine in The Summit at Turtle Ridge, which is a gated community. HOA amenities include clubhouse and Olympic pool. Easy access to the 73-toll road, UCI Campus and minutes to the beaches at Laguna, Corona Del mar and Newport Beach.

6420 Cottage Street Huntington Park, CA 90255

$364,000
2 Beds
1 Bath
1,002 SqFt
Status Active
MLS # DW22249361
Property Type Single Family Residence
Price Type --
This is a 2bed 1bath home with 1,002 SqFt on a Lot size approximately 6,213 in the great city of Huntington Park. Bank Owned! Priced to sell!

1828 W 41st Place Los Angeles, CA 90062

$742,000
3 Beds
1 Bath
1,656 SqFt
Status Active
MLS # IV22249130
Property Type Single Family Residence
Price Type --
Opportunity awaits you in Los Angeles, California. This single-family residence has a lot size of approximately 5,751 square feet. Includes three bedrooms and a one car garage. 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.

14265 Brentwood Drive Victorville, CA 92395

$315,000 - 3Br/2Ba -  for Sale in Victorville
New
$315,000
3 Beds
2 Baths
1,440 SqFt
Status Active
MLS # CV22249945
Property Type Single Family Residence
Price Type --
Short sale subject to lender approval

1930 Weepah Way Los Angeles, CA 90046

$936,000 - 3Br/3Ba -  for Sale in Los Angeles
New
$936,000
3 Beds
3 Baths
1,957 SqFt
Status Active
MLS # 22223069
Property Type Single Family Residence
Price Type --
Bank owned foreclosure nestled on a quiet street in Laurel Canyon. Lower level living area with brick fireplace, wood beamed ceiling, tile floors and an open floor plan that leads to light and bright kitchen with lots of space to make your own. Lower level also features one bedroom that is adjacent to full bathroom with pedestal sink and tub. Second level can be accessed via a staircase, but has its own private entrance. Second level features master bedroom with high wood beamed ceiling, brick fireplace, built-in desk, walk-in closet with access to master bathroom with spa tub. Upper level also features den, additional bedroom, updated guest bathroom with spa tub and family room. Spacious family room with brick fireplace also has its own entrance and leads to woodsy backyard that can be a great private getaway. Additional lot of 1,464 square feet (APN 5567-023-050) gives you a combined lot size of almost 5,000 square feet. One detached on-site parking spot. Great opportunity. Needs some TLC.