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:

17077 Creekside Circle Morgan Hill, CA 95037

$679,000 - 3Br/3Ba -  for Sale in Creekside Village, Morgan Hill
3 Beds
2.5 Baths
1,473 SqFt
Status Pending
MLS # ML81871241
Property Type Condominium
Price Type --
Short Sale Opportunity in the beautiful Creekside Village Community! The vaulted ceilings and open space in this 3 bed, 2.5 bath home is the perfect canvas to customize your living space. In addition to the private backyard and attached 2 car garage, you can reap all the benefits of the gated community with amenities including a Club House, Pool, Tennis Court, and Gym. Set in the heart of Downtown Morgan Hill, with amazing restaurants, shopping, wineries, and a highly rated school district, you don't want to let this pass you by. ***Must be approved by lender***

10131 Bell Avenue Lower Lake, CA 95457

$275,000 - 2Br/2Ba -  for Sale in Lower Lake
2 Beds
1.5 Baths
1,440 SqFt
Status Active
MLS # IV21256825
Property Type Single Family Residence
Price Type --
Have you always dreamed about having a home out of the hustle and bustle, yet not far from the water and freeways? This multi-story residence is nestled away and is waiting for you. Relax in tranquility at home or venture out a short distance to many outdoor recreational activities, Clear Lake, a vast array of cuisines, shopping, and entertainment. Excellent opportunity to put your finishing touches on this gem and make it your own. Don’t let this rare opportunity to own a piece of paradise get away from you! All potential buyers are asked to check with city and tax records to determine actual bedroom, bathroom counts and all details. This is a REO Property.

20875 Standing Rock Avenue Apple Valley, CA 92307

3 Beds
2 Baths
1,360 SqFt
Status Active
MLS # OC21192363
Property Type Single Family Residence
Price Type --
Great Fixer Property with great bones! This is perfect home for someone that wants to completely redo a home and make it there own. This is a short sale that just became back availalbe. this property has damage to the roof and needs some drywall repairs. THis proeprty is being sold as is and does not qualify for regular financing.

1055 Cinnabar Court Santa Maria, CA 93455

$600,000 - 5Br/3Ba -  for Sale in Santa Maria
5 Beds
3 Baths
2,931 SqFt
Status Active
MLS # PW21257807
Property Type Single Family Residence
Price Type --
You found me!!! Short sale pending confirmation. Five bed, two and three quarter bathrooms. Huge Lot with a huge house, come see me!!!