Buying a foreclosed home in San Diego?
Here are a few details that you should be aware about in regards to the Foreclosure process. Once a home goes to Pre-foreclosure status, the bank will first attempt to sell the home at an auction on the Court House steps. The opening bid will be determined by the foreclosing lender which is usually set to the total amount that is owed on the home (ie original loan amount, fees and arrears). Should the starting bid not be met, the status of the home will then change to REO (Real Estate Owned) and the home will be back in the original Lender’s hands. If there was a 2nd (or even 3rd) loan, that evaporates with that Lender getting nothing.
It is possible to purchase a San Diego foreclosure at this stage, but there is a big but – you will be required to pay all cash and you will almost certainly be buying sight unseen. Not something the fainthearted are willing do do.
You may search for both pre-foreclosures and those that have already foreclosed in San Diego here. Once back in the Lenders hands the next step of the process is for them to list the home for sale, but not always immediately. Not all lenders are realistic with their listing prices so it’s important to make sure to have your Realtor verify that the Foreclosure home you are interested in is priced according to current market values.
Immediately after the home is listed in the MLS (you can search the San Diego MLs here) is usually the ideal time for a buyer to step in and purchase, after all the legalities have been completed and the home is at REO status. Bear in mind that if the home is realistically priced compared to it’s competition you will be competing with other bargain seekers at this point. So move fast because it is guaranteed that you are not the only one "looking for the perfect deal". Make sure you are pre-approved for a loan and submit the approval letter along with your offer so it has "legs" and will be taken more seriously by the lender.
If you are set on finding a Foreclosure it is important to enlist the help of a trusted real estate agent, who can help you make sense of it all and in the end make sure the "deal" you are interested in is truly a "deal" worth putting an offer on. REO sellers have little or no knowledge of the property and do not have the same disclosure requirements that a normal seller must supply to a buyer. So pay extra attention and caution when proceeding and make sure to seek the guidance of professionals who are experienced with San Diego foreclosure transactions.
As your San Diego Realtor we will be able to guide you through all the in’s and out’s involved before jumping into the whirlwind of REO properties on the market. Contact us for a chat so we can determine if we can help you!
» Posted by Peter 
