The Foreclosure Process
Buying a San Diego foreclosure requires lots of time and patience, unless you use a licensed foreclosure Realtor to answer questions about buying San Diego foreclosures and REO's.
It's a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the San Diego foreclosure property securing the loan.
The foreclosure process begins when a borrower/owner defaults on loan payments (usually mortgage payments) and the lender files a public default notice (Notice of Default).
The foreclosure process can end one of four ways:
1. The borrower/owner pays off the default amount to reinstate the loan during a grace period known as pre-foreclosure.
2. The borrower/owner sells the property to a third party during pre-foreclosure, allowing the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.
3. A third party buys the property at a public auction at the end of the pre-foreclosure period.
4. The lender takes ownership of the property, usually with the intent to re-sell. The lender can take ownership through an agreement with the borrower/owner during pre-foreclosure or by buying back the property at the public auction. in San Jose, the public auctions take place on the courtroom steps (outside of the courthouse).
Foreclosure Buying Opportunities
The foreclosure process offers three bargain-buying opportunities, represented by three different property statuses.
1. Buying during pre-foreclosure (NOD, LIS)
2. Buying at public auction (NTS, NFS)
3. Buying bank-owned properties (REO)
STEP 1:
Find a Realtor who works Foreclosures . You can't rely on automated calculations like Zillow because they often do not take the sudden market shifts into account.
STEP 2 GET FINANCING:
Get Cash or Financing
Be prepared to put down your cash. Think of it like a casino where the dealer says are you in or not? If you don't have the cash or money, you don't play the game. It's that simple.
STEP 3 PUT THE OFFER IN WRITING:
Your Real Estate Agent will help you make an offer on the foreclosure and attempt to get the home for you, and the best price possible.
http://www.sandiegoforeclosureconnection.com/001AD2
