search foreclosed homes in San Diego

a REO in San Diego? Well that is completely dependent on the motivation of the lender.    The lender is in the business of lending money, not owning real estate.   Secondly, the lender wants to be made whole so they will hold out to the very last moment to try and do so.  So what is the difference between a Foreclosure and a REO?

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What is a Foreclosure?

Foreclosure is the forced sale of a property owned by the debtor in order to satisfy the debt(s) secured by the property. The owner of the property, on or before the date the mortgage loan is made, is the borrower. The borrower continues to be the owner of the property until that property is sold one way or another. As long as there is a valid mortgage on the property, that borrower/owner may not receive proceeds from selling it until the indebtedness to the mortgage-holder is satisfied.

What is REO?

REO stands for Real Estate Owned by the lender.     This means that the lender has come into ownership of the property as a result of a foreclosure.    The bank will handle the eviction and may do repairs and they will remove all tax liens.   The REO property is considered a liability to the bank so they are generally motivated to sell the property quickly and for the most amount that they can get. 

Advantages to purchasing a bank-owned REO:

• Buyers may also negotiate favorable lending terms
• Bank-owned properties are usually vacant, you will not have to evict the previous owner
• Skilled negotiators can further reduce the price to a fraction of the market value
• Investors are purchasing without liens or other encumbrances
  • Clouds on title
  • Second or third mortgages
  • Mechanics liens
  • Taxes
  • Creditor liens

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To Search San Diego's #1 source for distressed properties: foreclosures, pre-foreclosures, REOs, bankruptcy, FSBO and tax lien listings click here.

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