search foreclosed homes in San Diego

States have varying laws governing foreclosures and some follow California law. To completely understand your rights as a San Diego foreclosure buyer, contact a local real estate lawyer. However, realize that in California, a real estate agent cannot represent a buyer who is a San Diego foreclosure and REO investor if all of the following four statements are true:

• The home qualifies as the seller's personal residence.
• The property is a single family home or 2 to 4 units.
• A Notice of Default has been filed in the public records against the property.
• The investor buyer will not occupy the property.

If any of those four statements are false, an agent in California is allowed to represent buyers, especially if the buyer is going to occupy the home. But to represent an investor, a real estate agent is required to post a bond, and no such bond is available in the state of California. So as a pre-foreclosure investor in California, you are on your own.

Moreover, as an investor, you are required to comply with the Home Equity Sales Act. Among other requirements, sellers who are in foreclosure have the right to rescind (cancel) a transaction within five days. Investors must give the seller notice of that right, including a copy of the form that will let sellers cancel.

Failure to comply with the Home Equity Sales Act carries severe penalties, including a provision that gives the seller the right to cancel the sale up to two years after the sale to the investor has closed and get the property back. You read that correctly. Two years.

As an investor, before you decide to buy a home in foreclosure by making up the back payments to the lender, giving the seller a few dollars and recording a deed, call a real estate lawyer.

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