search foreclosed homes in San Diego

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.

Learn How To Buy San Diego Foreclosures and REO's From The Pros

Free real estate!" "Save thousands on your next home!" "Make millions with no money down!!" Those ads and late-night commercials make it sound easy, don't they? All you have to do is fork over $14.95 or $29.99 (plus shipping and handling), and the secrets of buying San Diego Foreclosures and REO's will be revealed. Operators are standing by.

Let ‘em wait. The truth is you can save money buying a foreclosed home, but you don't need to hand over your credit card number to anyone to do it. (The same is true for those who promote fixer-uppers, too.) You just need to understand the process and determine whether the potential rewards are worth the inherent risks. A good Realtor who specializes in San Diego foreclosures and REO's can help you do just that.

The Facts About Foreclosures

Simply put, foreclosure is the process by which a bank or other lender repossesses a home when the owner fails to make payments on their loan. And since banks make their money lending money, not managing property, they're often eager to unload their repossessed properties.

So, are foreclosed homes a good deal? Yes. They may sell for less than other comparable homes, and with a little elbow grease and basic remodeling know how, can bring handsome rewards when you flip them.  Before you even consider buying a home in foreclosure, be sure to contact us.

We will help you to compare the home to comparable, non-foreclosed homes to calculate perceived savings and potential market value.

Most important, work with a real estate agent who is experienced with buying foreclosed homes. Most people who do not have experience buying foreclosures usually find themselves in a tough spot.

Finally, be aware that those late-night ads and inside guides have enticed a lot of people into pursuing foreclosure homes. Increased competition means more pressure (and yet even more stress) as well as fewer bargains. Like instant wrinkle removers and machines that promise four-minute, six-pack abs, the reality rarely lives up to the promise.

Additional Real Estate Foreclosure Articles of Interest:

• Home Improvement Centers: San Diego Foreclosures and REO's
• What Is REO?: San Diego Foreclosures and REO's
• Protect Your Property From Divorce: San Diego Foreclosures and REO's
• Short Sale Real Estate Investments: San Diego foreclosures and REO's
• Buying And Negotiating Foreclosures and REO's: San Diego
• Finding The Best Deals On San Diego Foreclosures and REO's

REO Simplified What does REO mean anyway?

How is this different from the typical buying process of a San Diego home or condo? When considering a San Diego REO property - as with all San Diego properties - it is important to be well informed so you're well aware of the process from the first handshake through the closing.

Q. What does REO mean?

A. REO is an acronym for Real Estate Owned. REO is a financial industry term referring to properties that an institution has foreclosed upon and now owns.

Q. If I submit my offer directly to you rather than through the listing agent, will the Lender accept a lower price?

A. We only accept offers that have been submitted through the listing agent. We price our properties in accordance with the local market and expect to sell at market value. As with any property listing, our asking price takes into account its condition as compared with the local market.

Q. After submitting my offer, how long should it take to receive a response?

A. We will provide either an offer acceptance or counter offer to our listing agent within 48 hours of receiving the offer from our listing agent. The listing agent will inform your buyer's agent of our response if you are working with a separate agent, or you directly. If an offer is submitted during the weekend, it will be reviewed on the next business day.

Q. What if the property requires repairs, either minor or substantial?

A. Make sure that you speak with the listing agent to ensure that you understand the terms of our listing clearly. In most cases, the property will be offered in an "as-is" condition, with the list price reflecting its condition. When purchasing a property "as-is," ensure you've done your homework to clearly understand the structural and mechanical condition of the building, HVAC, internal plumbing, the well and septic system. Depending upon the condition of these components of the home, the types of financing available may be impacted. However, there are special loan products available that will lend on the "after improved" value of the home thereby making it possible to purchase even the most neglected property and to make it the home of your dreams.

Additional Reading of Interest:

• The Lure of the San Diego Foreclosure Auction!

• Get Rich In Real Estate: San Diego Foreclosures and REO's

• Avoid This Mistake When Flipping San Diego Foreclosure and Investment Properties

• What Is An Acceleration Clause?: San Diego Foreclosures and REO's

San Diego Lease Options and Subject To's (aka "Getting the Deed") are two very popular ways to purchase San Diego real estate with little or no money down. Acquiring San Diego investment real estate can be handled with many different approaches, but these two techniques can be implemented with little or no money down in most incidences.

A lease option is a technique which involves gaining 'control' of a San Diego property, but not owning it. It is the right to possess a property now and purchase that property at some future date with terms you define when you buy it.

A "Subject To" is getting the deed to a property without getting a mortgage for the home. Instead, the seller signs over the deed to his home 'subject to' the existing mortgage. The buyer in this case makes the mortgage payments on the old loan, but does not need to get a new mortgage (or ask for approval through an assumption of existing mortgages) to acquire this home.

Both of these techniques usually require little or no money down. In both of these techniques it is possible for the buyer to get money from the seller or the purchaser (or both!) in the beginning of the transaction. These techniques, when used properly, will provide for huge profits. They are both awesome, and when used hand-in-hand by investors are almost an unbeatable pair!

Why Knowing Both Techniques Means More Great Deals For You!

I can't tell you how many times I have heard, "If I don't get the deed, I don't do the deal". With over 20 year's of experience (since 1985) doing both types of deals, I have to disagree with that statement. The more tools and techniques and ways you have to purchase property or to structure a deal, the more likely you will be able to work with a motivated seller to come to a potential solution. If you only buy "Subject To", you'll walk away from a LOT of great deals in your real estate career, but you must know when each technique is appropriate to use. Finding a motivated seller is the first step to any good real estate deal.

There are many types of motivated sellers, but we tend to think of motivated sellers as the ones that are financially distressed. I like to look at motivation from a much wider range. Let me explain. I like to divide motivated sellers into two groups: Situation Sellers that have Bad Debt Solution Get the Deed NO Lease Option! VS. Situation Sellers that have Good Debt Solution Lease Option or Get the Deed!

Sellers that have "Bad Debt" are those in financial trouble. They might be behind on a mortgage (in foreclosure), have lost their job, acquired an illness, going through a divorce, etc. In these situations, you need to get the deed either with a Subject To or an outright purchase. Your main concern is that this type of seller will continue to have financial problems that could affect the title to "your" property if the deed is still in their name. For example, if this seller gets judgments from creditors, they can attach to any real estate the seller owns - they will have to be paid off before you can exercise your option to buy. That's why you want to get this type of seller off of the title. Sellers that have "Good Debt" are those NOT "in trouble" in the traditional sense, but they do have a reason motivating them to sell. Their problem is not one of financial desperation.

What is a Short Sale?

Basically a Short Sale is when homeowners are late with their payments, a notice of default will be issued. They can try to short sale their house. A short sale is usually done when the homeowner does not have enough equity in their home to pay the lender what they owe. If the owner can prove the hardship maybe the lender will forgive the homeowner. The process is tedious and frustrating. Lenders will not return calls. If nothing happen during the short sale, the home will go into foreclosure, This happens within the six months period. Lenders do not like the idea of foreclosure.

Read Also: Short Sale Real Estate Investments: San Diego foreclosures and REO's

San Diego foreclosure and REO investors can benefit from foreclosed homes that are listed on the San Diego foreclosure website due to the quality of the listings that offered, and the amount of research that the San Diego foreclosure Real Estate agents have already done for the buyer. Buying San Diego foreclosures can be fun and easy if you by the right home from the right San Diego Realtor who specializes in San Diego foreclosures and REO's.

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