Looking for REO property or a foreclosure in San Diego?


	Savvy consumers will turn to a seasoned pro when considering the purchase of a foreclosed property.

What's an REO?

"REO" stands for Real Estate Owned. These are properties which have completed the foreclosure process that the bank or mortgage company now owns. This is different than a property up for foreclosure auction. Pacific One Realty has experience to share with foreclosures and bank owned properties in San Diego, California

Pacific One Realty has experience to share with foreclosures and bank owned properties in San Diego, California

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. The buyer must also be able to pay with cash in hand. To top everything off, you'll get the property entirely as is. That possibly could involve prevailing liens and even current tenants that need to be thrown out.

A bank-owned property, conversely, is a more tidy and attractive proposition. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The lender will attend to the elimination of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.

You should be aware that REOs may be exempt from normal disclosure requirements. For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that usually requires sellers to make known any defects they are aware of. By hiring Pacific One Realty, you can rest assured knowing all parties are fulfilling California state disclosure requirements.

Is REO property in San Diego a bargain?

It is frequently presumed that any REO must be a good deal and a possibility for easy money. This often isn't true. You have to be cautious about buying a REO if your intent is make money. While it's true that the bank is often eager to sell it quickly, they are also motivated to minimize any losses.

Pacific One Realty has experience to share with foreclosures and bank owned properties in San Diego, California

When considering what to pay for REO property, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The bargains with money making potential exist, and many people do very well flipping foreclosures. However there are also many REOs that are not good buys and may not be money makers.

Prepared to make an offer?

Most lenders have staff dedicated to REO that you'll work with while buying REO property from them. Typically the REO department will use a listing agent to get their REO properties listed on the local MLS.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about what they know regarding the condition of the property and what their process is for getting offers. Since banks most commonly sell REO properties "as is", you'll want to be sure and include an inspection contingency in your offer that gives you time to check for unknown damage and terminate the offer if you find it. As with making any offer on real estate, providing documentation proving your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.

After you've made your offer, you can expect the bank to make a counter offer. From there it will be your choice whether to accept their counter, or make another counter offer. Realize, you'll be dealing with a process that usually involves several people at the bank, and they don't work evenings or weekends. It's quite common for the process of offers and counter offers to take days or even weeks. Pacific One Realty is accustomed to these situations and will work to ensure there are no undue delays.