Ready to get a great deal on a San Diego
foreclosure property?
Don’t know how to take advantage of
the booming San Diego foreclosure
property market?
Here is where you learn how to buy a
San Diego foreclosure
property!
If previous high prices have kept
you out of the San Diego foreclosure
housing market, join the smart buyers who are taking advantage of the increased
number of foreclosures to buy a
foreclosure home in San Diego. The number of San Diego
foreclosure homes is near an all-time high. With the right preparation, you can take
advantage of this great buying opportunity.
Foreclosure properties come in three
types:
- San Diego Pre-Foreclosure
Properties
- San Diego Foreclosure Auction
Properties
- San Diego Bank Owned or San Diego Real Estate Owned (REO)
Properties
There are several advantages and
disadvantages of each San Diego
foreclosure property type.
San Diego Pre-Foreclosure
Properties
San Diego Pre-Foreclosure
properties are
properties that the buyers have defaulted on their loan. A Notice of Default is currently being
executed. (Want more information about
Notice of Default and the Process for Foreclosure in California?
Generally, borrowers have 90 days from the date of the Notice of Default to
either bring payments up-to-date or arrange for a loan work out. Otherwise, the property is scheduled for a Foreclosure Auction.
The advantages of purchasing a San Diego Pre-Foreclosure home
are:
- You can generally inspect the
property.
- You have the option of obtaining
financing rather than pay all cash.
- You can obtain title
insurance.
- There is generally no eviction
required.
- The overall risk is
low.
The disadvantages of buying a San Diego Pre-Foreclosure property
are:
- It may take some time to locate the
contact information of the Seller.
- Not all Pre-Foreclosure owners want
to sell. Thus, you may waste a lot of
time trying to find a seller.
- The seller may ask for an
unreasonable price.
- Generally, there are no real estate
agents to guide you through the buying process.
Many of these San Diego
pre-foreclosure homes are listed for sale on the San Diego Multiple Listing Service
(MLS). All of these properties have
asking prices and have real estate agents representing the seller. You may view the complete list of San Diego homes for sale at
www.mlsofsandiego.com
San Diego Foreclosure Auction
Properties
San Diego foreclosure
auction properties
are generally sold at the court steps in downtown San Diego in an informal
setting. Be prepared to bring cashiers
checks totaling the bid and realize that all sales are
final.
The advantages of purchasing a San Diego Foreclosure Auction home
are:
- The amount of people bidding is
limited because you need to pay cash at the auction using cashiers
checks.
- Less potential pool of qualified
buyers leads to more of an inefficient marketplace. Therefore there is a
potential for great price savings.
- Some banks are now pricing their
minimum bids below the amount they are owed.
- All junior liens are wiped out by
the foreclosure hence a 2nd Trust Deed is eliminated if the
1st Trust is foreclosing.
The disadvantages of buying a San Diego Foreclosure Auction property
are:
- You cannot inspect the property
prior to purchase. You are buying the property in “as is”
condition.
- You have to pay cash (cashier’s
checks) for the entire purchase at the auction.
- You cannot obtain title insurance
and the ownership is subject to other superior liens
- A costly eviction may be in order
which costs both time and money.
- The overall risk is high but there
is opportunity for a good deal.
San Diego Bank Owned Foreclosure
Property or San Diego REO Property
The advantages of purchasing a San Diego Bank Owned Foreclosure
Property home are:
- You can generally inspect the
property.
- You have the option of obtaining
financing instead of paying all cash.
- You can obtain title
insurance.
- There is generally no eviction
required.
- The Banks are very motivated to sell
the property. The lenders price San Diego foreclosed homes to sell as
the lenders do not have the emotional attachment like other
sellers.
- The overall risk is low and the
savings potential is high.
The disadvantages of purchasing a San Diego REO home
are:
- The response time from Banks may be
slow due to their busy volume.
- The banks generally have more
restrictive due diligence periods to inspect the property the inspection period
of ten days is more likely than the customary 17 days.
- The banks usually have their own
purchase contract their contract is generally less advantageous to the buyer
than the standard Realtor purchase contract.
A great free resource for finding Bank Owned foreclosure property
currently listed for sale on the San
Diego Multiple Listing Service (MLS) can be found at
http://sandiego.houserebate.com/foreclosures/.
Most other advertised foreclosure
lists only show pre-foreclosure property
as they do not have access to the San Diego Multiple Listing Service
(MLS) and they change to access the data.
Depending on risk tolerance, buying a San Diego Foreclosure property can
yield some great financial advantages.
The information is meant
for general illustration and/or informational purposes only and it is not to be
construed as tax, legal, or investment advice. Although the information has
been compiled from sources deemed reliable, please note that individual
situations can vary and therefore, please consult your attorney for specific
advice and legal counsel.
________________________________________________________________________
Brian Yui is the CEO of
HouseRebate.com, which he founded in 1999, utilizing 20 years of real estate
experience to create a full-service discount online/offline real estate
brokerage firm.
He’s the co-author of the
best-selling books; Home Buying by the Experts and Wake Up…Live the Life You
Love: Purpose, Passion, and Abundance. Brian Yui (www.brianyui.com)
regularly offers his expertise on the real estate industry as a media
contributor. Visit www.houserebate.com/blog to get valuable information
about San Diego Foreclosure properties.
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