How to Purchase Foreclosures
We help clients purchase properties in various stages of the foreclosure process. Whether you are a first time buyer or a seasoned investor we can help buy properties at AMAZING PRICES.
Our experience, firsthand knowledge of the San Diego real estate market and negotiating skills allow us to bring successful transactions together for our clients.
There are several ways to benefit from the current surge in foreclosures and distressed homeowners. The best strategy for you will depend on your access to funding, down payment, risk tolerance and objective in buying a property. Several of the strategies we implement are outline briefly below. To discuss your situation and our services in more detail we require that you attend one of our seminars or set up a personal appointment.
Here are just a few ways to purchase foreclosure properties.
Short Sale: This results when a seller/homeowner is trying to sell a property in which they owe more than the home is worth. A person may owe $500,000 on a home now worth $400,000 and cannot keep up on the payments. They then sell the property and the lender agrees to take less than the $500,000 owed. Banks will do this to save time and money to avoid the expensive foreclosure process.
Opportunity: The buyer negotiates a price of $350,000 for a home worth $400,000. The buyer walks into equity, the seller avoids a foreclosure and gets out from under the loan. The lender saves time and money versus going to foreclosure and owning/managing the property and trying to sell it later on.
Foreclosure Auction (Courthouse): When all else fails. The lender is then forced to foreclose on the property and offer it for sale at a Trustee Auction at the courthouse steps. This is the day the homeowner loses possession of the property.
Opportunity: Buyers can bid on homes daily at the county court house. The pros are that you can purchase a home quickly and at a substantial discount ($50,000 - $200,000) below market. The cons are that you must pay 100% in cashiers checks the day of the auction. You also buy the property “as-is” without inspections, appraisals, title insurance, etc. This opportunity is for more experienced investors. We can also provide access to funding and property information prior to the date of sale.
REO (Real Estate Owned): REOs happen when the property does not sell at the courthouse and takes ownership of the property. Once the lender owns the property, they try to sell it themselves or through a real estate agent.
Opportunity: This can be the best of everything. In this situation a buyer can purchase through a traditional sales process with an agent, escrow, title insurance, inspections, appraisal and contract contingencies. In this case, a buyer can be protected and buy from a motivated seller that is not emotionally attached to the home.
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