Where are the Deals?

You have seen and heard the hype about buying distressed properties. There are three general types:

  1. Short Sales
  2. Foreclosure Auctions
  3. Bank Owned or REO (Real Estate Owned)

Short Sales

Short sales occur when a property owner sells the property for less than is owed on it, and asks the lender to forgive the difference.

  • The lender won't even consider a short sale until an offer is made.
  • Buyers often have to wait for months for a response, and after that long wait, most short sales are not accepted
  • According to MLS data, of the 1,577 residential sales in Berkeley, Oakland, Alameda, Castro Valley, and San Leandro from Oct. 2007 - Mar. 2008, only 31 were indicated as short sales!

Foreclosure Auctions

When a lender forecloses on a property, an attempt is made to sell it via foreclosure auction at the County Courthouse.

  • Properties are purchased with no chance for inspections.
  • You will have to outbid investors that flip houses for a living.
  • There may be tenants you must evict.
  • There may be tax liens you must pay.

If you pay more for a house than savvy investors, what are the chances that it's a good investment for you?

REO (Bank Owned)

After a property fails to sell as a short sale, and fails to sell at the foreclosure auction, it is sold by the bank to the public through real estate agents just as any other property.

  • By this time, the banks have had these properties on their hands for months.
  • Their only motivation is to SELL THE PROPERTY.
  • Negotiations are based condition and location of the property, not emotion.
  • You have time to investigate the condition of the property. For this reason, I believe that REO homes are much safer for the buyer than foreclosure auctions.

I sincerely believe that REO (Bank Owned) property is the real opportunity for buyers.

REO of the Week

Check back every Thursday morning for a new REO of the Week! Each week I'll pick a property that I think stands out from the rest.

 

See this week's pick NOW by visitng the REO of the Week page.

Sign Up For Free REO Listings Now!

The time is now to buy a home:

  • Prices are down
  • Interest rates are down
  • Competition is down
  • Conforming loan limits are up

Don't miss out! Use the form below to sign up for free no obligation REO listings via email in the city or cities of your choice.

Within 24 hours I'll send you a report showing ALL currently active REO properties in your chosen city or cities. You'll then start receiving emails detailing bank owned properties the day they come on the market or have had a price reduction.

Every email will have a link in the footer that will allow you to stop the service at any time.

Call me when you see a house you like, and I'll help you determine if it's the best home for you!

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