San Diego Foreclosure Properties
San Diego foreclosures have recently created one big San Diego homes sale. Bank owned REO properties are a major attraction for property investors and home buyers looking for a great deal. In 2011 foreclosures made up about 1/3 of the San Diego real estate transactions.
More affluent San Diego neighborhoods have seen fewer defaults so, for example, Rancho Santa Fe foreclosures have been less prevalent than in newer communities like Chula Vista Eastlake and Oceanside. But San Diego County as a whole has been hit hard along with the rest of the United States. There are BARGAIN priced homes in every neighborhood.
Below Is a Foreclosure Properties Search Tool. Just choose your neighborhood and price range!
The San Diego foreclosures started from the affects of suspect lending practices in past years. The sub-prime mortgage crisis, as well as loose lending standards for even the most highly qualified home buyers resulted in waves of mortgage defaults. When the rapid increase of property values slowed and gradually reversed, many owners of houses, condominiums, and multi-unit residential properties decided to walk away from their investments rather than continue to pay their mortgages. The result is a large number of San Diego foreclosure properties for sale.
Many mortgage lenders and mortgage insurance companies have become involuntary owners of a large number of real estate assets. The financial institutions generally work to sell their real-estate-owned (REO) properties as quickly as possible. In order to liquidate the assets in the shortest possible time, the banks have a simple strategy:
Price the San Diego REO properties below market value; list to sell immediately!
Below is the most recent San Diego foreclosure list. Use our search engine to search for other REO properties for sale, or contact Geoffrey Schiering at Keller Williams Realty for details about upcoming foreclosure properties in your preferred neighborhoods and price range. Call Geoffrey Schiering at (619) 200-7612.
Foreclosures For Sale In San Diego
Most Recent Listings
The listings below are the most recent properties in the San Diego MLS for this fine San Diego community and are sorted by date with the most recent at the top.
All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor the owners of this site shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless.
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Buying Bank-Owned REO Properties in San Diego
For home buyers and real estate investors, the opportunity to purchase REO assets presents an incredible opportunity. Few expect the downturn in the San Diego housing market to continue for any significant period of time. Ecomomists called a bottom to the real estate market in 2009-2010 and annual price appreciation is expected to continue. So buying foreclosure properties can be a smart investment.
The banks and their asset managers, in their near panic to unload their REO inventory, have created a self-fulfilling prophecy of declining home prices. Competing with each other and even with themselves, practically every newly repossessed foreclosure property is priced below the last. The asset managers are rewarded for unloading properties quickly, and their obligation to maximize the value of the bank assets often takes second position to speed of sale.
The result is a chaotic situation where home buyers and investors are racing to submit bids for foreclosure properties. In less than a week, most newly listed foreclosure properties have received multiple offers, dozens of offers, sometimes thirty or more. Does that sound like a symptom of a declining housing market? We don’t think so.
The chaos at the financial institutions will clear up as the last of the sub-prime mortgages from recent years are removed from the books. As stability returns to the loan markets, the opportunities for home buyers and investors to pick up houses, condominiums, and multi-unit properties at below-market prices will dry up. The last wave of sub-prime mortgages are being cleared from the books at the financial institutions in 2009. Smart investors are buying real estate now in expectation of the subsequent shift to appreciation of the housing market.
How can you take advantage of opportunities with San Diego foreclosures (REO):
1) Be prepared to move quickly when a foreclosure property comes on the market. A loan pre-approval letter from a qualified lender will be required with any offer to purchase.
2) Know the relative market values and expect to pay above list price. As mentioned above, the banks are pricing their properties below market value, often as much as 25% below the most recent sale. The financial institution’s goal is to receive multiple offers, and at these asking prices they are succeeding!
3) You need a qualified Buyers’ Agent to help you. There are multiple addenda and specific documentation required by the financial institutions as a condition of the sale. These can be complicated, and they are drafted in the bank’s best interest. A Buyers’ Agent will represent your best interests and keep you clear from pitfalls presented by the bank and the bank’s listing agent. Best of all, the Buyers’ Agent is paid by the bank after completion of the sale. The buyer does not pay any real estate fees to the Buyer’s Agent at a foreclosure sale. If you don’t have representation, you are asking for trouble and will often end up paying for the mistake.
4) Expect to wait, be patient, but be prepared. The banks and asset managers are notoriously slow at responding to offers, and equally slow with completing their end of the purchase transaction. Many buyers lose patience, and others think that the bank’s failure to obey the written timelines gives them the right to disregard their own obligations. But, in fact, the banks will hold the buyers responsible for monetary penalties associated with the Buyer’s delay. Your Buyers’ Agent will keep you on track and will help expedite the transaction with the bank’s agent. Remember, the seller is a bureaucracy, not an individual. Only your personal Buyers’ Agent will have your best interests at heart.
Buying bank-owned foreclosure properties and distress sales (“Short Sales“) requires some special knowledge and often a bit of patience. The Buyers’ Agents on the Schiering Team at Keller Williams Realty will share their insight and experience with you to help you succeed in this lucrative investment arena.
Use the “San Diego MLS Search” tool on this website to view foreclosure properties for sale or contact Geoffrey Schiering, your personal San Diego real estate consultant, for complimentary San Diego foreclosure property listings 619-200-7612.