If you are educating yourself to enter the brave new world of twenty-first century San Diego real estate, it is important to know about bank owned properties. A bank owned property is a great way to get a home for less than you’d pay if it were listed by a traditional seller, but the process is more complicated than a traditional home purchase. Here is a quick guide to get you familiar with the process of purchasing a bank owned property.
Sometimes homeowners can no longer afford to make their mortgage payments because of a job loss. In other cases, their adjustable rate mortgage has spiraled too high for them to make their monthly mortgage payment in combination with the escalating cost of living. According to a recent study, nearly 30 percent of San Diego homes are worth less than is still owed on their mortgages.
There are many different reasons people can’t pay their mortgages, but regardless of the reason, if a mortgage isn’t being paid in full and on time, the bank or mortgage lender reserves the right to repossess the home.
Foreclosures and bank repossessions are currently at an all time high. Because the banks are overwhelmed with properties that aren’t being paid on, they are losing money by holding on to these homes. Therefore, they are eager to make a deal and get someone into the home that can start making the property profitable again.
Lenders ready and willing to get you into a bank owned property often sell the homes for substantially less than they would otherwise. However, before you bid on a bank owned property, find the right person at the bank to talk to about what’s currently available.
A real estate agent is often necessary in order to find out which properties are available. A good realtor is well connected with bank officials and sometimes knows about the best properties before they become open to the public. A seasoned professional in your corner helps you get the edge on other people looking to buy the best bank owned properties in the San Diego area.
The next step in the process is to bid on the property. Once you and your realtor have determined that you have a definite interest in a specific bank owned property, your realtor will determine the best way for you to submit your bid. Auctions are increasingly popular because they allow banks to move a large number of properties in one day.
Auctions are often confusing for a new home buyer. It is important not to get swept up in the moment at a property auction if the price becomes too high. Because many people are eager to sweep up a great deal at an auction, bids often become overinflated and better values may be found elsewhere on the home market. Trust your agent’s expertise and instincts when it comes to bidding at an auction.
Not all bank owned, otherwise known as REO properties, make it to auction. Your agent will let you know the best way to find and bid on the perfect property for you and your family. Trust their expertise and you are sure to find a great deal on the home of your dreams in this market. Opportunities abound and all you need is a great guide to help you on the journey to your new home.
Kari Shea is a real estate professional with Shea Real Estate & Investment Groupwww.shea-realestate.com.
[tags]bank owned property,reo,real estate owned,San Diego[/tags]
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