Foreclosure How To Buy

San Diego Foreclosure And San Diego Short Sales

A real estate short sale is when a lender agrees to sell the home at a price that is less then what is owed on the property. This happens when the bank agrees to sell the home at the price less than its mortgage balance.

Most people assume that buying on a short sale is like getting an incredible deal, but this is not always true. Although purchasing a short sale is often a great way to purchase real estate, many times, due to the real estate market going through a downturn, you can purchase a home and still experience a reduction in value.

Typically the short sale process takes longer because you have to deal directly with the bank and gain their approval to sell the home. The process itself can be very confusing because it is not as common as a regular real estate transaction. Anther downside of this process is when a client makes an offer to purchase a real estate short sale they do not have the benefit of getting a quick response like they would from a regular seller.

Getting things approved for a short sale is the exact opposite of what a borrower goes through when they are trying to obtain financing. A seller is required to present to the bank all possible proof that they did every attempt possible to try and make the payments.

San Diego, California has experienced a large increase in home values in the last few years. As a result San Diego short sales of home values increased and the real estate market is going through a correction or cooling off stage where we can see home values come down which can result in the home being worth less than what the mortgage balance is.

With the rising costs of real estate, San Diego foreclosure sank in. Having this situation in the area created a “short-sale” demand. San Diego foreclosure proceedings usually began after a borrower had skipped three mortgage payments. The lender would record a notice of default against the property. Unless the debt is satisfied, the lender would foreclose on the mortgage and proceed to set up a trustee sale.

The process of buying directly at a legal foreclosure sale is risky and dangerous, plus it has many disadvantages. There is no financing to support this so we are looking at cash basis. Another precaution to take is to check the title before the purchase or the buyer could get a seriously deficient title.

The property’s condition is not well known and an interior inspection of the property may not be possible before the sale. In addition, only estate (probate) and foreclosure sales are exempt from some states’ disclosure laws. In both cases, the law protects the seller (usually an heir or financial institution) who has recently acquired the property through adverse circumstances and may have little or no direct information about it.

Most residents know that there is no shortage of San Diego foreclosures. In the current housing market, buyers can get a great deal when they just search for one of the many San Diego short sales for sale.

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