So you too want to get into the hunt to buy a foreclosure property?  Seems easy enough as there are many on the market, right?!?!

Not so easy, the “good” foreclosure properties typically go into escrow within 7 days. The properties that sit are in serious need of something.  Why do they sell quickly?  Because prices have fallen enough for buyers to feel comfortable to jump into (and on) purchasing a foreclosure property.  Here is what you should know:

1. Look at neighborhoods until you find one you like that has foreclosure activity.  Not all neighborhoods have a lot of foreclosure activity, true fact.
2. Get pre-approved by a national lender and make sure your agent has a copy of the letter to send with your offer(s).
3. Look at enough houses so you know what you want.  That way, you may not have to see a specific home to make an offer.
4. Be prepared to act quickly.  Your agent calls and says “a home in foreclosure” that fits your home profile just came on the market.  Make an offer, then go see it.
5. Be prepared to buy “as is”.  Some lenders do repairs, some do not.  This is case by case.
6. Do not get your heart set on any one home.  Most foreclosures are closing higher than list price due to the sheer number of offers on these properties.  One agent told me he received 48 offers on 1 property.Do your homework, take action and stay detached.

Mark and Kari Shea
San Diego Real Estate Professionals
REO, Short Sale & Investment Properties,
Development Sales & Traditional Real Estate