San Ramon Homes, Danville and Blackhawk Homes For Sale and San Ramon Valley and Lamorinda Real Estate Resources

	ALL OF THESE HOMES WERE SOLD AS REO / BANK-OWNED
	THERE ARE HUNDREDS OF REO / BANK-OWNED HOMES FOR SALE IN ALAMEDA AND CONTRA COSTA COUNTY RIGHT NOW!

Buying Foreclosures, Short Sales or Bank Owned Properties

The information below is based on my personal knowledge and experiences working with foreclosures, short sales and bank owned properties. For another perspective, click here, to visit the web site of my friend, Keith Byrd (Keith is a fellow e-PRO who works out of San Luis Obispo) where you can read about a buyer's personal experiences in negotiating a purchase on a short sale transaction. Warning: This may give you some pause for thought!

Due to the recent decline in home values across the country, many people have found themselves with little or no equity in their homes, particularly those who bought in 2003 or 2004 with little or no money down.

A significant number of these homeowners bought their homes not only with no money down, but with initial interest rates set at artificially low levels - so called "teaser" rates. This was the only way that many of these people could meet the monthly mortgage payments.

These "teaser" rates are only temporary of course. After two or three years they get re-set to a more realistic figure. These loans were set up with the assumption that house values would just keep increasing so that when the time came for the mortgage rate to re-set, the homeowner would have gained so much equity in the home, they could re-finance, perhaps again with a "teaser" rate. But homes started to decline in value rather than increase so many people found them in a situation they could not recover from.

In reality, the above scenario has only affected a small percentage of homes, but the numbers are high enough to have a significant impact on the real estate market.

Short Sales

When a homeowner discovers that they have no hope of affording their monthly mortgage payment, one approach they may take is to discuss the problem with their lender in the hope that the lender may agree to a "Short Sale". What this means is that the homeowner sells the home and after payment of all closing costs, the net amount remaining is insufficient to pay back the loan. In a Short Sale, the lender forgives that shortfall. The benefit to the homeowner is that they get to walk away from the home with no further financial commitment. Note that their credit rating will suffer as a result though.

Short Sales can be a good way for a buyer to obtain a home at a discounted price but there are many potential pitfalls. If you are interested in Short Sales, let me know and I will meet with you and provide you with a lot of relevant information.

Foreclosures

Often, a homeowner finding themselves in financial difficulty will just stop paying the mortgage. Some even abandon the home. As a result, after a protracted procedure, the lender forecloses on the home and takes over possession. In theory, the last part of this procedure is to auction the home to the highest bidder but this rarely happens at the moment. Instead, the lender takes title to the home and sells it as a REO or "Bank Owned" property. Note that people who allow their homes to be foreclosed, have little incentive to maintain a home or leave it in good condition. Stories abound of home owners who have virtually destroyed their homes just before the final stages of the foreclosure process.

Bank Owned Properties

Once the bank or lender re-possesses a home, they generally have it brought back to an "acceptable" condition - with maybe paint or carpet, certainly little more - and then list it for sale. As banks do not want to own properties these homes are some of the best buys in real estate today, provided that the buyer is prepared to accept that they are generally in need of updating or improving. I have access to all of the Bank Owned / REOs on the market in Contra Costa and Alameda County and if you are serious about wanting to buy such a property, I can help you find one.

Please note that you will need to have a substantial down payment to buy one of these homes - at least 10% of Purchase Price. You also need to be pre-approved for financing and have a good FICO score. I can, of course, introduce you to a lender who can help with this.

There is a lot more to know about all of these situations than is detailed above. I do have the answers you need and I can represent you in the purchase of such homes. Just complete the form below or call me on my cell-phone at (925) 997-1585 and I will arrange to meet with you and discuss the way to move forward.