Search for properties at http://www.TheOCmls.com

Darenjblomqu, Hope you aren't still looking. Bottom prices have gone up in Mission Viejo since you first asked this question. Total of only 5 REOs are available right now. As always you can check it out for yourself on my web.

Darenjblomquist
Are you buying cash or financing the purchase?

Jes Sierra, B.Sc.
Realtor®

@ Shirley

No spam please! When in doubt, please refer to our Community Guidelines

Contact a licensed REALTOR ! Call 714 791-5101...I can find the perfect home for you! From the "Desert to the SEA" Shirley B. Costello Century 21 BEACHSIDE Realtors.

Hi Daren.

Are you referencing purchasing at the courthouse steps? If this is the case, then there is alot of digging and team building you need to do. I would love to have the time to give advice on this, but check out the real estate section at Borders and you will see many guides on how to do this.

Beware that the process, as well as the financing and inspection process, is tedious, and there are big dollars on the line. I have been at auctions where a buyer bought a 2nd trust deed when he thought he was buying the first, or where the chain of title is not clear. I am not trying to discourage you, but these are not for the unprepared.

Purchasing a foreclosure that is marketed with a real estate broker is not all that different than purchasing an equity property, but there are pitfalls.

You need to read the purchase contract carefully to be crystal clear on your timelines. With most REO properties, your deposit goes hard, meaning is physically delivered to the owner (the bank) within a passive contingency removal timeframe.

What this means is that in the event you want to walk from the transaction, and if you do not cancel the contract within the timeframes on the contract and addendums, your deposit will be forfeited. This is obviously critical.

The inspection timelines are usually much tighter as well.

Best wishes!

Hi Daren,

Don't know what price range you may qualify for but I do know the REOs (bank owned) are few in Mission Viejo area. and only 3% are short sales. The lower priced properties are getting multiple offers on them.
You can call me if you have questions or check out the MLS listings on my web site.

Hi Daren,

1. The first step is to get pre-qualified before you start looking at anything. That way you will know what price range you qualify for. No matter what type of purchase you make whether its Foreclosure, Bank Owned, or Equity seller, you will be tied to your price range.
2. Select a Realtor to work with. The Realtor will be able to provide you with foreclosure listings. The way I like to provide my clients with listings is to provide them with automatic email updates. That way their search is on autopilot. They can preview the listings complete with pictures and decided if its something of interest before we even go out to see the property.
3. When a home is in foreclosure, it is usually, in most cases a short sale. A short sale is when a seller is offering the home for sale for less than they owe on it. And short sales are either approved upon listing or not approved. If you encounter a short sale that is approved upon listing it simply means that the sale price has already been approved by the lender. If the short sale is not approved upon listing, it will be subject to the lender's approval once an offer is submitted. The time it takes to get a short sale offer approved by the lender is different depending upon who the lender is. You may have to wait as little as a couple of weeks or as long as a few months to find out if your offer has been accepted.
4. Every seller is different but usually your agent would have to present the purchase contract and appropriate addendum's, pre-approval letter from your lender, and copy of your ernest money deposit check.
5. As a Realtor I can tell you that there are many details involved, but one thing that you can count on is that we handle all of those details on your behalf and speaking for myself keep you updated as we go along. As long as you have a Realtor working with you, you can't go wrong.

Best Regards,

Michael G. Grimm, Realtor
Loan Consultant, Loan/Debt Modification Consultant
(877) 444-3993 (toll free direct)

Daren,

Our recommendation is to to this by identifying an agent that will work in your best interests: providing possible homes, showing you these homes, and leading you through the process step-by-step with your interest in mind.

Good luck

Buying a foreclosure is different in process than a convential purchase.
There are Realtors that specialize or have experience in buying foreclosures. Each state has different legal requirements.
Best advice is to find and consult with a Realtor familiar with the process in your state/location

Umm, when you submit an offer, do you not just submit your pre approval from a lender? You don't provide all this to the listing agent to submit to the asset manager with an offer do you?

You need to prove you have the money to close escrow (downpayment, and closing costs in your bank account), and have proof that you can get the loan you need. The bank that is selling the property wants to make sure the transaction will go though

Dar,

We have bought two REO's. We needed to submit a preapproval along with our offer. Some banks require that you get a preapproval from them in order to submit an offer, but you don't necessarily have to use them for the loan. Are you preapproved with a lender yet? If not, this should be your first priority as you will need it to have an offer considered.

Secondly, most of the time the properties are sold "as is where is" so you want to have a good inspector should your offer be accepted.

Thirdly, be a little more patient as the banks don't respond the same way a normal seller does.

If you're talking about a full foreclosure (bank owned/REO) they are a relatively easy transaction if you have a full package, ready to go for submittal.

Bank owned in south OC are selling very fast, less than 30 days, at 98-103% of the sales price, with multiple offers. Make sure your agent is experienced in these transactions including having a track record of winning the offer or you will be wasting your time.

If you want to talk more, please feel free to email me direct at MaryMorrisRE@gmail.com. I've won and closed multiple bank owned properties in the past few months with some of them having upwards to 25 offers on the property. It's all a matter of knowing how to play the game!

Good luck
Mary

Right now there are 10 REOs (bank owned) in Mission Viejo available, ranging in price from $179K to $829K.
You need to prove you have the money to close escrow (downpayment, and closing costs in your bank account), and have proof that you can get the loan you need. The bank that is selling the property wants to make sure the transaction will go though. I have lived in Mission Viejo for over 30 years so I know the areas and what would be a good neighborhood to invest in. Call or email me, my information is on my web site.
You can search the MLS on the site also.

HI,

Well...first we need to identify what you are looking for...sounds like you are thinking Mission Viejo? I'm in Mission Viejo. Once we know what you would like to find, price range, size etc...we can start researching the homes to put you in a good position to get your offer accepted.

First thing is for us to talk about your criteria....

I have information on the website below which talks about foreclosures and short sales, you can read how I approach things there....if it makes sense, we can talk more.

Karen