Bank Owned: Some banks,even if you are already preapproved, they require you to preapprove through a certain individual before making an offer and some do not. Now, you do not have to use their person, you can still use your own mortgage broker. Expect the bank to take as long as 2 weeks to "officially" accept the offer. Be prepared to sign addendums furnished by the bank. These addendums vary with each bank but know these addendums serve only one purpose and that is to protect the banks. With a bank owned do not bet on getting any kind of closing cost assistance or repairs down. I have heard of a few cases wherein the bank was willing to give a bit, but in general that is not the case. When making an offer with a bank, know that you must have all of your ducks lined up. Some banks expect you to perform in a very short amount of time. In addition, as you probably have noticed in San Marcos the bank owned properties under 300k need work. So be sure to figure that it to your overall budget. As well, make sure you have a good home inspector. The bank does not have to furnish you any information on the property. A good home inspector is a must! If you need referrals I have a few.
My biggest advice to you is to get a realtor who can help you navigate through all of this. You the buyer do not pay the agent, the seller does. So, it is in your best interest to have someone working with you.
On a side note, there a great deal of properties in pre-foreclosure in San Marcos, which means an increase in bank owned properties in the near future. I feel you as the first time home buyer will greatly benefit from this market.
Good Luck to you! If you need any assistance, or would like home inspector referrals feel free to contact me.
Some of these properties may already be on the market, many as short sales.
Try looking at these articles:
If I can help you any further please feel free to contact me
Congratulations for taking the plunge! Short sales and foreclosures (real estate owned by the bank = REO) are both rewarding and frustrating. They frequently take longer than a traditional sale with a lot of hurry up followed by waiting. Be sure to be preapproved with a good lender so that when you find the right house you can make an offer quickly. REOs are experiencing multiple offers since they are priced lower than the comps. You'll want a good buyer's agent that can position your offer for success. As a first time buyer there are special program to help you. In Escondido, first time buyers may be eligible for $25,000 in assistance. There's a lot of write and you'll get good info here but that's my initial 2 cents worth. Best of luck to you!
Diane Conaway, RE/MAX, (760) 749-2888