K. Johnson

Tough question to answer quickly...
Stock market going down means less cash to purchase a home. However, when the DOW is dropping so rapidly, real estate looks like a better investment. I paid down my mortgage just before the stock market started tumbling. Glad I did that! - Tue Oct 28 2008, 23:21

Yes, I purchased an REO last year. I'm very familiar with the difference between REO and short sale and I'm also familiar with the auction process.
There are currently 107 properties in some form of the foreclosure process in Los Gatos/Monte Sereno. There are two REOs on Blossom Hill and an REO on Loma Alta.
Susan and Shawn must be so incredibly surprised to see so many foreclosures in Los Gatos School District. There was a really good fixer-upper REO right across the street from Fisher Middle a few months ago. - Tue Oct 28 2008, 23:10

I buy foreclosures. I try to get them at auction, but auctions require cash and there is a lot of risk when you purchase at auction.
Purchasing a REO is the best way for novice real estate buyers to get a good deal on a home. But, you need to be aggressive with the bank's realtor. When you submit your offer, be sure to be pre-approved for your loan and let them know what cash you have. Banks like cash because that can speed up the closing process. You need to make them an offer they cannot refuse. Otherwise, the bank will let your offer sit on their agent's desk until a more appealing offer comes through. BE TOUGH. It will take longer and will be more frustrating. But, hey anything worth doing will. - Thu Apr 3 2008, 13:24