Adventures in Real Estate

REO's and Short Sales

There are many good deals to get your hands on out there in this CRAZY real estate market.  Interest rates are low, prices are low, and there's a good amount of inventory out there, depending on your area of course. Remember real estate is very "local", especially here in L. A.

I've been working with some buyers and their price range is HIGHLY competetive, especially with cash offers, most of them, if not all , from investors.  Really unfair, don't you think? Here I have a young, hard-working couple, who have sacrificed and saved  their money and week after week they are being litterally out-bid by these big guys.  Very frustrating, and somewhat discouraging.

I keep reminding them to be patient, and stay positive all while reminding myself. This real estate thing is lots of work! I have to admit, I do enjoy it. I love helping people, especially with something so big, and meaningful. I feel like I'm dealing with making some people's dreams come true.

Since a lot of  our offers are for REO's and Short Sales, I thought I would give you a quick explanation of both:

Short Sale Property:  Typically the homeowner owes more to the bank than what their house is currently worth.  The bank, or banks in some cases, have to accept a less amount of money for the property than what is owed. The process of buying a Short Sale is longer than a standard sale. It can take anywhere from 2 - 6 months to close escrow on these sales.  Some of these Short Sales are listed very low, creating "auction like" bidding from multiple buyers.

REO's (Real Estate Owned): A property that goes back to the bank after an unsuccessful foreclosure auction is called an REO. The bank owns the property and will sometimes have to handle an eviction. Banks will typically make some repairs, and sometimes even give the house a mini-makeover. Fresh paint, new carpet will show well, and get them better offers.  The process of buying an REO is similar to a standard sale and a lot faster than a Short Sale.