Cambria and Central Coast REO (Real Estate Owned) property opportunities are growing, but where do you look, what should you expect and how do you buy one?

Central Coast bank owned properties also known as REO are properties that have been repossessed by the lender due to a loan default and resulting foreclosure. These are properties that were given back by the homeowners in an agreement to avoid a worsening situation or were not sold at the initial foreclosure auction.

Once the lender has regained possession of the property they will attempt to sell the property through further auctions, directly or through an established real estate broker. How do you find these properties? Large banks may have their own departments set up to take offers and bids on these properties, but a good Realtor should have access to all the Central Coast foreclosures listings available in the area. The bank will certainly have enough power on their side, so you definitely want a professional looking out for your interests. I know the in’s and out’s of the Cambria foreclosures and Central Coast REO markets and am always available to help you.

What should you expect when looking at Central Coast bank owned properties? Banks will make sure you have clear title when you purchase one of these properties and that all liens are cleared, something that is not necessarily guaranteed when you buy property at auctions. Commonly banks may do nothing to improve the property to save throwing good money after bad. Many of these foreclosed properties will have been trashed by the exiting sellers who often will remove everything of value from the property. And as they are left vacant vandals and thieves may strip the property even further, taking the pipes out of the walls and more. This is in contrast to those properties that had loans guaranteed by the government and come under HUD control. HUD properties can also be bid on and HUD will often begin repairs by replacing kitchens and bathrooms. But usually the price reflects the condition of the property.

How to buy one? Again you will want an experienced Realtor, like myself, representing you and professionally writing your offer. Keep in mind when bidding on a Central Coast REO property that the banks will often be receiving multiple offers on these homes and the banks will normally go with the cleanest, easiest offer even if it is not the highest. They will look not only at your offer price, but also what type of financing you are taking, how much deposit you are making and more. The bank will try to control the transaction as much as possible including choosing which title company handles the deal.

Buying Cambria foreclosures can prove profitable but purchasing REOs will require patience while waiting on the banks.