California

1. Be patient. The banks work on their own time frame, and this does not include weekends or evenings. Most have files and offers stacked up, and are trying to get through them as quickly as possible. The banks don’t want the properties on their books any longer than they have to.

2. Do your due diligence. There are fewer disclosures on bank-owned property, and as such, the risk is with the buyer. Have inspections so that you are comfortable with your level of knowledge about the property condition. Some lenders will provide a termite inspection/clearance, some will not. If not, consider paying for one yourself. Inspect – inspect – inspect.

3. Know your budget. Yes, bank-owned properties are generally below “market” value. However, we are seeing multiple offers on these properties, with the eventual sales price going for more than asking. When you combine the increased sales price, the amount of money you spend on inspections, and then include necessary repairs (that are funded with cash out of pocket) … make sure the property really does fit your budget.

4. Pick yourself up and do it again. You may not get the first property you make an offer on – or the second – or the third. If your offer is not selected, then move on to another property. There are more homes coming on the market every day.

5. Use a real estate agent. Using a real estate agent will give you access to the greatest number of homes; and with their professional guidance and expertise, will help you succeed in today’s real estate market.Labels: distressed property, foreclosures, home for sale, real estate, reo, reo property.

Realtytrac.com reports that foreclosure activity is up in the first quarter of 2010, increasing 7% over the same quarter of 2009.

The Realtytrac.com website reports that “… its U.S. Foreclosure Market Report