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Interested in getting in to foreclosures?  Foreclosures can be a great way to get in to your first home or to add to your investment portfolio.  Between now and the end of the year you may find some great bargains as lenders try to clean up their financial statements before 2008.  In other words, banks want to get the REO's (real estate owned--industry term for foreclosures) off their financial statements this year so they don't show up on next year's (2008's) financials.  Combine that with a traditionally slow market (over the holidays) --and you have some ripe opportunities to get some great deals. 

So, how to get the best deal? Here are 3 tips for securing the best foreclosure deals.

First, be ready to close QUICKLY--faster is better for banks and they may be willing to give you a better deal for a quick close. Go for 30 days or less if possible. 

Second, use CASH--as much as possible. In the eyes of the bank, the bigger the down payment, the more serious the buyer and the more likely the buyer is to qualify for a loan. I recently submitted and a bank accepted a very low offer on a foreclosure.  The listing agent was shocked that the bank took the offer, but commented that "Cash covers a multitude of sins".  In other words, while the offer might have otherwise bordered on offensive, it was a solid, cash offer and so they bit. 

Third, get EDUCATED.  Understand the foreclosure basics--like the fact that most deals are "as-is" but typically allow you 17 days to inspect and decide to buy or walk away from the deal. Hire an agent who has a foreclosure background. Foreclosures typically require additional paperwork (REO Addendums) and procedures.  An educated realtor can make the process easier. 

Go get'em.  If you have any foreclosure or real estate questions, or need some help with any Southern California foreclosure purchases, email me @ johnsonlaw@sbcglobal.net.  Good luck!