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The total number of San Diego foreclosures and short sales in the entire county is and has been high for over a year, similar to other areas of California and the country. Some areas like Carmel Valley have avoided the waves of foreclosures and others such as Eastlake have endured wave after wave. Countywide in San Diego the number of foreclosed and Short sold homes could top 30,000 - 50,000 through out this recession, from start to finish.

The number of San Diego foreclosures and short sales listed on the MLS is in the low 1,000’s at all times and the flow of new ones is a steady stream. Foreclosures and short sales have taken over 50% of San Diego home sales and reflect a significant new market for San Diego home buyers. Some San Diego home markets however only have a few foreclosure and short sale listings compared to the hardest hit areas that can 100’s actively listed for sale.

The new market dynamics and the existing market chaos have created many opportunities, especially in the large San Diego foreclosure and short sale markets. Buying San Diego homes that have the same cost as renting does is no longer a distant memory, it is once again an option for many San Diego home buyers via the foreclosure and short sale markets of today. The opportunity for a new class of home buyers to buy affordable homes in San Diego that can appreciate is upon us.

There are however some things for all San Diego foreclosure and short sale buyers to be aware of when purchasing a home. The main difference with a Foreclosure, which means a property owned by a bank via a foreclosure proceeding, you are typically buying the property in as-is condition and less than normal seller disclosures. Because the bank has never occupied the property and knows nothing of the condition of the property you are left to do all discovery yourself. Additionally since the bank has no knowledge of any of this they do not provide any guarantees regarding the property’s condition, zoning, etc..etc… In a nut shell you are on your own without recourse should you uncover something concerning after the close of escrow.

Short sales are sales in which the owner owes more than the home is worth to the bank. The owner gets the bank to agree to take less than what the bank is owed to settle the loan. Essentially the sale is short the amount needed to payoff the bank and closing costs and the bank simply takes less than what they are owed and loses money. With short sales you are negotiating with the sellers and required to get the banks approval for the offer to be accepted. The sellers can provide you property information and do provide some recourse should something of concern show up after the close of escrow, but due to their apparent financial condition likely can’t offer much or any relief.

A San Diego foreclosure home buyer’s best chance at securing a good or great deal on a good home is to find a good San Diego Realtor to help them navigate these new uncharted waters called the San Diego Real Estate market. Many good deals exist but home buyers need to be educated, prepared, and able to act quick when they come about.

Rob Presley, San Diego Real Estate Broker, Investor, & Builder has spent20 years buying, selling, financing, and building San Diego homes. For more information visit www.prestigerealtysandiego.com.

Article Source: ArticlesBase.com - San Diego California home foreclosures breaking all records, Homebuyers find many bank owned homes to be bargains