You have always heard, “The early bird gets the worm.”  That is very true when trying to get a good deal on Escondido real estate.  You should not wait too long before you make contact with the Escondido home owner that is in default.  Remember it is 120 days from the notice of default until the bank usually takes back the Escondido house.  Once you have gotten together a down payment, have been prequalified with a good lender like HomeServices Lending, you need to make contact with the home owner for any Escondido property that you have interest in.

Be nimble when contacting the Escondido home owner.

You basically have the following three ways to contact the Escondido property owner.

1. Send the Escondido property owner a note or letter.  An email would work, but you probably do not have that address.
2. Call the Escondido home owner if you have a telephone number.
3. Drive to the Escondido property and knock on the door.  I do not recommend the 3rd option; there may be risk involved.

You may find that you end up using some combination of the above three methods to get intouch with the owner.  Contacting these Escondido home owners who are in default can be the most intimidating step in trying to buy a pre-foreclosure Escondido property.  When the house is already bank owned (REO) you would be contacting a lender directly.  Inexperienced Escondido foreclosure buyers should contact their Escondido Realtor who has some expertise in Escondido foreclosures.

If you are able to make contact with the Escondido owner, remember that they have no obligation to talk to you or work with you.  Let them know that you will give them an option that will be beneficial to them as well as to you as the Escondido home buyer.  You want to make it win-win.  Help the Escondido home owner walk away from the bad situation that they are in without an Escondido foreclosure on their credit.  Even better if they can walk away with a minimum amount of cash.

Be professional will dealing with a pre-foreclosure owner of an Escondido home.

After you have made initial contact, try to set up a meeting so you can see the Escondido real estate and discuss the situations and many options.  Be sure to find out how many loans are against the Escondido home.  If the home is “underwater” where there is more debt than value to the home, you should probably just walk away.  It would be very difficult for you to negoiate a short sale on their Escondido property. 

When you contact the Escondido owner they may not want to talk to you immediately.  In that case leave them your name, phone #, email address, etc. and tell them to call you if they change their mind.

Last Tip when contacting an Escondido pre-foreclosure owner.

Expect some rejection from the pre-foreclosure owner.  They are in a very bad and sometimes embarrasing situation.  Try to be sensitive that they are going through hard times.  They may feel that you are just there to try to take advantage of them.  In any case, be prepared, be respectful, and just move on if they are not interested.  Gary Harmon, your Escondido Realtor, has delt with many short sale and foreclosure situation.  Let his 21 years of experience help you save money and hassle on your next Escondido home purchase.  If you are considering buying a Escondido house that is a short sale, I have put together a series of short sale videos.

An Escondido home becomes a pre-foreclosure when it has a notice of default filed against the Escondido real estate.  There is usually a sale at auction 120 days after the pre-foreclosure is filed.  During this 120 day period the Escondido home owner still has a chance to stop the entire process by paying off what is owed on his Escondido home or selling his Escondido property.  You may contact the owner during this period, but they may not be ready to talk at this time.  To find pre-foreclosures of Escondido homes, use “Free Foreclosure Search.”

How do I buy an auction Escondido home?

After the Escondido property owner fails to make several mortgage payments the bank may file a notice of default on the Escondido house.  After 120 days the property will usually be scheduled for auction.  During the 120 days the Escondido homeowner has a grace period to bring payments up to date and to stop the foreclosure proceedings against his Escondido home.  If the Escondido homeowner fails to do so, his Escondido property will probably be sold at auction.  You can find Escondido properties scheduled for auction along with the dates of the auction at “Free Foreclosure search.”  For more information on how to actually buy this Escondido auction homes, contact Gary Harmon your Escondido Realtor.

How do I buy Escondido foreclosure homes?

Escondido foreclosure homes are homes the bank has taken back through the foreclosure process.  Most banks will list these properties with an Escondido Realtor.  You can find these Escondido homes by using “Free Foreclosure Search,” “Quick Homes Search” or use “Listingbook.”  Gary Harmon, your Escondido Realtor can help you find these homes and get the best deal available.

How do I contact the owners in default?

The only time you can contact the owners in default is during the pre-foreclosue period on their Escondido real estate.  This is usually about a 120 day window.  See Gary Harmon’s next post on “How do I contact the owners in default?” for great tips.

Sometimes it is confusing to the Escondido real estate buyer whether they should have an appraisal or an inspection of their potential Escondido home. Actually, they need to have both. What is an appraisal? Who pays for an appraisal? What is an inspection? 

Escondido Home Appraisal

An appraisal is ordered by your lender. You, the buyer pay. The appraisal is used to determine that the value of the home is adaquate to cover the terms in your loan agreement. An appraiser, picked from a pool of appraisers, goes out to the Escondido home for sale to determine its value. Appraisers provide their opinion of fair market value. It is usually an estimate based on their physical inspection of the property and a review of sales of similar Escondido homes in the area. If the appraisal does not come in high enough, the buyer can cancel the contract depending on the terms, or the buyer can negoiate with the seller for a new lower price. The seller does not have to agree to a lower price.

 Escondido Home Inspection

A home inspection is not the same thing as an appraisal. The buyer hires an independant home inspector to evaluate the home for any major potential defects.

The appraiser was working for the lender, but the Escondido home inspector is working for you, the Escondido home buyer. The home inspector checks out the physical structure and systems in the home. This usually takes 2 to 3 hours. At the end of their detailed inspection they will go over any potential problems with you and give you a very detailed report on what they found. You can then ask you Escondido Realtor, Gary Harmon, to prepare a “Request for Repairs” to be sent to the seller. Buyers should keep their request to important items, and not cosmetic items. The “Request for Repairs” is a new form of negoiation with the seller. Sellers will usually fix important items, but sellers do not have to agree to anything. The buyer, according to the purchase contract, may be able to cancel the purchase agreement if sellers won’t fix major problem. Contact Gary Harmon, who has been through hundreds of home inspections, to help you evaluate the results of a home inspection. Remember, it is the inspectors job to find the problems, but many are not important enough to take to the seller. In most cases, you are buying a used Escondido home.

Once you have found the Escondido home of your dreams, writing the offer becomes very important.  You don’t want to pay too much, but you want to be successful in buying that Escondido real estate.  It is time to set down with your Escondido Realtor, Gary Harmon, and write the purchase offer. 

Most things are negotiable in the offer, but in San Diego County there is a standard to follow on most items.  A good rule of thumb, using an old clicke, is to make any offer a win-win for everyone.  Your Realtor will know how to advise you. 

Keep it Simple

Keep the purchase offer on the Escondido home for sale as simple as possible.  For example, don’t ask for closing cost back unless you need the cash.  Escondido sellers will only be looking at the net price.  Don’t ask for repairs up front.  You can handle those later in the request for repairs.  Structure you offer to keep things simple and clear for everyone to understand.  If there are any items of personal property you are requesting that don’t normally come with the home, do them separately after you have an acceptance on the home.  Don’t forget the big picture which is to buy your Escondido home, not to get a good deal on a refrigerator, etc.

Focus Only on What is Important

The first important thing is the sales price.  Your Escondido Realtor, Gary Harmon, can provide you with comps of other Escondido homes to help you pick the right offer price.  In this current Escondido real estate market, homes are selling at or above listing price.  Many times you won’t get a counter offer, so put your best foot forward.  The deposit, usually at least one percent of the purchase price, is the next important item.  How long  an escrow will you need?   It takes at least 30-45 days to get all the loan details worked out.  Other items to consider are who pays escrow, title, and other closing cost.  Ask your Realtor what is customary in the Escondido area.