REOs, Foreclosures, Real Estate Owned

SAN DIEGO REAL ESTATE

REOs, Forecloures, Real Estate Owned

There seem to be less & less on the market doesn't there? What is happening is there has been more and more pressure, by the Government, to help homeowners keep their properties through bank assisted programs. This is a good thing but only for homeowners that want to keep their properties. There is a segment of the population that is doing what is called a "Strategic Foreclosure". Let me explain this. The homeowner knows they do not want to make payments on a property that is not worth anywhere near what they paid for it. The homeowner has the money to make the original payments, are not in any financial trouble, but DO want to stretch it out as long as they can. First of all they stop making payments, the property goes into default anywhere from 3 to 12 months or longer. There are some properties people are living in that they have not made payments on for over a year! Once the property gets foreclosed an Agent of the Bank will do what is called an Occupancy Check. If anyone is living in the house they are asked what their intention is. In this case the previous homeowner wants money to leave. The Bank's Agent will negotiate a "Cash for Keys" settlement and the previous owner will take the money and leave in the agreed time frame. That is what they wanted from the beginning. To not make payments on a property that had lost it's value, live there as long as possible without making payments, and then receive cash to leave; this is what a strategic foreclosure is!

For more information on Bank Owned Properties and REOs please call Linkpin Realty at 619-749-8726
Submitted by Frank Giaimo Broker Associate Linkpin Realty http://www.linkpinrealty.com/