La Jolla is a separate incorporated city, even though it is part of the City of San Diego. La Jolla is a wealthy and hilly seaside resort community of up to 42,808 residents. La Jolla residents and business owners sometimes refer to the “city”, “village,” or “town” of La Jolla. Although the name is sometimes said to mean “the jewel” (from the Spanish “la joya”), it is believed to be derived from a Native American language, that of the La Jolla band of Luiseno Indians, who inhabited the area for centuries before the arrival of the Spanish.
Yes, even in exclusive La Jolla California, mortgage lenders and the government are collecting more foreclosures than they can handle. Since more and more owners are failing to pay their loans, banks take the property back and have to resell the property quickly to get their money back. Investors everywhere can take great advantage of these foreclosures and finding them is simple. They’re happening ACROSS the nation and right here in La Jolla.
Years ago, foreclosures were rarely seen and when they were, they were located in unwanted areas. Today, they are seen in the most upscale neighborhoods. When the real estate bubble burst, it took a lot of people with it, including a lot of developers. There are whole subdivisions in some states that have been foreclosed upon by banks.
If you want to make some money in the real estate market today, you can do so by purchasing a bank owned foreclosure. Foreclosures are sometimes in need of cosmetic fixing. People get angry as they are getting evicted and sometimes cause harm to the home. Most of the damage, however, is all cosmetic. If you are handy, you can fix up the property easily enough.
You will have to be able to prove that you can purchase the property before you can even bid on the foreclosure. This means that the first person you should see is a local San Diego lender. Your lender assist you through the process of getting a mortgage and issue a pre approval letter. This states that the lender is willing to loan you a certain amount of money for a piece of property. A pre approval letter is something that is needed if you want to bid on foreclosed property. The bank or lending institution does not want to work with someone who is not going to be able to buy the property.
Usually there will be no contingencies except for appraisal and your physical inspection. This is one area where the advice and guidance of a San Diego real estate broker can prove to be in valuable. I would NEVER sign ANY document prior to, or without professional real estate representation. You will have to be ready to close. Inspections are usually done at your own expense prior to the acceptance of the contract. You should have an older home inspected for a variety of different reasons. It is well worth the few hundred dollars it will cost to do this.
You will be required to have a certified check for the earnest money. Earnest money is a deposit that you put down for the home that pretty much states you are serious about committing to buying the home. If you back out on the contract, you may forfeit your earnest money. The amount of earnest money differ with the purchase price. Expect to put a minimum of $ 5,000 deposit with your offer. I just sold a property on La Jolla Blvd where I advised, and the buyer put down $ 100,000 as the deposit.
If you are planning on buying the home with cash, you will have to have proof that you have the cash on hand and are ready to close. This can be simply a bank statement that reflects the amount of the cash. A cash buyer is always desired over a mortgage buyer, even one who has been pre approved. This may put you at the front of the line.
You can then bid on the property. Remember that the bank or lending company simply wants to recoup their investment. Again, the advice and research of a real estate professional in determining the correct offer price is critical. With Bid, bid, bid and hope for the best. You may have to bid on several foreclosures before you get accepted.
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