Foreclosures also called :

Banked Owned Properties or Real Estate Owned

Before searching for Palm Springs properties,  it is important to understand the implications of each of the following potential opportunities:

1)      Short sales

When working on a short sale you are dealing with a bank (its employees) and not with a private seller. The guidelines for bank to accept or reject an offer are set and strict and each bank has its own rules. The nature of the market today is causing many of the banks to take 60 to 90 days or more to make a decision on whether or not to accept or reject and offer, as well there maybe multiple offers on the table that we are not aware of (some of them above listing price). If you are prepared to wait and potentially loose your time and perhaps miss a better deal, this maybe the way for you to go. Patience is paramount.

      2) Foreclosures

This a property in process of being foreclosed. This is a similar process of that of the short sale. Once again you are dealing with the banks decision maker and the potential of multiple offers. Another consideration in a foreclosure is the possibility of existing tenants and what it brings with it. This could include the tenant or the owner trashing the house (we have seen missing appliances, pool equipment, air conditioner, sinks and so fourth). Once again this is a good deal if you are prepared for the potential issues.

 3) Bank owned properties – REO

This type of transaction is handled like any other standard transaction. You will be buying a property AS IS (none of the issues found at inspection will be fixed) and you still are dealing with a bank.

On the other hand, if you look at properties owned by seller’s owners, we can write reasonable but low offers. There is still a potential for excellent deals because working with emotional, decision makers sellers who can if presented intelligently accept the right offer. I can give you referrals of clients I helped in the last 3 months buy properties at excellent prices and many times better than any foreclosures or short sales.

No matter what your state of mind regarding any of these options “NOW” is a great time to buy.

The media is creating a "panic" environment regarding foreclosures, but the numbers in the chart below will show you that our area - Palm Springs for only 13% and Palm Desert, Rancho Mirage, Indian Wells and la Quinta only 8.73% - is way under the national average of foreclosures.
So yes prices are down not because of foreclosures in Palm Springs and surrounding areas, but because of the mind set of buyers/sellers due to the real estate market conditions nation wide and the input of the media.

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