Here’s the San Diego page.

If you’ve been watching the local news lately, you’ll know that the number of foreclosure homes in San Diego has increased signficantly over the last year or two. This is a direct result of what is now being called the “subprime mortgage crisis” of 2007 and 2008 (hopefully not 2009).

View foreclosures in San Diego

This rise in foreclosures certainly represents financial hardship for some (notably the homeowners themselves). But is also represents investment opportunity for anyone looking to buy a foreclosed home in San Diego … and possibly pay less than market value for that home. In a financial sense, one person’s loss is often another person’s gain. That’s just the way of the world.

You can learn more about buying San Diego foreclosures over here.

View foreclosures in San Diego

A foreclosed home is basically one that the owner, for whatever reason, stopped making payments on. When a homeowner defaults on a mortgage loan, the San Diego mortgage lender will usually send them warning letters and try to work out some kind of payment plan. This is referred to as pre-foreclosure.

But if the homeowner still does not make payments, the mortgage lender will take ownership of the property by foreclosing on it.

Here’s the key to all of this, from a home-buying perspective. Banks and mortgage lenders do not want to hold on to property. It’s not their business model. So they will often sell foreclosed San Diego homes for much less than they would normally go for under current market conditions. Sometimes they will use real estate auctions for this purpose, to sell the home quickly.

View foreclosures in San Diego

So buying a foreclosure property in San Diego is one path to ownership that could potentially save you some money. How does one go about buying a foreclosed home in San Diego or elsewhere? Here’s the basic process for buying foreclosures in San Diego:

1. Track Foreclosures In San Diego

Obviously, you have to know about a foreclosed property before you can buy it. So the first step to buying a foreclosed home in San Diego is to begin tracking foreclosures in the area.

There are a handful of web-based foreclosure tracking services you can use. Foreclosure.com and RealtyTrac.com are two good services worth a look. Most of these services offer a free trial of some kind, so I recommend starting with that. Remember, the key to buying foreclosure properties in San Diego is to stay on top of the real estate market and move quickly when a foreclosed home becomes available.

2. Learn About California Foreclosure Laws

The home foreclosure process (and the laws pertaining to them) can be somewhat complex. And it everyone knows that California has more laws than most state’s on such matters. So before you start bidding on foreclosed homes in San Diego you should research California’s foreclosure laws and procedures.

I’m not saying you have to read all of the volumes of legalese that exist on the subject. But you should at least get an idea of how foreclosure proceedings work in California — and in San Diego County in particular.

3. Choose a Foreclosed Property to Invest In

Buying San Diego foreclosure properties carries some level of risk. In that regard, it’s like any other form of investing. For instance, if you buy a foreclosed home in San Diego that later becomes hard to sell, you will be stuck with a mortgage payment longer than you want. And if you pay too much money for the foreclosure property, you will reduce your profit potential upon selling the property.

Generally speaking, bank-owned properties carry the least risk for investors seeking foreclosed homes in San Diego. When the bank takes ownership of the foreclosure property, you know that there are not taxes or liens to contend with, and that the home is empty of homeowners.

4. Make Your Offer / Bidding on the Property

So now you have investigated a particular foreclosure property in San Diego, you have lined up your financing, and you are ready to bid on the San Diego home. This next important step will usually involve bidding on the home at a foreclosure auction, or submitting a sealed bid to the owner after the foreclosure sale. Once again, the key here is not to bid too high on the foreclosed home. The closer you come to paying the full assessed value of the home, the lower your profit potential on reselling.

San Diego Foreclosure Information / Resources

• Foreclosure properties help buyers (SignOnSanDiego.com)
• Overview of foreclosure laws in this state (ForeclosureUniversity.com)
• San Diego foreclosure stats for 2007 (SignOnSanDiego.com)
• Buying HUD foreclosures (HomeBuyingInstitute.com)