If you live in California and you are considering buying a bank-owned property for a housing project, healthcare center, a retail location, or for some other endeavor, the Southern California real estate acquisition attorneys at Leiva Law can help you throughout the entire process. Investing in a property must be done correctly and the goal is always to have everything go as smoothly as possible. The attorneys at Leiva Law are dedicated to protecting your legal rights so that you get the most favorable outcome when you are making your transaction.
How Does Buying a Bank-Owned Property in California Work?
As a deed of trust state, lenders in California can secure properties from their borrowers who are delinquent on their payments in one of two ways.
- A borrower can relinquish their property to the lender to avoid a foreclosure. A deed in lieu of foreclosure describes this process and it allows the lender to obtain their property more quickly than they could if they had to go through foreclosure proceedings. For borrowers, the stigma of publicly being foreclosed on can be avoided.
- When properties that do go through foreclosure proceedings have no buyers, the lender will be given the property’s title. Then, the property becomes Real Estate Owned. While it is often believed that when a property goes to auction that this is a good place to find deals, sometimes this is true but often it is not. When determining the minimum bid, generally the liens balance, fees, and back interest are all included in the calculation.
The lender does not want to hold the title long, and it is not in their best interest to do so. Because of this, they will work with an asset manager so that they can get the property listed and sold quickly. Appraisers will be used to confirm the value of the property. Real estate agents will also be hired to get the property advertised and onto the market.
From start to finish, the property may be on the market within weeks of it being an REO. In some situations, the time it takes to go to market can be longer and take months. Typically, lender websites will have a listing of any of the REO properties in their possession. The asset manager will also list the property on the Multiple Listing Service, or the MLS when they have determined its listing price.
Investors that identify properties of interest can make offers. Many times, getting a good deal can be a difficult challenge because of how competitive it can be. But, the Los Angeles business attorneys at Leiva Law offer several services to prospective buyers to preserve their best interests. Some of these include negotiating terms of purchase, doing a title search, arranging property inspections, and more.
Speak with a Lost Angeles Real Estate Acquisition Attorney Today
The Los Angeles business litigation attorneys at Leiva Law can assist you with real estate acquisition, financing, development, planning, and construction. To learn more about how the attorneys at Leiva Law can support your real estate acquisition objectives, please call today to schedule a free consultation at (818) 519-4465.