Prices are dropping !  This is great news for buyers/ investors and people who previously did not qualify!    How do you find that "Foreclosure" that those late night advertisers talk about that you need to go to their seminar for??  Well first of all Real Estate is very specific to different areas,  If the seminar is in Arizona, then laws/conditions/ and common practices will be different there, then in California.  Real Estate agents licenses are only good in the state they pass the exam in for a reason. Anyway, with all the trouble going on in the residential real estate market and prices dropping to rediculous amounts (for sellers anyway)  Roll back four years of price gains and in many cases you may be close, other areas are even rolled back further and a few areas actually have gone up.   In San Diego County the best "deals", many of which are bank owned after the foreclosure process are abundant in the areas where more first time home buyers purchased in the last few years and put very little down to purchase.  Oceanside if full of foreclosures and short sales because of this. Escondido and Vista also have a good share of them.     Banks list properties with real estate agents and are posted with other homes for sale in our co-operative listing service (Multiple Listing Service as it is often referred to).   Most homes after foreclosure (or in Pending foreclosure) show neglect and need work. The banks have stopped spending huge amounts to fix and sell these homes, so you actually get a better deal if you are willing to buy something that is less than perfect.  If the street is nice and the house is cute and priced well, there are still multiple offers on properties as we seen with several of our clients trying to purchase.  Once in a while the house won't need much work and your real estate can make the difference of you getting the home verses another offer being accepted.  Sometimes the bank will also let agents know that if you offer under the low, low price you are basically wasting everyone's time and may not respond at all.  But it is not all about purchase price, much of the terms make a difference to the loan holder, especially having a strong pre-approval with full conditions written and signed by a reputable locally known loan company. Each 'foreclosure'property will be slightly different so listen to your agent.   Most of all, feel comfortable you are buying where you want to be whether as a primary residence or as an income property. Get the facts and decide if it makes sense for your purposes.   We see so many properties we can help you decide what might work for you and your circumstances.