REOS Abound on San Jose’s East Side: Banks Finally Willing to Deal

REO stands for “real-estate owned”; in other words, properties that have been lost by their owners through foreclosure.  San Jose’s East side has the most foreclosures, and many properties that sold for over $600K in prior years now can be had in the $400 – 500K range. 

But according to the Square Foot blog, buyers are shying away from the East side for fear that the neighborhood will not pick up. Instead, buyers are using low East side prices to justify low ball offers in other, more upscale neighborhoods such as Santa Teresa and Blossom Hill.  

Banks, saddled with excessive numbers of REOs, are no longer turning away these low ball offers – but are instead responding with counter offers. 

The bottom line is that there are many deals to be had – and many homeowners still being forced into renting as the government has stepped in with too little, too late once again.