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Search for Distressed Bank Owned Homes in Orange County
Don't Overlook This Valuable Information Specifically for HomeBuyers
When home owners aren’t able to pay their mortgages, banks legally have the right to sell the subject property in default by conducting an auction as a public sale. There are a multitude of laws when it comes to mortgages, foreclosures, or homes in default so familiarizing with these laws is the first step towards buying a distressed home in Orange County.
Types of Distressed SalesHUD homes: These properties were put on HUDs REO list because a borrower became more than 90 days past due on an FHA insured loan. Typically, buyers can get these homes for under fair market value from HUD in their effort to not be property managers and get rid of them as soon as possible.
Commercial Properties: Single-family residential homes are not the only properties that get into financial hardship. The property can be residential income buildings or commercial properties like an office building or shopping center. Entire neighborhoods of townhouses or apartment buildings can also go into foreclosure.
Short sales: In an effort to prevent going through a foreclosure proceeding, a lot of times, the lender is willing to accept a loan pay off that is much lower than the owed balance due to the current market value of the property.
According to the California Association of Realtors, (CAR), sales of distressed homes in twenty-seven of the 41 documented counties in California showed another month of declines with 11 of the counties below a ten-percent share, including San Diego and Orange county with a share of three and six percent respectively while Los Angeles came in with an 11% share in May 2014.
Trulia economist Jed Kolko, says the move away from distressed sales is an indication of a housing recovery. While all homes sales were up just about 11% from 12 months ago, they were up 25% if distressed sales are excluded, he says. Needless to say, just how many distressed homes are on the market varies by market conditions. Regions where home prices have plummeted, like California and Florida, tend to have more distressed homes, while areas with more stable home sales have fewer.
Advantages of buying a distressed property are many. However, among the best things is that you're generally working with a seller who is very interested in seeing offers. You might be working directly with the property owner who is trying to avoid foreclosure. Then again, and more often than not, you will be negotiating exclusively with a bank or lender who wants to get the property off their books in advance of a foreclosure occurring.
While it’s true in Orange County that sales of distressed homes have declined since 2011, some bargains do become available for the buyer who is well informed and ready to close quickly. Whatever type of property you are looking for, whether it be a condominium, townhome, single-family home or 2-4 unit building, being pre-approved to buy or using all-cash is your first step. Consequently, you need to work with a realtor that has the experience working with short sales and distressed properties in Southern California as not all distress sales are great deals.
