Wow, you are coming home to an interesting home buying market. You can purchase a forclosed home (owned by the bank) or a short-sale (a home that is in mortgage default and that lender has to agree to take less for the mortgage than is owed).
Bank owned homes have HUGE demand because there is very little inventory to purchase. Thus, buyers have to be prepared to offer market value (not necessarily list price), take the home "as is," and compete with multiple offers.
Short-sales are a large percentage of the market and many of them will not result in a sale because the bank who holds the mortage will not approve the sale. This process is lengthy. A new short-sale can take anywhere from 3 to 9 months to close. These sales are quite complicated and would take more than a few words on a column to explain. Feel free to check out my blog where I have several posts talking about distressed home buyiing: http://www.OCRealtress.typepad.com
Foreclosure is the legal process by which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor's equitable right of redemption.[clarification needed] Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lien holders can also foreclose the owner's right of redemption for other debts, such as for overdue taxes, unpaid contractors' bills or overdue homeowners' association dues or assessments.
The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that "the lender has foreclosed its mortgage or lien". If the promissory note was made with a recourse clause then if the sale does not bring enough to pay the existing balance of principal and fees the mortgagee can file a claim for a deficiency judgment.
Lenders take title to a prorty in default and offer it to another buyer...
The best and most comprehensive explanation of the foreclosure definition and process would be to Google the word(s) and or go to Wikipedia for an explanation. Cars are repossessed when in default, homes are foreclosed upon.
Hope you had a nice stay in France. Perhaps you have found a foreclosure property. I just wanted to let you know that while there are only 6 homes on the market right now that are listed as foreclosures, there are 59 that are listed as short sales/subject to lender approval. Here are some of the most recent stats. If you'd like help in understanding Costa Mesa short sales we'd be happy to explain the process since they can present a great opportunity as well.
the forclosures are truly not necessarily the best buys anymore. Not as many as one might thing. If they go on the market low they just get bid up and sell close to market anyway. Then you have a home that you need to make repairs to and after that youre at market anyway! Better to look for something you really like and feel good about. If it is a forclosure great, if not that's great too. you have what you need!
Best of luck to You,
If you would like more information about buying a foreclosure, please see http://www.donovanblatt.com/how-do-foreclosures-work-purchas
Happy House Hunting,
Can someone explain to me how foreclosures work? http://www.foreclosureradar.com/foreclosure-guides/foreclosure-101
I hope the information helps and after your readings, let us know should you have any question or need further clarifications.
Perhaps giving these a look will be interesting for you..
Orange County Home Sale Activity
for Home Sales Recorded in October 2009
Reporting resale single family residences and condos as well as new homes
% Change is from the same month last year
Because of this (% Change is from the same month last year) what appears to be a slight decline, or a flattening of prices or a small improvement is being determined by comparison to last year. It may help to see how last year prices/% compared to 2007.
Orange County Home Sale Activity
for Home Sales Recorded in the Year 2008
Short sales DO NOT take 9mos to close, if they're taking that long, the agent doesn't know what the heck they're doing. Over the past 2yrs & more specifically in the past 6-8mos short sales are much Easier to do. Many banks want to grant a short sale & the seller doesn't even need to have a financial hardship OR have ever missed a payment.
My opinion is that deeper discounts can be had with a short sale property & the competition is less fierce.
Costa Mesa is not comprised only of short sales & bank owned properties though, the homes are older so there are people who have equity & can sell with a standard sale.
Jacques, you just need to align yourself with an agent who can get it done, whether it be bank owned, short sale or normal sale. An agent who will go to bat for you. If you find a pocket of Costa Mesa that you really like, but nothing is on the market & people are upside down, then I can help you get the best price & help the seller avoid a foreclosure by doing the short sale.
Let me know if you'd like to talk more.
If you are wanting to browse you may want to check this out. The Banks and the Gov. have created web sites to provide information on the purchase process used by each of them plus you are able to see their listed properties for sale and have access to a lot of information.
It's Free and updated constantly...Sites like..
.... http://www.wamuproperties.com/ .... http://www.hud.gov/homes/index.cfm
The links to all of these Bank and Gov. sites can be found here.... http://www.mortgagenewsdaily.com/wiki/REO_Database_List.asp ... http://www.biggerpockets.com/bank-reo.html
You can use this to find info on Tax sales ect..... http://publicrecords.onlinesearches.com/Foreclosures-and-Tax
to find things like this....GENERAL INFORMATION AND BIDDER'S INSTRUCTIONS FOR
THE LIVE AUCTION SALE OF TAX DELINQUENT REAL PROPERTY
IN THE COUNTY OF ORANGE
Live Auction Sale- Thursday, March 4th 2010
Good hunting, Dunes
Call your bank and get pre-approved for a loan. Unless you're going to pay "all cash" then you must be certain you have enough cash to cover all costs associated with buying a house. After you do this you'll know how to proceed. Good luck!