Home Buying in 92627>Question Details

Jacques, Home Buyer in 92627

Well Hi. After a stay in France I'm coming back to the States and woud like to settle in Costa Mesa. Can someone explain to me how foreclosures?

Asked by Jacques, 92627 Mon Nov 23, 2009

work? Thank you for your much needed help.

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Carolynn Santaniello’s answer
Welcome back, Jacques!

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
Good luck!
Carolynn Santaniello
Web Reference: http://www.OCRealtress.com
0 votes Thank Flag Link Mon Nov 23, 2009
Here is the definition of FORECLOSURE:

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...
0 votes Thank Flag Link Sun Jun 20, 2010
Dear Jacques:
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.
0 votes Thank Flag Link Sun Jun 20, 2010
Hello Jacques,
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.
Valerie Torelli
0 votes Thank Flag Link Sat Jun 19, 2010
Hi Jacques,
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,
Copnnie Bramble
0 votes Thank Flag Link Thu Feb 18, 2010
The number of foreclosures currently for sale in Costa Mesa is fairly limited. Of the 178 homes for sale in Costa Mesa, only 8 of them are foreclosures. And, those that come on the market usually sell quickly. Of the 31 homes that sold in Costa Mesa in January, 8 of them were bank owned foreclosures. They typically remain for sale for only a few days.

If you would like more information about buying a foreclosure, please see http://www.donovanblatt.com/how-do-foreclosures-work-purchas…
0 votes Thank Flag Link Wed Feb 17, 2010
Hey Doug- What do you mean most agents don't have time to advise in the forclosure area? I think people sent links as they are a really good source of info, not because we don't have time to talk. The process of Buying a forclosure is not really any different than a standard sale. Once the escrow is open the price is set, unlike a short sale. The seller basically, on a repo, has the buyer acknowledge that the bank has no knowledge of pretty much anything about the house. The best thing a buyer can do when buying a repo is do a proper inspection I think. Other than that it is really a breeze buying a repo!
Connie Bramble
0 votes Thank Flag Link Mon Nov 23, 2009
Costa Mesa is a fairly desirable area and I wasn't aware there were many pickings in the foreclosure arena. I guess, in the foreclosure process, you may hit a "short" sale, etc. But, most real estate agents don't have the time to truly advice in the foreclosure area. Do you have all cash to attend the foreclosure sale? I suggest searching for a home in the area and scope out from there.
0 votes Thank Flag Link Mon Nov 23, 2009
You picked a great time to return Jacques! Check out the links people have sent. There are many homes on the market today. Most individual home sellers are priced well; as they know if not, they cannot compete with the repos and short sales. Hence the comment about repos being market. It is my opinion that the repos pulled the homeowners down to their price range. What does this mean to you? There are great homes, at great prices, with terrific interest rates for the qualified buyer!
Happy House Hunting,
Connie Bramble
0 votes Thank Flag Link Mon Nov 23, 2009
Your request is a challenge to explain in a forum like this because you need to be aware of the process, federal and state laws, terminologies so that you can identify the right opportunity when it comes along ...so I suggest that you spend some time reading the following....

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.
0 votes Thank Flag Link Mon Nov 23, 2009
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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

0 votes Thank Flag Link Mon Nov 23, 2009
The Bank owned properties are getting multiple offers & are basically selling for retail prices.

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.

0 votes Thank Flag Link Mon Nov 23, 2009

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

https://www.citimortgage.com/Mortgage/Oreo/SearchListing.do ...

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…


Live Auction Sale- Thursday, March 4th 2010

Good hunting, Dunes
0 votes Thank Flag Link Mon Nov 23, 2009
Dear Jacques:

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!
0 votes Thank Flag Link Mon Nov 23, 2009
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