South Orange County Short Sale Report for August, 2012
It should come as no major surprise that Orange County, California is a lovely place to live. Unfortunately, it's also a place that tends to have a steady stream of short sale and REO - real estate owned bank properties. Just because a person likes luxury living does not make them immune to having mortgages they can't afford. And when the bottom of any real estate market drops to the deep end of the housing pool, homeowners look for options to help them get out of their financial conundrum; ergo, short sale properties begin to look rather juicy to real estate investors. Sometimes you're the cake - sometimes you're the frosting.
That said, lets check on some of the latest South Orange County short sale and REO listing numbers broken down by cities:
* Dana Point - 117
* Ladera Ranch - 103
* Laguna Beach - 28
* Laguna Niguel - 100
* Mission Viejo - 28
* San Clemente - 105
* Talega - 32
* San Juan Capistrano - 32
Short sales and REO's are usually "married" together because they relate to foreclosure proceedings, but are different from one another. Short sales happen prior to any foreclosure. Short sales also involve, at the beginning, only the homeowner in distress and an occasional real estate agent who work together in an attempt to get lender approval to sell the home at a price below what is owed to the lender.
In August, 2012, more than half of all Orange County homes currently under contract to be sold are short sales. Bank approval is required. Last month 25 percent of all closed sales were short sales. 36 percent of the entire Orange County sales of active listings, homes on hold, and pending sales were short sales. Since April, 2012, the number of short sale closings amounted to 667. Also there were nearly 4,000 homes that were pending short sale approval, not closing. There is nothing short about the short sale process. It can take months for lender approval.
Here are some highlights to consider: Of the 32 percent of distressed Orange County listings being sold by banks, 68 percent were short sales. 43 percent of short sales were attached; 59 percent detached. 34 percent were ocean-close properties, and in the past 30 days, 1,400 new distressed property escrows were opened covering 40 percent of the 3,544 pending sales in the entire Orange County area.