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Orange County CA Short Sale market update

by vbindi on March 30, 2010

This is another of the Short Sale market updates for residentail real estate market here in Orange County, CA. This report is brought to by the professionals at Short Sales ASAP, for real estate that is Active for sale, pending in Escrow, and Sold in the past 90 days, for all residential properties as compared to short sales. Currently there are 5,635 detached homes active for sale, and 1,246 short sale properties active for sale. The ratio of Short Sales to the Total is 22.1% .

There are now a Total of 3,260 attached condos listed for sale, and 1,119 of these active listings are short sales. This represents a ratio of Short Sales to Total condo listings of 34.3% .

Currently there are a grand total of 3,981 detached homes under contract in Escrow in Orange County. Of this total, 2,177 are short sales, which represents a ratio of 54.7% for Orange County .

In addtion, there is now a Total of 3,185 condominiums currently pending in Escrow, and 2,084 short sales in escrow, for a ratio of short sales to the grand Total of 65.4% .

In Orange County in the past 90 days, there have been a total of 3,497 detached homes that have Sold and closed escrow. Of this amount, 809 were Short Sales sold, which yields a ratio of Short Sales to the Total of 23.1% .

Lastley, for attached condos that have sold in the past 3 months, there have been 2,464 units that have closed. Of this Total, 776 were closed Short Sale condos, which represents 31.5% of the total.

There are some interesting observations to make, First, notice the large increase in the Ratio of Short Sales to Total when you compare Active for Sale to Pending in Escrow. This is due to the fact that most Short Sales are bargain priced and many home buyrs today are seeking value. But the next observation is even more interesting. Notice how the ratio of Short Sales to the  Total, decreases substantially when comparing Pending in Escrow to Sold in the past 90 days. This shows the high failure rate of Short Sale transactions. In the past 90 days, approximately 58% of detached Short Sale Transactions failed, and 52% Short Sale condo transactions failed to close.

The cause of this high rate of failure is many neighborhood Real Estate Agents do not have the experience to close short sales consistently. The Short Sales ASAP group are Orange County Short Sale specialists and have a closing succes rate of over 95%. For more information or questions about Short Sales, feel free to call us at: (949) 254-4774, or email us at: Info@ShortSalesASAP.com

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Report States Short Sale better than Foreclosure

by vbindi on September 19, 2009

ORANGE COUNTY, CA:  A recent report from the Amherst Securities Group shows that in most cases, short sales are a  more effective loss mitigation approach, as they minimize loss severity, as compared to Foreclosure.

The Amherst Securities study shows that the loss severity on Short Sales is 15% to 20% less than the average losses bank take for Foreclosures.  Federal officials  have created financial incentive programs that now encourage banks and servicers to pursue short sales and in-lieu of Foreclosure.

In addition, and New Program has been created  to help some troubled homeowners.  The new Short Sale and Buy program allows some property owners to Short Sale their existing home, and buy a similar replacement home at today’s very low property values, while using a 3.5% down FHA loan.  We will write about this new program as new details are published.

In addition, many banks and servicers are now passing on their Federal incentives.  These Banks are now offering Cash for Cooperation of up to 1% of the Sale price, to encourage struggling homeowners to cooperate with a short sale, versus letting the home go to Foreclosure.

For information about short sales, or your home mortgage situation, please feel free to contact the Experts at Short Sales ASAP, at:  949-388-3396, or email at:  Info@ShortSalesASAP.com

Irvine Bank Owned Homes for Sale

by vbindi on September 2, 2009

We have compiled an exclusive list of all Bank Foreclosed homes currently listed for sale in Irvine, CA.  These Bank Owned REO properties consist of attached Condos and detached single family homes ranging in price from $222,000 up to $1,719,900.  Our team at REOBenefit has a proven track record of success in getting great buying value for our clients with a high rate of closing success.  If you would like more information on any of the homes listed below, or if you want to see the inside of any of these Irvine REO homes for sale, please feel free to call us at:  (949) 388-3396 or drop us an email at:   Info@BankHomesMLS.com

If you would like more details on the properties listed below, simply click on the Address Hyperlink shown below.  Click on the following link if you want to search for any homes listed for sale in Irvine.

TypeAddressBdBaSqFtPrice
Condo 2105 Apricot Dr 2105  , Irvine 22910$222,000
Condo 162 Greenfield  , Irvine 321,267$333,900
Condo 38 Hollowglen 25  , Irvine 221,125$350,000
Condo 2210 Scholarship  , Irvine 11868$359,000
Condo 8 Sunstream  , Irvine 221,100$429,000
SFR 19 Amoret Dr  , Irvine 431,900$589,050
SFR 5232 Skinner  , Irvine 432,300$649,900
SFR 21 Orangetip  , Irvine 432,300$729,900
SFR 12 Rutherford  , Irvine 332,200$830,000
Condo 3141 Michelson Dr 1504  , Irvine 232,063$839,800
SFR 52 Crimson Rose  , Irvine 342,651$1,125,000
SFR 35 Hidden Trl  , Irvine 453,675$1,719,900

eVantage Real Estate Announces New Office Location

by vbindi on May 11, 2009

eVantage Real Estate in Orange County CA, has recently moved to it’s new office location in Laguna Hills, CA.  Located at 23441 south Pointe Dr, Ste #190, this central office is located close to highway 5 and 405,  which allows it’s agents to quickly and efficiently service many cities in south, coastal and central Orange County.   Vincent Bind and Nick Roshdieh, the principals of eVantage, were both very successful Realtors at both RE/MAX and Keller Williams in previous years, and teamed up to unveil the Brokerage firm of eVantage Real Estate in 2008′.

For many years, they observed the Internets growing influence on everyday real estate transactions.  Surveys now show that over 85% of all home buyers begin their search on the Internet.  The principals crafted the name eVantage Real Estate to reflect the companies focus and mastery of Internet technology as it relates to the real estate profession.  The “e“  stands for Internet Technology, and the word  “Vantage” speaks for itself meaning “superiority”.   From the marketing of homes, information gathering, neighborhood research, client and vendor communications, transaction management, and more… the Internet is playing an ever increasing role in marketing and selling homes, and the success of a real estate professional.

Vince and Nick also understood that many real estate agents core competencies are serving their clients, communication and selling homes… and not keeping pace with the rapidly evolving, and ever changing new technologies.     eVantage Real Estate is committed to staying on top of, and utilizing the most efficient of web technologies, so that their agents can stay focused on customer care and sales.  Modern day technology is enabling an ever growing number of real estate professional to work more remotely… from the home… from the field… from the car… or from out of town.

The eVantage philosophy is that today, a dominant Website presence is far more important then a high image office location.   The transformation from an expensive Bricks and Mortar large office space, to a powerful modern day Online presence, allows them to keep their overhead expenses low.  This allows them to provide its’ Agents excellent support and service, and pass on the cost savings to it’s Agents in the form of  low Brokerage Fee’s.

eVantage Real Estate also supplies leads to it’s agents who are members of the it’s eTeam.  For more information about the services, fee’s and leads, visit the agent recruiting website or give us a call at:  949-388-3396

Lake Forest CA Short Sale – Agent Success Story #19

by vbindi on April 15, 2009

Lake Forest CA Short Sale Success Story – Case Study #19: The team of experts at ShortSalesASAP, closed another short sale listing in Lake Forest, CA, which will be outlined here as Case Study #19.   We always eliminate certain details, and give approximate dates and dollar amounts in order to protect the privacy of the previous homeowner.  This particular short sale was a 2 bedroom, 1 bath condominium, with 835 square feet of living are, and built in the early 1980′s.

The condo was originally purchase by our client in July of 2005′, for a purchase price of approximately $387,000.  This top floor condo was acquired by the homeowner using a 5%  down – 5/15/80 purchase money loan. The 1st mortgage loan balance was approximately $308,000 and the 2nd mortgage had a loan balance of around $58,000.  Both loans were with Countrywide mortgage and the 1st mortgage was a fixed rate loan, and the 2nd loan was an adjustable rate mortgage.  The total loan balance was roughly $366,000.

Lake Forest CA property values have dropped about 36% since the height of the market in mid 2006. Southern California has been hit hard by the  nationwide mortgage loan crisis and the recession.   The short sale property featured in this article, also dropped in price substantially by about 38% to a value of $242,000, since it was purchased in mid 2005′.  This Condominium was upside down by about $125,000. The homeowners income also dropped due to the local recession, and was experiencing difficulty making their mortgage payments.   They contacted us as a result of a past client reference, to conduct a short sale.

We first gathered the required documents from the homeowner which includes; 2 months of bank statement,  a simple financial statement,   hardship letter, Pay Stubs,  and bank account balances. Our team of short sale experts review and package this information in the format that the banks request, and deliver to the banks.  After some cunning negotiations by our Realtor expert Nick Roshdieh,  we convinced the bank who carried both the 1st and 2nd mortgage, to a preliminary short sale approval.   This Preparation Phase took about 4.5 weeks to complete, and during this time, the homeowner lived in the home as usual with no interruptions to their daily lives. Due to their hardship, they were unable to make their mortgage and lived payment free for the entire duration of this short sale transaction.

With the preliminary short sale approval in hand, we started the Marketing and Sales process for this property.   This Lake Forest condo was marketed on the Multiple Listing Service, and also on the Internet but the short sale status was not displayed on any Internet advertising to the public.   The listing price was initially $263,000, which was close to the market value at that time.  After about 4 weeks on market, we obtained an offer for $235,000.   After several counter offers, our listing Realtor, Nick Roshdieh got the buyers to agree to a price of  $243,000.

Our short sale processing team, then went out to gather all of the necessary signatures from the buyer and seller,  review the loan qualification status of the buyer, and we opened escrow.  Our team then packaged the new purchase offer, along with required Short Sale disclosures and Buyers loan qualification paperwork, and submitted the package to the mortgage banks, to conduct the final short sale adjustments of the terms, conditions and costs.

After some tough negotiations with our expert short sale negotiator, and involving our attorney, we got Countrywide Mortgage to agree to this short sale offer of $243,000. With the final bank short sale approval letters in hand, we moved forward with the buyers closing through escrow. This last step was completed in about 44 days and this short sale was completed and closed escrow in the Fall of 2008′.

After the completion of the short sale, and close of escrow, the $366,000 total mortgage debt on the home was deleted. The homeowner was able to rent a comparable condo and saved about $800 per month. The homeowner was able to live in their home during this short sale process and did not make any mortgage payments. In addition, the homeowners FICO score was not as negatively effected as it would have been if the banks had foreclosed.

ShortSaleASAP is licensed with the California Department of Real Estate, and our services are free to the homeowner, for we are paid by the mortgage bank(s).   If you have any questions regarding Short Sales, contact our team of experts at: (949) 388-3396 or drop us an email at: Info@ShortSalesASAP.com

Obama Foreclosure Prevention Program helping OC Homeowners

by vbindi on April 12, 2009

The Obama Administration recently announced that  is moving forward with the foreclosure prevention plan which they claim with help as many as 12% of homeowner nationwide.   The program is geared to help homeowners avoid foreclosure for both lower income earners, up to upper income borrowers who owe more than their homes are worth.   The approximately nine million American homeowners that this plan may help, is designed to shore up housing prices,  slow a downward spiral in home prices, and stabilize neighborhoods throughout many areas of the USA.

Nearly 1 in 10 home mortgages is either delinquent or in foreclosure, and analysts estimate that at as many as 6 million households could lose their homes over the next three years in the absence of government action.

The banking industry has strongly resisted this proposal,  saying it would make investors unwilling to finance future mortgage lending. But Democrats in Congress strongly support the idea and banking executives are putting up less resistance than before.

Program #1:  The  Obama plan will create a $75 billion program to help the estimated 4 million homeowners in danger of foreclosure, by subsidizing loan modifications.  This program would reduce a family’s monthly payment to as little as 31 percent of its gross monthly income.

A mortgage lender would have to first make loan term alterations in order to  reduce a borrower’s payments to 38 percent of monthly income. To encourage lenders, the government would offer incentives, like a $1,000 upfront payment for every loan modified and more payments if the borrower stays current. If the lender gets the monthly payments down to 38 percent of the borrower’s monthly income, the government would then match, dollar for dollar, additional reductions to bring the payment as low as 31 percent of monthly income.

These loan modifications could be worked out  in several ways, from stretching out the repayment period of a loan to reducing the interest rate or reducing the outstanding principal.

Administration officials said that this plan to help homeowners facing foreclosure did not deal with second mortgages.  Second mortgages were often made by a different lender than the first mortgages, and would  greatly complicate negotiations over a loan modification.

Program #2:  To help homeowners who can still keep up with their payments, but who may resent the idea of rescuing others, Mr. Obama’s plan would make it easier to refinance at today’s very low interest rates.

The plan would apply to people with fairly traditional loans that are owned or guaranteed by Fannie Mae and Freddie Mac — about 30 million homeowners. The new loans would not be subsidized, but borrowers would not need to have a 20 percent equity stake in the house.

The big limitation of the refinancing portion of the plan is that it would not help most borrowers who are current, but under water. It would only be available for mortgages that are not more than 5 percent above the current market value of the house.   Estimates are that this program would help less than a million of the 14 million homeowners who are under water.

Program #3:  This program is more vague component of the plan is aimed at propping up the mortgage market as a whole by having Fannie Mae and Freddie Mac step up their purchases of mortgages and mortgage-backed securities.  Also, government official are working with major banks to encourage a more efficient and streamlined short sale process, to help alleviate many of the delays experienced today with such transactions.

We have jsut released our new eBook called “Should I Short Sale My Home“.  We are currently offering this eBook for FREE, so feel free to download your copy today by clicking on the previous link.

Should I Short Sale My Home? – Free eBook for Orange County homeowners.

by vbindi on April 10, 2009

Are you caught in today’s mortgage crisis?  If so, you are not alone for there are Millions of Homeowners trapped in a very similar situation.  Due this mortgage loan epidemic, and our vast experience in this field,  we decided to write an eBook titled - “Should I Short Sale My Home”…  This book is dedicated to help educate Orange County homeowners so they can make an informed decision regarding a Short Sale. We felt very qualified to generate this book for we are Orange Counties leading Short Sale practitioners.

This eBook is short and to the point, detailing information about the current mortgage crisis, how short sales work, and the advantages and disadvantages of a short sale for Orange County homeowners.   We though about charging for this book, but have decided to give it a way for Free.

CLICK HERE TO OBTAIN YOUR FREE COPY OF THE eBOOK -
“SHOULD I SHORT SALE MY HOME”

It is projected that over 10 Million homeowners currently have, or will have negative equity in their home in the very near future.  In other words, they will owe more on their homes than they are worth.  In Orange County, the number of homeowners projected to have negative equity is estimated at 200,000.

There is expected to a be a massive number of homeowners who are simply making the decision to sell their homes through a short sale versus staying in a home, hoping that one day it may be worth what they paid.  Late last year, CNBC financial guru Jim Cramer was telling homeowners to ‘Just Walk Away’ from their home and let it go to Foreclosure… that is a big mistake, for a  Short Sales is a better and more responsible solution then Foreclosure.  Our FREE eBook, will explain the reasons why.

According to some recent studies, approximately 40% of all Loan Modifications granted last year,  wound up in default and the homeowner either went into foreclosure or sold the home via a short sale.   Loan Modifications work for some homeowners, but in other situations, make no sense at all.  Again, our eBook will help to demystify the Short Sale process, and explain other Loss Mitigation strategies as well.

This eBook, consists of 10 Chapters, written in a direct and plain spoken  manner.  The chapters are listed below;

  • Chapter One - A National Epidemic Is Looming.   Are You Ready?
  • Chapter Two - How Bad Is It?
  • Chapter Three -Ok, I Get It. A Short Sale May Be My Best Option. Tell Me More
  • Chapter Four - What Is A Mortgage Foreclosure?
  • Chapter Five - You Have Been Warned: Foreclosure Scams
  • Chapter Six - What Are The Options For Homeowners In Foreclosure?
  • Chapter Seven - You Now Want To Short Sale Your Home: Top 10 Short Sale Questions, Answered
  • Chapter Eight - I Thought Rates Were Falling. Won’t That Help?
  • Chapter Nine - Life After Short Sale. When You Want To Buy A Home Again…FHA To The Rescue
  • Chapter Ten - Death Of The Home Equity Loan – Millions Of Homeowners Shut Out

If you have any questions or comments regarding if your Orange County home may be a candidate for a  Short Sale, please feel free to call us or drop us an email at:  Info@ShortSalesASAP.com