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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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Irvine Short Sale Statistics

by vbindi on July 14, 2009

Our Company, the ShortSalesASAP group, has complied Short Sale statistics for the city of Irvine.  Currently there are 321 Condos currently Active for Sale in Irvine, and 105 of these listing are Short Sales, representing about 1/3 of the available inventory.  These Short Sale listings range in price from $130,000 for a 1 bedroom, 1 bath on up to $1,499,000 for a 3 bedroom, 4 bath, 2,677 square foot high rise condo.  The median price for these short sale condos is $415,000.

For condos under contract, there are 225 total condominiums that are Pending or Backup in escrow.  Of these,  116 are Shorts Sales in Escrow, which represent nearly 1/2 of the Pending inventory.   These Short sale condos range in price from $130,000 for 1 bedroom, 1 bath,  up to $1,575,000 for 3 bedroom, 4 bath, 2,685 high rise condo in Irvine.

In the past 90 days, there have been 270 Condos total that have sold and closed escrow in Irvine, CA.   Of this total, 45 were Short Sale condominium closings which represents approximately 17 percent of the closings in the past 3 months.   These closed units range in price fro $232,000 for a 1 bedroom, 1 bath unit on Alicante Aisle, up to $700,000 for a 2 bedroom, 2 bath, 1,674 square foot condo on Scholarship drive.  The median priced short sale condo sold in Irvine in the past 90 days was $375,000

Today, there are a total of 277 detached homes currently Active for sale in Irvine.  Of this total, 38 are Short Sale listings which represents jsut 14% of the total inventory of homes for sale in Irvine.  These detached SFR short sale homes for sale range in price from $399,900 for a 2 bedroom, 2 bath home in the Vista Filare tract, up to $4,080,000 for a 5 bedroom, 6 bath, 8,700 square foot estate in the Turtle Rock community.

For SFR homes under contract, there are a total of  171 currently in Escrow..  Of this total, 63 are Short Sale listings pending in Escrow which represent 37% of the total Pending inventory.  These short sale homes in Escrow range in price from $290,000 for a 2 bedroom, 2 bath condo in the Bowen Court tract, on up to $1,800,000 for a 5 bedroom, 5 bath, 4,75 estate in the Vicara community.

In the past 3 months, there are a grand total of 275 detached homes that have sold and closed in Irvine.  Of this amount, 44 are Short Sale homes that have sold which represent 16% of the total closing inventory for Irvine in the past 90 days.  These detached homes range in price from $365,000 for a 2 bedroom, 2 bath, 1,133 square foot home in Orangetree community, up to $1,780,000 for a 5 bedroom, 6 bath, 4,33 square foot estate in the Amberhill subdivision of Irvine.  The median price of these short sale homes that have sold in the past 90 days is $675,000.

Our Company, the ShortSalesASAp group, specializes in Short Sale negotiations, marketing and sales in Irvine and surrounding communtites.   We have over a 94% closing rate success.  We maintain an ongoing retainer with a California Attorney who specializes in Short Sale contractual issues.  Our services are free to our clients for we negotiate our fee with the mortgage banks, and we also pay for our own Lawyer fee’s, so there are no out of pocket costs to our clients.  For more inforamtion about short sales in Irvine, please feel free to contact us at:  (949) 388-3396, or visit our website:  Irvine Short Sale Services,  or email us at:  Info@ShortSalesASAP.com

San Juan Capistrano Short Sale Results

by vbindi on July 12, 2009

San Juan Capistrano Short Sale Case Study #46: The ShortSalesASAP group of experts have closed another successful short sale in San Juan Capistrano. We will outline this process and withhold some of the details to respect the privacy of the short seller.

The subject property was a single story, ranch style family detached home located in San Juan Capistrano, California. It was a 4 bedrooms, 2 baths with 2 car garage and 1,900 square feet of living area, built in 1973.

This home was purchased by the homeowner in the Fall of 2005′, using 10% down financing which consisted of a 1st 80% LTV loan, and a 2nd 10% loan. The 1st mortgage had a loan balance of $620,000 and the 2nd mortgage was $77,500. Both loans were adjustable rates mortgages.

The local market conditions in San Juan Capistrano and Orange County, has suffered a severe market correction. Prices have decreased about 40% since the height of the market in mid 2006′. Southern California, has been hit hard by the recession and nationwide mortgage loan crisis. Due to the deep recession, the property owners income was negatively impacted. This prevented them from keeping current on the mortgage loans, and also eliminated the possibility of a loan modification. The owners found us on the Internet and contacted us regarding a short sale.

Our team gathers all of the bank required documents from the homeowner. We package this information along with other market data and present our short sale case to the Banks. After some expert negotiations with the 1st and 2nd mortgage holders, we negotiated preliminary terms and conditions for the short sale. As a result of their hardship, the property owners were unable to make their mortgage and lived payment free.

With the Short Sale preliminary approved, we started the endeavor of Marketing the San Juan Capistrano property for sale. The house was listed for sale for $535,000, which was approximately the market value at that time. After a period of about 20 days, we obtained a purchase offer from a qualified buyer for $520,000. After several counter offers, we arrived at a price of $530,000.

Our listing Realtor acquired all of the necessary signatures, and reviewed loan qual status of the buyer. Everything checked out, so we opened escrow, and our short sale team packaged new purchase offer, along with Buyers loan qualification paperwork, and submitted the package to the 1st and 2nd mortgage banks. Our expert Realtor team got both the 1st lender and 2nd lender to agree to the short sale offer. With the bank short sale approval letters in hand, we moved forward with the buyers closing through escrow.

At close of escrow, the entire $697,500 in total mortgage debt was retired, and the seller rented a comparable San Juan Capistrano home and saving over $1,500 per month. In addition, the homeowner is now working with our credit Restoration affiliate firm and will be able to buy another home early next year.

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

Yorba Linda Short Sale Success

by vbindi on June 14, 2009

This is another case study of a successful short sale closing in Yorba Linda, CA.  Recent studies have reported that only about 20% of all short sales in California actually sell and close escrow.  The average closing rate for Orange County is around 30%.    Our team of short sale experts closes over 94% of our short sale listings.  This article will outline some of the reasons why.

This Yorba Linda home was purchased by an investor back in 2005′ for $550,0oo, and was a smaller detached home.   They owner put down 20% and had a small negative cash flow, but was experiencing attractive appreciation for the years of 2005′ and 2006′.   In 2006′, they had a new appraisal completed and acquired a HELOC loan, and used the cash to purchase another rental property with better cash flow.

Investments were doing well until about the 2nd quarter of 2007′, when the income of the property owner declined.  Then several rental properties went vacant for several months, and the owner fell behind on this Yorda Linda rental home.  They attempted to re-finance but the property would no longer appraise in order to obtain the needed Loan to Value (LTV).   The owners contacted out team in late 2007′ and inquired about a short sale.

We worked with the property owner in gathering the needed documents and hardship letter.  Our negotiations team then package the short sale documents and sent them to the loss mitigation of the 1st and 2nd banks.  After 4 weeks of document tracking, expediting and negotiations, we obtained preliminary approval to conduct the short sale.  Our listing coordinator then placed the property on the market for sale, and listed in the Orange County MLS.

Within2 weeks, we received an offer to purchase from a qualified buyer and the final negotiated price was within $3,000 of the approved short sale price.  We then packed this offer, and re-submitted the short sale package to the loss mitigation management department.   Upper level bank management reviewed the new offer for 3 weeks, and gave us final short sale approval.  During the course of the final negotiations, we were able to obtained sufficient funds to pay to the HELOC loan in order for them to grant the Yorba Linda property owner a completer release of the unpaid loan balance.

Our high rate of success partially hinges on our knowledge of how bank management looks at short sale proposals.  This gives us an advantage in how to package and structure the offers to purchase.  We also have upper management contacts within most of the major mortgage banks.

We are a licensed broker with the California Department of Real Estate.  Our services are free to out clients, for we negotiate our fee and are paid by the short sale banks.  If you have any questions about short sales, please feel free to call us at 949-388-3396.  Or to watch our YouTube video, visit our website at www.FREEShortSalePlan.com

Laguna Niguel Short Sale – Case Study #32

by vbindi on April 5, 2009

Short Sale Case Study #32 -  We will describe another successful Short Sale for a detached home located in Laguna Niguel, Ca.  The details of the short sale such as; property  address, exact loan amounts, and names will not be revealed to protect the privacy of the previous homeowner.

Property and Finance  Details: This Laguna Niguel home was a 4 bedroom, 3 bath, 3 car garage with 3,150 square feet of living area.  This detached home was originally purchased in the Spring of 2004′ for $885,000 with a 10% down mortgage.  In the summer of 2007′ an equity loan (HELOC) was also taken out on the home for about $245,000 with National City Mortgage.   This property was sold via a Short Sale in the winter time of 2009′ by the ShortSalesASAP team.

Market Condition: Home prices have dropped dramatically in southern California due to the severe recession and nationwide financial crisis.  More specifically, prices have been dropping about 1% per month for the past 2.5 years in Laguna Niguel, although there are now signs that prices may be leveling off.   The homeowner experienced a financial hardship and was no longer able to keep current on the mortgage loan payments.   They inquired into a Loan Modification, but even in the most optimistic scenario, they still would have been about $300,000 upside down on their home mortgage.

Preparation Stage: After we signed the listing agreement with the homeowner, we gathered all of the required documents from the homeowner.  After review and packaging, we delivered these documents to the 1st and 2nd banks to present our short sale case.   After some tricky and difficult negotiations, our expert team was able to obtain preliminary approval for the Short Sale with tentative terms and conditions.  During this preliminary short sale approval phase, the homeowner was able to live in the property as normal.  There were no interruptions from other agents or prospective home buyers, and due to their hardship, they were living rent  free.  This Preparation Phase took about 6 weeks to complete.

Sales and marketing Stage: Once the short sale was tentatively approved, we placed this Laguna Niguel property on the market for sale.  It was listed in the Multiple Listing Service (MLS) for a price of at a price of $825,000.   After a period of about 3 weeks with no offers, we dropped the price to $789,000.   A week later we received an offer from a loan qualified buyer for $735,000.    After several days of counter negotiations,  we obtained a purchase price of  approximately $750,000.

Closing Stage: In the final stage of this short sale process, we obtained the signed offer from the Buyer, and gathered the other required Short Sale disclosures and Buyers loan qualification paperwork.  We submitted this  package to the 1st and 2nd mortgage banks, to conduct the final short sale adjustments of the terms, conditions and costs. After some tough negotiations with our specialists obtained the updated short sale approval letter from the 1st and 2nd Mortgage Banks.  Once we received these bank  approval letters, we moved forward with the closing of escrow. The last Phase was completed in about 21 days.

The result was that the entire debt on the home was removed from the homeowner. The homeowner was able to live in their home during this short sale process and did not make any mortgage payments payments.  Most importantly, if this home were to been lost in Foreclosure,  the 2nd Mortgage HELOC loan would still be owed by the homeowner after the 1st mortgage lender foreclosed.  As a result of this short sale though, the convinced to the 2nd Mortgage Bank to accept to small pay-off we generated for them as a settlement in full.     The homeowner is now working with our credit restoration affiliate and their credit rating should be repaired to a level where they should be able to buy again home by 2010′ .

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