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In Orange County One in Four Sales is a Short Sale

By
Real Estate Agent with TIM LORENZ - Elite Home Sales Team DRE# 00919781

It is interesting to note that in Orange County one in four sales  in May was a short sale.  That means that the home sold for less than the amount owed and the bank accepted the sales as satisfying the loan.

The homes that were seized by the lenders in foreclosure amounted to 13 percent of the homes sold in May.

The trend shows that lenders have been getting more aggressive about approving homeowner in a short sale.  Most homeowner do not realize that the sale does not cost them anything.  Not even the commission.  So the bank is paying the commission and taking less than what is owed on the property.

What we are seeing here in Orange county is a steady increase in the number of properties sold as short sales.  In the Orange County area we had 672 short sales in May and that is the most ever recorded since the MLS has kept records.

The short sales were up 68 percent year over year. 

Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

Tim, I wish I could get local agents to try and sell our inventory of Short Sales.  We have so much inventory that agents tend to steer clear.  PUN INTENDED!

Jul 04, 2010 12:34 PM
Matt Grohe
RE/MAX Concepts - Des Moines, IA
Serving the metro since 2003

Tim: That's a big percentage but squares with what the mortgage bankers association has been saying since January. Happy 4th!

Jul 04, 2010 04:55 PM
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Tim

I can tell you we are seeing the increase here in San Clemente.  Have a happy 4th.

Jul 04, 2010 06:20 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Damon,

I have to tell you we are selling our listing in a week closing is another thing.

Jul 04, 2010 07:00 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Matt,

Thanks for the remarks it shows that those loan mods are not working.

Jul 04, 2010 07:01 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Mark

It is happing all over Orange County not just in South Orange County.

Jul 04, 2010 07:02 PM
Rebecca Gaujot, Realtor®
Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

We don't have as many short sales as you at the moment, and hope it stays that way!!

Jul 07, 2010 04:42 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Rebecca,

I really understand I too wish that we did not have to spend so much time with short sales.

Jul 07, 2010 05:59 AM
Mary Kay Hopkins
Mary Kay Hopkins, LLC e-PRO, GRI, CRS, CRB - Lake Charles, LA
e-PRO,GRI,CRS

Tim, sorry to hear about the increase in short sales.  Hopefully, our local market not follow suit.  So far, we have fared better than many markets.

Jul 10, 2010 06:46 PM
Callie Thompson
Property Xchange Solutions - Frederick, MD
Property Xchange Solutions

This will usually relieve the homeowner of any deficiency amount owed after the sale as well. Great post!

Jul 11, 2010 01:49 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Mary Kay,

The trend is that short sales will increase all over the nation.  Let me know if it does not happen.

Jul 11, 2010 02:49 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

C. Tfhompson,

It does releave the homeowner of the problems of collection and foreclosure.

Jul 11, 2010 02:50 AM
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Tim, that's a huge percentage--I had no idea O.C. was hit that hard.

Jul 11, 2010 04:42 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

The OC has been hit pretty hard and the prices have fallen 45 percent since the high.

Jul 11, 2010 06:31 AM