Is the foreclosure market as bad as reported? Foreclosures and short sales are a significant part of the current Orange County real estate market. Currently, they account for 32% of the active inventory. The flip side of that coin leaves 68% of non-distressed homeowners marketing their homes. But, that percentage has climbed from 27% one month ago, a trend to continue to watch. Of all of the distressed homes on the market, currently 4,859 of the 15,392 total inventory, bank owned foreclosures make up only about 26% of that total. The remaining 74% are short sales, homeowners who are attempting to sell their homes for less than their total outstanding loan balance subject to the lenders’ acceptance. The good news is that most lenders do NOT want to foreclose on a home and WANT to work it out with the homeowner. Lenders are a lot more organized than they were just six months ago, able to handle the increased volume and bring about an amicable solution. Sellers in this situation should only work with a professional Realtor® well versed in the short sale process.