Distressed Home Sales In Huntington Beach

By
Real Estate Agent with The Boutique Real Estate Group

 Jeremy Lehman By Jeremy Lehman | Agent in Orange County, CA  

If you are in the market to purchase a home, you've undoubtedly heard about shortsales, and maybe even been "warned" about them. I just read an article in the OC Register stating that 70% of homes in escrow in Huntington Beach are distressed properties (read here http://huntingtonhomes.freedomblogging.com/2010/01/27/70-of-hb-homes-in-escrow-are-distressed/81921/ ). Because of the lack of Bank Owned (REO) inventory in our market, Shortsales are replacing them as "The Best Deal" out there. Shortsales will most likely dominate our marketplace over the next couple of years because we have record numbers of homeowners unable to make their mortgage payments. Over 37,000 in Orange County in 2009 and that number is expected to be much higher in both 2010 and 2011. Because most homeowners in trouble won't qualify for a loan modification, their home will become either a shortsale or foreclosure. A bank would rather the home be sold via shortsale than foreclose because the costs can be much lower. Also, it finally seems that at least some banks have been able to streamline the sales process shortening the timeframe of a shortsale by several months.

Buying a shortsale can be challenging, and if you are selling your home as a shortsale, it can be a very frustrating experience. However, there is a payoff for both the buyer and seller, and if you are using the right real estate agent, the stress can be minimized for you.

If you are a buyer of a shortsale, the process will take some time, possibly up to six months, so patience is a must. The good news is you'll typically get a great deal on a short sale.

For a seller, the real payoff of course is getting rid of the home and in most cases, erasing the negative equity on the property. In some cases (if you still have decent credit and were not late on your payments), you can even purchase another, more affordable property if you like.

So, if you are looking for a home, there is a high likelyhood that most of the homes you are looking at are shortsales. Work with a good agent, have patience, and negotiate a good deal.

Comments (6)

Angela Niece
RE/Max Results - Wayzata, MN
Trust the Results of Hard Work!

Short sales are the best and the worst at the same time.

 

Jan 29, 2010 02:52 PM
Robert Cordero
Excel R/E & Financial Services - Adelanto, CA

I totally agree with Joe on this.  I've experienced both!  FYI guys I attended a webminar today and it was full of usefull information on short sales and the new HAFA program coming in April.  Jacob Swodeck facilitated it and I must say the guy knows what he's talking about.  Short sales are not going away and we should help each other facilitate the process which can be a nightmare!  There is a short sale conference coming up in Feb. that you might find useful, you can find out more about it at www.shortsalesevents.com, it's worth looking into.  I plan to attend as it looks very informative. 

Jan 29, 2010 03:02 PM
Carlos B
TreeHouseForRent.Com - Exeter, CA

I haven't tried one yet. Scares me alittle.

Jan 29, 2010 03:03 PM
Jeremy Lehman
The Boutique Real Estate Group - Garden Grove, CA
Jeremy Lehman

I think we've all tried to avoid them as long as possible. They can be scary, but worth it for so many reasons. Our clients are happy, we are happy, and ultimately, the market will normalize once they are gone.

Jan 29, 2010 03:15 PM
Carlos B
TreeHouseForRent.Com - Exeter, CA

Jeremy,

Thanks for that. I agree with you.

 

 

Jan 30, 2010 04:42 AM
Robert Cordero
Excel R/E & Financial Services - Adelanto, CA

I hear you Jeremy, but we in this market good luck avoiding them! We all just have to learn to deal with them, be patient, and educate ourselves the most we can to be able to handle them efficiently. 

Feb 02, 2010 07:21 AM