Short Sale Homes South Orange County: 

If you are interested in buying short sale homes or (Pre-Foreclosure's) in Orange County California there are a few things you should know up front. Short sale homes or (pre-foreclosures) are still in the possession of the owner, "Not the Bank". A notice of default is recorded when a home owner has defaulted on their loan usually for more than three months. Once a Notice of Default is recorded on a property that property is in the process of foreclosure, often referred to as "pre-foreclosure" When you hear the term (short sale) this means that the owner is trying to sell the home at a price less than what is owed before the bank or the beneficiary forecloses and takes possession of the home. To sell a home as a short sale the lender is going to take the loss so the seller must prove to the lender that they qualify. To qualify the seller must order a short sale package from the lender that is servicing the first mortgage and any other mortgages secured by the property. The short sale package contains forms that must be filled out and there is a list of documents that must be submitted to the lenders for their review and approval. Just because the home is worth less than the mortgage balance dose not automatically qualify the home to be sold as a short sale. The seller must prove to the lender that they are financially unable to make their mortgage payments and explain why. At the beginning of applying for a short sale the lenders have been working in slow motion. The lender will only start the short sale process once they have an offer on the table. Once an offer has been presented and the short sale package has been submitted it then can take up to 3 to 4 weeks or longer for the lender to review it. The lender will order a Brokers price opinion (BPO) to get the value of the property and then decide if the offer is good enough. When the asset manager has approved the price they then send it to the investors of the loans for their approval. This takes an additional 3 to 4 weeks or longer. Finally if all is approved and 3 to 6 months later the sale proceeds. On average 3 out of 10 short sale homes sell before the trustee's sale. If you are planning to buy a short sale home in Orange County here is some advice coming from an experienced Short Sale Buyers Agent. Be prepared for the long haul and don't get your hopes up for any one property. Don't get emotionally attached to any one home. Put offers on multiple homes, Remember there is a three out of ten chance that you will successfully purchase any on home as a short sale. Here is a Link to all Short sale Homes in Orange County or Bank Owned Homes in Orange County on the mls.