About Short Sales

Foreclosures happen when the bank reclaims your property. Short sales are what people do to avoid the bank reclaiming their property (but ironically, the person is still left without their property).

Orange County has taken a lot of flack recently for being an area with a large amount of foreclosures. The reality is, Orange County follows the same trends that most of the metro areas on the east coast have been following.

Let’s look at this way, and we can keep it all on the West Coast. Orange County has over 10% of their listings as foreclosures. On the other hand, Washington has the exact same numbers. Oh, actually Washington has over 11% of listings. So they have even more foreclosure per capita than Orange County does.

One the flip side of things, another important metric to look at is the percentage of short sales. In Orange County, the percentage of short sales has climbed to about 26% of home listings right now.

So let’s think of this way. 1 in 6 listings are short sales in Washington… 1 in 4 listings are short sales in Orange County. 33% more are short sales. That’s a substantial difference. But what is that difference you ask?

More short sales mean that home prices were inflated higher. People bought when the home was ‘worth’ a lot, and then the value of that home fell, so people don’t want to pay on it because really, they’re wasting their money on something that won’t have the same value in a couple years.

This makes for a slow house sale situation. Everybody with their homes for sale are waiting for everybody else to come and purchase their home, and they can’t purchase unless somebody comes and purchases theirs…

So next time you’re in the Orange County area, check out what listings are for sale. Turns out, home prices actually aren’t that bad. Compare them to Denver, and you’ll be happy to see that Orange County doesn’t cost much more anymore.

While we’re on the topic view Orange County Foreclosures and Orange County Short Sales

Most people in the US are aware of the current real estate crisis and the unsettling fact that many people are losing their homes to foreclosure. Before a home is in the process of becoming foreclosed, it is in the pre-foreclosure stage. The pre-foreclosure period can last anywhere from a few weeks to a few months, and is considered by many real estate investors as the absolute best time in which to negotiate the purchase of a home.

Many houses that are ‘for sale by owner’ are houses that are in a period of pre-foreclosure. The lenders sometimes allow the homeowners to try to sell their home before foreclosing it. The banks are not in the real estate business themselves and would rather the owners sell the home instead of (the lenders) having to foreclose it.

Here are many advantages to buying a pre-foreclosed home from a homeowner rather than bidding on a foreclosed home at an auction:

- Pre-foreclosed houses are often cheaper considering as it’s being sold by a home owner that is in a hurry to sell to avoid facing foreclosure and the bad credit that goes along with it.

- Because you are working with the owner you’ll be able to ask questions about the property you wouldn’t be able to otherwise.

- There is usually less competition for a pre-foreclosed home than a auctioned foreclosed home. You won’t have to worry about placing the highest bid.

- More time to evaluate financial scenario then at an auctioned property.

- Auctions can be either overwhelming or lead to egotistical or emotional decisions.

- You can bring an inspector along with you to inspect a pre-foreclosed home.

- You will be allowed to make a low down payment on a pre-foreclosed house. This is not the case at a foreclosure auction.

Always check to make sure that the pre-foreclosed home you’re interested in has no liens or judgments against it. You should also bring along someone to inspect the home for you so you’ll know of any problems. The risks in purchasing a pre-foreclosed home are similar to purchasing a home the traditional way, only a lot less expensive.

Getting ready to buy or sell a home in Utah? Make sure you visit Homes for Sale in Salt Lake City and get find out about all Homes for in SLC!

How many times have you turned on your television late at night and been bombarded with the latest real estate program that all but guaranteed you everything you ever wanted. Television, radio, and print alike are each swarming with advertisements created by these self-appointed masters who promise to guide you to wealth beyond your wildest dreams. And certainly it can be done in real estate, yet for the few who succeed there are so many more who fail, and still the late night guys manage to stay in business.

So how is it that these gurus still have the money to advertise? The reason is because there are people who succeed. They are shown giving their testimony, but they are not special in any particular way. They paid for the system and made some money using it for sure, but their success is not necessarily an indicator of yours.

So what do they have that the rest of the population does not? That can be a difficult question to answer, however in many cases a lack of fear can sum it up. If you don’t have anything, you certainly don’t have anything to lose. If you are at rock-bottom and the only way to go is up you might be more open to taking risks, and in real estate, very little is accomplished without risk.

Sure, you could become a landlord. You could collect rent and make enough to live off of at the very least. Then again, You might only make enough to squeak by, spending most of your “profits” on things like maintenance, improvements, taxes, lawyers and legal documents, and even landscaping. The expenses are tremendous. If you can do most or all of the work for yourself, or even if you want to do it yourself, you have an advantage, but it does not come easy.

Foreclosures offer another real opportunity, however properties are sold on as “as is” basis, and this means there is quite often serious and sometimes expensive repairs that must be done before the property can be sold. Being a contractor or having those kids of skills can be a real money saver with REO properties, as well as a solid understanding of the market.

Another way to get involved is by joining a group of people and investing together. This is a great way to spread the risk, and while the profits can be a bit smaller, the damage to your bank account will also be reduced. If you have some cash on hand this could be a fantastic way to get started.

So the men and women selling those real estate programs on television are accurate. There is money to be made, however it requires patience, skill, and a decided lack of fear. If you can stomach the risk it could be the answer.

Increase your knowledge from the expert Lisa Udy by checking out her website and visit Hyde Park Utah Homes Listings or Providence Utah Homes Listings