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Orange
County REO / Bank Owned Properties
REO
Properties
Orange County Bank Owned homes,
REOs, foreclosures, properties in distress, bargain properties, and short sales. REO is short for "Real
Estate Owned", which means the same as "Bank
Owned". An REO is different from a foreclosure
property in that the lender has already tried to sell it at a
foreclosure auction and has had no luck getting bids. Because
the property was not bid on, the lender then became the owner of
the property. Naturally, they do not want to keep the
REO any longer than possible. This makes it a great
opportunity for a homebuyer or investor. Not every REO is a
great deal, but many are available for well below market
value. Bank owned
properties are often the home of choice for investors, as they
can usually be bought cheaply, fixed up, and re-sold (known as
"flipping" a property). They are also great for
purchase as rental properties. Use the home search links below
to find distress property and homes that are bank owned in Orange County, CA
Bank owned properties are less
troublesome to purchase than Short
Sales. Offers on REO homes typically receive a fast
response from the lender. On a short sale offer, a response can
often take weeks or even months. It is further complicated if
there a more than one lender on the property. They all have
to cooperate with the short sale. This is never the case with
an REO because there is only one lender. Also, REO properties
are more convenient to show as they are always vacant. Bank
owned homes include condos, townhomes, single family homes,
and custom estates. There are also bank owned lots, raw land,
and acreage for sale. Call me if you are looking for an REO
agent or bank owned homes. Also distress properties, good bargains,
houses in default, foreclosure, bank owned condos, or real
estate in Orange County, California.
REO home
search
South
Orange County
Search for bank
owned, REO properties in the location of
your choice, including Coto de Caza,
Aliso Viejo, Dove Canyon, Ladera Ranch, Laguna
Hills, Laguna Niguel, Las Flores, Wagon Wheel, Mission Viejo, Lake Forest, Las Flores,
Rancho Santa Margarita, Robinson Ranch, and San Juan Capistrano,
.
Coastal
and beach areas
Bank owned (REO)
homes and properties in coastal and beach area
cities, including Corona Del Mar, Costa Mesa, Dane Point,
Huntington Beach, Laguna Beach, Newport Beach, Newport Coast,
and San Clemente, CA,
North
Orange County
Search for bank
owned, REO properties in the North County location of
your choice, including Brea, Fullerton,
Orange, Placentia, Villa Park, or Yorba Linda.
Central
Orange County
Search
for bank owned (REO) homes and properties in the central cities of Anaheim Hills, Irvine, Tustin, and
North Tustin (Tustin Foothills), CA.
Canyon
Areas
Search
for bank owned (REO) properties in the canyon areas of Orange
County, including the areas of Modjeska Canyon, Silverado
Canyon, and Trabuco Canyon.
 Bank
owned lots and land
Looking in a different
area? Call me! (949) 290-3263
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Why
purchase a bank owned, REO property? |
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All liens against the property are
removed once it becomes an REO, and taxes are paid.
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Unlike properties at foreclosure
auction, REOs can be inspected prior to contract, and are
listed with real estate agents.
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While many foreclosures are often in
deplorable condition, REOs are typically restored to at
least a readily salable condition by the lending
institution.
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The bank or lending institution that
owns the property will often offer financing with better
deals then they would offer on traditional properties.
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The bank or lender that owns the
property will often provide an allowance for certain
repairs (unless sold "as is")
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You can save money in your title
search if you use the same title company that the lender
used during foreclosure. They will often discount the cost
up to as much as 100%!
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REOs will often times include
appliances
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And most importantly.......you
can save a lot of money $$$
More advice on buying REO properties
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Have your agent run
a CMA (Comparative Market Analysis) on the home to be sure
you are getting a great price.
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Check the total cost
of ownership, including taxes, Mello Roos, association
fees, insurance, etc This is especially important if you
are buying the home for investment (e.g., as a rental
property).
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Be aware that many
REO properties are sold "as is".
In this case, the bank will often be unwilling to do any
repairs to the property, so you should factor this into
your purchase decision.
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Banks are also exempt
from having to provide a Transfer Disclosure Statement
(TDS) or other standard seller disclosures that help you
determine the condition or past history of the home.
Because of this, all buyers considering the purchase of an
REO property should be prepared to order a home inspection
through a certified home inspection company. The small
cost of a professional inspection may save you a lot of
heartache later, especially if serous problems are found
with the home.
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Set proper
expectations regarding sales price. Buyers should be aware
that the majority of bank owned properties are already
very aggressively priced. The reason is that the banks are
very anxious to get these properties off of their books,
therefore, they are typically "priced to
sell". Many people (especially those that watch
late night infomercials) feel that they should be able to
get a foreclosed property for 10 cents on the dollar. This
is unrealistic, as banks simply don't wish to give
properties away. While you may certainly negotiate the price, I would
advise a buyer to avoid "low ball" offers, or to
expect a massive discount off of the list price. Instead,
offer a reasonable price for the home, or work with the
bank to arrive at a win-win situation.
This page will help you find REO or Bank
Owned properties and homes for sale in Aliso Viejo, Coto de
Caza, Dana Point, Dove Canyon, Irvine, Tustin, North Tustin,
Yorba Linda, Fullerton. Placentia, Villa Park, Orange, Ladera Ranch,
Laguna Hills, Laguna Beach, Laguna Niguel, Lake Forest, Costa
Mesa, Huntington Beach, Foothill Ranch, Portola Hills, Las Flores, Wagon Wheel Canyon,
Mission Viejo, Newport Beach, Rancho Santa Margarita, Robinson
Ranch, San Clemente, San Juan Capistrano, Silverado Canyon,
Modjeska Canyon, or Trabuco Canyon.
The Foreclosure Process
There is some confusion among home
buyers as to the difference between a bank owned property, a
home in foreclosure, repossession, an auction sale, or a court house sale.
How does a property become bank owned or an REO? Before a bank
or lender takes a property back, the former owner first goes
through the process of foreclosure.
Definition of Foreclosure
A foreclosure occurs when a
property owner misses or cannot make principal and/or interest
payments on his/her loan. The bank or lender then takes steps
to warn the home owner, and finally, to start the legal
process of taking the home or property back. A foreclosure
process can be started by the primary (first mortgage) lender,
or by a secondary lender (second trust deed, private second,
personal lien, etc).
Foreclosure
Steps
After a
designated period of missed payments, the bank or lender
orders a trustee to record a Notice of Default (NOD).
This puts the borrower on notice of foreclosure and
starts a reinstatement period that typically runs until five
days before the home is auctioned off.
If the default
isn't corrected within the designated time period (typically 3
months) a foreclosure sale date is established. The home owner
will receive a Notice of Sale. This document is also
posted on the physical property. The public is notified about
any local Notices of Sale by publication in County
newspapers.
The actual foreclosure
Trustee Sale occurs on the steps of the local courthouse.
At the Trustee Sale, the property is auctioned off to the
highest bidder, who must pay the high bid price in cash. A
wining bidder will then receive the trustee’s deed to the
property. At the courthouse auction, an opening bid on the
property is set by the foreclosing lender. There is always an
opening bid, which is equivalent to the outstanding loan
balance, interest accrued, and any additional fees and
attorney fees associated with the Trustee Sale. If there are
no bids higher than the opening bid, the property will be
purchased by the attorney conducting the sale, for the lender.
Typically, more then 99% of homes or properties fail to sell
at the courthouse auction.
If the opening
bid is not met, the property is returned to the bank or lender
who started the foreclosure, and the property becomes an REO
or Bank Owned property. The bank or lender will then
begin the process of marketing the property for sale by hiring
a real estate broker to sell the property. Due to the volume
of foreclosures, banks and lenders generally sell these
properties "as is", and are willing to do little or
no repairs to the property.
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Related links:
REO agents in Orange
County, CA. If you are interested in an OC bank owned, REO, or foreclosure properties,
please call me. I will be happy to assist you with a
bank owned property in Orange County, CA, as well as
a regular home sale, purchase, lease, lease-option,
or rental.
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