3 Ways to Buy an Orange County CA Foreclosure Property

FORECLOSURE FOR SALE

3 DIFFERENT WAYS TO BUY A FORECLOSURE AT ORANGE COUNTY CA REAL ESTATE:

1. PRE-FORECLOSURE “SHORT SALE”

When an Orange County CA property loan is in arrears for 30 days or more, lenders usually start the California non-judicial foreclosure process with filing and recording of a “Notice of Default”.

After start of the foreclosure, the homeowner might want to sell the property to avoid foreclosure and get out from under the mortgage debt.

In this pre-foreclosure “SHORT SALE”, the selling price of the house is usually less than what is owed to the lenders.

The proposed SHORT SALE contract terms must be carefully set forth in a written purchase and sale agreement and approved by the lenders and lien holders who would agree on terms of sale and debt forgiveness.

2. TRUSTEE AUCTION SALES AFTER NON-JUDICIAL FORECLOSURE

After the filing and recording of a “notice of default” (NOD), if the homeowner does not “SHORT SALE” the property, it is scheduled for trustee auction sale after foreclosure – to be sold to the highest bidder.

California Non-Judicial Foreclosure Process

  • “Notice of default” filing starts the process – usually 30 days after borrower is in default on home loan
  • Notice of trustee sale can be recorded 3 months after recording Notice of Default
  • Initial trustee auction can be scheduled and held just 20 days after Notice of Trustee sale
  • Trustee auctions can be postponed for up to one year
  • At Auction – transfer of property title to winning bidder who would pay all cash or its equivalent at that time.
  • If no bid at auction is higher than lender’s opening bid, title to property is transferred to the lender, and property becomes REO lender owned.

3.  REO BANK-OWNED AFTER FORECLOSURE

If the property does not sell to a third party at the public foreclosure auction, title is delivered to the lender that started the foreclosure – then to become an REO lender-owned property.

The foreclosing lender would then need to evict the prior distressed homeowner (if still living at the home) or renters, using CA law approved procedures, perform essential repairs and place the property on the market in the MLS for sale as an REO.

Irvine CA – see REO listings

Newport Beach CA – see REO listings

 
buying a foreclosure

CONTACT US HERE ABOUT BUYING FORECLOSURES AT ORANGE COUNTY CA REAL ESTATE.

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This is for information only and is not the providing of legal or tax services. Buyers of foreclosures should consult with a real estate attorney in their local area.

Contact us about listing and sale at Orange County CA homes and real estate.~Professional REALTOR® agent representationand help for property owners, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties atOrange County, CA.

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About Harrison K. Long

Businessman, Professional real estate representative, Realtor, GRI, Broker associate, Coldwell Banker Residential Brokerage - Orange County, California - CA DRE 01410855 - Helping property owners, estate trustees, executors and administrators, fiduciaries, bankers, investor group managers, with listing and sale of properties - helping people with their best decisions about homes and real estate - Orange County Association of REALTORs member, California Association of Realtors member now serving on its board of directors from 2011 to the present, National Association of Realtors member - Attorney member of the California State Bar Association #69137 - Contact by telephone or text at 949-701-2515.
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