Some are Confused about Foreclosures:

The numerous foreclosure reports we read in the papers and online often contradict each other. One headline will say that foreclosures are increasing, and another discusses the decrease in the number of properties that are foreclosing.


Of course this causes a lot of confusion about
the foreclosure issue.


Let’s try to simplify the foreclosure process.


There are five individual stages in the foreclosure process:

(1) 90 Day (plus) Delinquencies
Most banks include homes where the homeowners are three months behind on their payments, in their foreclosure numbers, but some don't.

This is because less than 2% of those who fall that far behind ever catch up in their payments. The rest will end up as a short sale or foreclosure, and these homeowners hardly ever get a foreclosure notice right away. Sometimes a homeowner trying a short sale will miss a year
or more of mortgage payments, without having received a foreclosure notice.

(2) Homes Already in the Foreclosure Process
Owners of these homes have received a formal court notice which officially starts the foreclosure process.

(3) Homes Already Repossessed by the Bank
These homes have finished the foreclosure process and are now owned by the bank. These
homes are known as REOs (Real EstateOwned).

(4) REOs placed on the Market
This is when the banks hire someone like me to list their REO properties on the market for sale. Some have to be fixed up before being advertised for sale, (you have to see the condition some leave the homes in, even faucets and light bulbs are removed!), while others are put up on the
MLS right away.

(5) REOs Sold
Obviously, these are the REOs, (bank owned homes), that actually sell.

I know, it still sounds confusing….

To truly understand the distressed property situation in Irvine and what impact it may have on prices, contact me.

I’ll be able to simply and effectively explain, with the use of charts & graphs, what is happening in our area, and how it may impact you.