| The real estate market here in Orange County | | | | Currently there are a grand total of 3,699 |
| California has undergone a large correction that | | | | detached homes under contract in Escrow in |
| began in earnest in the summer of 2006'. | | | | Orange County. Of this total, 2,124 are short |
| Reports have shown that 1 in 5 homeowners | | | | sales, which represents a ratio of 57.4% for |
| own more than there home is worth, and many | | | | Orange County. In addition, there is now a Total |
| of those homeowners are having trouble with the | | | | of 3,077 condominiums currently pending in |
| mortgage payments due to the recession. In | | | | Escrow, and 2,058 short sales in escrow, for a |
| decades gone by, mortgage banks would file a | | | | ratio of short sales to the grand Total of 66.9% . |
| Notice of Default once a homeowner became | | | | In Orange County in the past 90 days, there |
| delinquent on their mortgage by 2 to 3 months, | | | | have been a total of 3,450 detached homes that |
| and then follow through and Foreclosrue on the | | | | have Sold and closed escrow. Of this amount, 750 |
| home and take ownership to the property as a | | | | were Short Sales sold, which yields a ratio of |
| Bank owned REO. | | | | Short Sales to the Total of 21.7%. For attached |
| Times have changed due to political pressures and | | | | condos that have sold in the past 3 months, there |
| changing mores. Today, a Bank would much | | | | have been 2,332 units that have closed. Of this |
| rather entertain and grant a Short Sale, then have | | | | Total, 741 were closed Short Sale condos, which |
| to Foreclose on a property owner who may be | | | | represents 31.8% of the total. |
| under financial strain. It is the proverbial win-win | | | | There are some interesting observations to |
| resolution for studies have shown that Banks | | | | make, First, notice the large increase in the Ratio |
| loose less money in a Short Sale compared to | | | | of Short Sales to Total when you compare |
| Foreclosure, and Short Sales provide property | | | | Active for Sale to Pending in Escrow. This is due |
| owners some major benefits compared to | | | | to the fact that most Short Sales are bargain |
| Foreclosure. | | | | priced and many home buyers today are seeking |
| Simply put, a Short Sale is a real estate | | | | value. But the next observation is even more |
| transaction in which the fair market value sales | | | | interesting. Notice how the ratio of Short Sales to |
| price of the home is less than the current | | | | Total decreases substantially when comparing |
| outstanding mortgage debts plus cost of sales. | | | | Pending in Escrow to Sold in the past 90 days. |
| A professional Realtor usually has to negotiates | | | | This shows the high failure rate of Short Sale |
| such Short sale terms with the mortgage bank(s) | | | | transactions. To be exact, in the past 90 days, |
| in order to be successful. | | | | approximately 62% of detached Short Sale |
| In Orange County California, as of March 1st of | | | | Transactions failed, and 52% Short Sale condo |
| 2010, there are 5,239 detached homes active for | | | | transactions failed to close. |
| sale, and 1,228 short sale properties active for | | | | The reason for this high failure is unfortunatley |
| sale. That is a ratio of 23.4% of active Short | | | | many agents do not have the training or |
| Sales to Total listings. There are a Total of | | | | experience to close this complex transactions at a |
| 3,117 attached condos listed for sale, and 1,149 of | | | | high rate of success. The Short Sales ASAP |
| these active listings are short sales. This | | | | group are Orange County Short Sale experts and |
| represents a ratio of Short Sales to Total condo | | | | have a closing success rate of over 95%. |
| listings of 36.9% . | | | | |