NO REO / FORECLOSURES LEFT IN LAKE FOREST AND JUST A FEW IN MISSION VIEJO

What is happening with REOs in our local market?

“Buyers expecting rock-bottom prices on bank foreclosures are finding them in short supply absent a flood of new properties. Increasingly, lenders are agreeing to short sale transactions, but buyers are facing competition in the form of multiple buyers with sizeable down payments or all-cash. First-time buyers will continue to be a force in the market thanks to an extension through April 30, 2010, of the $8,000 federal income tax credit. They will be joined by existing homeowners, who can qualify for a $6,500 federal tax credit if they trade up before the same deadline.”

These words sum up exactly what I have been experiencing in the Saddleback Valley and beyond.  I thought it would be interesting to see how many entry level homes under $500,000 are available today in Mission Viejo and Lake Forest, California and then breakdown what types of listings they are:

Mission Viejo has 129 active listings.  There are 6 REOs, 48 standard equity sales (which include flipped properties), and 75 short sale (and other listings that require a bank or investor approval.)

Lake Forest has 89 active listings.  There are ZERO REOs, 20 standard equity sales (which include flipped properties), and 69 short sale (and other listings that require a bank or investor approval.)

In other words – both cities have more standard equity sales than REOS and more short sales than standard sales.  The short sale represents 58 to 78 percent of the market in Mission Viejo and Lake Forest.  While they still sell for less than a standard sale, if you want one, you need to be prepared ahead of time with your ducks (and patience) in a row.

You can follow any responses to this entry through the RSS 2.0 feed.

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>