Default notices in Orange County, foreclosures for sale have increased by 167.9% over the same period from last year; This is indicative in that Nationwide loan default and foreclosures have reach the highest they have been in the last 15 – 16 year period. In Orange County alone 20 339 home owners received default notices this year. If you consider the first quarter of 2007 this is up 130% as 8 843 were sent during the same period.
The main reason cited for this is the decline in property values and the “loans gone wild” activity. Although this is not only restricted to Orange County, it is happening in virtually every Californian county with only Los Angeles being the exception. Not all default notices lead to Orange County foreclosures for sale, and generally speaking 32% of property owners do emerge from the process by bringing their payments up-to-date, selling their property or refinancing it.
Buyers wanting to break into this market have a very good chance of finding property in Orange county for greatly discounted prices, all they need is a good credit score, and steady income that can be verified. Because of all the foreclosure activity taking place, lending standards are far more strictly regulated, and not everyone who believes they can qualify for a loan to buy a property at a bargain price will meet these standards.
However it is not all bad news, genuine buyers of California foreclosures for sale are also able to make use of mortgage insurance provided by the Federal Housing Administration. These do not require top notch credit, allow down payments of a low 3% and borrowers have to pay 1.5% of the loan balance up front and 0.5% in annual mortgage insurance. However with the low, low prices of property in the foreclosure market this is easily achievable.
Lenders and banks are being compelled to foreclose on more properties than ever and it is often difficult to sell these properties thereafter. The lender inventories are filling up much faster than they can be sold and this results in a lower property price.
Foreclosure takes place when the home owner is no longer able to meet the requirements of paying back his mortgage loan. If this occurs for more than three consecutive payment, the lender is allowed to send a default notice to the home owner, once the default notice has been sent the foreclosure process draws inexorably to a close. Within a few months the house is sold to the highest bidder or becomes a bank owned property. These bank owned properties have a clear title and are perfect for a first time home buyer who wants to live in a neighborhood with good property values. Remember it takes time to find the right property. It is important to ensure that you stick to a budget and eventually you will find the perfect property for your requirements.
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