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Fred Sed Orange County Short Sale Realtor

Friday's with Fred - Investing in Rental Real Estate Pt. 2

http://www.bestocproperties.com (949)272-0125

Investing in Real Estate can offer great cash flow for your portfolio. This week we discuss the next two options you should consider before investing in rental real estate in Orange County.

What is a Short Sale | Orange County Short Sale Process

A short sale in Orange County, or anywhere, is when a homeowner puts their property on the market for sale and sells it for less than the amount they owe to their bank. You may ask…”How can this be possible”? Well this type of transaction, the Orange County Short Sale Process, has become very popular over the last few years and should still be here over the next few years.

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When a homeowner is behind on their mortgage payments, heading toward foreclosure, filing for bankruptcy, or has any sort of financial or health related hardship that is holding them back from making their mortgage payments consistently and on time…they will and should attempt a short sale.

See, this short sale process is very extensive and thorough. It may take several months to complete. Think about it this way….Let say we use the following for our example:

Seller: Jon Doe

Bank: Bank of America (BofA)

Property address: 123 Front St.

Mortgage Balance: $500,000

Market Value: $300,000

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Let’s say that Jon Doe lost his job and has no way of making his mortgage payments on time anymore, so he is heading towards foreclosure. An alternative to a foreclosure is a Short Sale, so once the property is placed on the market for sale and an offer is received, then the offer and the completed Short Sale package will be sent to the lender for review.

From here the bank looks at various items, including all of the seller’s financials to determine if he/she really does have a strong case for a Short Sale or not. In our example we said that our client owed $500,000 and let’s say that the offer that came to us was for $300,000. We would communicate with BofA in this situation and continue to provide to them whatever information they require. During this time an appraisal has also been done by the bank to see what price they would agree to sell this property for.

Once the bank has come to a final decision they will send us and the escrow company a Final Short Sale approval and we can then, close out the transaction just like any other deal.

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Since the bank, BofA, would be taking a large loss on this property they have to take their time and review all the details of the short sale. This is a HUGE reason why short sales take as long as they do.

In the majority of cases a Short Sale is a much better solution for a struggling homeowner than letting the property Foreclose.

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Fantastic Italian Westpark Rental (5 Salviati Aisle Irvine, CA)

Fantastic Italian Westpark Rental


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$2,495
Condominium
Main Features
3 Bedrooms
2 Bathrooms
1 Partial Bathroom
1 Unit
Interior: 1,500 sqft
Location
5 Salviati Aisle
Irvine, CA 92606
USA

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Fred Sed

Fred Sed

Realty One Group
(949) 272-0125
Fred@BestOCProperties.com
http://www.BestOCProperties.com



Listed by: Realty One Group

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Desirable 2B,2B Condo in Yorba Linda!

Desirable 2B,2B Condo in Yorba Linda!


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$185,500
Condominium
Main Features
2 Bedrooms
2 Bathrooms
1 Partial Bathroom
Interior: 1,088 sqft
Lot: 780 sqft
Location
4515 Delancy Dr
Yorba Linda, CA 92886
USA

To get updates on open home dates and other property events, please click the "Like" button below:


Fred Sed

Fred Sed

Realty One Group
(949) 272-0125
Fred@BestOCProperties.com
http://www.BestOCProperties.com



Listed by: Fred Sed

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Beautiful 2B, 2B Condo in Anaheim Hills!

Beautiful Condo in Anaheim Hills!


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$259,000
Condominium
Main Features
2 Bedrooms
2 Bathrooms
1 Unit
Interior: 1,015 sqft
Location
1189 S Country Glen Way
Anaheim Hills, CA 92808
USA

To get updates on open home dates and other property events, please click the "Like" button below:


Fred Sed

Fred Sed

Realty One Group
(949) 272-0125
Fred@BestOCProperties.com
http://www.BestOCProperties.com



Listed by: Fred Sed

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