REO and FHA LOANS

BUYING BANK OWNED, FHA LOANS AND THE WHOLE ENCHILADA… There is a lot of conflicting information out there. Have foreclosures peaked? Maybe not everywhere, but Orange County is getting close. The banks took possession of 698 properties in March, down 4% from February and down 13% from January. (Source:Dataquick) They could spike again, slightly, over the next few months but indications would be that the number is stabilizing. Some reasons are that more and more lenders are developing work out programs, loan modifications and loan relief. Short sales are still out there but frankly they are the riskiest bet for a buyer. You could be tied up for weeks waiting for a response from a lender, unlike a bank owned which is listed for a set price and is ready to go. Remember, however, that most bank owned properties are sold “as is” and “buyer beware.” They will need work and patience. Don’t expect to lowball these properties either as multiple offers are starting to make an appearance on these already price adjusted homes. We want to say a word about FHA loans. The loan limit on this product has risen to $729,000 in Orange County. It allows for a 3% down payment or 5% if it’s a “jumbo lite.” The money can be gifted and need not be seasoned. It is available for refinance up to 97% loan to value for rate and term. This is a viable option for refinances if some of your equity has been lost. Please call us for any questions on any real estate matter. We are your experts on “the whole enchilada!” See you next month!

P.S. For a look at how the county shapes up with foreclosures by city, give us a call and we will send you the map which appeared in the OC Register.