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A default property is described as one that the owner has fallen behind on their mortgage and the lender has served a "Notice of Default". The remedies to correct default include:
- Bring payments current.
- Consider selling or refinancing property, if there is sufficient equity to do so.
- If the sum of all loans is greater than the fair market value of the property seek a "short sale" from the lender.
The time frame after receiving a default notice from the lender and a trustee´s sale is approximately 122 days, if not corrected. One hundred and twenty two days sounds like a long time, however the buyer and seller must act quickly to allow time for all the data required by the lender. To complete a successful short sale both buyer and seller need to be patient and be prepared for a lengthy escrow. When the lender accepts a short sale it can be a win, win situation for all involved.
The transaction is much like a normal purchase when the seller has sufficient equity to pay for closing costs. The key to successfully buying a default property is to evaluate all information needed to justify a purchase. The current market value, property condition, all loans, back taxes, liens and normal closing costs all need to be determined. We work with our team from escrow and title to put together a net sheet to see if it is practical for you to pursue the property.
Working for real estate home buyers of default properties is very time consuming and we ask our clients to be prepared for the process. If you have interest in acquiring a default property, here is how you can get started.
Requirements:
- Proof of money for down payment (usually 20% of purchase price) and closing costs.
- Letter of loan approval from a recognized lender.
- Your credit report and FICO score from lender.
Please FAX this information to: (714) 596-5960 and include the following:
Name of buyer one
Name of buyer two (if applicable)
Your Physical Address
Phone numbers we can reach you at
Your e-mail address
Description of the property you are interested in:
City in Orange County
Square footage range of home
Maximum age of home
Single family or condo or either
Price range that you have been approved for by your lender
Number of bedrooms, bathrooms
Number of garage spaces
Mail or Fax this information to:
First Team Estates
Attn: Larry & Susan Goudge
4 Corporate Plaza, Suite 100
Newport Beach, CA 92660
Susan cell (949) 375-2216
Larry cell (714) 803-6649
FAX to (714) 596-5960
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