Orange County has seen a large decline in median values in the last few years. Newport Beach, though perhaps not as badly hit due to its location next to the coast, has also seen a decline which becomes more obvious when looking at the number of short sales.
Of the 472 homes for sale in Newport Beach, only 44 of them are a short sale, meaning that less than 10% of the homes for sale are short sales. This is a much smaller number than in other local cities.
However, when looking at the homes that are currently in escrow or under contract, the numbers take a huge jump. Of the 110 homes in escrow in Newport Beach, 53, or nearly 50% are short sales.
When looking at the homes that have sold in the last 12 months, we again see a number closer to 10% as only 64 of the 600 or approximately 11% were short sales.
Why the discrepancy between active sales, closed sales and those in escrow? There is a great deal of congestion in the short sale process. The lenders may take as many as six months or more to approve a short sale. The buyer may get tired of waiting and walk away from the purchase. The seller may wait months and months only to find that the lender declines his request.
How can you make the best decision if you are facing foreclosure? You can make sure that you understand all of your options.
Please contact us at 714.319.9751 to discuss your options if you owe more on your home than it’s worth and are facing foreclosure. We will schedule a free consultation to help you understand your options. Don’t be one of the seven in ten people in foreclosure who do not talk with a professional to learn what they can do.