The Newport Beach real estate market has both foreclosures, and short sales for sale . The definition of a short sale is when a bank or lien holder lender agrees to accept a discounted payoff on a loan balance as a result of either economic or a financial hardship on the part of the mortgagor.
There are more short sales for sale in the Newport Beach area than foreclosures. In December, 2011, there are 9 active REO listings. The short sale market in the Newport Beach area has many considerations. There are both back up and pending status, and some of these short sales may not get approved by the lenders. If that is the case, then the property may go back to the bank.
The bank also wants fair market value for the property and will go great lengths in order to obtain information. A bank or lender may request more than one BPO (broker price opinion) and obtain independent appraisals.
In Newport Beach, there are currently 42 active listings, 45 in back up, 13 pending, and there have been 5 sales during the month of the January, 2012
There is a low absorption rate for short sales in Newport Beach. One month does not signify a trend, however the three month to one year indicates a 9 month absorption rate.
A Newport Beach short sale may be the right property for you. They can be great opportunities and deals. However, there can also be associated costs with purchasing a short sale that the bank will not pay for, and these are considerations when purchasing a short sale.
Originally posted at NewportBeachRealEstateCafe.com
Sharon Paxson REALTOR®