Fountain Valley distressed property search made easy! At Synergy Real Estates our mission is to provide our clients with the best possible experience – utilizing professional knowledge, expertise, service, advanced technology, discretion and integrity.
When it comes to buying or selling a residence, we at Synergy Real Estate know you have very specific needs. Understanding and meeting those needs requires a Real Estate professional with proven qualifications in the local market coupled with broad national and international relationships.
Based in Orange County, California, Synergy Real Estate is one of the nation’s fastest growing boutique Real Estate firms. We are building a team of best-in- class professionals. With our main office in Huntington Beach, and representatives in Montecito, Santa Barbara, San Francisco, Temecula, and San Diego and affiliates around the world, no other residential real estate team understands real estate—and the needs of home buyers and sellers—like Synergy Real Estate does.
Since 1991 our unique group of real estate professionals has expertly provided our clientele with the superior service necessary to remain at the peak of success. With a focus on Orange County, here you will find complete access to all of the properties of Newport Beach, Newport Coast, Laguna Beach, Corona del Mar, Crystal Cove, Irvine Cove, Emerald Bay, Shady Canyon, Irvine, Fountain Valley, San Juan Capistrano, Laguna Niguel, Huntington Beach and Huntington Harbor and every property in Orange County, and all of California for sale. Each of these exceptional communities offers an amazing lifestyle with stone’s throw proximity to all that Orange County has to offer—from golf to yachting, world-class beaches to shopping at South Coast Plaza and Fashion Island, cultural attractions including the Orange County Performing Arts Center and the Pageant of the Masters in Laguna Beach…and more.
So, whether you are seeking an oceanfront residence, a waterfront or bay front home with a yacht dock, an equestrian estate or a resort property at a five-star vacation destination— you’ll find it at Synre.com.
Foreclosure Investment
Foreclosure investment refers to the process of investing capital in the public sale of a mortgaged property following foreclosure of the loan secured by that property.
In real estate, foreclosure is the termination of the [equity] of redemption of a mortgagor or the grantee in the property covered by the mortgage. Depending on the type of foreclosure proceeding, the sale may be administered by the courts (Judicial Foreclosure) or by an appointed trustee (Statutory Foreclosure). Proceeds from the sale are used to satisfy the claims of the mortgagee primarily, with any excess going to the mortgagor. Anyone may bid on properties sold at a foreclosure sale. As a practical matter, however, most properties are acquired by the lender, often for the amount owed on the foreclosed loan.
The foreclosure process begins when a financially distressed homeowner fails to make a loan payment and is served with a summons from his or her creditors. After service, papers will be filed with the county clerk’s office and be made a matter of public record (in some areas the place where deeds and mortgages are registered may go by a different name, such as the office of the land registrar). This notice is usually known as Lis Pendens, which is Latin for “pending legal action”. At this point, any attempts by the homeowner to borrow from public credit sources will be met with a negative response. On completion of the publication process, the foreclosure action will be permitted to proceed and the owners have a limited amount of time to pay up, sell, or make other deals with creditors. If none of these actions are taken, a foreclosure sale will take place. If no one bids the amount owed, the property reverts to the lender and becomes an REO (real estate owned) property held in inventory by the lender. Experienced foreclosure investors may work in all of these various stages, but the possibility of making a transaction with the homeowner is no longer possible after the property is an REO
Properties In Foreclosure
All Fountain Valley Properties In Foreclosure
Bank Owned Properties
Bank owned property also known as real estate owned or REO is a class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction. A bank will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the bank will legally repossess the property. This is usually the case as the amount owed on the home is probably higher than the value of this foreclosure property. As soon as the bank repossess the property, it is listed on their books as REO – Real Estate Owned – and is categorized as an asset (non-performing). As soon as a property goes into a distressed status (the borrower/home owner misses mortgage payments) the bank will want to determine the amount of equity that the property has. A popular method to determine the equity is to obtain a Broker Price Opinion (BPO) or order an appraisal. Based on the amount of equity that is determined from the BPO, the bank will decide to try for a short sale or to allow it to go through the foreclosure process. If the bank is able to sell the property through a short sale or at a foreclosure auction, then the property will not become a REO property. After a repossession and the property becomes classified as REO, the bank will go through the process of trying to sell the property on its own or obtain the service of an REO Asset Manager. The bank will remove some of the liens and other expenses on the home and try to resell it to the public, either through future auctions or direct marketing through a real estate broker. Asset Manager will also try to contact REO realtors that specialize in certain zip code to help sell this bank owned properties. Generally speaking, bank REO properties are in poor shape in terms of repairs and maintenance; however, real estate investors will often go after these properties as banks are not in the business of owning homes and so, in some cases, the low price can more than compensate for the condition of the property. Once a property is REO, the bank or lender will try to get rid of the property by either selling it directly themselves or through an established broker. Many larger banks have REO/asset management departments that will field bids and offers, oversee upkeep and handle sales.
Bank Owned Properties
All Fountain Valley Bank Owned Properties
Short Sales
A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.
In a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. Neither side is “doing the other a favor;” a short sale is simply the most economical solution to a problem. Banks will incur a smaller financial loss than would result from foreclosure or continued non-payment. Borrowers are able to mitigate damage to their credit history, and partially control the debt. A short sale is typically faster and less expensive than a foreclosure. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.
Lenders often have loss mitigation departments that evaluate potential short sale transactions. The majority have pre-determined criteria for such transactions, but they may be open to offers, and their willingness varies. A bank will typically determine the amount of equity (or lack thereof), by determining the probable selling price from an appraisal or Broker Price Opinion (abbreviated BPO or BOV).
Lenders may accept short sale offers or requests for short sales even if a Notice of Default has not been issued or recorded with the locality where the property is located. Given the unprecedented and overwhelming number of losses that mortgage lenders have suffered from the 2009 foreclosure crisis, they are now more willing to accept short sales than ever before. This presents an opportunity for “under-water” borrowers who owe more on their mortgage than their property is worth and are having trouble selling to avoid foreclosure as a result.
