Coronado Foreclosures & Short Sales
Foreclosures in Coronado? That’s right. Up until 2008, we rarely saw any distress sales such as bank owned foreclosures or short sales on the market in Coronado, CA. But times have changed! These days, some sellers are being forced to sell at a loss with a short sale, or give their home back to the bank in foreclosure.
Interested in Coronado short sales and bank owned foreclosures? Distress sales in Coronado move fast. Sign up for property alerts the minute a new foreclosure or short sale hits the market. You’ll get property photos, info, addresses, and other details straight from the MLS. Click here to sign up for Coronado Foreclosure & Short Sale Property Alerts.
Buying Coronado Bank Owned Foreclosures for Sale
What’s a foreclosure? In short, a foreclosure is a situation in which a homeowner is unable (or unwilling) to make principal and/or interest payments on his or her mortgage, so the lender, usually a bank, can seize and sell the property as stipulated in the terms of the mortgage contract. Often foreclosures appear on the market as bank-owned foreclosures, or REOs.
In Coronado, foreclosures are often priced BELOW market value, in order to generate many offers as quickly as possible. It is common for Coronado foreclosures to sell well-above the asking price. Banks prefer to sell to all-cash buyers, but often buyers with conventional loans are acceptable as well.
If you’re buying a foreclosure, it is very important to move fast. Time is of the essence! Most of the time foreclosures go into contract in just a few days. Click this link for tips and advice on buying foreclosures.
Buying Coronado Short Sales for Sale
Some real estate experts estimate that up to 50% of real estate sales in 2010 will be short sales. We certainly have our share in Coronado.
Short sales are when the seller owes more on the home mortgage than the home is currently worth. If he cannot (or will not) continue to pay the mortgage loan on the property, the lender may decide 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 usually involves big fees for the bank and a poorer credit outcome for the seller.
Say someone bought a house in 2005 for $850,000. He pulled all the equity out of the house in a refinance, and currently owes the entire balance of the mortgage–$850,000. Now he lost his job, and can’t make the mortgage payments. He wants to sell, but his home is only worth $700,000. If the bank agrees to let the home owner sell the house for $700,000 to a buyer, then what you have is a short sale. Under many (but not all) circumstances, the bank will forgive the seller for the $150,000 deficiency.
If you are thinking of buying a short sale in Coronado, it is important to know how they work. Short sales are not traditional sales, and they are usually the most time consuming, most difficult type of sale you can do. However, they can be great deals, so we always encourage buyers to make the offer.
And remember, the best way to stay informed about the best deals in Coronado is to sign up for our Coronado Foreclosure & Short Sale Property Alerts.