Purchasing Orange County Foreclosure Homes

There are many purchasers who are interested in Orange County foreclosure homes. Although this market is spread far and wide through the US, there is particular interest in Orange County. California is a state that has some of the highest foreclosure rates in the entire of the United States. These foreclosures are generally discounted at around 20% and account for 60% of the home purchases made in the state at present.

Orange County foreclosure homes have been taken back from the owner by the bank or lender because of the inability of the owner to meet his mortgage repayment obligations. He then goes into default and the bank forecloses on the mortgage in order to recover the default amount. This phenomenon has been attributed to the current credit crunch, where interest rates have been hiked and unemployment has taken its toll.

Purchasing a home for living in or investment purposes is always a good investment to make. Purchasing Orange County foreclosure homes is a great way to obtain a property at a discounted value, and bankrepohomes.org, is one of the resources you are able to make use of to source these properties.

Before you make the decision to purchase Orange County foreclosure homes, you have to understand something about the processes involved in this method of purchase. There is also a great deal of myth surrounding the purchase of Orange County foreclosure homes so it is good that you make yourself aware of these myths. Many of these myths have sprung from the fact that different foreclosure proceedings take place in other states and not in California, but many of them are just myths and don’t apply to any state at all.

Myth Number One – You might have heard that the purchase of Orange County foreclosure homes is only for serious investors. This has its merits but is not entirely true, if purchasing at auction this myth applies, but not when purchasing directly from the bank or lender who now owns the property. Many Orange County foreclosure homes are not sold at auction, sometimes known as a trustee sale or Sheriffs sale. They are purchased by the bank and become REO’s, this property is then sold by realtors appointed by the bank to do so. So anyone is able to purchase Orange County foreclosure homes, not only serious investors.

Myth Number 2 – After you purchase Orange County foreclosure homes, the previous owner can meet his debts and claim his home back. Not true! This only happens in some states outside of California. These states are subject to judicial foreclosure and call for the owners “rights of redemption”. California homes are subject to “deed of trust” and therefore the rights of redemption that allows owners to reclaim their property within a one year grace period does not apply.

Purchasing Orange County foreclosure homes, has been known to save some investors as much as $60 000.