Sunday, May 1, 2011

Buying Defaulted Properties in California - Be Careful

buying defaulted properties 

Investor buyers have been active at Orange County, California, and sometimes want to buy defaulted properties from owners before they are lost in foreclosure.

Orange County properties in the following cities are now scheduled for trustee auction sales after foreclosure:

  • Aliso Viejo - 163 properties
  • Costa Mesa - 209 properties Orange County real estate
  • Dana Point - 104 properties
  • Huntington Beach - 330 properties
  • Irvine - 417 properties
  • Laguna Beach - 59 properties
  • Laguna Hills - 105 properties
  • Laguna Niguel - 234 properties
  • Lake Forest - 168 properties
  • Mission Viejo - 401 properties
  • Newport Beach - 151 properties
  • Santa Ana - 500 properties
  • Tustin - 202 properties

CA real estate lawBuyers of such defaulted properties directly from owners need to know law requirements, which are set forth in the California Home Equity Sales Contracts Law ("HESC"), in California Civil Code §§1965 through 1965.17 applying to residential sales if all of the following conditions are met:

  1. The property being sold is residential one-to-four units;
  2. The owner currently occupies the property;
  3. A Notice of Default (NOD) has been recorded against the property; and
  4. The buyer is an investor who does not intend to occupy the property

Home Equity Sales Contract laws in California were enacted to counter illegal buyer schemes, which had resulted in unsophisticated homeowners, under financial duress, entering into complex transactions resulted in losing their homes. 

The purpose of these laws was to provide homeowners with information for them to make informed, intelligent sales decisions, require written sales agreements, safeguard the public against deceit and financial hardship, insure fair dealing in the sale and purchase of homes in foreclosure, prohibit misleading representations, restrict unfair contractual terms, provide homeowners reasonable opportunity to rescind sales to equity purchasers, and protect homeowners' equity.

A seller in California who qualifies for protection under this Home Equity Sales Contracts Law ("HESC"), California Civil Code §§1965 through 1965.17 has certain rights.  Investor buyers of defaulted properties should be careful, study this and help protect homeowner sellers in these situations.

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It's easier and safer to buy a home at trustee sale auction in California than to buy defaulted properties directly from owners.  If want a list of properties now in foreclosure in any Orange County city, please contact us and let us know.

If you want to be an investor buyer of defaulted properties in California, be careful, know this law and consult with a real estate lawyer.  Buyers and sellers of such properties should always use an experienced Realtor agent for the transaction.

Harrison K. Long - solutions for real estate and business - REALTOR® and broker associate, GRI - Coldwell Banker Residential Brokerage - 949-854-7747 (phone) - ExploreProperties@gmail.com (email) - CA DRE 01410855 - SFR short sale and foreclosure resource certified by the National Association of REALTORs® - also now serving as director at California Association of REALTORs®.

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Contact us with your questions about real estate, listing and selling of homes and properties at Orange County, California. 

Posted via email from Explore OC Homes

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