There seems to be a perception (among some people) that high end or "luxury" areas are somehow immune to short sales and foreclosures--but that's not true. The subprime loans, originally targeted for "B" and "C" borrowers, eventually made their way into the "A" borrower range, the borrowers most often buying in the high end price range, because of the tempting terms offered by lenders at the time. Other factors for distressed sales in those areas are that the accumulated market conditions caused job layoffs or other income reduction, and/or the market value drop caused a short sale or foreclosure in a forced relocation for a borrower otherwise current on mortgage payment. In the high end market areas, many sellers with equity who could not sell simply delayed their plans and took the home off the market if it didn't sell. But others who needed to sell proceeded with a short sale listing, hoping to find a buyer.
- For all of 2011, in the 90803 zip code (Naples, Belmont Shore, Bluff Park, Belmont Park, Belmont Heights), approximately 28% of single family homes in the $440,000 to $1.4 million market sold under distressed property conditions. Out of 172 single family home sales listed in the MLS, 47 were designated as a distressed property sale, most of those being short sales. Condos distressed sales for 2011 were 37 out of 122, or 30% of the condo market in 90803.
- In the 90814 zip code (Alamitos Heights, and adjacent areas), 34% of single family homes in the $400,000-$900,000 range sold as distressed properties in 2011.
These figures are lower than Long Beach as a whole for 2011, where according to the MLS, 46% of all single family homes sold in Long Beach sold under distressed property conditions. (These figures for all areas may be lower than the true picture, because some properties are listed as "standard sale" when in fact they are recently foreclosed properties being re-sold by banks which impose their own contract conditions upon the buyer--so they really aren't a standard sales according to standard Realtor contract terms.)
- In Cerritos, approximately 33% of single family homes listed in the MLS, or 77 out of a total of 231, sold as distressed properties in 2011.
- Lakewood's distressed single family home sales in 2011 constituted 47% of all single family home sales, comparable to the entire city of Long Beach for distressed home sales.
There really isn't any place that is immune to this category of transaction, certainly not in Southern California. For a consultation about your residential property value, and what you may be able to do, please contact me, or visit my website at
www.juliahuntsman.com at "Help for Homeowners". Don't be one of the potential sellers who does not investigate all options, the bank would really rather have a sold property, a modified loan, a re-finance, rather than a foreclosed property--it helps their values as well.
There seems to be a perception (among some people) that high end or "luxury" areas are somehow immune to short sales and foreclosures--but that's not true. The subprime loans, originally targeted for "B" and "C" borrowers, eventually made their way into the "A" borrower range, the borrowers most often buying in the high end price range, because of the tempting terms offered by lenders at the time. Other factors for distressed sales in those areas are that the accumulated market conditions caused job layoffs or other income reduction, and/or the market value drop caused a short sale or foreclosure in a forced relocation for a borrower otherwise current on mortgage payment. In the high end market areas, many sellers with equity who could not sell simply delayed their plans and took the home off the market if it didn't sell. But others who needed to sell proceeded with a short sale listing, hoping to find a buyer.
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