Lake Forest II is not immune to the ills of the housing market. While the total % distressed homes on the market is much less than average for Orange County, we still have some properties that went back to the banks. I am aware of another 15 homes that are scheduled to go to trustee sale within the next month, but it’s always possible that they may sell at a short sale before becoming foreclosures.
Many lenders are still “testing the market” by listing these homes at the market value that they made their original loan on. Considering that many of these have been abused, or neglected, and are often quite dirty, and the buyer has to agree to the lender’s one-sided lender sales contract these properties deserve to sell at a substantial discount below owner-occupied and well-maintained. Sometimes it just takes a month or two for the lenders to give up, and get the prices down to where they should be. Once that happens, most REOs have sold quickly.