Newport Beach is one of the most expensive places to live in Southern California and we always have clients looking for distressed properties as a way to get into the real estate market. Bankruptcy sales are different than bank owned or short sales as the latter has occurred after the bank has foreclosed on the home and the owner is no longer living in the home. Short Sales differ as the owners are typically still living in the home and are selling the property and asking the bank to forgive the difference between what they owe to the bank and the offering price of the home. A Bankruptcy sale occurs when the owner is liquidating their assets in order to be in compliance with the bankruptcy rules and regulations. There is a certain process in order to buy a bankruptcy court sale property and is explained here.
In most cases it will be a requirement to provide a proof of funds statement and a pre-qualificaiton letter from a lender in order to have an offer reviewed by the court. In essence, the court wants to know if you can financially afford to buy this home so a proof of funds in commonly used with all cash offers and a letter from your mortgage banker going over your qualifications if getting a loan. Offers are typically submitted two days before the court date and normally require the proof of funds statement or qualification letter along with the offer. It's important to note that all offers are typically subject to the trustees bankruptcy court approval with overbid procedures. Buying a home this way will ultimately require more time and patience than a normal real estate transaction so keep that in mind when looking at these types of sales. There are currently two bankruptcy homes for sale in the Cliffhaven and Newport Heights neigborhood. We have gathered the current list of Bankruptcy court homes for sale that are featured here.