Foreclosures, short sales and bank-owned properties, which account for about 33 percent of the total listings currently for sale on Southern California hot spot’s market, were a major focus of buyers/investors in the area. And more than a 100 of the listed properties were for sale for more than $1 million, which is about 3 percent of all distressed listings.

Who are the new faces moving into town? First-time homebuyers, mainly, according to Steven Thomas, a local broker who tracks home sales in the area:

“We’re getting through all the backlog of all the people that are upside down, that are having problems, that have lost their jobs. We’re going to be getting through this…. The strongest part of the market is the first-time homebuyer. Those about 35-years-old.”

Thomas also revealed that it takes twice as long to sell a home if it is not distressed, about six months, because of the equity situations. It’s no secret that most smart buyers are more likely to find ways to get the most house for the least amount of money. And are interested in moving swiftly, which is ideal for banks, lenders and other mortgage not holders that want to balance their books.

To search foreclosures, short sales and other distressed properties in Orange County and anywhere else in the United States click here.

No, we’re not talking about anything illegal.

But with these historically-low home prices, it might feel as though you pulled a fast one on a bank if you’re able to negotiate a great deal.

It’s no secret that banks repossess homes when borrowers default on their mortgage loan payments. And when these distressed homes fail to sell at public auctions, the banks take them back and list them as real estate-owned (REO) properties for sale.

Banks are motivated to sell their REO homes quickly, which means that they are often willing to part with them at significantly reduced prices.

So how do you go about planning your own real estate heist? Money.MSN.com provides a basic outline:

1. Learn how to recognize a deal when you see one
2. Be preapproved for a loan
3. Be ready to pounce
4. Bid as high as you’re willing to go

The most important thing that you need to do is your homework, which will give you the confidence to move fast on a deal that’s right for you without any second guessing.

To search for bank-owned homes for sale in your area right now click here.

Get ‘em before they’re gone!

CNBC Real Estate Reporter Diana Olick today reports that bank-owned foreclosures (also known as REOs) and short sales — both of which fall under the distressed real estate umbrella — accounted for nearly 50 percent of all home sales in Dec. 2010.

The 47 percent share is up from 44.5 percent in Nov. 2010.

Low interest rates, as well as delayed sales agreements that were finally pushed through after “robo-signing scandal” concerns were alleviated, are the primary reasons behind the major spike.

Thomas Popik of Campbell/Inside Mortgage Finance explains:

“There were signed purchase and sale agreements, and those closings were delayed until the paperwork was reviewed. The major servicers pulled from the market houses that had been listed, and buyers were found. Once those transactions went back on, then they closed, and that’s what bumped up these December statistics so much.”

Keep in mind that home sales are typically down during the holidays, which makes this news even more remarkable because real estate business was actually up 12.3 percent (seasonally adjusted) to close 2010.

To search foreclosed homes and short sale listings for sale in your area click here.

Be sure to hurry … the distressed real estate market is fast and furious. The best deals don’t last long!

That’s the assessment from Jamie Dimon, who is the CEO behind one of the largest money-lending financial institutions in the nation, J.P. Morgan Chase

He explains via MarketWatch.com:

“It is a big mess, it has cost us a lot of money. Unfortunately, the only way to do it right is name by name by name…. We will do as many as we can. There is a lot of paperwork. The paperwork is different in every single state…. There were multiple checks and balances and there may be mistakes made in the foreclosure process, but they are very few and boy, when we find them, we try to make up for them right away.”

It’s nice to hear that big banks area learning from their mistakes revealed through the recent robo-signing scandal and are still working feverishly to correct them sooner rather than later. And fix them the right way … even if it means it may cost more.

Each foreclosure case needs to be scrutinized and airtight before heading to the auction block — there’s just too much at stake. That’s the way it should have always been and should remain indefinitely.

But Dimon cautions that because each case needs to be scoured with a fine-toothed comb, and because foreclosure laws are different (and changing) state-by-state, it could take “years before this plays out.” No more cutting corners.

If nothing else that gives distressed homeowners and their families more time to figure out their next moves, perhaps literally, which isn’t a bad thing, at all, considering the difficult circumstances.

Major banks and mortgage companies are joining forces and giving back in select communities, revitalizing distressed homes and selling them — and in some cases giving them away outright — to nonprofit organizations and local redevelopment agencies.

In turn, according to an Associated Press report, low- and moderate-income families who would otherwise be priced out, or beat to the punch by cash-laden investors, are achieving the American Dream of homeownership at prices they can afford.

Rebuilding Together in Phoenix, Arizona, is just one of many nonprofits that is taking advantage of the $7 billion program, which is part of a federally-funded initiative that returns homes back to local community members.

JPMorgan Chase & Co., as well as Wells Fargo, are among the lenders that are participating in the program. These lenders work with companies like  Honeywell International Inc. to renovate and ensure the homes are in good shape before turning them over to the various nonprofits and redevelopment agencies.

In the past two years, Chase has donated and/or sold about 1,200 homes through the program, while Wells Fargo donated about 200 and sold “hundreds more at a discount.”

For more information about the Neighborhood Stabilization Program click here.

That didn’t take too long.

Little more than two months after Bank of America (BoFA) initiated a self-imposed foreclosure freeze to review its eviction process, the largest financial institution today announced plans to resume about 16,000 cases this month.

According to Barbara Desoer, president of BoFA Home Loans, these cases have been selected because they are vacant and/or are not owner-occupied properties.

Here’s a snip:

“We are taking a deliberate and phased approach to restarting foreclosure sales. We continue to be committed to ensuring that no property is taken to foreclosure sale until our Bank of America customer is given an opportunity to be evaluated for a modification or, if ineligible for a modification, a short sale or deed in lieu solution…. Foreclosure is the option of last resort.”

The primary reason behind the initial freeze was to investigate claims that unqualified “robo-signers” improperly — and possibly fraudulently — signed/executed foreclosure documents en mass. BoFA claims that it used the time to correct several areas of its foreclosures process, including, but not limited to:

• Enhancements to preforeclosure referral and sale checkpoints
• Introduction of new affidavit forms where required
• Changes how associates are trained
• A new code of conduct in management review
• Training for external foreclosure counsel
• Affidavits submitted in judicial foreclosure states comply with law.

Like Fannie Mae and Freddie Mac, BoFA will observe a “holiday suspension” of sales and evictions from Dec. 20 to Jan. 2.