A prominent Orange County homebuilder, Standard Pacific Homes was close to being declared bankrupt about two years back. This Irvine-based homebuilder constructs houses in the state of California and seven other neighboring states. It is now back in the fray, spiritedly embarking on a virtual buying spree of mostly foreclosed properties from banks, causing waves in the Orange County real estate market. This manifests a healthy optimism that the recessionary tendencies will be supplanted by a rebound of the housing market, enabling it to reap handsome bonanzas for its present financial inputs.

Standard Pacific Homes is proving its market analysis and expectations in its investments. Let’s briefly review how these have been. Firstly, the company has grabbed foreclosed lands for $28 million, representing splendid acquisitions at a mere fraction of the actual market values of the lands. These include the San Clemente housing project Talega, where it has acquired 20 lots for over $7.5 million, intending to later sell each lot, with the finished home, for about $1.5 each. More importantly, the company has offers worth a total of $300 million in the pipeline, with about $112 million pertaining to real estate in Orange County

How did Standard Pacific Homes manage to have its fortunes soar from its recent nadir? Well, it became leaner, shedding considerable staff and land. Lady Luck also did smile. Comprehensive loan rescheduling arrangements, coupled with a godsend cash-infusion from a white knight, have left it with seven years to meet its debts and over $500 in its coffers. That’s ample sum to play around in the housing market with, and the company is making the most of the foreclosure auctions to sow its seeds far and wide, in the hope of raking in magnified lucre during rosier real estate market conditions.