If you are someone who has been thinking of taking advantage of the current Real Estate Market crisis and all those foreclosure properties that have been hitting the market, you are not alone, you are however thinking too much and not acting fast enough.
What I mean by that is that there are many people already out there trying to do just that, they are making offers and trying to buy these properties. You have individuals looking to buy their personal residence, small investors looking at one to four properties and you also have major investors looking to buy in bulk or at the very least very large quantities of bank owned properties also called REO's.
There are in fact so many people trying to buy them, that when you put it together with some of President Obama foreclosure prevention efforts, particularly the foreclosure moratorium, the outcome has been that it brought the inventory of homes in the $300,000 range which is the average REO listing price way down, according to the California Association of Realtors it went from a 10 month inventory to a 3.5 month inventory in one year. Nationally REO's went down 26% from June of 2008 to June of 2009.
Some areas like Sacramento which was one of the hardest hit areas by foreclosure's are even down to a 30 day inventory or less.
So, how is this translating into the actual buying process? Well,people who are looking to buy these homes basically are getting just one shot at making and offer, they have to offer what has been now called their "highest and best" gone are the days of negotiating, starting low and getting a counter offer. If you have been writing offers and trying to buy a property for the last 6 months, by now you know that if you see a good one you act on it quickly, you come in at asking price or over asking price and when you are looking you better be ready to move fast or it won't be there by the time you are ready, this means having your financing in place, pre-approval and proof of funds as well as down payment all ready to go.
When you look at what has been happening it is very interesting to see that some of the properties in this up to $500,000 price range come into the market and go into pending sometimes less that 2 hrs later. Before banks were leaving properties on the market for 3-4 months before accepting an offer, however some banks finally figured that it was costing them too much in HOA's, taxes and other fees so they are moving them very quickly.
The other reason some people have mentioned as to why are trying to get this properties out of their books quickly is because they are concerned of a new wave of foreclosures inundating the market sometime next fall.
One of the ways that they had managed to lower the number of foreclosures was by trying to do loan modifications with some of the homeowners, I have to say that from what I have seen not many of these have worked out, most people have gone to the next option which is attempting a "Short Sale". From the ones that were modified, it has been reported that 53% of them have fallen back into arrears, making Loan Modifications only a temporary extension of the problem but not a solution, and one of the reason for that concern regarding a new wave of foreclosures.
Short Sales and Loan modifications are 2 other subjects that I would like to address on a later post, there is a lot to be said about them as well.
But in closing, The market for REO's at the price point we have been addressing here is a hot market and the more information you have and the faster you can make an educated offer, the greater the chances of your success in acquiring one of these homes. You will be in a much better position if you have an experienced team and a clear strategy.
If you want any information or need any help getting started just contact us and we will be happy to help
Showing posts with label reo. Show all posts
Showing posts with label reo. Show all posts
Wednesday, August 5, 2009
Wednesday, June 3, 2009
When Can I Buy A Home Again After Foreclosure or Short Sale?
When Can I Buy A Home Again After Foreclosure or Short Sale?
I found this very interesting article on CAR on want to make it available to the general public so I am sharing it with you.
When can I Buy A Home Again After Foreclosure or Short Sale?
The answer to this question has been very vague until now. Finally here are some answers to questions so many Californians are asking.This article expands on an earlier post we wrote “Short Sale? Foreclosure? What should I do? and helps to clarify what the differences are and where your credit stands after you have experienced one of these situations.
This information comes directly from the California Association of Realtors legal department.
One of the concerns a consumer has after experiencing a bankruptcy, foreclosure, or short sale (referred to as a “preforeclosure sale” by Fannie Mae) is the ability to obtain credit to purchase another home. Fannie Mae has updated its credit guidelines. This legal article summarizes those guidelines.
Q 1. How long is the time period after a foreclosure before a consumer can be eligible to obtain credit to purchase a home?
A Five years from the date the foreclosure sale was completed.
Additional requirements that apply after 5 years and up to 7 years following the completion date are as follows:
. The purchase of a principal residence is permitted with a minimum 10 percent down payment and minimum representataive credit score of 680.
. Purchase of a second home or investment property is not permitted.
. Limited cash-out refinances are permitted for all occupancy types pursuant to the eligibility requirements in effect at that time.
. Cash-out refinances are not permitted for any occupancy type.
(Source: FNMA Announcement 08-16, 6-25-08 )
Q 2. Why do the additional requirements for foreclosures in Question 1 only apply from 5 to 7 years following the foreclosure completion date?
A According to Fannie Mae policy in Part X, Section 103 of the Selling Guide, Fannie Mae requires only a 7-year history to be reviewed for all credit and public record information. The 7-year timeframe also aligns with the information provided by the borrower on the loan application relative to disclosure of a past foreclosure action. (Source: FNMA Selling Guide, 4-1-09. )
Q 3. Does a shorter time period apply if the borrower has “extenuating circumstances” that led to the foreclosure?
A Yes. Three years from the date the foreclosure sale was completed. The same additional requirements apply as listed in Question 1 except the minimum credit score of 680 is not required. (Source: FNMA Announcement 08-16, 6-25-08. )
Q 4. What are”extenuating circumstances” ?
A Fannie Mae describes “extenuating circumstances” as follows:
Extenuating circumstances are nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.
If a borrower claims that derogatory information is the result of extenuating circumstances, the lender must substantiate the borrower’s claim. Examples of documentation that can be used to support extenuating circumstances include documents that confirm the event (such as a copy of a divorce decree, medical bills, notice of job layoff, job severance papers, etc.) and documents that illustrate factors that contributed to the borrower’s inability to resolve the problems that resulted from the event (such as a copy of insurance papers or claim settlements, listing agreements, lease agreements, tax returns (covering the periods prior to, during, and after a loss of employment), etc.).
The lender must obtain a letter from the borrower explaining the relevance of the documentation. The letter must support the claims of extenuating circumstances, confirm the nature of the event that led to the bankruptcy or foreclosure-related action, and illustrate the borrower had no reasonable options other than to default on their financial obligations.
(Source: FNMA Selling Guide, 4-1-09 at 391. )
Q 5. How long is the time period after a deed-in-lieu of foreclosure before a consumer can be eligible to obtain credit to purchase a property?
A Four years from the date the deed-in-lieu was executed.
Additional requirements that apply after 4 years and up to 7 years following the completion date are as follows:
. Borrower may purchase a property secured by a principal residence, second home, or investment property with the greater of 10 percent minimum down payment ro the minimum down payment required for the transaction.
. Limited-cash-out and cash-out refinance transactions secured by a principal residence, second home, or investment property are permitted pursuant to the eligibility requirements in effect at that time.
(Source: FNMA Announcement 08-16, 6-25-08. )
Q 6. Does a shorter time period apply if the borrower has “extenuating circumstances” that led to the deed-in-lieu of foreclosure?
A Yes. Two years from the date the deed-in-lieu was executed. The same additional requirements apply as listed in Question 4 after 2 years up to 7 years. (Source: FNMA Announcement 08-16, 6-25-08. )
See Question 4 for the definition of “extenuating circumstances.”
Q 7. How long is the time period after a “preforeclosure sale” before a consumer can be eligible to obtain credit to purchase a property?
A Two years from the completion date. No exceptions are permitted to the 2-year period due to extenuating circumstances. (Source: FNMA Announcement 08-16, 6-25-08. )
Q 8. What is a “preforeclosure sale” mentioned in Question 6 and is that the same as a short sale?
A “A preforeclosure sale involves the sale of the property by the borrower to a third party for less than the amount owed to satify the delinquent mortgage, as agreed to by the lender, investor, and mortgage insurer” (Source: FNMA Announcement 08-16, 6-25-08 ).
Although the terms preforeclosure sale and short sale have been used interchangeably, there is a significant difference for purposes of obtaining credit. For Fannie Mae purposes, a preforeclosure assumes that the borrower has been delinquent in paying his or her mortgage and the lender agrees to accept a lesser amount to avoid the time and expense of a foreclousre action. A short-sale, however, can also refer to situations in which the lender of the mortgage agrees to a payoff of a lesser amount than is actually owed, even on a current mortgage, to faciiate the sale of the property to a third party. (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )
Q 9. Does a shorter time period apply if the borrower has “extenuating circumstances” that led to the preforeclosure (short) sale?
A No. There are no exceptions to the 2-year time period. (Source: FNMA Announcement 08-16, 6-25-08. )
Q 10. If a borrower sold his or her property as a short sale but was never delinquent on that mortgage and is now attempting to purchase a new primary residence, will Fannie Mae purchase the loan?
A The loan will be eligible for delivery to Fannie Mae provided that the borrower’s previous mortgage history complies with Fannie Mae’s excessive prior mortgage delinquency policy–that is the borrower does not have one or more 60-, 90-, 120-, or 150-day delinquencies reported within the 12 months prior to the credit report date–and the borrower has not entered into any agreement with the short sale lender to repay any amounts assoicated with the short sale, including a deficiency judgment. (Source: FNMA Announcement 08-16 Q&A, 8-13-08 ; FNMA Selling Guide, Part X, Chapter 3, Section 302.09. .)
Q 11. Are preforeclosure (short) sales and deed-in-lieu of foreclosure actions identified on a credit report?
A Preforeclosure sales may be reported as “paid in full” with a “settled for less than owed” remarks code, and the mortgage tradeline would indicate any recent delinquency. A deed-in-lieu may be reported by a remarks code indicating a deed-in-lieu. (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )
Q 12. How long is the time period after a bankruptcy (all except Chapter 13) before a consumer can be eligible to obtain credit to purchase a property?
A Four years from the discharge or dismissal date of the bankruptcy action (Source: FNMA Announcement 08-16, 6-25-08 ).
Q 13. How long is the time period after a Chapter 13 bankruptcy before a consumer can be
eligible to obtain credit to purchase a property?
A Two years from the discharge date and four years from the dismissal date (Source: FNMA Announcement 08-16, 6-25-08 ).
Q 14. Does a shorter time period apply if the borrower has “extenuating circumstances” that led to the bankruptcy (all actions)?
A Yes. Two years from the discharge or dismissal; however, no exceptions are permitted to the 2-year time period after a Chapter 13 discharge (Source: FNMA Announcement 08-16, 6-25-08 ).
See Question 4 for the definition of “extenuating circumstances.”
Q 15. How long is the time period after multiple bankruptcy filings before a consumer can be eligible to obtain credit to purchase a property?
A Five years from the most recent dismissal or discharge date for borrowers with more than one bankrutcy filing within the past 7 years (Source: FNMA Announcement 08-16, 6-25-08 ).
Q 16. Does a shorter time period apply if the borrower has “extenuating circumstances” that led to the multiple bankruptcies?
A Yes. Three years from the most recent discharge or dismissal date. The most recent bankruptcy filing must have been the result of extenuating circumstances. (Source: FNMA Announcement 08-16, 6-25-08. )
See Question 4 for the definition of “extenuating circumstances.”
Q 17. What is the difference between a Chapter 13 bankruptcy and a Chapter 7 bankruptcy?
A Chapter 13 permits a borrower with a regular income to propose a plan to repay some or all of his or her obligations over a period of up to five years. A borrower who files a Chapter 7 is permitted to retain exempt assets and receive a discharge of the borrower’s debts. Chapter 7 is a relatively quick liquidation process that is generally completed within 120 days. Chapter 7 cases are rarely dismissed. (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )
Q 18. What is the difference between a Chapter 13 dismissal and a Chapter 13 discharge?
A A borrower who files a Chapter 13 can dismiss the case at any time (voluntary dismissal) or the case may be dismissed by the court based on the borrower’s failure to comply with the requirements of the Bankruptcy Code or to make the required payments. If the borrower who files a Chapter 13 case makes all of the payments required by the plan, the borrower receives a discharge at the end of the plan. A borrower who doesn’t make all the payment required by the plan may still receive a discharge if the court finds, among other things, that the borrower made a certain amount of the payments and the borrower’s failure to make all of the payments was due to circumstances beyond the borrower’s control. (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )
Q 19. What are the requirements to re-establish a credit history?
A After a bankruptcy or foreclosure-related action, a credit history must meet the following rquirements to be considered re-established:
. It must meet the requirements for elapsed time (as discussed in this article.
. It must reflect that all accounts are current as of the date of the mortgage application.
. it must include a minimum of four credit references. At least one of the references must be a traditional credit reference, and one of the references must be housing-related.
A housing-related reference must cover the period following the bankruptcy discharge or dismissal, foreclosure, or deed-in-lieu, and can be in the form of mortgage payments or rental payments.
If rental payments were not reported to the credit repositories, the lender must obtain copies of bank statements, money orders, or cancled checks for the most recent 12-month period as a supplement to the rent verification.
. It must reflect three of the four credit references, including rental housing references, as active in the 24 months preceding the date of the mortgage application.
. It must include no more than two installment or revolving debt payments 30 days past due in the last 24 months.
. It must include no installment or revolving debt payments 60 or more days past due since the discharge or dismissal of the bankruptcy or the completion of the foreclosure-related action.
. It must include no housing debt payments past due since the discharge or dismissal of the bankruptcy or the completion of the foreclosure-related action.
. It must include no new public records since the discharge or dismissal of the bankruptcy or the completion of the foreclousre-related action. Public records include bankruptcies, foreclousres, deeds-in-lieu, preforeclosure sales, unpaid jdugments or collections, garnishments, liens, etc.
(Source: FNMA Selling Guide, 4-1-09 at 392. )
Q 20. Where can I get more information?
A This article is just one of the many legal publications and services offered by C.A.R. to its members. For a complete listing of C.A.R.’s legal products and services, please visit C.A.R. Online at http://www.car.org/.
Please make sure to ask a lawyer or acredited CPA, this information is not intended as legal advice and should not be taken as such.
Feel free to contact me with any questions or if you are thinking of selling your home wether it is a pre-foreclosure situation or not.
Rina Podolsky
Realtor
Friday, March 20, 2009
What is a Foreclosure?
In today's market, buyers are looking for the "killer deal", and I am constantly finding clients who want to purchase a home that is a "foreclosure".
I understand their point of view and respect the fact that they are looking out for their best interest or at least they think they are. One of the problems with this strategy arises from the fact that many people don't clearly understand what a foreclosure is, they use the term to refer to everything from a Short Sale to a property sold at Auction or an REO.
So what are the differences?
A foreclosure is a legal process in which, real property is sold to satisfy a public or private debt for which the real property has been pledged as security.Usually this happens against the wishes of the owner.
This process begins with the Notice of Default (and it varies according to local state law) but if not resolved it will end in what is called at a Trustee Sale (also called Auction)
When the property ends up belonging to the holder of the note (lender) it is called an REO (real Estate Owned). And many times it is then given to a Listing agent to be put on the market for sale.
The fact that a home might be in a foreclosure process does not necesarily mean it is currently on the market or that it will be sometime soon, in many cases, homeowner solve their delinquencies and that is the end of it.
It is also important to point out that depending on whether you are buying a property at a Trustee Sale, an REO, Short Sale etc, make sure that you are working with reputable agents that can guide you through the process, the are very different from each other and each has its own time-lines, requirements and implications, it is always important to know what you are getting yourself into before you begin.
Lastly I mentioned the Short Sale. Basically it is when your property is worth less than the total mortgage you owe on it. If you want to sell your home in this situation it will have to be approved by the lenders and there might be a tax implication for the seller of such property.
There is a lot to talk about on the subject if you have any questions contact me.
Have a GREAT weekend!
Rina Podolsky
rina@my858realtor.com
www.my858realtor.com
Remember if you are thinking of buying or selling a home I would like to apply for the job!
I understand their point of view and respect the fact that they are looking out for their best interest or at least they think they are. One of the problems with this strategy arises from the fact that many people don't clearly understand what a foreclosure is, they use the term to refer to everything from a Short Sale to a property sold at Auction or an REO.
So what are the differences?
A foreclosure is a legal process in which, real property is sold to satisfy a public or private debt for which the real property has been pledged as security.Usually this happens against the wishes of the owner.
This process begins with the Notice of Default (and it varies according to local state law) but if not resolved it will end in what is called at a Trustee Sale (also called Auction)
When the property ends up belonging to the holder of the note (lender) it is called an REO (real Estate Owned). And many times it is then given to a Listing agent to be put on the market for sale.
The fact that a home might be in a foreclosure process does not necesarily mean it is currently on the market or that it will be sometime soon, in many cases, homeowner solve their delinquencies and that is the end of it.
It is also important to point out that depending on whether you are buying a property at a Trustee Sale, an REO, Short Sale etc, make sure that you are working with reputable agents that can guide you through the process, the are very different from each other and each has its own time-lines, requirements and implications, it is always important to know what you are getting yourself into before you begin.
Lastly I mentioned the Short Sale. Basically it is when your property is worth less than the total mortgage you owe on it. If you want to sell your home in this situation it will have to be approved by the lenders and there might be a tax implication for the seller of such property.
There is a lot to talk about on the subject if you have any questions contact me.
Have a GREAT weekend!
Rina Podolsky
rina@my858realtor.com
www.my858realtor.com
Remember if you are thinking of buying or selling a home I would like to apply for the job!
Saturday, December 27, 2008
Questions regarding the economic bailout
My past three post have been a little heavy on the data, easy on the fluff. That is because for some reason I am one of those people... yes the kind that hunts for information everywhere...we gather it, store it, organize it, and some of us even try to use it later on. Imagine that!
One of my favorite parts of the process is asking questions. Yes, I love to ask questions. People who know me will attest to it and people who don't know me will get to know this fairly quickly.
So here we go. Today I thought instead of giving you information I will ask questions and see what I get... (of course you do know chances are I will go look for those answers later on and blog about them in the future).
Let's talk about the economy and the bailout... So how is it working? No, no like the Dr. Phill question, I mean, what is the process they are following to decide where they are going to allocate the money? why? and when?
Last I heard, part of the sum is going to aid the ailing national automotive industry. I am not well versed in such industry's downturn, and I do understand some of the possible disastrous consequences that would come as a result of the car makers going under, but how is handing money to an ailing company (or two or three), going to prevent them from crashing? How are we solving the problem? or are we just putting it off for a later date at an expensive cost to our taxpayers?
Let's go back to the bailout for a moment, and to a different sector in distress; Mortgages, banks, homeowners. How is the money going to actually help the homeowner with a mortgage that just reset and is pulling them under? will a bank be given money in accordance of the number of homeowners they help? will the banks be required to renegotiate the rates and conditions of homeowners in trouble? What about people who have lost or will loose their job or whose income will take a substantial downturn as a result of this economic hard times making their monthly mortgage payments too large for them? How is the money given to the institutions going to be used, is the idea for it to somehow trickle down to the homeowner who is not making their monthly payments? how?
Right now what I have seen is that affordable loans are only "new" loans. This will benefit people who want to purchase a property, and yes, that will help in part because more properties will sell due to the fact that rates are historically low. It makes more sense to purchase a home instead of renting it. Let's think about this for a moment though... to get qualified for a loan, you have to be a solid candidate and actually be able to afford it. But the people benefiting from this new amazing low rates are people in healthy financial situations, and that is great, if it came hand in hand with a plan for the banks and financial institutions to work things out with current clients that already have a mortgage, even those that are not yet, but might soon be in default.
I do know that I have seen the number of foreclosures go down and that REO agents are getting less listings from the banks, but it is too soon to know if this is because the banks are actually negotiating with the homeowners in trouble or because of the change in procedure that requires the bank to give greater notice.
And one last question that keeps going around in my mind; Where is all this money coming from? Is the government printing more money? using money originally allocated for something else? going into greater foreign debt? what are the consequences this will have down the road?
I am not proposing we do nothing or not have a bailout altogether, I want to be clear of what is being done, how it will get done, what it will accomplish and what will be the price or consequence of the actions we are taking today.
One thing is clear for me, the pendulum has swung , this situation started when we all became to trusting, we trusted in the asset managers to know what they were buying and selling, we trusted in the company's CEO's CFO's and management to be honorable people working for the best interest of the company they represented, we trusted mortgages were being given to people who could afford them and that were told what it was that they were buying into with all this out of the box "creative" new products, we trusted. Now, it is hard to get that trust back. I can't trust that the same people who allowed this situation to advanced to the point that it did will actually get us out of it. Will they start looking after Country, Company and people's well being before their own, or are they still trying to advance their personal growth and financial gain? how can we trust when AIG gets a "helping hand" and the first thing they do is have a "relaxing" $400,000.00 dollar spa outing? how many people could they have helped with that Spa package?
Just wondering...
Any thoughts on any of this are welcome and encouraged.
One of my favorite parts of the process is asking questions. Yes, I love to ask questions. People who know me will attest to it and people who don't know me will get to know this fairly quickly.
So here we go. Today I thought instead of giving you information I will ask questions and see what I get... (of course you do know chances are I will go look for those answers later on and blog about them in the future).
Let's talk about the economy and the bailout... So how is it working? No, no like the Dr. Phill question, I mean, what is the process they are following to decide where they are going to allocate the money? why? and when?
Last I heard, part of the sum is going to aid the ailing national automotive industry. I am not well versed in such industry's downturn, and I do understand some of the possible disastrous consequences that would come as a result of the car makers going under, but how is handing money to an ailing company (or two or three), going to prevent them from crashing? How are we solving the problem? or are we just putting it off for a later date at an expensive cost to our taxpayers?
Let's go back to the bailout for a moment, and to a different sector in distress; Mortgages, banks, homeowners. How is the money going to actually help the homeowner with a mortgage that just reset and is pulling them under? will a bank be given money in accordance of the number of homeowners they help? will the banks be required to renegotiate the rates and conditions of homeowners in trouble? What about people who have lost or will loose their job or whose income will take a substantial downturn as a result of this economic hard times making their monthly mortgage payments too large for them? How is the money given to the institutions going to be used, is the idea for it to somehow trickle down to the homeowner who is not making their monthly payments? how?
Right now what I have seen is that affordable loans are only "new" loans. This will benefit people who want to purchase a property, and yes, that will help in part because more properties will sell due to the fact that rates are historically low. It makes more sense to purchase a home instead of renting it. Let's think about this for a moment though... to get qualified for a loan, you have to be a solid candidate and actually be able to afford it. But the people benefiting from this new amazing low rates are people in healthy financial situations, and that is great, if it came hand in hand with a plan for the banks and financial institutions to work things out with current clients that already have a mortgage, even those that are not yet, but might soon be in default.
I do know that I have seen the number of foreclosures go down and that REO agents are getting less listings from the banks, but it is too soon to know if this is because the banks are actually negotiating with the homeowners in trouble or because of the change in procedure that requires the bank to give greater notice.
And one last question that keeps going around in my mind; Where is all this money coming from? Is the government printing more money? using money originally allocated for something else? going into greater foreign debt? what are the consequences this will have down the road?
I am not proposing we do nothing or not have a bailout altogether, I want to be clear of what is being done, how it will get done, what it will accomplish and what will be the price or consequence of the actions we are taking today.
One thing is clear for me, the pendulum has swung , this situation started when we all became to trusting, we trusted in the asset managers to know what they were buying and selling, we trusted in the company's CEO's CFO's and management to be honorable people working for the best interest of the company they represented, we trusted mortgages were being given to people who could afford them and that were told what it was that they were buying into with all this out of the box "creative" new products, we trusted. Now, it is hard to get that trust back. I can't trust that the same people who allowed this situation to advanced to the point that it did will actually get us out of it. Will they start looking after Country, Company and people's well being before their own, or are they still trying to advance their personal growth and financial gain? how can we trust when AIG gets a "helping hand" and the first thing they do is have a "relaxing" $400,000.00 dollar spa outing? how many people could they have helped with that Spa package?
Just wondering...
Any thoughts on any of this are welcome and encouraged.
Thursday, December 18, 2008
So...How is the Real estate Market???
This is a question I hear every day, and in all honesty...there is no simple answer.
The reality is that it all depends on why you are asking? it is not that the facts change, it is that the focus you have while looking at those facts creates a whole different explanation.
And as if that was not enough...we cannot talk about a Real Estate market in San Diego in general and expect to have an accurate picture of all areas. You have to clearly define what area in San Diego county you are interested in. If you look at Chula Vista it is an entire different picture than Encinitas for example.
Now having said that, let's take a look at certain current conditions that do affect the market in general.
Even though there has been talk about the banks shifting their aim from foreclosing on faulty loans to attempting to work things out and renegotiating with the homeowners who have this loans, it takes time...unfortunately for those people already going through the process of being foreclosed upon, this shift has come too little to late. And we have yet to hear from this lenders, who will be able to renegotiate, under what terms and for how long. Until this does not come to fruition we are not certain how it will affect the market
New loans are hard to qualify for and are taking much longer than expected which in turn is causing homes to stay on the market for longer periods of time and escrows to take much longer than before and in some cases to even fall through. So even though rates are at a very attractive level right now, that means nothing unless you can qualify for one, and then actually get funded.
Most sellers are more sensitive to the conditions of the current market that what they were let's say one year ago, which in turn translates to more offers being accepted and more homes going into escrow. From our experience, generally speaking if a home is priced correctly and marketed correctly it will get sold, it is just taking longer.
Now, interestingly enough, for the first time in months I have found ourselves in multiple offer situations, it might have been a coincidence and it has not happened consistently enough for me to consider it a trend, but it is a start.
So in closing, we are in a challenging market but not everything is looking grim, and I actually do believe we are reaching a turning point.
In one of my next postings I will address specific areas and data to give you some facts and numbers.
If you have any specific areas of San Diego county you would like me to address please let me know and I will do so.
Best regards for now!
The reality is that it all depends on why you are asking? it is not that the facts change, it is that the focus you have while looking at those facts creates a whole different explanation.
And as if that was not enough...we cannot talk about a Real Estate market in San Diego in general and expect to have an accurate picture of all areas. You have to clearly define what area in San Diego county you are interested in. If you look at Chula Vista it is an entire different picture than Encinitas for example.
Now having said that, let's take a look at certain current conditions that do affect the market in general.
Even though there has been talk about the banks shifting their aim from foreclosing on faulty loans to attempting to work things out and renegotiating with the homeowners who have this loans, it takes time...unfortunately for those people already going through the process of being foreclosed upon, this shift has come too little to late. And we have yet to hear from this lenders, who will be able to renegotiate, under what terms and for how long. Until this does not come to fruition we are not certain how it will affect the market
New loans are hard to qualify for and are taking much longer than expected which in turn is causing homes to stay on the market for longer periods of time and escrows to take much longer than before and in some cases to even fall through. So even though rates are at a very attractive level right now, that means nothing unless you can qualify for one, and then actually get funded.
Most sellers are more sensitive to the conditions of the current market that what they were let's say one year ago, which in turn translates to more offers being accepted and more homes going into escrow. From our experience, generally speaking if a home is priced correctly and marketed correctly it will get sold, it is just taking longer.
Now, interestingly enough, for the first time in months I have found ourselves in multiple offer situations, it might have been a coincidence and it has not happened consistently enough for me to consider it a trend, but it is a start.
So in closing, we are in a challenging market but not everything is looking grim, and I actually do believe we are reaching a turning point.
In one of my next postings I will address specific areas and data to give you some facts and numbers.
If you have any specific areas of San Diego county you would like me to address please let me know and I will do so.
Best regards for now!
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