Yup, sorry I lagged in writing posts, but I've been very busy lately, mainly with short sales.
I think I'll try to at least type a couple of sentences every couple of days, instead of writing a major big post once every so often. Probably easier for everyone to read, too.
Based on activity, I can tell you, properties are "flying" off the shelves! Some are being sold within the hour!
It doesn't matter if it's a bank owned or a "human being" owned property. If it's competitively priced, it'll move!
If you prefer to think that's a property being "given away", you stick to your opinion, let me not try to change your mind. I frankly, am too busy.
But I personally am seeing multiple offer situations, with bids over and sometimes even WAY OVER asking price. It's a war out there!
A client who lost out on a couple of multiple offer situations asked me; "I thought it was a buyer's market out there!"
Yes, my friend, it is. When you're looking at a property (3 family) that's on the market NOW for $100,000 and probably has offers over $110,000, that's still better than $300,000... what THAT property may have sold for in 2004.
Yup, it's a buyer's market, all right...
I heard rumors that seem to be coming true. In terms of short sales and reo (bank owned) properties,, I hear that soon enough you will start seeing a reduction in the availability of reo bank owned real estate and a rise in "short sale" properties. This makes sense, what with the government stepping in and trying to slow down the foreclosure rate.
It's great news BUT "things" need to happen... to make this process smoother.
Number 1, in terms of short sales on government loans, I heard that lenders will be REQUIRED to pay 6%.
Couldn't be happier with that. Any "Realtor" haters out there, go work twice as hard for half salary and THEN stop by and comment on THIS blog....
Number 2, Lenders will NOT be able to pick and choose their own choice of appraisers. They will have to use an appraiser who will be in a rotating pool.
I can see why this is happening, to reduce lender fraud, and for that, I have NO problem with this.
However, as a friend of mine, who was previously in the mortgage industry, pointed out to me, it also elevates the appraisers who DON'T know what they're doing or are horrible appraisers to a new level..
I've observed over the years that REPUTABLE lenders tend to pick REPUTABLE appraisers. Scumbags pick Scumbags. "Birds of a feather flock together..."
Well, we'll see how THAT turns out...
I looked all over for more training on short sales. With the short sales I've done in the past year I can tell you, I've learned a couple of things;
1. I will either handle the short sales myself or ask my clients to get legal help. As for loss mitigation companies, I couldn't see what extra advantage they bring to the table. Lenders prefer to work with LICENSED Real Estate agents anyway, in my view.
2. Sometimes lenders pull tricks out of their hats in the last possible minute, like the case I had where they "all of the sudden", in the last day before the closing, wanted the seller to take a non secured loan for a lot of money (let's say for this discussion, $40,000), because when it came down to the nitty gritty they were going to make more by foreclosing the property due to the private mortgage insurance! What a cruel, cruel thing to do in the last minute.
3. What attracts me to short sales the most is not that they are much much more difficult; what attracts me is the fact that a person who does a short sale may be in a position to buy again and start all over in around 2 years! Having a foreclosure can be devastating....
I think it's about time short sales are standardized and possibly even regulated. Waiting 2 and more months for just an answer from some of these lenders is bad, bad for the buyer, bad for the seller, bad for the lender. Any ideas, anyone?
I've written enough now. Gotta go to an appointment. In the meantime, comment away!
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