We have been screaming for 2 years to these short sale departments that they need to get out of their own way and let the market help solve the problem. Short sales to this point have been a miserable failure, primarly because most banks take way to long to negotiate or accept an offer.

That means for the most part, retail buyers wont buy short sales leaving only investors. Investors do not pay retail prices of course, and banks dont want to accept wholesale offers. You get the paradox here??  

Here are the considerations being discussed:

1. Homeowners get $1500 to sell and move. The bank servicing the first mortgage gets $1000 and the second mortgage bank get $1000 to forgive the balance. The first mortgage holder gets the proceeds from the sale.
2. Realtors will determine the value of the home.
3. The homeowner will not be told the valuation.
4. Banks will be required to accept all offers that meet or exceed the predetermined value.

Our main question is will any of this actually speed up the process of getting a deal approved and closed. If it doesnt, well at least in our view, it is political jockeying for the next election cycle that begins in a few months.

What do you think?

www.SellMyHouse.com

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I read an article recently that discussed the obstacles facing the housing market which suggested we still may be a full 2 years away from a bottom in the housing market.

Here at www.sellmyhouse.comwe know all to well that there is a lot of pain right now in the housing market. Almost 25% of homeowners owe more on their house than it is worth and figuring out how to help these people when the short sale process is so bogged down right now is definitly a challenge. The psycholigical effects of this can be devistating, but that is not what we are discussing in this post.

What are the specific challenges that our economy is facing that might make this true:

1. Jobs have not started to return. The real unemployment number is alot closer to 15% than the 9.7% rate offered up by the governments report. It doesn not inlcude folks that have given up on finding a job or those that are working part time because they cant get full time work. We’ve heard runblings from our wall street buddies that this number will approach 20% before it is all said and done. No housing boom in history has every occured without outright job creation, much less a slowing of job losses.
2. Foreclosures for the most part have been put off for a year because of TARP and all of the government foreclosure incentives. We have heard that almost 5 million houses are on the verge of foreclosure. If that is true, then that means there is almost 1 full year of inventory waiting on the sidelines.
3. Money is very tight. Banks are not lending, and moreover, seem to be looking for reasons not to lend. I read a report that said it isnt that they dont want to lend, it is they just dont have the money to lend right now. Their money is out, and it is out on properties that have lost value. The rest of their money is being horded in case the economy does not get better.
4. The government stimulous, which has done a good job of getting potential buyers off the fence to date, is set to end this spring. Will they renew it? Time will tell.
5. People are scared of the future. ‘Main street’ America is still struggling mightely with lost hours at work, higher heating bills from this winter, and  the economy is on the verge of collapse again.

Those are all very goood reasons why it is possible that we may not see a housing bottom until 2012. Scary thought, especially if you make your living from this industry.

Jason Roberts

Founder & CEO

www.SellMyHouse.com

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We always try to stay on top of the news, trends, etc here at www.sellmyhouse.com. In doing our daily research of the goings on in the market we came across the following blog written from somebody who clearly thinks that Realtors are the absolute scum of the world and we created the entire Economic collapse.

Enjoy:

Part 1

Part 2

Part 3

Please chime in!

www.SellMyHouse.com Staff Writter

Bank Owned · Foreclosures · Freddie Mac · Home Prices · housing market · sell my house · sellmyhouse.com · short sale

It has been reported that actual short sale closings in January have started to move higher as a percentage of transactions.

Short sales accounted for 15.9% of home purchase transactions.

Damaged real estate owned or REO (13.4%)

Move-in ready REO (13.8%) – and represented a big jump for short sales.

Are these banks are beginning to catch on?

www.SellMyHouse.com

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This will blow your mind!

http://www.thinkbigworksmall.com/mypage/archive/1/29027

JKR

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