CAT | Short Sales
10
Are We Really 2 Years Away From a Bottom?
2 Comments · Posted by admin in Bank Owned, Foreclosure, Home Sales Stats, REO, Short Sales
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:
- 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.
- 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.
- 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.
- 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.
- 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
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2
An Outright Assualt on the Realtor Profession.
1 Comment · Posted by admin in Bank Owned, FSBO, Foreclosure, Home Sales Stats, Lead Generation, REO, Short Sales
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:
Please chime in!
www.SellMyHouse.com Staff Writter
Bank Owned · Foreclosures · Freddie Mac · Home Prices · housing market · sell my house · sellmyhouse.com · short sale
24
Hope For Those Working Short Sales?
No comments · Posted by admin in Bank Owned, Foreclosure, REO, Short Sales
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?
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14
Always about the money – foreclosures
2 Comments · Posted by admin in Bank Owned, Foreclosure, REO, Short Sales
9
Short sale vs Foreclosure Loss Data
2 Comments · Posted by admin in Bank Owned, Foreclosure, REO, Short Sales
This data comes from an interview with Bank of America, Dave Sunlin, senior vice president for foreclosure and real estate management division.
The entire article is here:
http://www.bloomberg.com/apps/news?pid=20603037&sid=a_NoPFp0r8Y4
Cutting Losses
Losses on prime loans going through the foreclosure process averaged 49 percent versus 34 percent for a short sale as of Oct. 1, according to a Nov. 10 report by Laurie S. Goodman, senior managing director of Amherst Securities Group LP. For subprime loans, losses averaged 73 percent for a foreclosure compared with 59 percent for a short sale, Amherst reported.
“The loss severity of short sales is lower but it’s not low,” Goodman said.
