subject: Foreclosures Hit A Record High! = Short Sale Opportunities Galore! [print this page] On October 15, 2009, www.realtytrac.com announced that foreclosure filings have hit a record high! Based on only 12% of trouble homeowners that could qualify to get help from Obamas Home Modification Programs this year, 2010 will be a record year for Short Sale Opportunities. The top states that were hit the hardest with foreclosure filings are California, Florida, Nevada, Arizona, and Illinois.
On our Market Update Call Pre-Foreclosure Opportunities we talked about the top lenders to work with and the top lenders to avoid. This call was all about helping Real Estate Professionals understand where the opportunities are. Here is a summary of what we discussed:
One trend that we have noted was the increase of government interaction to aid the processing of short sale files. For example, the US Treasury Department is finalizing a plan to provide incentives to lenders to work short sale offers. Also, California Governor Schwarzenegger is trying to implement a State Bill that will require lenders to respond to short sale submission within 21 days. Also, there has been talk that there may be an extension on the current Tax Credit to home buyers, which was set to expire mid November 2009.
We also have noticed that more lenders are working to streamline their short sale processing, preparing them for a high volume of short sales submissions in the coming two years. This includes additional staffing resources and automated document processing systems. What this means is that the processing of short sale files should become easier with faster response times.
On the lending side, we have noticed more lenders have been changing their mortgage products to meet the needs of todays home buyers. This includes brining back Adjustable Rate Mortgages. Rates are still at record lows but it is uncertain how long it will last, although there has been much analysis that government will do what it can to keep low rates in order to aid in the housing crisis.
We noted an obvious conclusion and that the best buying opportunities for 2010 are distressed properties and any home buyer can find a great deal with a discount below current market prices in their hometown. We urge all home buyers to utilize basic home buying fundamentals when buying a home. Dont buy it just because the price is good, you should analyze the home as an investment and look at the economy, neighborhood, school systems, amenities, estimated future appreciation etc. Put simply, the home must meet your investment goals.
As much as the government is trying to step in to prevent the housing industry from collapsing, there just is not enough that can be done and certainly the banks will have to take additional losses to move these bad mortgages off their portfolio. It is certain home prices will continue to decrease as the 30 Billion dollars of mortgages that will reset next year will create more troubled homeowners struggling to make payments on a home that is water, which many will most certainly begin to default on their mortgage. If these homes are not sold via a short sale, these homes will have to be sold as REOs (Real Estate Owned) listings and therefore lenders stand to lose a lot more money. It is our opinion that lenders will want to resolve these defaults via a short sale and reduce their losses.
We at WHB Solutions specialize in working with and educating Real Estate Professionals on processing, negotiating, and closing short sales transactions through our short sale educational products and our community of monthly subscribers. If you are looking for the deal of the century the time is now to buy a home. Visit whbsolutions.com for more information about our products and services. If you are new to short sales and would like to know our number one strategy to obtaining approvals on 90% of your short sale submissions, download our free report from our homepage.
