The Big Elephant in the Room many don't want to Acknowledge

Reblogger Jim Hale
Real Estate Agent with ACTIONAGENTS.NET

 

Here is a post on the future of the short sale that has attracted lots of comments on ActiveRAIN.

But here is also my frank prediction for short sales in 2011:

 

Whether short sales continue as a big market segment is solely up to the banks....in two ways.

1) The banks are wanting regular sale prices for short sale properties.  That will only work for buyers if lenders shorten the processing period to be equivalent to an ordinary loan. 

Some lenders think they have. None have.  Buyers still expect a price premium.  If banks are unwilling to speed up or price down, short sales will go the foreclosure route more and more.

2) Short sales have now been going on in large numbers for some time. They have been chosen by sellers based upon a general promise that they can buy again sooner.

Many short sellers are not anxious to buy soon.  But if large numbers try and fail to be approved in the mysterious 2-3 year window the industry has been talking, watch out for a lot of negative press for the short sale...and a serious "come to Jesus" moment for the industry - both banks and brokerages.

I believe 2011 will tell the tale on these two variables...in a big way:   one way or the other.

 

 

 

Original content by Michael & Stacy Spickes

If Short Sales will reportedly be a large part of our market in 2011, what do you think is the general attitude toward working them across America?  There are so many mixed feelings from agents and brokers about working them, yet hundreds of thousands of homeowners continue to face foreclosure.  Many accept that they're a part of the market and will be for some time.  Many others continue to close their eyes and hope these market conditions will pass.  As we quickly approach 2011, what is the general consensus in your area and how do YOU feel about Short Sales?

** Read Post #33

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the woman to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Comments 8 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tree to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
1,146,891
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Put 40 years of experience to work for you
Lyon Real Estate

I decided to tackle short sales in early 2006 and have never stopped. Short sales now make up about 80% of my business. But the way I carry on about them, you'd think it's all I do.

December 30, 2010 09:31 PM
Ambassador
1,449,259
Renée Burrows
Las Vegas Real Estate Broker - www.urLVhome.com
Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate

Well I never want to predict the future in my market because it is ever changing and exhausting to keep up with.  I agree that short sales are what they are!  I refer them out because I prefer other income producing activities.

December 31, 2010 04:18 PM
Ambassador
1,449,259
Renée Burrows
Las Vegas Real Estate Broker - www.urLVhome.com
Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate

oh and......

January 01, 2011 06:41 PM
Rainmaker
588,963
Jim Hale
On the Move for You! - Eugene - Springfield Oregon Real Estate
ACTIONAGENTS.NET

Elizabeth -

Short sales are vitally important to us all right now.

But at some point... they will surely look to us like the market anomaly they really are.

January 01, 2011 07:34 PM
Rainmaker
588,963
Jim Hale
On the Move for You! - Eugene - Springfield Oregon Real Estate
ACTIONAGENTS.NET

Renee -

Even here, in a place where short sales do not predominate, short sales must be a part of our repertoire.

 

Hope your New Year is happy, healthy and prosperous!

January 01, 2011 07:37 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the man to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
588,963

Jim Hale

On the Move for You! - Eugene - Springfield Oregon Real Estate
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the robot to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Attractions, things to do, what's unique about living in Lane County. New listings, new real estate trends and market data by RMLS market areas (neighborhood), including Ferry Street Bridge, North Gilham, Coburg - I-5 North, River Road, Santa Clara, North Springfield, Bethel - Danebo, Veneta - Elmira, Creswell - Cottage Grove, Pleasant Hill - Lowell - Oakridge. Comments and updates on state and national real estate news, trends, hazards and opportunities.
Locations of visitors to this page
Visit Short Sale Superstars