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

 

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Rainmaker
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Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

An interesting scenario Jim...I don't know how long can the banks hold on so many properties...

Happy new year!

Dec 30, 2010 02:51 PM #1
Rainmaker
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Ron & Alexandra Seigel
ra@napaconsultants.com - Carpinteria, CA
Luxury Real Estate Marketing

Jim,

At some point reality has to strike the hearts of those bankers, a home's dwindling price is so much harder to fathom than when the dot.com stocks did.  Hopefully, it will be sooner than later. Wishing you an outstanding 2011, A

Dec 30, 2010 05:24 PM #2
Rainmaker
589,575
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
On the Move for You! - Eugene - Springfield Oregon Real Estate

Joshua -

At every turn you witness a bank acting irrationally.

Alexandra -

Reality must looks differently from inside one of these behemoths.

Dec 30, 2010 07:06 PM #3
Rainmaker
1,222,903
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

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.

Dec 30, 2010 09:31 PM #4
Ambassador
1,476,533
Renée Burrows
Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate - Las Vegas, NV
Las Vegas Real Estate Broker - www.urLVhome.com

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.

Dec 31, 2010 04:18 PM #5
Ambassador
1,476,533
Renée Burrows
Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate - Las Vegas, NV
Las Vegas Real Estate Broker - www.urLVhome.com

oh and......

Jan 01, 2011 06:41 PM #6
Rainmaker
589,575
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
On the Move for You! - Eugene - Springfield Oregon Real Estate

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.

Jan 01, 2011 07:34 PM #7
Rainmaker
589,575
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
On the Move for You! - Eugene - Springfield Oregon Real Estate

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!

Jan 01, 2011 07:37 PM #8
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Jim Hale

On the Move for You! - Eugene - Springfield Oregon Real Estate
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