FORECLOSURE BUSINESS IS WHERE IT'S AT FOR THE NEXT 2 YEARS

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Real Estate Agent with Platinum Partners Realty BRE 01480120

As a resident in the Sacramento area I find it an unfortunate state of affairs when the real estae forecast shows continued increase in foreclosures for the next 2 years, but that is the general concensus of opinion that I have found after attending a recent conference on the foreclosure market.  This prediction has been based primarily upon the many short sales and NOD's that have been filed on homes.  Every market is apparently experiencing homes that are going into default and subsequent foreclosure, even the highly affluent neighborhoods in El Dorado Hill and Folsom are just starting to see the signs going up. 

What I would like to caution my fellow real estate agents managing these REO properties is to avoid the "Bank Owned" or "Foreclosure" signs on the homes, as that tends to open up the door to vandalism and squatting issues that we've been expeirencing. My team has been managing Foreclosure properties for the last year and some banks are better than others with respect to adhereing to neighborhood CC&R's and maintaining the appearance of the properties.  It is our desire and goal to keep our REO properties looking like regular sales, to help property values and reduce the embrassesment of the mortgagor.

 

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Jo Ann Norton
Coldwell Banker Riviera Realty - Lacey Township, NJ
Ocean County NJ Real Estate

Two years?  I hope not.  The media may cause that number to increase.  I have heard two television personalities suggest that people should walk away from their homes, rent for a couple of years, and then buy again.  They claim it makes good financial sense. 

"Real estate is local" and frankly I suppose my market must be fortunate.  Not that many.

We keep hearing the large percentage that foreclosures are up, but what is the base number?  Like many of my fellow real estate professionals, I have the knowledge and contacts to work these. 

In my market, at least for now, short sales seem to be the norm.  Banks are willing to do that as an alternate to foreclosure.  I sure hope it stays that way.  In general short sales seem to yield a higher sale price than foreclosures, and that is obvisouly good for prices.

 

Mar 17, 2008 05:29 PM #1
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CHRISTINE LIBRACH, Broker/Owner
Platinum Partners Realty - El Dorado Hills, CA
"Experience isn't Expensive...it's PRICELESS"

Yep - the powers that be believe that it'll take 2 years to bottom and then another 3 to bounce back to technically we could be looking at longer than 2.  The statistics that were quoted to me at the conference were 50% of the short sales end up going to foreclosure - some banks are not catching up to what's happeding and that's one of the reason we're having such difficulties.  Hate to be the bearer of bad news but it is what it is.

Mar 17, 2008 05:54 PM #2
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CHRISTINE LIBRACH, Broker/Owner

"Experience isn't Expensive...it's PRICELESS"
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