Well, how are we doing today as a Santa Clarita real estate market?
We been working with buyers and sellers of real estate since 1998.
In that time, we’ve seen several different real estate market transitions. However, the most exciting transition has been the one we’ve watched developed since the decline of the real estate market.
There are several issues concerning buyers today with our local inventory.
Within this market we’re watching the
inventory on a weekly basis. The absorption rates for real estate, avenue in some cases, been reduced down to less than two months of inventory.
Frankly, it’s hard for me to believe that there are very few human sellers and the banks are doing principal reductions with regard to short sales.
But that seems to be what is happening in our current market. The banks are determining that it is better served for their stockholders, and those that they’re representing with their shares, to have properties not sell as short sales, but to actually take the hit up front in the form of the principal reduction.
What we are seeing by this, is that the short sale sellers, are being approached by the banks, some of which are under contract, in order to have them complete a loan modification which includes a principal reduction.
The disheartening part of this entire process, is the fact that this opens up some of our short sale sellers to excessive liability. That is, if in fact they breach the real estate contract.
The remedy to this situation is this. The banks need to have as part of their introductory questionnaire, “are you currently involved in a short sale with your property?” “and if you are currently involved in a short sale with your property, do you have an executed contract between yourself and a buyer?”
This very simple line of questioning, would solve any issue with relation to the seller, falling prey to a lawsuit, after he has successfully completed a loan modification process while within a binding contract.
Do yourself a favor, get the best short sale representative you can find in your local market. Make sure they have their credentials to perform the best job as your personal, short sale negotiator.
If you want more information on the short sale process, or you have questions about how to hire the best short sale real estate agent possible, go to Paris911.com and type into the macbox the words short sale.