Headlines – banking industry is talking about shrinking the Short Sale process and time frames. This will be implemented by November 1, 2012 – by Freddie and Fannie. What is going on with the renewal of the Debt Forgiveness act, compressing time frames, how will it all work out this being an election year?
The banks may lose more money, or have more to lose when these changes are implemented? Does that mean we are going to have another dip in sales prices? We have been watching as prices are increased and decreased in the Santa Clarita Valley – about 50/50, up and down.
Short sales, typically are responsible for the price increases and substantial price decreases. However, in most cases, the agent priced the home far less than fair market value. When the bank comes back with a Short Sale approval, they are typically approving a higher amount. You may be asking why do the agents price their Short Sales so low? It is not in every case – but in some they are going to work the listing for buyer leads. Unfortunately this is done too often. Be Safe, get your own real estate representative and stick by their side like glue!!!
Can you pay too much for a Santa Clarita Home? What about the appraisal guidelines? They have changed over the past few years. Is it possible to pay too much for a home, more than it’s worth. The bank do like you, because you are using them to borrow money. However, they like their bottom line more! They are not in the business of paying more than real estate and homes are worth. They are very careful.
Foreclosures – have not been the “solve all – end all” with the state of California. Most banks are controlling their release. The banks are starting to sell their bad inventory at Bulk Sales. Something to watch. The other intel that we rec’d was that Fannie and Freddie were going to do this very thing. Sell their properties at Bulk within the coming months and not have it hit the market individually.
Tune in for our Future Daily Shows about Santa Clarita real estate. Be Safe and God Bless.