I just read on another agents blog about an REO broker in California who said his inventory has gone from 700 listings down to only around 100. The is VERY significant event in the real estate industry, and it shows an obvious trend in the industry. This year will be the year that the number of short sales jumps very high, and the number of foreclosures falls sharply!
There are several factors that are contributing to this new direction in the industry:
- Lenders have realized for some time that foreclosure proceedings are very costly, not to mention the fact that properties deteriorate in condition. They know the amount they recover from a short sale versus a foreclosure is very significant, and are doing whatever it takes to cut their losses.
- Many have improved their processing times dramatically for short sales, or are in the process of implementing much more efficient systems.
- High numbers of foreclosures and non-performing assets make lenders look bad to their investors and share holders and can also effect their relationship with the FDIC in a very bad way
- New flip laws are encouraging more investors to buy them again
- The new HAFA short sale program offers excellent incentives for the lenders to approve them
- Lenders are in the lending business, NOT in the property management and asset disposal business!
All of these factors combined will make 2010 "The Year of the Short Sale"!
Are you ready for the short sale explosion?
Check out our FREE short sale agent networking and resource site,
as well as our listing referral program and online training course!
Are you ready for the short sale explosion?
Check out our FREE short sale agent networking and resource site,
as well as our listing referral program and online training course!
Mike Linkenauger
"Preventing Foreclosures
One Home at a Time"
(877)737-4903
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