Need feedback… please put your STATE as well… let’s get a good idea of the Short Sale market across the nation…!
When you do a poll, you can’t ask 2 questions at once. It confuses the responses.
Can I mark two answers?
This should not be a poll.
Keith
HUD predict that the foreclosure market is a 40 Billion dollar loss each year for the next 5 years. As unemployment rate start to increase, there will be more short sales.
Why? Remember when most people bought 100% financing and some refinance using their house as instant ATM, start to loose their jobs and eat up what little reserves they have ,will lose their house. Some short sales in the area will start to effect the local median home prices. This will set the standard for local median prices. The market is correcting itself now. There are winners and there are losers. Short sales can takes months to do and there are no guarantee you will get paid. About 50% are not mortgage savvy. Then take into consideration some brokers are not well verse on the entire foreclosure process. Depending on the state, you may have a deficiency judgment against the home owner when they do a short sale. For investors it is now the time to buy, since house prices are low and interest rate is still low. As unemployment rate start to decrease, interest rate will rise, this means our economy is making a recovery.
To make money you have to have cash in today market. An extra $300-500 a month will keep most American out of bankruptcy. Most American are living paycheck to paycheck. So who has the money to invest? The 5% of American with cash reserves. They are the little investors that cherry pick the short sales. Lenders approved 1 % of their short sale. Then there is the secondary market where non performing notes and performing notes are sold in bulk. Performing notes are 45- 55 cents on the dollar. Now non performing notes are below that. These investors can be other banks, hedge funds, etc hold on to these as rentals until the market reaches 100% or “pass thru” ( sell to other banks) When loans is in underwriting it is mostly regulated per Fannie and Freddie Mae guide-lines. Hence, now we have toxic mortgages by Fannie and Freddie Mae and the Federal reserves is having a hard time for people to buy OUR bad debt.
Not all lenders will consider a short sale. There has to be a hardship that is documented and verified. With foreclosure there are many more options, than a short sale.
This may have answer your questions and then some. Good luck if you decide to do short sale.
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