There’s another home on our street that turned over recently. This homeowner relocated to another state to take a job. Having purchased at a high point in the market, they rented the home out, after attempting to sell it to no avail. Three sets of tenants later in a relatively short period of time of about 2 years, they put the home on the market. I’m guessing it was a short sale, with the owner having purchased at a peak AND sunk quite a bit of money in to the home to renovate it and fix some quirky floor plan issues making this home more easily marketable for the future... a future that came along much sooner than the homeowner anticipated. 

Short sales are not looked upon favorably in our market, by the prospective buyers or by the Realtors. Showings are lower than they are on bank owned foreclosure homes or privately held “market rate” homes. With good reason, based on the lack of response and ineptitude encountered with many mortgage holders. Admittedly, some of them are getting better. Some are still floundering with the excessive, escalating volume of transactions these mortgage companies need to review, transactions being set up and processed by inexperienced under-trained staff that have been thrown in to sink or swim at these mortgage companies. There are some bargain hunters willing to give purchasing a short sale home a try, or purchasing a bank owned foreclosure home able to see its potential through the damage the property may have and the repairs/renovation it may need. Who can blame them for wanting to take advantage of extraordinarily low priced homes while they can take advantage of the $8,000 first time home buyer tax credit AND low mortgage interest rates? Or, if they are investors, pick up several homes for their portfolio that will cashflow and meet their return on investment goals?

Over time, multiple buyers came along, some tried to negotiate an accepted contract to be approved by the mortgage companies, and then there would be a price reduction and further wait for another buyer willing to attempt the cycle again. Finally, a diligent (lucky?) buyer came along, worked out a deal, got the mortgage company to approve it, and closed escrow on this home. Hallelujah, after a year the vacant home is filled! And the home DID NOT go through foreclosure.

Thank you persistent seller for pursuing this long road to avoid letting the home go back to the bank. Thank you dedicated real estate brokers who hung in there to successfully get this home sold. Thank you diligent buyer who lives in this home - we're thrilled to have good neighbors again.

People are successfully refinancing there homes under the Home Affordable Refinance program. People are successfully modifying their loans under the Home Affordable Modification Program. Even more people are now successfully refinancing or modifying their existing home loans under the Home Affordable Programs since the limit was increased to 125% of their home’s current market value. People are successfully selling their homes for less than what is owed on them when they can no longer ride this market out. Kudos to every one of these people for traveling these challenging paths to avoid foreclosure.

Thanks, Neighbor, for your diligence in getting your home sold…for playing your part in stemming the tide of foreclosures we’re seeing in our local real estate market. The rest of us here really appreciate it!!!!

See you out there!