According to analysts at Standard & Poor's Rating Services this week, it may take more than four years to exhaust the "shadow inventory" of distressed homes. The shadow inventory is defined as properties with borrowers who are more than 90 days delinquent on their mortgage, in foreclosure or already bank owned.
Common pricing for bank owned or short sales is at or below the most recent comparables to the property. This is expecially true for short sales which take 4 - 8 months to finalize and are typically priced aggressively low to attract more patient buyers willing to wait out the process. As such, we can expect prices to continue to decline over the next three to four years.
For homeowners frustrated with their loan balance or home value, they should seek professional advice sooner, rather than later. The wider the gap between the loan balance and home value, the greater the risk of loan modification denial and the greater the possible tax and deficiency judgment risk.
The counseling team with Re-Create The Dream consists of a bank negotiator and CPA available by appointment to review all possible work out options and help homeowners execute a strategy that leds them back to their dream of homeownership with equity. The one-hour consultation is free of charge. For homeowners who are candidates for a loan modification, the bank negotiator will also handle the modification free of charge.
To schedule your appointment, contact Nancy Moeller at 714 276-7006.