Market Snapshot for Folsom CA 95630 October 16 2007.
I wanted to share with you that the doom & gloom reported by the media may be a bit extreme.
370 - Active listings of homes available for sale
43 - Of the total active listings homes that are in "Short Sale" status*
20 - Of the total active listings that are REO*** (Bank Owned Repo's) (officially known as Real Estate Owned)
The better news:
Some Sacramento CA area locations have much higher REO inventories.
39 Homes sold within the past 30 days which means we have slightly less than 10 months of inventory available. That is up by about a month over the last time I reported market conditions for Folsom CA. On 6/13/07 there was just over 7 months of inventory. It is normal to have a bit more inventory during the fall and winter periods.
8 Short sale homes are pending indicating some of the banks are starting to accept reasonable offers as apposed to foreclosure.
Depending on where you get your information it costs the banks anywhere from $40,000 - $50,000 to complete the foreclosure process. Some reports say it can be as much as 1/3 of the mortgage amount owed. In California I believe it is closer to the 1/3 figure.
*Short Sale means the property is being offered for sale for less that the total amount of the mortgages owed by the seller. The asking price on a short sale means absolutely nothing. Some Realtors® set the price unrealistically low to try and get potential clients to look at the property. Unfortunately, the system is set up where the loss mitigation department** at the bank will not consider a short sale until an offer has been made and presented to the bank. The sellers normally cannot make any money from the sale of their home.
**Loss Mitigation Departments try to minimize the loss taken by the bank prior to a full foreclosure.
***Cheryl Cook has assembled a fact filled info sheet on the REO process and how to make offers on bank owned properties. If you would like to have a copy, click here to send her an email. Put REO Fact Sheet in the subject line and we'll get it right out to you.
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