The below quote is from DSN NEWS. Click on the highlighted lettering to be taken to the story. Could this mean a huge bonanza of Short-Sales coming down the pike? Remember, one of the key players in the settlement was BofA which BOUGHT COUNTRYWIDE HOME MORTGAGE. You may recall that Countrywide was a HUGE player in the California marketplace. California got a big portion of the overall settlement.
Here in Sonoma County, California the "Short-Sale" is HUGE in the "under-contracts" section of our local MLS. With over 3100 properties in escrow as "Continue to Shows" or not yet firmed up real estate deals, approximately 1900 of those are Short-Sales. Check out the chart below:
This is the "Bank Portion" of our MLS "under-contract" properties which includes not ONLY Short-Sales but REO or Real Estate Owned--bank foreclosed upon homes. Note that this market segment is UP 36% over last year at this time. If this settlement rings true then this number could go through the roof! Reducing the average days on the market would be very welcomed as this is approaching 6+ months currently for a short-sale esrow--that's IF IT CLOSES.
As the article states below some $12 Billion will go to principal reductions and short-sales. We all thought HAFA was going to be the big game changer in regards to Short-Sales but THIS just might be THe game changer.
The full amount will be broken into several categories to assist various groups of struggling homeowners. According to the agreement, banks will offer $12 billion in principal reductions and short sales for about 250,000 homeowners. The banks are obligated to complete the principal reductions for homeowners in California’s hardest hit communities within one year of the settlement date.
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