I attended a Short Sales Certification class yesterday. The speaker was from Bank Of America, after a detailed explanation of how to access and speed up Short Sales with Bank of America on the Equator website. June offered up the fact the next wave of distressed properties would be more Short Sales and Loan Modifications and less foreclosures.
Why this would be, she didn't say. But after Obamas State Of The Union address it seems the new mode will be "Cram Downs" and "loan modifications" for all who qualify! What that means exactly to all who have already given up and walked away from their subprime loans, and suffered at the hands of bad loans and home ownership that never should have been? Bad credit scores and even Bankruptcies all the while being kicked out of their homes because of scam of robo signed Trust Deeds. How far does this scam on the American people go?
When will they figure out they have been played like a cheap violin in order for the ultra rich to prosper? There are a few that actually have gotten legal representation and are in the courts fighting to keep their homes despite the reality that technically they never should have been able to buy a home when the only loan qualification was they had a pulse!
June also mentioned we should be though this Real Estate down phase in the next five years. And to boot the down payment for an FHA loan would increase to 5-10% as opposed to the 3-3.5% now required. And how will people respond to actually having to put some skin in the game? Will this really normalize the RE Market, stabilize prices? Then will we be right back here in another ten years when the large home building contractors infuse another over supply of homes and once again crash the market with a over supply of homes? Probably!
Tere Rice Realtor
Temecula Ranch And Homes
Allison James Esates And Homes