Short Sales vs Foreclosures in Redding, California May be a Positive Trend for this Market for 2008!

We have seen less REOs and more Short Sales in the last 3 months.  My Husband and I post all the REOs and Short Sales to our Short Sale and Foreclosure website and so we have a good feel for these numbers. I would have to ask David to run the numbers to be exact, but they have just about reversed. Six months ago we had close to 180 REOs and 30 Short Sales. We now see those numbers reversed. I was shocked about 2 weeks ago as I search for foreclosures and short sales for a client. To see these number reversed is a positive trend for the market I believe.

It has occurred to me that Short Sales may be the single most positive tool we have for helping the market return to stability and to some positive appreciation. It will not happen over night, but it will contribute.

Here are the points to this possible trend:

• If the consumer is getting a great deal on the buying aspect;
• the seller is coming out better with less of a credit ding and no tax consequence or deficiency judgment;
• and the lender is improving their loss ratio by removing these assets from their books ASAP

Are we not looking at a WIN/WIN/Win situation. Granted it is not the home run we would all like, however I believe it to be a positive trend that will help the market.

The additional good news is for sellers that are in trouble the resources, options and help they need is available. The consumer, and the real estate industry are taking the steps to work through this in the best way possible. That is what will help us recover. I find it to be a very positive indication.

Some agents in my office attended the Roger Butcher seminar and he now specializes in helping Sellers with workouts with the lender. They have a very good success rate. Just thought I would pass that along.