No matter where you look, no matter what you read, you hear that more is coming our way. But, more of what?
I went to a meeting last week where everyone was speaking about the fact that asset management companies are holding back the properties that have already been foreclosed--waiting until the prices rise before listing those properties for sale. Then, just one day later, I went to another meeting where folks said that this just was not true--that the banks need their money, so they unleash those properties once they got into the bank's portfolio.
So, where are all of these people getting their information? Obviously not from the same place--because they are completely conflicting reports. When someone gives an opinion, it is extremely helpful to back that opinion up with supporting documentation--just like they used to teach us in school!
All I can say is from my own personal experience in the state of California. I know of a few agents who have had short sale listings go to foreclosure. Within just a day or two, the new listing agent (the one who works with the asset management company) is contacting that short sale listing agent to get the "low down" on the property and make sure that the short sale listing is cancelled on the MLS. My logical conclusion from that experience is that if the asset menangement companies were not going to be listing those properties anytime soon, then no new REO agents would be contacting those short sale agents.
My second bit of personal experience touches on how much easier it has gotten to postpone a foreclosure. Just a year ago, it was pretty touch. Now, it can be done in just a phone call or two. If the banks wanted to foreclosure, then why would they so readily agree to postponing the foreclosure?
And, lastly, check out this chart:
This chart shows the 5/1 ARM adjustments beginning in 2006. If you follow the chart, you will see how many anticipated adjustments are occuring in the next 14 months or so. If this data is accurate (and I have no reason to believe it is not), it would not paint a rosy picture of the number of individuals who may be facing foreclosure due to inability to make future mortgage payments
Why would banks hold back all of these properties? When I look at all of this information, it does not make sense.
I would love to hear your $.02 But, if you comment, please be prepared to back up your opinions with data--just like they taught us in school!
Melissa R Zavala
Broker, Realtor®
DRE #01324959
Broadpoint Properties, Inc
Short Sale Expeditor®
Save time . . . outsource annoying administrative tasks.
All the commission checks you could ever want are just a click away.
Comments(4)