Flood of Foreclosures in the Forecast
Less than 1/4th of recent bank owned or REO properties taken back by banks over the last 60 days have been integrated into the local housing market according to research conducted by REALTOR® Frederic Din.
"I researched over 150 newly acquired bank owned properties from October 1st through December 4th, 2009 and found only thirty-seven properties listed in the Imperial Valley Multiple Listing Service (MLS) out of properties researched throughout the county".
While Frederic's research of "shadow inventory" in the Imperial Valley is ongoing, he states there are definite trends leading to a growing level of vacant bank owned properties, foreclosed upon by the bank and not listed on the market for sale which could lead to a flood of foreclosures in Imperial County.
"Some banks and servicing companies will sell their foreclosure inventory via websites utilizing a bidding process and ultimately sold to the highest bidder subject to terms and conditions".
"These properties may never be integrated into the MLS or counted as part of our local inventory through local real estate services; however bank owned homes definitely affect our housing market both in terms of property values within the neighborhood and their condition".
Other banks and servicing companies, such as Fannie Mae and Freddie Mac assign bank owned properties to real estate brokers and real estate agencies for disposition. These properties typicaly make it into the MLS service since they use local agents to list and sell their inventory. Services such as HomePath and HomeSteps allow buyers to review properties for sale and obtain lender financing directly through the investor as an additional incentive.
While most bank owned property sellers require a loan pre-approval letter along with an offer, properties owned by Wells Fargo or Bank of America / Countrywide require prospective buyers get pre-approved from their own institution in order for an offer to be considered, although the buyer is not obligated to use bank financing, however these banks often give free credit reports and appraisals as an incentive for keeping the financing transaction "in-house" so to speak.
Inventory levels have dropped in recent months to early decade levels causing fence sitting home buyers to hop off and make a decision to start looking at homes now, especially since the First Time Home Buyer Incentive will expire in mid-2010. To search homes already on the market click here http://ivforeclosures.com
"It's important for home buyers to review their credit history and mortgage approval options before shopping for homes, since all bank owned property sellers require a pre-approval to be submitted with the offer", says Frederic.
Bank owned property sellers want to make sure buyers are qualified to purchase the home in question, therefore the pre-approval is a precautionary measure taken by the seller to ensure the transaction will close and not waste time.
"Time and money are of the essence" says, Frederic, "these banks want these homes off their books in the least amount of time for the most money and having to bring a home back into the market diminishes both their time and money".
If you're interested in knowing which homes will be part of the foreclosures forecast, contact Frederic Din by calling 619-241-4415 or email your request to info@ivforeclosures.com and make sure you let him know you saw the article regarding the Flood of Foreclosures on this blog.
Do you have questions or comments, please make sure you let me know in the box below. Thank you.
Partial list of bank owned homes not listed for sale as of December 4, 2009
Imperial
- 2815 Powell Ct Imperial CA 92251
- 2733 Ironwood Rd Imperial CA 92251
- 1108 E 2nd St Imperial CA 92251
El Centro
- 1318 Jacaranda Dr El Centro CA 92243
- 353 Jackrabbit Dr El Centro CA 92243
- 1842 Wake Ave El Centro CA 92243
Calexico
- 1281 Topaz Ct Calexico CA 92231
- 1173 Zapata St Calexico CA 92231
- 1201 Fiesta Ave Calexico CA 92231
Heber
- 59 W Black Horse Heber CA 92249
- 16 W Steer Ct Heber CA 92249
- 46 W 2nd St Heber CA 92249
Brawley
- 734 Milano Ct Brawley CA 92227
- 824 Hickory Ct Brawley CA 92227
- 836 David St Brawley CA 92227
Data is deemed accurate but cannot be guaranteed
Flood of Foreclosures in the Forecast © 2009 Frederic Din, all rights reserved.
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