That's all I hear...Shadow Inventory. The rate of distressed homeowners is still increasing. The amount of foreclosures is at an all time high in San Diego - 19,543. That is our Shadow Inventory, almost growing like a mold. Not black but RED. Homes that have been foreclosed on and yet not listed for sale. I see them all over the community. When I take buyers out for viewing properties they want to know if I know when that property is coming on the market. If I know anything about it. I can't tell them a heck of a lot if it's not listed yet. Used to be you could really spot them quickly...dead grass, tall weeds and tons of newspapers and "help" advertisements littering the driveways and doorsteps. Now, it's more controlled, the HOA's or the list agents are fined for leaving a yard go without maintenance. The neighborhoods are looking greener and the streets tidy...still the Shadow Inventory lurks like mold, waiting to be cleaned up.
Whose going to do the cleaning up? Polititians with their moratoriums and bail out programs? A high percentage of loan mods don't work and if they do not for very long. We as realtors all wait to see the latest and greatest new programs to help, but it's not working.
I say open the trickle of foreclosed homes to a steady flow. We all know there are plenty of buyers wanting to purchase these homes. Why have homes with 30-60 offers on them when the house next door is waiting, empty and available? So it's all a crap shoot as to where this market will really go this year. Here in San Diego the best thing to do is loosen the comps, tighten the closing costs credit and put your best loan forward cause it doesn't seem to be getting any easier. Gone are the low balling days and getting 3+ % in closing costs credit. I know I'll find my buyers great properties to come home to at night. It's just going to take a little more time and patience on everyone's part.
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