AMSHI is charging $5,000 to buyers and $5,000 to sellers to negotiate short sales…short sales are getting tougher – for example, Bank of America is taking forever and in many cases sends you back to square one. Banks are setting unrealistic expectations for closing dates with approvals on their short sales. Banks aren’t up to speed on lending rules and regulations when giving the approvals. Employees at these banks are not educated – fresh from college, calls are often outsourced, and they have not been trained properly. Bank of America is now using Equator; therefore, there is no one person to speak with which makes the process even more frustrating.
Foreclosures are coming – it’s ground hog day – we keep hearing the same thing over and over. One agent has 6 in the pipe line; another has 5 in the pipeline and 6 under contract and is getting about 1 every 2 to 3 weeks. We are below the national average as far as default rates and our inventory level is 33% distressed.
We discussed “shadow” inventory that we just don’t see, but the media continues to talk about. If banks are going release foreclosures into the market, it will be a slow and steady release and not a “dump” on the market scenario. Foreclosure filings were down 26% in Prince William County in 2009 – stay tuned!
It’s tough to find properties under $400,000.
We are waiting on the FHA mortgagee letter to be released to hear about new guidelines – increase in down payment with credit scores under 580, increase in upfront mortgage insurance, reduced seller concessions, and the waving of the seasoning requirements for flips – we shall see…
VA’s max loan is now $758,000.
Inventory levels are slowly increasing which give the appearance of things being slow, but it really isn’t – especially in the lower price ranges.
Need to build urgency in buyers – prices are affordable, interest rates remain attractive, home buyer tax credit is still in place, and loan programs are in place today that may not be available in the future.
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