Who or what's coming you ask? Why the huge backlog of bank foreclosures of course!
One of the topics of conversation that came up at our weekly business meeting today was the foreclosure mess.
One broker mentioned the 60 Minutes tv segment that aired Sunday night about "Robo-Signers". I watched the segment and it is pretty disgusting, in regards to the blatant fraudulent signitures used in these foreclosure documents. I could go on and on about how wrong it is. But I also realize that probably 99.999% of the delinquent homeowners would have lost their homes anyway. The bottom line is the banks need to foreclose by following the current rules & regulations period. The parties responsible for cutting corners with the Robo-Signing paperwork need to be brought to justice as well. Here is a link to the segment, you make up your own mind: http://www.cbsnews.com/stories/2011/04/01/60minutes/main20049646.shtml
Due to this Robo-Signing fiasco, there are tons of bank foreclosures waiting in the wings. They are being held back from the market until the mess gets sorted out.
One of the very seasoned brokers in our office, who normally has a huge pipeline of bank foreclosures gave us an interesting snapshot of what is going on. She stated that she has not seen a new bank referal since October! She checked with other brokers she knows, who get these referrals also and their telling the same story.
So how does that translate to the marketplace? We are seeing a temporary shift to more of our private party sellers getting more offers as long as they are priced right. Multiple offers on some of these properties is not uncommon. Perhaps even a slight stabilization of the downward spiral of prices can be seen.
But this won't last. Those bank foreclosures are coming. It's just a matter of time. I predict it will be sooner rather than later. And when they do come, look out!
For you buyers, I see even more great buying opportunities on the near horizon. Keep in mind, there are still plenty of great deals out there right now.
And for you sellers, is the window of opportunity about to close? Time will tell. Now may be the time to get real with your asking price, so you can capture the current buyers in the marketplace. Because when those bank foreclosures start flowing again, the competition is going to get fierce!