Monday, January 09, 2012
"Seems to be right on with my expectation for the market. Lots of sales, but more soft prices and shorts until we clear up the current economic situation that many home sellers got themselves into. Massive over-leveraged debt is no longer in fashion, and that sentiment extends even to the big banks. The federal government doesn’t seem to interested in austerity, but capitalistic corporations see the need to right-size before they capsize.
Some short sale trends I expect to see:
-We will start to see the major lenders and even some of the smaller lenders start to waive or reduce deficiencies, even on secondary homes and investment properties.
-For properties in markets that are still predicted to drop, we will see more lender incentives (cash to seller, simpler review processes, etc) to get shorts done.
-Modifications will really take a back seat lenders rush to de-leverage.
-The people that have gotten used to not making a payment for 2 years will suddenly find time has run out, and in these cases of severe delinquency, it will be almost impossible to modify, and may be almost as hard to short sale, as the banks will mandate their foreclosure attorneys to clear out bad assets as quickly as possible.
-2012 may be a bloodbath for the lenders, but it will bring much needed liquidity to the market, and will be a haven for Buyers, and hard working Realtors."
Short Sale Specialist,
Rockford Realty Group