SHASTA COUNTY/REDDING BANK REPO SALES ON FIRE, SHORT SALES A BUST
HOME LOANS, REAL ESTATE PRACTICE, SHASTA COUNTY, SHORT SALES
September 3rd, 2008
With all the effort being put forth by agents and homeowners upside down in value, I thought it was time to take a look at what’s working and what’s not. Year-to-date (YTD) sales data show 1240 homes have closed escrow in the area served by the Shasta MLS. Of those, 378 or 30% were bank repos, or REO’s, as they are called by real estate agents. The much talked about short sales only represented 4% of closed sales or 46 units. Why all the hub bub about short sales?
Many agents that have been in the business for a long time have looked at the short sale mania with some skepticism. These preforeclosure properties are being listed for sale in hopes the lender will agree to a short payoff. I’ve heard some of my colleagues question the motives of agents that focus primarily on short sales. They feel it is nothing more than a tactic to get their foot in the door so these agents can begin a dialogue with the homeowners lender with the hope of snagging the listing after it is auctioned off.
The statistics show that a select few homeowners are successful in navigating the short sale process, avoiding foreclosure. Today, 187 listings on the Shasta MLS are listed as short sales. I have successfully closed one short sale this year and I have one listed for sale. Some agents in my market area are claiming to be short sale specialists. Homeowners in trouble should first contact their lender and see what workout options are available. If a short sale is the best way forward, ask the lender to send you a hardship package and complete and return it immediately.
Just about any agent can assist you listing and marketing the property in an effort to avoid foreclosure. A sure fire indicator that your agent is using a bait-and-switch sales technique is if the agent handles REO’s that were previously listed by them as short sales. It could be advantageous for the agent to let the property go into foreclosure and pick it up as and REO listing later. Commissions can be substantially higher on a REO than a short sale.
The bottom line is short sales are successful in a limited number of situations. Homeowners should explore all their options including a revised payment plan, refinance or loan modification with the existing lender, a refinance under one of the new programs devised by our president and FHA, a deed in lieu of foreclosure or a short sale. Make sure your agent has your best interest at heart and is not just getting the inside track to list your home after the foreclosure.
I have attended seminars and training on handling short sales, contact me if you need advice on all options:
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Hello. I’m new at this. I’m looking for quick turnaround properties: tax auction left overs, other distressed situations. If you can be of assistance, it would be most appreciated. Nice to say hello to someone else in the business. I could use a mentor.
Jenna
jennamack4@aol.com