The policy of lenders pre-approving an acceptable price for their short sales is becoming more common, and with this offer, they should have plenty of takers!
Bank of America is excited to offer enhanced relocation assistance.
Qualified homeowners who initiate a Preapproved Price short sale (without an offer) could be eligible to receive$5,000 – $30,000 in relocation assistance* and owe no more on their mortgage with the sale of their property, depending on the investor involved.
*Specific investor participation and eligibility criteria do apply to these programs.
Contact Jim the Realtor to get started! jim@jimklinge.com or (858) 560-7700.
We saw how pricing was lower with short-sales vs. non-short-sales, but how many short sales are there in North SD County’s Coastal region?
Either way (including the closed sales from the last three months or not), short sales are making up around 15% of the overall detached-home market in NSDCC:
MLS Status
Short Sales
Non-SS
Actives
49
1,208
Contingents
228
43
Pendings
74
623
Soldslast90days
155
1,044
Totals
506
2,918
Short sales are 31% of the contingent+pendings, which should nicely supplement the closed-sale counts for the rest of the year – though if they continue to sell at lower prices, they will be a contributing factor to what could appear to be a pricing slump in 4Q12.
You keep hearing that banks and servicers have changed course, and are pushing defaulters to short sale, rather than face foreclosure. It’s been backed with the common belief that short sales cost less for the lender, and save the borrowers’ credit.
Does the new commitment to short sales appear in the stats? Banks did close 32% more short sales this summer vs. the June-August period last year. But as you can see below, it looks like they just stepped up production to the next plateau, instead of creating a whole new machine.
There are 3,527 short-sale listings marked ‘contingent’ in San Diego, which are those waiting for lender approval. Most will probably be approved slowly over the next few months, helping to bolster the year-end stats and make the 4th quarter market look stronger than it really was.
How does short-sale pricing compare to the non-short-sale pricing?
If it weren’t for short-sales, statistical increases in pricing would be more obvious.
If bankers were serious about market recovery, then they should cancel this insane pandering to defaulters. It would encourage the honest bill-paying folks, and help clean the bums out of the realtor community. Instead, short sales are just the latest can-kicking device!
In the San Diego-Carlsbad-San Marcos residential market, the level of underwater mortgages leveled off in the second quarter, according to a real estate services company.
CoreLogic reported 165,650 of all residential properties with a mortgage (28.1 percent) were in negative equity, in the San Diego County market. In the first quarter, the level was 28.2 percent, or 165,582 properties, according to the new analysis.
Also in the San Diego market, an additional 4.8 percent — or 28,352 residential properties — were in near negative equity for second quarter 2012 compared to 4.9 percent, or 28,889, in first quarter 2012.
Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination.
JtR: Including homeowners without a mortgage, those underwater are fewer than 20%.
There have been 9,410 San Diego short-sales and REO listings closed this year, or 6% of 165,650.
One of the questions we get asked most often is whether it remains appropriate for the scoring model to treat a short sale in a manner similar to a foreclosure.
Critics assert that since short sales do not cost the bank as much money as foreclosures, the penalty to a credit score should be less, commensurate with the financial impact on a lender. Some also suggest that the borrower’s willingness to work with the lender should have a positive effect on his/her credit risk. Another argument for revisiting the scoring model’s treatment of these mortgage stress events is that the mortgage crisis was unprecedented. Consumers, who would have otherwise paid responsibly, were now making decisions that theoretically were not representative of their true risk.
NAR President Moe Veissi praises new help for struggling homeowners. The Federal Housing Finance Agency on Tuesday announced measures to make “short sales” of underwater homes easier for homeowners, including extending help to people who have financial difficulties but haven’t missed mortgage payments.
From CAR – scroll down to chart showing SD County #2 in state; only San Mateo County is lower:
LOS ANGELES (Aug. 23) – A continued shortage of available homes on the market impeded California pending home sales in July, but pending sales were still higher from the previous year for the 15th straight month, CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
Pending home sales data:
C.A.R.’s Pending Home Sales Index (PHSI)* fell 4.2 percent from a revised 121.2 in June to 116.1 in July, based on signed contracts. Pending sales were up 2.8 percent from the 113.0 index recorded in July 2011. July marked the 15th straight month that pending sales were higher than the previous year, but July’s year-over-year increase was the smallest in the past year. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
“We continue to see a strong demand for housing, but the California market is being hindered by a lack of inventory and multiple offers on what little inventory that is available,” said C.A.R. President LeFrancis Arnold. “The shortage of inventory has had the most dramatic effect in the REO market, where the available inventory stands at a 1.5-month supply and the share of REO sales dropping 35 percent over the past year.”
Distressed housing market data:
• The share of equity sales – or non-distressed property sales – compared with total sales continued to expand in July. The share of equity sales increased to 59.5 percent in July, up from 58 percent in June. Equity sales made up 52.4 percent of all sales in July 2011.
• The share of REO sales statewide shrank further, while the share of short sales increased. The combined share of all distressed property sales fell to 40.5 percent in July, down from 42 percent in June and down from 47.6 percent in July 2011.
• The share of short sales increased in July to 22.6 percent, up from 21.4 percent in June and from 18.8 percent a year ago.
• Of the distressed properties, the share of REO sales dwindled in July to 17.4 percent, down from 20.2 percent in June and 28.6 percent in July 2011.
• The available supply of REOs for sale remained constricted in July, with the Unsold Inventory Index standing at a 1.5-month supply in July 2012, essentially unchanged from 1.4 months in June. The July Unsold Inventory Index for equity sales stood at 3.8 months and was 4.2 months for short sales.
How many short sales and REOs are happening in the elite areas of NSDCC? 12%
Detached Sales between April 1 and July 31 in Del Mar, Solana Beach, RSF, and CV:
Type
# of Sales
Avg $/sf
% of Total
SS & REOs
48
$297/sf
12%
Non-SS&REOs
338
$431/sf
88%
Total
386
$414/sf
100%
Here is the map of where the SS & REOs were located:
There are 135 SFRs on the NOD and NOTS lists, so there will be a few more dripped out, but for the most part we are in a non-distressed market – at least as far as we can tell.
Will banks keep the pressure on those behind in payments?
The policy of lenders pre-approving an acceptable price for their short sales is becoming more common, and with this offer, they should have plenty of takers!
