Which means a log jam of sorts because the numbers of properties that are under contract have also increased.
- Are there going to be more foreclosures released?
- Are the Short Sales that don’t get approved going to be on the market as Bank Owned?
- What is happening with the Banks, are they running low on REO inventory?
With Regard to having more Foreclosures Released onto the market for sale:
You betcha. There will be a huge amount of inventory in the future. One of the banks that we represent, with the sales of their REO, Real Estate Owned, properties has "rumored" that first quarter of 2011 will set a new benchmark for Foreclosure Releases.
What happens to the Short Sales that are not approved?:
Depends. They have several fates. First, the foreclosure process has to be fulfilled. They can be sold at an auction to anyone. The property can be placed onto the Original Bank’s Balance Sheet under the REO category and then placed onto the market for sale. Some will get caught up in Bulk Sales (where singular packages containing many REO properties are prepared, evaluated and sold in that form).
Are banks running low on Foreclosures?
Not only are their coffers overflowing – There are more coming in the form of Adjustable Interest Rates causing homeowners to have an increase in payment owed each month. Also – Balloon payments for the Negative Amortization products that were sold are starting to come due.
With Regard to Days on Market – you can see that time frame change in the Graph Below – This graph represents the Cities that are within the Santa Clarita Valley – Castaic, Canyon Country, Valencia, Stevenson Ranch, Saugus and Newhall.
Every Single Family Residence, condo and town-home- The Longest Days on Market Average for Santa Clarita Homes in a two year history!!!
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