Comments on: Five Tips to Score a Bargain Short Sale http://www.californiamortgagerate.com/californiacurrent/five-tips-to-score-a-bargain-short-sale/ Up to Date Rate Info and More | California Current Sat, 11 Feb 2012 13:40:47 +0000 http://wordpress.org/?v=2.3.2 By: Scott http://www.californiamortgagerate.com/californiacurrent/five-tips-to-score-a-bargain-short-sale/#comment-95 Scott Fri, 05 Sep 2008 20:54:25 +0000 http://www.californiamortgagerate.com/californiacurrent/five-tips-to-score-a-bargain-short-sale/#comment-95 Good point! Good point!

]]> By: Heindrick http://www.californiamortgagerate.com/californiacurrent/five-tips-to-score-a-bargain-short-sale/#comment-94 Heindrick Fri, 05 Sep 2008 20:47:07 +0000 http://www.californiamortgagerate.com/californiacurrent/five-tips-to-score-a-bargain-short-sale/#comment-94 Janice: Yeah, I saw that same article on CNN. Here is a similar story from the Sacramento Bee http://www.sacbee.com/845/story/1186411.html Craig: Great point. Fraud never pays off. Period Fred: In a way, short sales do weaken the market as they end up driving comparable sale prices much lower. However, considering the situation, things would be much worse if banks sat around with huge inventories of foreclosed homes. It is a very strange trend as you probably notice since more short sales inexplicably lead to even more short sales. But, this is the way of the market "correcting" itself and that is why we can expect to see more short sales as home values return back to "normal". Scott: Thanks for sharing your experience Scott. A lot of offices have certainly noticed the need for short sales, and buyers are very curious as to how they can tap into these discounted markets. To me, curious buyers are great for this market. As I mentioned with Fred though, short sales do weaken the market in terms of home values. But as you probably notice, there is starting to be a pickup in terms of home activity- despite so many of these transactions being short sales. Lenders are being more responsive and understand that foreclosing can cause more harm than good for this market and their portfolios. We can't forget that for every short sale, these lenders are taking losses as they discount the loans. So while it helps the market in a way, we know that lenders are still hurting and that it's going to take a while before things start to settle. Janice: Yeah, I saw that same article on CNN. Here is a similar story from the Sacramento Bee
http://www.sacbee.com/845/story/1186411.html

Craig: Great point. Fraud never pays off. Period

Fred: In a way, short sales do weaken the market as they end up driving comparable sale prices much lower. However, considering the situation, things would be much worse if banks sat around with huge inventories of foreclosed homes.

It is a very strange trend as you probably notice since more short sales inexplicably lead to even more short sales. But, this is the way of the market “correcting” itself and that is why we can expect to see more short sales as home values return back to “normal”.

Scott: Thanks for sharing your experience Scott. A lot of offices have certainly noticed the need for short sales, and buyers are very curious as to how they can tap into these discounted markets.

To me, curious buyers are great for this market. As I mentioned with Fred though, short sales do weaken the market in terms of home values. But as you probably notice, there is starting to be a pickup in terms of home activity- despite so many of these transactions being short sales. Lenders are being more responsive and understand that foreclosing can cause more harm than good for this market and their portfolios.

We can’t forget that for every short sale, these lenders are taking losses as they discount the loans. So while it helps the market in a way, we know that lenders are still hurting and that it’s going to take a while before things start to settle.

]]> By: Scott http://www.californiamortgagerate.com/californiacurrent/five-tips-to-score-a-bargain-short-sale/#comment-93 Scott Fri, 05 Sep 2008 20:41:01 +0000 http://www.californiamortgagerate.com/californiacurrent/five-tips-to-score-a-bargain-short-sale/#comment-93 As a real estate agent in California I went seven years without a single short sale, now my office has done nine in the last few months. When your home is worth less than you owe, there's a weakening in the market already. In my opinion, anything the lender can do to recoup the loan amount is a good thing for the market. But don't quote me on that. Any other insight? As a real estate agent in California I went seven years without a single short sale, now my office has done nine in the last few months. When your home is worth less than you owe, there’s a weakening in the market already. In my opinion, anything the lender can do to recoup the loan amount is a good thing for the market. But don’t quote me on that.

Any other insight?

]]> By: Fred http://www.californiamortgagerate.com/californiacurrent/five-tips-to-score-a-bargain-short-sale/#comment-92 Fred Fri, 05 Sep 2008 20:32:56 +0000 http://www.californiamortgagerate.com/californiacurrent/five-tips-to-score-a-bargain-short-sale/#comment-92 Do you think the California housing market will be weakened by short sales? Do you think the California housing market will be weakened by short sales?

]]> By: Craig http://www.californiamortgagerate.com/californiacurrent/five-tips-to-score-a-bargain-short-sale/#comment-91 Craig Fri, 05 Sep 2008 20:30:22 +0000 http://www.californiamortgagerate.com/californiacurrent/five-tips-to-score-a-bargain-short-sale/#comment-91 Just as a warning, some homeowners have been lowering their mortgage payments by arranging fraudulent "short sales" at prices less than what they owe. The buyer agrees to transfer ownership back to the seller, who winds up with a smaller mortgage on the same house and never has to move. The seller commits fraud by having a side arrangement with the buyer that he does not disclose to the lender. Lenders would reject a sale in which there was a special relationship between seller and buyer on the grounds that the selling price most likely was not the best one available. So while your shopping for a short sale beware of any side transactions or you may wind up doing time for mortgage fraud. Just as a warning, some homeowners have been lowering their mortgage payments by arranging fraudulent “short sales” at prices less than what they owe. The buyer agrees to transfer ownership back to the seller, who winds up with a smaller mortgage on the same house and never has to move. The seller commits fraud by having a side arrangement with the buyer that he does not disclose to the lender. Lenders would reject a sale in which there was a special relationship between seller and buyer on the grounds that the selling price most likely was not the best one available. So while your shopping for a short sale beware of any side transactions or you may wind up doing time for mortgage fraud.

]]> By: Janice http://www.californiamortgagerate.com/californiacurrent/five-tips-to-score-a-bargain-short-sale/#comment-90 Janice Fri, 05 Sep 2008 20:25:15 +0000 http://www.californiamortgagerate.com/californiacurrent/five-tips-to-score-a-bargain-short-sale/#comment-90 According to CNN Money short sales made up a third of recent home sales. California, Nevada, and Florida are top in terms of these transactions. So theirs obviously a market there. Great post! According to CNN Money short sales made up a third of recent home sales. California, Nevada, and Florida are top in terms of these transactions. So theirs obviously a market there.

Great post!

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