We are currently working on three short sales that have already been approved for huge discounts. - That’s the good news.
The bad news is that active listings have caught up with our low offer price. So now the lender nets about 3% less than comparable active REO listings.
That raises the question if these active REO listings are “below market”, or if they are the new “market value”?
The attached file, “Southern California Foreclosure Crisis“, shows how prices in the Antelope Valley are coming “full-circle”: In inflation-adjusted prices we are back to BELOW 1984 values (or is this available REO listing actually “below market”?)
What do you think? - Leave a comment!
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1 response so far ↓
1 Reggie // Jun 22, 2008 at 6:09 pm
The short sale approvals process has slowed down tremendously. I work very had putting together a full package, pricing the property correctly, and procuring a fully qualified buyer. The problem is loss mitigation. The BIGGEST problem are the BPO agents. For the $150.00 they are paid for their appraisal they costs thousands of dollars to the lenders as well as being the major reason buyers walk away because they continue to price short sale properties TOO HIGH.
I have told lenders the value is too high and that the property would sell for less than my short sale offer when the property becomes an REO.
It happened the way I layed it out almost to the dollar.
My attitude is that I work for the homeowner and lender finding the best option for both.
I wish loss mitigation would understand this !
Thanks
Reggie
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