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Answers (7)
- Greg Cowart, "Roseville Loan Guy"
- Contributions:448
I agree with S.G Hilton and Kamal Randhawa very much...
As for waiting for 2011 and wondering about the foreclosure forecast, delinquencies are down from 2008 and 2009, when the last year's - today's foreclosures first went delinquent. It's no guaranty that foreclosures will be down but is the best indicator we have.
San Jose's delinquency rate is already near the lowest of America's largest cities and it's been getting better every month. As last measured the San Jose-Santa Clara market was at a 7.9% seriously delinquent rate. That's not good historically but it's better than pretty much every other large metro area in the nation, it's even a sliver lower than San Francisco's.
That's not to say foreclosures are going down. They are not, yet. The foreclosures today are from homes that went delinquent early this year and late in 2009. Those homes will need to go through the process before it starts to get better. But we know it most likely will after that simply because the delinquency rate is going down and you can't have foreclosures without seriously delinquent mortgages...
Greg
- Karen Doss, "Karen Doss"
- Contributions:21
Since there are so many properties coming on the market now, the chances of purchasing a short sale home is very likely. You would have to wait for the lender to approve the purchase price which is starting to happen much faster now. The property condition may also be better with the owner still in the home. Many times when the seller leaves the home in foreclosure damage is done that would need repair.
REO often times start out at a higher price attempting to recapture as much value as possible. Unless the property is significantly under market because of it physical condition the short sale may be the way to go.
Furthermore, interest rates are going up, so now would be the best time to buy!
Good Luck with your House Hunting!
- Kamal Randhawa, "krandhawa333"
- Contributions:79
The price depends on the property value...in a short sale or an REO, where a bank is involved, they usually wont sell for less then the appraisal value they have unless the home has been on the market for quite some time or needs considerable work.
My personal opinion on the foreclosure forecast is that you probably have a good 8 - 12 months while you can still get good prices.
Good luck and feel free to call or email me if you need any further assistance :)
My personal opinion on the foreclosure forecast is that you probably have a good 8 - 12 months while you can still get good prices.
Good luck and feel free to call or email me if you need any further assistance :)
- Chad Basinger, "ChadBasinger"
- Contributions:91
Hi Debbie,
I recognize that there are differences between a short sale and a bank owned/REO property. However, as far as the price is concerned, that is really a function of supply and demand and what the property is worth based upon comps and what is happening in your market place. Some "short sale" properties are offered at artificially low prices, so as to attract multiple buyers, who then bid up the price to a more realistic number. Thus, it is hard to answer what your chances are of getting the short sale price are without knowing specifically if that is a reasonable number in the first place. As for REO's, the banks are not in the business of owning real estate, yet they have departments set up to value the properties accordingly. In general, they have done their due diligence and have priced them to sell. However, whether you are dealing with an REO or short sale, the bottom line is that everything is negotiable. As far as whether you should wait until 2011 or not depends upon your own situation. While it is historically slow during the holidays, that to me means less competition from other buyers, which is a good thing. While I do not think interest rates are going to move up soon, do keep in mind that a 1% increase in rates equates to approximately a 10% decrease in price that would be needed to equate to roughly the same payment (ie...you have much greater purchasing power at these low interest rates).
There are different thoughts on the forecast for foreclosures. I do not claim to have a crystal ball, but it appears the level will remain steady heading into 2011.
Best of luck!
I recognize that there are differences between a short sale and a bank owned/REO property. However, as far as the price is concerned, that is really a function of supply and demand and what the property is worth based upon comps and what is happening in your market place. Some "short sale" properties are offered at artificially low prices, so as to attract multiple buyers, who then bid up the price to a more realistic number. Thus, it is hard to answer what your chances are of getting the short sale price are without knowing specifically if that is a reasonable number in the first place. As for REO's, the banks are not in the business of owning real estate, yet they have departments set up to value the properties accordingly. In general, they have done their due diligence and have priced them to sell. However, whether you are dealing with an REO or short sale, the bottom line is that everything is negotiable. As far as whether you should wait until 2011 or not depends upon your own situation. While it is historically slow during the holidays, that to me means less competition from other buyers, which is a good thing. While I do not think interest rates are going to move up soon, do keep in mind that a 1% increase in rates equates to approximately a 10% decrease in price that would be needed to equate to roughly the same payment (ie...you have much greater purchasing power at these low interest rates).
There are different thoughts on the forecast for foreclosures. I do not claim to have a crystal ball, but it appears the level will remain steady heading into 2011.
Best of luck!
- debbie_07
- Contributions:8
@Tom- That's very helpful, thank you.
@HIlton >>Your question suggests that there are 2 different prices on the same property, is that truly the situation?
No- there just are a lot of houses on the market and I'm asking about the ones that are comparable, but one is REO and the other a short sale.. and I agree I think I need to do more study before I buy.
@HIlton >>Your question suggests that there are 2 different prices on the same property, is that truly the situation?
No- there just are a lot of houses on the market and I'm asking about the ones that are comparable, but one is REO and the other a short sale.. and I agree I think I need to do more study before I buy.
- Tom Merigan, "Tom Merigan"
- Contributions:118
Debbie
there are still a lot of short sales happening...and getting your price isnt the issue. You will get a lower price with the short sale than reo. The issue is the probability of getting the home. In a short sale the bank may very well say no or keep you hanging for 60 or more days. If anything short sales are still on the rise. I expect a flurry of buying in the spring though....
You can still realistically get "your " price with a shorts sale, just realize the banks are more eager to deal on an REO since theydont like holding inventory. For inventory they hold it great decreases their ability to in essence get funded/borrow from the fed. Between now and the spring you should be fine getting a good price on a short sale.
Hope that answers your question
thanks
tom merigan
there are still a lot of short sales happening...and getting your price isnt the issue. You will get a lower price with the short sale than reo. The issue is the probability of getting the home. In a short sale the bank may very well say no or keep you hanging for 60 or more days. If anything short sales are still on the rise. I expect a flurry of buying in the spring though....
You can still realistically get "your " price with a shorts sale, just realize the banks are more eager to deal on an REO since theydont like holding inventory. For inventory they hold it great decreases their ability to in essence get funded/borrow from the fed. Between now and the spring you should be fine getting a good price on a short sale.
Hope that answers your question
thanks
tom merigan
- Steven G. Hinton
- Contributions:98
Your question suggests that there are 2 different prices on the same property, is that truly the situation?
Purchasing a Short Sale, REO or other comes down to terms and price which becomes some value. There is no way to predict which selling method will net you your best value.
Learn your market so that you can recognize an excellent value, then buy. Don't focus on the selling circumstances so much.
Purchasing a Short Sale, REO or other comes down to terms and price which becomes some value. There is no way to predict which selling method will net you your best value.
Learn your market so that you can recognize an excellent value, then buy. Don't focus on the selling circumstances so much.
wondering between short sale and REO
Also, this is in San Jose area- should I wait for 2011? Whats the foreclosure forecast?
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