Foreclosure in Irvine>Question Details

Mahesh Patel, Real Estate Pro in Anaheim Hills, CA

Curios to find out if more short listings will hit the market soon or will bank owned homes 'flood' the market?

Asked by Mahesh Patel, Anaheim Hills, CA Thu Oct 4, 2012

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You may see a tick up on Short Sale especially before end of the year due the mortgage debt forgiveness act ending this year. Bank Owned (REO) has been on the decline and should stay that way especially during the election year but may tick up thereafter. If your home is priced right, it should sell.

James I. Park
Park Realty Group, Inc.
0 votes Thank Flag Link Thu Oct 4, 2012
Lenders are being very careful to follow their plans to release properties to the foreclosure pipeline here at Orange County, CA.

So we do not expect any "flood" of foreclosures - either into the pipeline or after foreclosure when properties are either purchased by investors or taken back by lenders as REOs.

Orange County home selling markets need more listings and would welcome all possible REOs.

Harrison K. Long, Realtor and broker associate, Coldwell Banker Previews, Irvine, CA.
CA DRE 01410855
0 votes Thank Flag Link Sun Oct 7, 2012
Wait until the election are done. It very hard to read the market today.
0 votes Thank Flag Link Thu Oct 4, 2012
Thank you for your answers... seems like it is a wait and see game. There are so many variations.
One thing is for sure, if the inventory remains low, price will go up, which is a good thing for all...
0 votes Thank Flag Link Thu Oct 4, 2012
There will continue to be a supply of Short Sales as the banks seem to be more willing to work with borrowers. There will be foreclosure/REO properties as well but no one really has a crystal ball to what the banks will do, especially if there is more government incentive to them.
0 votes Thank Flag Link Thu Oct 4, 2012
Everyone and the brother would like to have the answer on this. Chase says that they are going to start working more short sales and less foreclosures on the property that they actually own the paper on and are not just the servicer. No one knows for sure what the furture will bring with the additional foreclosures that are in the "shadow inventory" but I believe that the banks are holding them back to drive up prices to minimize their loses. However the cost of holding back on doing the foreclosures or releasing the homes would seem to eat up any profit that they gain in increased value of the property. I guess there is some bank logic in there....

Lori hanson
DRE 01405146
0 votes Thank Flag Link Thu Oct 4, 2012
Morning Mike,
as you know most REO brokers have lost the majority of their REO Inventory.
With Banks paying incentives for borrowers to short sale in lieu of foreclosure, you'll continue to see more & more short sales. Especially in these next few months with the "The Debt Relief Act" expiring on 12/31/2012...

Best to you out there!

Alex Vargas
Weichert Realtors
(714) 269-8775 Mobile
DRE # 01332235
0 votes Thank Flag Link Thu Oct 4, 2012
Here in Florida the 'ghost inventory' was chatted about along with the subsequent flooding of the market with REO's. It didn't happen.
We discover that the banks have been bulk selling this invisible inventory to Goliath investing groups like Blackstone. PK recently purchased 840 homes from Fannie/Freddie in absolute silence.
When the consumer sees an REO listing it has already been rejected by the first tier investors nationally, regionally and locally.
This reality may impose 'what's behind curtain #3" options for the lender, when skilled agents are negotiating and guiding a short sale to conclusion. Why the deal failed may never be revealed to those who toiled so long in futility.
0 votes Thank Flag Link Thu Oct 4, 2012
I have seem the amount of listings fall sharply over the last year. the latest trend is a good majority of homes you will see as short sales but becuase some home sellers insist on using inexperienced or out of town agents, most will become foreclosed and come back on the market as REO homes. Home owners are better off choosing full time, local agents who are well expereinced in listing, negotiating and selling short sale to be able to have success in selling their home via a short sale.
0 votes Thank Flag Link Thu Oct 4, 2012
Before they become bank owned in the foreclosure auction they are often listed as short sales. I don't think we have seen the end of either of them yet.
0 votes Thank Flag Link Thu Oct 4, 2012
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