What does this mean...a further backlog of NODs and the follow on short sales and foreclosures. There is a tremendous amount of inventory, with BofA and Wells Fargo not even in the game yet.
This will have an immediate effect on home prices. Caveat Emptor!
This should free up inventory, but we are still not certain as to how many will be short sales and how many will go back to the bank as foreclosures. In addition, no one knows for sure if it will be a trickle or will the flood gates open.
My personal observations on several that I have worked on is that the seller is the choke point. Example, if the lender asks for the most recent pay stub and the deductions show an automatic deposit to a savings account but the seller has told the lender they do not have a savings account, BOOM, short sale implosion.
NMLS # 6395
Financing Kentucky One Home at a Time