Brian Halste…, Real Estate Pro in Miami, FL

How do you think the present stop on foreclosures and short sales will affect buyers and sellers?

Asked by Brian Halstead, Miami, FL Wed Oct 13, 2010

Will buyers fight for the little (not really little) that is left or wait until the Banks lift there stoppage on foreclosure and flood the market (market already flooded).
Will sellers drop their prices to get out now before they have to compete with thousands of cheap bank owned properties?

Help the community by answering this question:


I placed an offer this afternoon expecting Fannie Mae to be a "safe foreclosure zone", but already got response from selling agent that "seller has order to take of the market do to defects in title found". I wonder if Fannie will also join the moratorium. If so....then there is nothing to sell. It will be a great time for the few traditional sales out there.

Tony Vega
Charles Rutenberg Realty
1 vote Thank Flag Link Wed Oct 13, 2010
It won't stop sellers at all.

It'll divert buyers from foreclosures to equity sales and short sales. Problem is, the lenders are already so slow and overwhelmed with (and reluctant to do) short sales that I don't think that's a route most buyers should choose.

Don't worry about the market being flooded. Those foreclosures have to hit some time--now or later. It's just a matter of time-shifting, just as we saw with the market distortion with the so-called "first time homebuyer tax credit"--which started off not as a tax credit but a zero interest loan, and then morphed into a tax credit for folks including those who'd owned their homes for a long time. So you'll see market distortions, but then you'd see them at some point anyway.

The bigger problem is all the bad deeds out there, and not just the foreclosures. If you're on Active Rain, I've blogged a lot about that there.

And banks are trying to pressure homeowners--including those not behind on their mortgages--to do deeds in lieu of foreclosure. And the banks (here's my rant) are trying to pollute our political system--see H.R. 3808, The Interstate Regulation of Notarizations Act of 2010 which Obama--to his great credit--vetoed. That legislation would have legalized most of the robosignings.
1 vote Thank Flag Link Wed Oct 13, 2010
Don Tepper, Real Estate Pro in Burke, VA
I think it will help stabalize property prices and with short sales still selling, it should prevent future foreclosures as they close.

Debbie Albert, PA
Web Reference:
0 votes Thank Flag Link Thu Oct 14, 2010
bottomline is if the home owner is not paying their mortgage and has noability to pay, their foreclosure may be delayed but is inevitable. if they have an ability to pay, they have time to conact their bank and work things out with home retention in teh form of a forebearance or loan mod.

For those who can or do not want to work anything out, the next best choice is a short sale. i have a blog with a complete list of tips and advice
0 votes Thank Flag Link Wed Oct 13, 2010
Short sale banks are a joke to deal with but I think the banks will process them faster now that there are no REOs (BOA JP Morgan Chase etc) which will cause a rise in prices since they will reduce the inventory by about 50% then they will flood the market with their listings and crash it again.

Either the banks want the properties on their books for assets at year end to make them look valueable, or they are doing what they can to raise the prices of homes so they can then sell their own at a higher profit. As if they dont already have money coming out of every orifice.

And do they really think we are all so dumb as to believe that all these banks experienced these REO issues all at the same time? What do they do, share employees?
0 votes Thank Flag Link Wed Oct 13, 2010

I think it is a possitive move. First, not all foreclosures are stopped. The banks that are holding off for now have issues to settle to make sure the foreclosures are legal. In the long run, this is the right thing to do.

Debbie Albert,PA
Web Reference:
0 votes Thank Flag Link Wed Oct 13, 2010
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