FEST! Solid information is the backbone of making good decisions. The rest takes raw courage and heart.
For the Fencesitter, there will be inventory...sooner than later. We receive bank owned listings from two sources and one id very tied into the Washington lending and housing scene. They are all saying the dam will burst, or at least start to leak, between November and February. In our opinion, there are 3 major factors to what is happening:
1. Consolidation in the lending industry. There are now just 4 or 5 companies that have purchased most of the borrowing power in the US. For example, Chase bought WAMU & merged with JP Morgan. From what we can gather, they are trying to figure out how to release the foreclosured properties to the market without causing a major pricing downturn and disrupting the economic momentum.
2. Municipalities - When the lenders lifted the moratoriums between April 1st and June 1st 2009, the local governments told the lenders they needed to to take their paperwork back to square one. In other words, they wanted to make sure everything was current with their foreclosure filings.
3. State & Federal Governments - So the moratoriums come of and the State of California puts a 90 day freeze on foreclosures that completed on September 1st. The Federal Government is pushing lenders to modify loans, not foreclose. In our opinion, the lenders are using NOD's (Notices of Default) as leverage with home owners to create urgency for them to sell or modify. The problem is that most that are late have not been able to qualify for a loan modification, which is a lengthy process.
Eventually the Federal Bank Regulators will make the determination to hit the green light and get things moving. All in all, the foreclosure process is more complex than people think and there are many factors that are taken into account with regards to the time line. Like, occupancy, property condition and lender regulations.
Lastly, the best part about this forum is we all learn from one another, which helps us better serve our clients.
We hope this helps.
Mark and Kari Shea
San Diego Real Estate Experts
Foreclosure & Investment & Short Sale Specialists,
Development Opportunities & Traditional Real Estate