Today Full Page Ad in Sac Bee on Short Sales

Today on page A11, the California Association of Realtors has published an advertisement on the difficulty of our housing marketing with regard to foreclosures and short sales. The ad states that nearly 30 percent of homeowners are underwater on their mortgage. That's a huge percentage which means this housing crisis isn't going anywhere in the near future. On top of that, those that try avoid foreclosure by doing a short sale, are only successful with three out of five short sales.

This "crazy market" seems to be our now normal market, and it's not for sissies!

It's the Banks vs. the Banks

Nearly all delays in a home sale closing escrow have to do with a bank causing a delay. The ironic part is that the typical seller in our area is a bank, who then fights with the buyer's lender, a bank.

I am in contract right now where a bank seller of a home took three weeks to respond to a low appraisal and in return, gave my buyer three extra business days to close escrow. The buyer's lender is now taking an additional nearly three weeks to close escrow. In the meantime, seller's listing agent and buyer's loan officer are having a not-so-nice spat via email over when this thing will close.

All the while, my buyer is left in limbo through no fault of her own. Banks on both sides I think forget sometimes that while they are pushing paper and crunching numbers that there are real humans on the other sides of these transactions.

It's a Seller's Market?

The media is still calling this a Buyer's market, and in some cases it is. However, if you're trying to buy a bank owned property, it's a seller's market. Banks are pricing their listings at rock bottom, which is bringing in multiple offers. A client called and wanted to look at a home that was just listed for an incredible price in Elk Grove, I checked with the agent and it had 17 offers. SEVENTEEN! Sellers of "normal sales" of homes are begging for just one offer, but those homes are overpriced.

So if you're a buyer and making offers on bank owned homes, don't lowball...the bank won't even acknowledge you. Also, be patient, your home is out there and when it's supposed to be yours, that's the house you'll get.

Losing a Home is More Than Just a Crazy Loan

In the past couple of months I am meeting more and more homeowners who are on the verge of foreclosure and it has nothing do with adjustable loans. These are people who are unable to make the payment on their 30-year-fixed mortgages. These are people who are finding themselves in tough times, many of which have lost their jobs and are unable to get new ones. Our economy is worse than the we think.

It is heartbreaking for a Realtor to see a client lose a home you represented them in buying. You remember that exciting day of handing them over the keys, never once thinking that they could lose that home in the future. But, now you end up trying to help them lessen the blow to their credit and offer to try to sell it before the bank takes it back. There really is no silver lining in losing your home. Just another of life's crappy lessons.

I'm really looking forward to our Sacramento Region getting out of this foreclosure mess and back to a nice stable housing market.