Where are all the Short Sales?? Short Sales have been around a long time..longer than I’ve been in the Real Estate industry, and that’s going on 18 years. I was very active in the most recent Short Sale go around, which began in 2009. I was selling New Homes from 2000 to 2005, and I remember being very aware that something had to give! Prices were zooming up, La Quinta alone was seeing 22% per year increases in values for residential homes..NOT sustainable. I went back to the California Board of Realtors, and got my Short Sale Certifications, NAR, SFR, and HAFA. I just wanted to understand how to help people get out from under their properties when the market slowed, then tumbled. If you are upside down on your property, a Short Sale IS one of your best options. Give me a call at 760-285-3578 if you have questions about your property value, and whether a Short Sale may work for you.
From 2009 – 2011, I did dozens and dozens of Short Sales every month, in the Coachella Valley, and other parts of Riverside County. I am still handling them on a regular basis, but the total number of Short Sales has dropped dramatically. There have been two developments in the Short Sale field that really stand out to me.
- The price point has Increased in my Short Sale dealings: During the peak of the Short Sale world here in the desert, my clients were mostly entry level owners. That was any where from $150,000 to $350,000. That inventory is mostly gone, mainly I believe, because homeowners at this level did not have the income to sustain payments, and investors had bought so many homes, hoping to flip them, that they had to unload them. Our homes priced in the mid to upper ranges, $400,000 – $800,000 were next, and I still get a few of these. Most of my Short Sales now are homes with current values of $1.5 to to 2.5 million. These properties were purchased, or built with values at the time, of $3 to 5 million. These sellers were able to keep their properties longer, hoping to see the market come back. Now, they are selling them Short.
- Banks are more proactive in Short Sale processing: When I first started working Short Sales, there was not ONE Lender that had a method to handling short sales. It took them several years to get rolling with their short sale processing. Now, there are systems in place to help expedite the short sale process. Bank of America was one of the worst as far as getting any help with my files, and now they are one of the best! Online systems, educated negotiators, and relatively quick responses help me get them closed. B of A, as well as the other two institutions that handle most of the delinquent notes, also require sellers to use a Short Sale Specialist to market, present and close the deal.
If you are still underwater on your note, or notes, give me a call and let’s talk about your options. It is also a good idea to reach out to your Lender, make them aware of your situation, and talk to your CPA about any potential tax consequences. Information never hurts!!