Are Short Sales making a comeback in the Coachella Valley? Being a certified Short Sale Agent here in the Coachella Valley, California, I am definitely seeing an uptick in distressed homeowner activity. More calls from tentative sellers. More requests for short sale information. More inquiries regarding the Short Sale process with a particular lender. Throughout the Valley, Short Sales have remained relatively low over the past 3 years or so. Our housing market has stabilized to a large degree, so why the gradual increase in activity? I suspect there are several things that are happening in our economies that are converging to create a perfect time for the Short Sale process to once again gain momentum. If you have questions regarding a potential short sale, give me a call for your FREE consultation at 760-285-3578.Because we are such a global economy now, everything that happens in other countries affects us too. In New York, the uber luxury market is beginning to slow down. Fourth Quarter 2015 saw a rather significant drop in contracts, and first quarter 2016 is continuing the trend. My perception of the local Uber market is that we are still very strong at the high end. In the Short sale world, I believe the million dollar market may very well be affected. These homeowners were in a position to carry their properties much longer. For example, you bought your home in 2008. Maybe you even pulled out a HELOC, Line of credit, and put much of that money back into your home. Property values continued to decline..we now can see that the 4th Quarter of 211 was the absolute bottom in terms of price/sf. here in La Quinta, and our other desert cities.
Add to this, the HUGE drop in the Canadian dollar. Canadians were big investors in our local real estate market. Their dollar is trading at approx. .69 cents. Many Canadians, though not short selling, are listing their properties, creating more competition for our local sellers who may already be on the edge as far as what they MUST get out of their home to pay their debts. Add to this the volatility in the Stock market, drop in gas prices, Chinese Stock Market dump, and we have a potential escalation of mortgage problems. It is also indicative to me that Goldman Sachs is setting aside an increased amount of “Mortgage Reserves.” Are they expecting more trouble???
I am currently working a Short Sale that was originally purchased for over 2 million in 2008. A beautifully maintained home at PGA West in La Quinta, we are negotiating our offer with Chase. There are two notes, so it may take awhile, but we are on our way!
If you are behind on your loan, conventional or not, OR if you think you may be headed in that direction, give me a call at 760-285-3578. This short video may help..