Foreclosures - Is There Another Shoe to Fall?
May 13, 2009
I keep reading in the media that there is another wave of foreclosures coming to the real estate market that could cause a softening of prices. I have been hearing this warning for several months, yet I have not discovered where these bank owned properties are being held. I know that last fall there was a moratorium on Fannie Mae and Freddie Mac foreclosures being completed, but I believe that the ban has been lifted.
In my puzzlement, I asked an agent who has been representing bank owned properties for the past several years. He confirmed that his listing inventory has shrunk dramatically. His contacts at the banks say that they have drawers of files, but that they only have a few active files. Will these drawers of files suddenly be released and flood the market with distressed properties? Do any of you know of properties that have been abandoned or foreclosed that have not yet come to market? Or are these files, properties that are being negotiated for loan modifications and they will never come to market? Speaking of loan modifications, how many of you that read this blog have a personal contact with a borrower who has been able to successfully modify a loan? Hit the comment button and let us know.
Just as a point of reference, of the properties currently listed in the IMRMLS, the percentage of bank owned to active listings range from a high of 35.5% in Bloomington to a low of 5.5% in the Yucaipa/Calimesa area. Since I have not tracked this statistic, I have no comparison to what it might have been a year ago at the low of the market. I'll check it out in the future.
I keep reading in the media that there is another wave of foreclosures coming to the real estate market that could cause a softening of prices. I have been hearing this warning for several months, yet I have not discovered where these bank owned properties are being held. I know that last fall there was a moratorium on Fannie Mae and Freddie Mac foreclosures being completed, but I believe that the ban has been lifted.
In my puzzlement, I asked an agent who has been representing bank owned properties for the past several years. He confirmed that his listing inventory has shrunk dramatically. His contacts at the banks say that they have drawers of files, but that they only have a few active files. Will these drawers of files suddenly be released and flood the market with distressed properties? Do any of you know of properties that have been abandoned or foreclosed that have not yet come to market? Or are these files, properties that are being negotiated for loan modifications and they will never come to market? Speaking of loan modifications, how many of you that read this blog have a personal contact with a borrower who has been able to successfully modify a loan? Hit the comment button and let us know.
Just as a point of reference, of the properties currently listed in the IMRMLS, the percentage of bank owned to active listings range from a high of 35.5% in Bloomington to a low of 5.5% in the Yucaipa/Calimesa area. Since I have not tracked this statistic, I have no comparison to what it might have been a year ago at the low of the market. I'll check it out in the future.
posted by shirley harry at 7:51 AM
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