As NC Realtors, I list and process my own short sales, but I also process short sales of agents that belong to other agencies. I do this under the short sale negotiating attorney they have retained to help their seller.
I am starting to see a decrease in the number of new short sales that I am bringing in, along with the number of short sales being brought in by others. I am located in the Raleigh, Durham, Chapel Hill areas of NC.
Have you noticed a change? If so, where are you geographically located?
I've noticed a dramatic decrease in the response rate for direct mail marketing in King County WA, I am currently getting less than 1% since last fall. I have incoporated door knocking into my campaign and find out many homeowners are being offer loan mod from the bank even when there is already an Auction Date set. Some got offered the trial period, but most are getting loan mod paperwork from their bank to fill out and apply. At this stage of the foreclosure (NOD), isn't this giving homeowners false hope? But many homeowner cling to that false hope and apply unknowing the risk, which I believe contribute partly to the decrease response rate.
Trong, thanks for the thorough report. I suspect you are right about the loan mods because the banks seem to do everything possible to deny them. The banks probably find that "working on" loan mods while the property goes to sheriff sale causes them less hassle than if they have agents and a buyer pushing them to get a short sale done. Just a "sorry YOU were too slow" in the mail to the ex-homeowner and they are done.
Trong and Joe,
This is my .02 worth on what is causing a shortage of short sale listings here in the Windy City...
Fact: New short sale inventory is low in most real estate offices across the city of Chicago and surrounding suburbs…I attribute a lot of this to the government push for “mandatory” approval of loan modifications instead of foreclosure for the average “distressed” homeowner. If you have a decent pay check coming in and can provide tax returns to prove it, you will most likely qualify for some type of modification now-Most of the time, it is a reduction in percentage % of interest - This was due to the attorney general’s settlement agreement w/ the top 5 mortgage servicers- (I do some not-for-profit loan-mod work when I have down-time and have recently gotten loan mods completed in several very difficult cases…I also suspect that more and more attorneys are getting into the foreclosure defense market and helping homeowners take advantage of staying "rent/mortgage-free" in their homes for at least 2-3 years and in some cases 4 years...It's almost becoming a game to see how long "one" can stay in their home w/out paying their mortgage payment or property taxes...For the record, I am a homeowner advocate and defend their intentions of trying a loan mod before calling it quits and moving on to plan B, the "short sale"...Over the last several years, I have constantly experienced mortgage servicer's inept work out solutions-- This may be entirely due to investor guidelines but all in all, it's certainly crazy stuff we're seeing in today's market which has left me scratching my head and wondering what's next-???
2012 Distressed Residential Properties NW- See attached stats.
I'm in Charlotte, NC and have been busier than ever with my short sale business and have had to hire help to keep up. I have several clients who were told by their banks to find a short sale agent because the bank didn't want to/weren't going to foreclose. I also have had several referrals from banks directly. Maybe the banks have realized it is cheaper for them to short sell rather than go through the foreclosure process? I don't know, but I'll keep working them. There are so few agents around here that want to do short sales and many will tell you they are going away, but I just don't see it.
I am receiving multiple offers on my listings too. Had 4 go under contract last week and 3 were above list. One house I listed on a Friday, was under contract by Wednesday with 7 offers. I have been re-thinking the pricing on my new listings because I'm getting so many offers above list. I don't want them to languish on the market, but I'd like to try to get a little more money for my clients if I can. I can't wait to see what the spring will offer. Charlotte's inventory is low and there are no homes to be found in some areas in south Charlotte and anything decent is being snapped up quick.
Swimming upstream, eh? Sounds terrific - I'll be on the next jet down! I love arm-wrestling with these banks.. HA!