There have been a number of recent articles about banks ramping up their foreclosure starts for 2012. There is definitely a lack of inventory listed for sale on the MLS for the Inland Empire. In many areas, there is less than 25% of the “normal” number of homes for sale at any given time. Banks stalled initiating and processing foreclosures in 2011 with the “robo-signing” scandal affecting several of the largest lenders. With those issues largely behind them, banks are poised to begin foreclosing on properties in record numbers.
Many homeowners continue to stay in their home long after missing their first mortgage payment. There are many stories of folks being able to stay in their homes for 12, 16, even 24+ months without making a mortgage payment. If you are in that position, it might be time to consider listing your home for a short sale. The effects of a short sale on your credit are much better than foreclosure. A short sale limits your lender’s loss and also potentially limits your liability to the cancelled debt after the sale. A foreclosure has a far greater impact on credit and leaves the homeowner vulnerable to tax and legal issues after the bank takes the property.
It is an excellent time to list your property for a short sale and odds of successfully closing the sale are continuing to improve. Properties go into escrow very quickly as buyers are eager to take advantage of the low home prices and interest rates. Once the banks step up foreclosure proceedings and the wave of REO properties hit the market, your short sale listing will be competing with the REO listings for buyers. At the moment, it’s a wide open field. Give us a call any time to discuss your options. 951-846-9025.