Homebuyers hoping to snag a really good deal on a foreclosed home are finding it increasingly difficult because supply is shrinking. Foreclosures are now down over a year ago, There are mixed signals for 2010: It's unclear how much of the drop in mortgage defaults is due to shifting market conditions, and how much is the result of changing foreclosure policies among lenders and loan servicers.
"Clearly, many lenders and servicers have concluded that the traditional foreclosure process isn't necessarily the best way to process market distress, and that losses may be mitigated with so-called short sales or when loan terms are renegotiated with homeowners," said John Walsh, DataQuick president. (http://www.dqnews.com/Articles/2010/News/California/CA-Foreclosures/RRFor100127.aspx)
Not only have attractive homes in popular neighborhoods already been snapped up, but also government help for distressed buyers is delaying more foreclosures. See http://makinghomeaffordable.gov/refinance_eligibility.html
Demand is driving up prices. Investors say typical prices have climbed from 75 percent of appraised value to 85 percent or higher when there are bidding wars on foreclosures. While California ranks 3rd among the States with the highest rates of foreclosure, (Arizona and Nevada are 2nd and 1st respectively) the amount of foreclosed properties currently available has dropped significantly, with the majority newly listed are short sales.
Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.janeloveday.com
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