Sacramento Short Sales… All the rage in 2010
January 19th, 2010 Categories: Sacramento Economy, Shortsales
Sacramento Short Sales Shark Attack
“Just when you thought it was safe to go back in the water…”
“Houston, we have a problem…”
“We’re not in Kansas anymore, Toto!
Can’t think of any more silly quotes right now, been a long day, but I just got an email from Chris McLaughlin, one of the nations top real estate attorneys and a huge investor of real estate; hope he doesn’t mind, but it was so interesting I thought I’d pass it on to you here.
Forth,
Just when you thought things were turning the corner…
looks like we could be in for a double dip recession.
Don’t take my word for it … why do you think the FHA recently gave the green light for property flipping to FHA buyers? They know things are going to get worse, so they need to start moving more properties ASAP.
Here’s why:
#1 While the subprime crisis may be showing signs of
stabilizing, the ARM crisis is just beginning to rear
its ugly head.
According to one business journalist: “The big wave of Option ARM resets has yet to come, and given the drop in home prices, refinancing won’t be realistic.”
Look for more short sales coming in 2010.
#2. Municipal Defaults: yep, local towns and counties
are feeling the pinch with foreclosures and tax
defaults draining their coffers. And when a town
goes broke, it will put their resident’s property
even further underwater.
Look for more short sales coming in 2010.
#3. Commercial Real-Estate Collapse: The second
largest chain of malls has already declared
bankruptcy. Obligations needing refinancing
in the commercial market are in the trillions.
And most of them, even with positive cash flows,
are as underwater as residential mortgages. As
these businesses crash, they will cause even
more unemployment.
Look for more short sales coming in 2010.
#4. Loan modifications aren’t working. Unless
and until there is meaningful principal reduction,
most people getting a loan modification will stop
making their payments if they are $100,000+
upside down on their home. And there are A LOT
of people upside down. Look for lots of “jingle
mail,” where the homeowner just sends back the
keys, in 2010.
Look for more short sales coming in 2010.
But look for a lot more buyers now that FHA has given the green light.
Are you seeing a theme yet?
