CoreLogic offers this report on the foreclosure and REO market:
They estimate there has been a 24% decrease in nationwide foreclosures as measured by this time last year but REO’s are clearing out faster than foreclosures. This means a sharp turnaround for investors with cash-they are clearing out properties much faster, which quickly lowers inventory. Call or email me today for a full list of great investment properties right here in Elgin and the Fox Valley area!
that banks don’t want properties from foreclosures and short sales sitting on their ledgers? Think again! According to data company CoreLogic, there is a “shadow inventory” of 1.6 million homes, helping to drag down prices and stall out an already stagnant real estate market. Banks are happy to sit and wait, and wait, and wait, even as their automated pricing matrices tick downward. Some of my buyers put in offers and end up waiting around for months for a slow “No” response. As their buyer’s agent, I can call the bank every day to find out the status, but usually get the run around. The listing agent sometimes has better luck, but only if their paperwork has been submitted accurately the first time. The most frustrating part of this is often the bank’s own pricing strategies that are automatically lowering the list price every 30-45 days, even if a valid offer has been presented! Exactly how does a Realtor explain that the original list price that the buyer agreed to has been lowered, but not by a counter offer? Does the lower listing price mean the bank is now agreeing to take a lower price and we should try to re-submit a new offer? But by doing that, does that re-start the entire process from Day 1 again? Unfortunately, every bank is different and each one has their own set of rules. Even the most experienced Realtors out there have not done business with every single mortgage lender that is available today and can get hung up on discrepancies.
Buyers can still benefit from the low market prices and great mortgage rates, but should be wary of a “fast closing” on a short sale or foreclosure. You may be better off buying a non-foreclosure or a regular home for sale. The time savings alone may be worth the cost of patience it will take to wait out a bank’s procedures.