Sacramento Short Sale Specialist Reports on Sacramento Short Sale Market Statistics

 
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Forth Hoyt’s Sacramento Short Sale Center Provides This Sacramento Area Short Sale Report-
Including Sacramento Short Sale Statistics, El Dorado County Short Sale Statistics And Placer County Short Sale Statistics.

It has been so amazing to see how fast short sales have become a main-stay of our market!  They are nearly But when will they start closing?

Look at the graph below! there is only a third of the short sales active on the market as there was 15 months ago, so short sales for sale have declined 79%; yet the number of sold short sale have only increased 34%-

1 month			1 year			15 months
	May 12	June 12	% Change	June 11	June 12	% Change	Apr 11	June 12	% Change
For Sale	634	508	-19.9%	2200	508	-76.9%	2411	508	-78.9%
Sold	755	686	-9.1%	593	686	15.7%	513	686	33.7%
Pended	1222	1255	2.7%	918	1255	36.7%	990	1255	26.8%

Where are all the homes? What is happening?
Who knows, there are a lot of theories, Her’s what Sean O’toole of Foreclosureradar had to say about last months foreclosures and the latest housing legislation:
Sean’s Take —
“Today California Governor Jerry Brown signed into law the Homeowner Bill of Rights, an anti-foreclosure package which naively thinks that slowing foreclosures will benefit homeowners and the economy by leaving those owners stuck in their prison of debt. We’ve long said negative equity, not foreclosures, are the problem, and this bill, like almost all government efforts to date, does nothing to truly help underwater borrowers. Fortunately this bill was watered down significantly from its original form, so we don’t expect it will have the same impact that we’ve seen from more aggressive legislation in Nevada.” stated Sean O’Toole, Founder & CEO of ForeclosureRadar. “Additionally any impact on foreclosures sales, or REO resales, is more than a year a way based on current foreclosure timeframes. The most ironic part of this bills passage is that foreclosures have already plummeted, and that the real housing crisis in now a lack of homes available for sale. Next spring, we expect there will be half as many REO’s available for sale in California, significantly impacting overall home sales and hurting homebuyers, investors, real estate related services and the economy.”
 
More from the June Foreclosure report:
June 2012 Foreclosure Sales were significantly down in the three largest foreclosure states in our coverage area.  California Foreclosure Sales were down 13.4 percent over last month, and down 48.8 percent vs. June 2011.  Arizona Foreclosure Sales were down 18.5 percent over last month, and down 42.1 percent vs. June 2011.  Nevada Foreclosure Sales were down 14.6 percent over last month, and down 72.1 percent vs. June 2011 driven by the new regulation that took effect in October 2011.  In addition, Foreclosure Filings are flat to down in all states in our coverage area, both on a month over month basis and vs. previous year.  Arizona Notice of Sales were down 27.7 percent over last month, Nevada Notice of Defaults were down 22.7 percent over last month, and California Notice of Defaults were basically flat, being down 0.9 percent over last month.
We already have significantly low home sales in the market today, and with the declining level of Foreclosure Sales the inventory will continue to decrease.   In California, banks take on average 272 days to resell properties they take back at auction, thus, Realtors, investors, and homebuyers should brace themselves for significantly less inventory in next years’ selling season.

Sacramento,  Placer and  El Dorado  Counties all short sales 02/18/11

 
 
 
 

Forth Hoyt’s Sacramento Short Sale Center Provides This Sacramento Area Short Sale Report-

Including Sacramento Short Sale Statistics, El Dorado County Short Sale Statistics And Placer County Short Sale Statistics.

I am still amazed at the increase of pendings… the trend of continues- more pendings but the amount of closed deals are lagging…

	1 month			1 year			15 months
	Dec 10	Jan 11	% Change	Jan 10	Jan 11	% Change	Nov 09	Jan 11	% Change
For Sale	3178	3226	1.5%	2075	3226	55.5%	1836	3226	75.7%
Sold	567	463	-18.3%	447	463	3.6%	467	463	-0.9%
Pended	824	1627	97.5%	737	1627	120.8%	720	1627	126%

Give me some Ideas of what you think might be going on… I still stand on my thoughts below, what do you think?

Forth Hoyt’s Sacramento Short Sale Center Provides This Sacramento Area Short Sale Report-

Including Sacramento Short Sale Statistics, El Dorado County Short Sale Statistics And Placer County Short Sale Statistics.

The numbers are amazing- look at the increase of short sale approvals (pending short sales) over the last two months…

1 month			1 year			15 months
	Nov 10	Dec 10	% Change	Dec 09	Dec 10	% Change	Oct 09	Dec 10	% Change
For Sale	2882	2867	-0.5%	1629	2867	76%	1659	2867	72.8%
Sold	431	464	7.7%	551	464	-15.8%	485	464	-4.3%
Pended	792	1201	51.6%	600	1201	100.2%	741	1201	62.1%

Short sales in the entire Sacramento area MLS are increasing, both in number of actives and especially the number of pended or approved short sales…  what is happening with the closed short sales though?

A huge 76%  increase in short sales for sale, 100% increase in short sales going pending (short sales go pending AFTER third party approval or after the bank says they will accept the offer and issue the approval letter).

Why the decrease of  nearly 16% in short sales that are actually closing?

Lets be as honest as possible with today’s short sale environment… There could be many reasons-

1. The prices are still dropping so fast that by the time a short sale approval letter comes from the bank or servicer, (from 30 to 180 days is common) the property is overpriced and the buyer decides to cancel the deal… he can get the same home down the street for 5%-10% less!
2. Issues with pest reports, home inspections etc. are death for a short sale agreement- unless the initial offer was sent in requesting a specific amount to be credited to cover these repairs, the buyer’s only solution once a major problem is discovered is to go back in and try to negotiate with the bank again, sometimes with success, sometimes not.  So some of these escrows could still be open, extended with re-negotiations, some of these have certainly failed though, as many times there is not enough “net” to the bank to cover additional credits to cover these repairs, so the property goes back on the market looking for an As-Is buyer… maybe that’s where some of teh additional active short sales are coming from?
3. Many times, a buyer’s  lender has not put much time into the file of a buyer who is in contingent position on a short sale.  Knowing that over 60% of short sale offers go nowhere, many lenders simply don’t spend much time until they get to into escrow, so by that time, initial documents used to verify the buyers approval are expired, things have changed, overtime income dropped, mortgage programs have ceased and/or a myriad of issues can pop up in a buyer’s situation in the time it takes to get a short sale approval letter- so again, some of these escrows are probably just extended and taking longer to close than the traditional 30 to 45 days, but many of these escrows have failed…

How do we combat this issue? Contact us Today At Forth Hoyt’s Sacramento Short Sale Center and find out today!

 

Forth Hoyt’s Sacramento Short Sale Center Provides A Monthly Sacramento Area Short Sale Report

Including Sacramento Short Sale Statistics, El Dorado County Short Sale Statistics And Placer County Short Sale Statistics

The above chart shows a drastic increase in closed Short Sales in Sacramento, Placer and El Dorado counties in the past two months.  This short sale market information shows that short sales in Sacramento are becoming more and more successful!

The chart below shows the information in a way to better understand the significance ot these changes month over month and year over year.

1 month			1 year
	May 10	June 10	% Change	June 09	June 10	% Change
For Sale	2038	2146	5.3%	2202	2146	-2.5%
Sold	580	627	8.1%	390	627	60.8%
Pended	1040	1606	54.4%	987	1606	62.7%

2010 will definitely be known as the year the short sale went main stream in the Sacramento area.  After a few months of false starts, where escrows were obviously failing after short sales were finally approved and homes went into pending status, Short Sales in Placer,  Sacramento and El Dorado Counties are definitely seeing better “stickability”.

Forth Hoyt’s Sacramento Short Sale Center Provides A Monthly Sacramento Area Short Sale Report

This chart shows short sale approvals, (pending short sales) and short sale actives and sold short sales that have actually closed escrow, in the three county Sacramento area.

I think you can see why I am so excited; Short sales in the Sacramento area are getting approved three times more than just two months ago, statistics showed…

But I am concerned because the CLOSED SHORT SALES have actually fallen from last month, which means most of these approvals have had to back on the market to find new buyers and will probably be counted again in the future as pending once more… Listing agents need to do a better job of ensuring buyer commitment before submitting a short sale package to the lender.

As a top Sacramento short sale listing agent,  my team and I have always done a better job of ensuring buyer commitment before submitting a short sale package to the lender.  Now that short sales are getting approved faster, it only makes sense that  every agent does a better job of making sure the buyer’s offer they submit is from a buyer who is actually motivated to buy the property!
See How I ENSURE BUYER COMMITMENT Here.
Government Programs… Which Do You Qualify For? Check Your Eligibility Now!
Questions? Comments? Contact us here at the Sacramento Short Sale Center

Sacramento Short Sale Center Provides A Monthly Sacramento Area Short Sale Report

Sacramento, Placer and El Dorado County Short Sales are becoming more and more successful!

Short Sales Are Being Approved!

So it’s great to see we are finally getting some traction on short sales and finally getting some short sale transactions closed! What has made such a huge difference? I think a number of things are going on; lenders are getting their systems more refined, agents are getting better at short sale processing and getting their own short sale systems going better and all parties involved are getting more experienced.  And definitely the investors (the end-user or actual note holders) are finally getting it that the market is not getting better; the faster they can get market price for their asset, the more money they will make; because market value is continuing to decline!

With the newest government short sale program; HAFA going live earlier this week (April 5 HAFA started). The administration’s Home Affordable Foreclosure Alternatives (HAFA) program is going to effect every corner of our industry – brokers and agents, servicers and lenders, and technology vendors and educational gurus– will all have a part to ensure the short sale program’s success.

Only thing is: only 30%-40% of outstanding loans will qualify for HAFA because Fannie Mae and Freddie Mac are not participation!

So that means that all this hoopla is over a program that the lions share of mortgages won’t even be included in! It is still good for the short sale market as a whole, though, because it sets a new benchmark and goals for timeliness and answers and the systems and guidelines will become best practices in the industry for all.

Sacramento Short Sale Center Provides A Monthly Sacramento Area Short Sale Report

Pended and approved short sales are definitely on the rise here in the Sacramento real estate market.

With programs like HAFA and the changes to HAMP, the short sale is becoming a more mainstream solution and definitely helping more and more people avoid foreclosure. But the short sale process is still a long, long way from being smooth, predictable and without surprises.

We just lost a short sale to foreclosure the other day that was not supposed to go to foreclosure auction. We had written (e-mail)n confirmation from the negotiator that the trustee sale had been postponed. We had already had this file postponed once, and the banks appraiser had just called me the day before to get in and do his report on the home, (this was their second appraisal) in order to update their valuations.

We had gotten an approval a few months ago on this short sale file, but the buyers had walked, so we had to put it back on the market (we had backups in the file but none of the buyers were interested in updating their offers, they had all moved on) in order to find another buyer. The second offer was twelve thousand lower so the bank wanted to do another appraisal.

Everybody was surprised but the homeowner; she said “oh, that’s about par for the course, those guys don’t know what they are doing”. She had tried for months to do a loan modification, before HAMP came out, so she had actually moved on, moved in with her family and was trying to do the right thing by doing a short sale. She had been very helpful and willing to get anything the negotiators at the bank ever asked from her; updated bank statements and pay stubs, new financial statement, any time we called her for information she would nearly immediately gather the documents and drive to Kinko’s and fax them to us.

It is just so frustrating to put so much time and effort into a short sale file and have something like this happen. And there is absolutely nothing we can do about it; we talked to managers, to everyone we could get on the phone at the bank, but to no avail.