Bank owned property and short sales are becoming very hard to find, and when you do, it's usually not worth the effort because of the amount of work needed compared to the traditional competition. This is a good explaination of what's happening in that market.
Has The REO Gravy Train Made It's Last Stop?
I ask you take a good look around your area at the REO listings. We know how much of that market is Fannie Mae and Freddie Mac. Both mortgage behemoths have taken to listing their foreclosure homes at or close to market value. Gone are the fire sale days of picking up homes for pennies on the dollar. Now true there are still many smaller investors/banks that are willing to cut their losses and dump their foreclosure properties but, that well is drying up also.
I guess the revelation hit me when one of my short sale contracts has started to crumble. It turns out the "investor"( Investor is the entity that actually "owns" the mortgage) is Fannie Mae. While Wells Fargo is the bank that is servicing the loan and whom we are dealing with they answer to Fannie Mae. So it seems Fannie Mae has decided to hold the line on what they will take as a purchase price for this property. The amount they are requesting is the market value of the house. This will make the mortgage payoff less then $7,000. Now considering I have done short sale deals with Wells Fargo as the servicing bank in the past that have been short much, much more. I have had short sales with Fannie Mae that were more in the past also. So between the listing price and negotiating deals with Fannie Mae and Freddie Mac that I have been seeing and coupled with the Short Sale pricelines that are now starting to surface it shows me the trend is changing.
For the investor that is thinking they can pay pennies on the dollar for a home your train maybe leaving the station or having it's last boarding call. Just remember you as a buyer are not the only one out there. Many investors are looking and competing for that very same "Deal". It brings a whole new meaning to "first come, first serve"
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Larry is a Greensboro Residential Broker, Certified Relocation Specialist, luxury homes and farm/land specialist, and certified in Short Sales and Foreclosure homes, SFR, SRES & CHMS who can assist you with the purchase and/or sale of real estate in the Piedmont Triad Area that include but, not limited to Greensboro, High Point, and Winston Salem, North Carolina. If you’re relocating to or from any other area of the country, Larry connects you with a member of our national team of relocation specialist in your destination or exit city of choice. The destination service is of no cost to you! As your Personal Concierge Realtor Larry provides customer service that is equal to none. Your complete happiness is our top priority! Larry Story — Total Care Realty, LLC — 336-327-1841 also at http://totalcarerealty.netCopyright© 2010 By Larry Story, All Rights Reserved…
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FTC effective January 31, 2011
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