Feb 5, 2009

Foreclosures - The Third Wave

...is coming.

Neighborly has partnered with one of the top foreclosure listing agents in California, all of the US actually.

We had lunch with that team a couple of weeks ago. Nice group, VERY busy!

...and they are going to get busier.

The 3rd big wave of REO ("Real Estate Owned") foreclosure properties is going to hit the market in February and March. Why? That's the next big round of adjustments in those insanely bad adjustable rate mortgages written in the earlier part of this decade. As those rates jump up, people will be walking away from their homes.

Our partner has been told to "clear the decks" in anticipation of this influx. He's scrambling to get ready for the flood of inventory.

What does this mean to the buyer?

More inventory to choose from soon. Lower prices. More competition for the really good looking homes.

What does this mean to the seller?

More downward price pressure if you are trying to sell. Offers coming in at REO prices for your "regular" sale. Tough.

If you want some of the inventory lists as they become available, drop us an email. We are tracking spreadsheets of inventory with our broker partners.

Many thanks,

- Jim


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