Sacramento Realtor Right On Target

September 15th, 2008 categories: Foreclosure, Real Estate, Sacramento

Sacramento Realtor As Realtors there are many of us who have been dealing with Short Sales, Foreclosures, Bank owned condos and homes for sale as well as what we refer to as REO properties.

For quite sometime, as a Realtor in the Sacramento area I have long thought that the banks have done themselves in, but until now I had no proof.

At this point, I am right on target. The banks are hurting themselves BIG TIME and I now have proof.

Not just speculation but down and out right proof that the banks have ended up much shorter than they ever intended due simply to their inability to perform in the Real Estate arena. Selling houses is NOT what banks do best.

Here is an true example that you can take to the bank…

Last year Mr. & Mrs. K asked me to help find a condo for their son who was enrolled at Sacramento State University. If you didn’t catch that statement, let me repeat…LAST YEAR

I found a wonderful condo in a gated community within 5 minutes from Sac State. The condo was a 2 bedroom, 2 bath condo with 968 square feet with a pool and rec room. The condo was listed as a Short Sale for $220,000. Mr. & Mrs. K loved the condo and offered the bank $205,000. We never heard a word.Wikipedia for short sale definition

Meanwhile, I showed Mr. & Mrs. K a different condo complex were they purchased a condo for sale for their son.

Now, here we are in 2008 and a new buyer, Mr. & Mrs. C contacted me looking for a condo for their son who would be attending Sacramento State University. I immediately thought of the wonderful gated condo complex that I had show Mr. & Mrs. K last year and pulled several condos for sale in that complex for them to see.

What to my wondering eyes should appear? The same exact condo was still for sale but now it was no longer a Short Sale but an REO or Bank owned property. The bank had foreclosed on this condo.

Good old Bank of America who had ignored Mr. & Mrs. K’s offer last year is now selling the condo for $114,900. It’s been on the market for 210 days and Mr. & Mrs. C have decided to make an offer on this same condo. Wikipedia definition for Bank owned, REO, Foreclosure

Now, in the meantime, due to all of the Short Sales and Foreclosures, the owner occupancy percentage has changed dramatically. Most Lenders require that there be 60% owners living at the complex before loaning an monies. Unfortunately, the percentage of owners living in the complex falls short of that amount.

So, my clients Mr. & Mrs. C will be offering a very low all cash offer to the Bank.

This is a great deal for my clients and their son. We’ll see how the banks manage to respond this time to an offer.

As you can see, Bank of America lost a great deal of money. They could have sold this condo last year to Mr. & Mrs. K for $205,000. Now, they will be lucky to get $80,000.

I say, I’m right on target on this one and I had the proof.

So much for the Banks being in the Real Estate business. Time for the Banks to get out of the way of the transactions and let the Realtors sell these properties. Let the Realtors use Title companies that are in the same area as the property and get with the program. Start accepting the offers when you first get them. You’ll be much better off and the nation can get on with the recovery. The longer you, Banks keep dilly dallying around with the Short Sales and the Foreclosures, the longer it will take for our economy to recover.

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