The Sacramento Short Sale chart to the left shows Short Sales increasing in the Sacramento area month over month. This is an indication that many Sacramento homeowners are in distress and having trouble paying their house payment.
Not surprising with few jobs, 13% unemployment, furloughs and the normal percentage of divorce and relocating out of state homeowners.
Over a 15 month period Short Sales in Sacramento are up a whopping 90% with a 6.9 month supply of Short Sales on the market for sale showing in October 2010.
As of today, the last week in November before all of the latest sales have been formally tabulated, there were an additional 505 properties that were listed in November as Short Sales for sale bringing that total Short Sales for sale up to 2,502.
Back in June 2009, I suggested Sacramento Short Sales would be the new REO and I called that one right. Looks like they are here to stay and with so many issues with banks, MERS and robo signing foreclosed homes are just not that steady on their feet.
With the new law SB931 effective January 1, 2011, where homeowners and investors who are having trouble paying their home loan and seeking to sell their house as a Short Sale will be given a reprieve with the anti deficiency judgment bill on refinanced 1st Deeds of Trust I see the banks making demands on homeowners before accepting a Short Sale.
This is where it will behove the homeowner to check with their CPA and/or attorney before agreeing to pay banks with Promissory Notes etc. in order to have their Short Sale accepted.
Since the banks did not lobby against SB931, it seems that they must have something else up their sleeves…namely requiring a Promissory Note be signed or a contribution by the homeowner before acceptance of the Short Sale. Will the banks be harder to work with on Short Sales? Will the banks foreclose on a property if they don’t get the homeowner to agree to slip them $5,000 or $10,000?
These are strictly my opinion which will be interesting to follow and see what and how the banks react to Short Sales after January 1, 2011.
In the meantime, if you are interested in looking for a home and want to see what is for sale in Sacramento and the surrounding areas, be sure to visit Sacramento Real Estate Neighborhoods where all homes for sale are listed. When you leave your name and email, you will receive the newest home for sale when it comes on the market. And when you have questions and ready to buy, just give me a call.
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