Due to a recent court case, banks must now "prove" ownership of real estate properties they have foreclosed on in order to sell these properties with insured titles to buyers. (Obviously this is the Reader's Digest version of what is going on.) With all the massive foreclosures taking place and with loans being bundled and sold, title transfers on foreclosed properties often have not been recorded properly as of late. So many pre-foreclosed property owners have received rescission notifications. These foreclosures were for non-judicial foreclosures which means the banks are not suing the sellers for the deficit -- this has been a real great deal for sellers in default. Banks will be restarting the 120 day foreclosure process when a clear title has been properly recorded. It is very possible that banks will come back with a judicial foreclosure notification which would not be good for the default seller.
What does this mean for you?
If you (or someone you know) are a seller of a "short" or delinquent property, you should focus on using this extra time to successfully short sale your default property. Avoiding foreclosure is to your financial advantage and avoiding judicial foreclosure is also to your financial advantage. So, get it sold!
If you are a buyer, less foreclosed properties will be available to you. More short sales will be for sale but now banks should be more motivated to sell these short sale properties. If banks approve short sales, they will get more money, they get their money faster and without law suit possibilities.
Also, less foreclosures means less properties for sale. Fifteen percent less. For sellers, this could be good. For buyers, there will be less selection and less motivation by the seller to accept less than full price offers.
Does this mean our values will stabilize? I personally don't believe these events reflect a stable market.....just more craziness which leads me to believe even more craziness is to come. SO, chin up! Smile! And, Hang on Partner!
Contact Teri Green for more information at (541-350-8424) or email at greent@hasson.com
OR you can visit my website at www.BendOregonRealEstatePLUS.com
All the Best!
Teri
