Sacramento Real Estate Views

Why Bank Owned Homes Are Difficult To Finance

Seller’s Take the Path of Least Resistance

Most bank owned homes are challenged.  Generally they are not in good condition and the homes that are in good condition are receiving multiple offers.  The sellers of these homes would rather take a lower all cash offer than to even attempt to get a financed offer closed.

Add this to the fact that the lenders are more strict than ever in demanding that they asset they are loaning against is in good condition and who can blame them.  They want to make sure all of the safety hazards have been addressed and at a minimum the home is needs as little fix up as possible.

Unless you’re getting a rehab FHA loan, it’s tough out there especially for the first time home buyer.

The home I visited today was typical of the bank owned homes in the Sacramento real estate market.  If you have questions, please feel free to contact me and I’ll respond to your questions promptly.

Thanks for watching!

Tags: sacramento foreclosed homes

2008 Foreclosure Report

U.S. Foreclosures Increase 81% from 2007

RealtyTrac.com, the leading online resource for foreclosures nationwide, release a report citing the foreclosure rate increased 81% in 2008 over 2007.  This isn’t much of a surprise and the decline got a head of steam in 2008.  By anyone’s estimation, however, 81% is an enormous number.

Over 2.3 million properties received a foreclosure filing nationwide. Here in California, over 500,000 homes received a NOD or notice of default, the first step in the foreclosure process signifying that a homeowner is at least 60 days late on their mortgage, typically.

The Sacramento Region

I’ve heard from various sources that it’s going to get worse before it gets better.  The state legislation that I’ve talked about ad nauseum has done nothing more than delay the process in our area thus resulting in a 34.8% increase in foreclosures in the month of December over November of 2008.

As the economy and the unemployment situation worsens, the foreclosure rate in the area may continue to increase through 2009.  So far, there are no signs from Washington of any more intervention that could further delay the process.  If they focus on the economy, the rest will follow suit, in my humble opinion.

Total foreclosures for the month of December were 5,150 in Sacramento County alone.  This isn’t the highest month of foreclosures in 2008 but it’s right up there.  The second quarter of 2008 was especially bad.

We’ll keep you posted.  Thanks for visiting.

(The chart represents cities with 100 foreclosures or more)

Tags: sacramento foreclosed homes, sacramento real estate