Sacramento Real Estate Views

Total Number of Homes for Sales Continues to Rise

Percentage of Short Sales Increasing

The total number of single family homes for sale is continuing to increase for the 8th month in a row.

There are, as of this writing, 7883 home on the market in the 3 county area of Placer, Sacramento and El Dorado.

Getting short sales approved has become easier and many more people are choosing to sell their distressed home short in the Sacramento, Rocklin and Roseville real estate markets.

The increase in the total number of homes for sale is bound to get worse as we enter the slower selling fall months.

Homes just aren’t selling as fast and as the number of available homes for sale continues to climb, values must be affected adversely, again.  Simple supply and demand.

Short Sales By City

The percentage of homes in short sale has increased.  Currently, short sales in occupy 30% of the homes for sale in the 3 county area.

Individual cities in Placer county have much higher percentages.

In this report, Rocklin leads the pack at 39% of the available homes for sale being  in short sale.  Next is Lincoln and Sacramento at 35%, Roseville at 33% and Granite Bay at 14%.

I think timing is at play in Rocklin with the bulk of new construction being completed in the 2001 to 2003 time frame when the market was going up very fast.

The point here is that more and more homeowners in distress are choosing the short sale route as it is much easier process than it used to be and the credit ramifications, especially for purchase money loans, are less severe.

Are you considering selling your home short?  For more information on short sales, click here.  Additionally, if you’d like a no obligation, confidential consultation, please fill out the form below and we’ll be in contact with you promptly.

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Tags: granite bay, Lincoln, Rocklin, Roseville, sacramento, short sale

Have You Received a Notice of Default?

Time Is Of The ESSENCE!

If you’ve received a Notice of Default and are in the beginning stages of the foreclosure process, you have a small window of opportunity to sell your home short and avoid the trustee’s sale.

If you don’t get the documents to the bank very early in the process, they could deny your sale and your home could go to auction.

Once the house sells at auction, you’re rights to stay in the home are gone and you’ll need to move almost immediately upon the close of the auction.

My recommendation is to have the required documents to the bank 30 days prior to the trustee’s sale to make every attempt to get a postponement.

What You’ll Need To Get It Done

Selling your home short is a stressful process but foreclosure is worse.  You can make it easier by being prepared upfront before you communicate with your bank about your desire to sell your home for less than you owe.

Your lender is going to require that you substantiate your reason to sell short and they are going to want all of your personal financial information upfront as well as documentation regarding your situation and the listing of your home.

Here is a brief list of what is commonly asked for from most lenders.

List of Required Documents

Most lenders, with few exceptions, will request a list of documents from you much like the list below.  This information is personal but you’ll want to provide everything as concisely as possible so that you’ll be considered for a short sale.

Selling your home short is a far better option than going through the foreclosure process.

• Bank Statements – If you’re are employed, you’ll need two months. If you’re self employed you’ll need 4 months.
• Financial worksheet monthly expenses – The lender or bank is going to want to know where your money is going.
• Copy of your homeowners insurance policy.
• A hardship letter signed and dated – Lenders need to see why your can no longer afford your home.
• Two recent pay stubs.
• Two of your most current year tax returns.
• 1099’s or W-2’s for the last two years.
• Proof of occupancy – utility bill of some kind.
• 4506T request for tax transcripts

At the same time you send in these documents, you’ll want to also show that the house has been listed for sale and that you have a contract pending their approval of the sale as well as all of the buyers documents.

Loan Modifications

What I’ve found is that the larger lenders want their borrowers to go through the loan modification process first to find a solution rather than go directly into a short sale.  Once you’re in the loan modification process, everything from a foreclosure sale perspective stops.

While this isn’t always the case that they want you to go through the loan modification process, it doesn’t hurt even if your intention is to sell short regardless of the outcome.

At this point, lenders/investors haven’t been willing to reduce principal loan amounts to keep people in their homes.  Reducing principal loan amounts is the only viable solution for the homeowner for the long term but for the banks, they’d rather foreclose or sell short than to lower the principal loan amount.

This makes NO SENSE but there must be a reason for it on their level.  I know no one who has any rational idea of why this is.

Now What?

After you have all of your very personal information together, you’ll need to have someone knowledgeable about the process put the house on the market and help negotiate the sale for you.

You don’t want to do this on your own as it is VERY frustrating and could stress you beyond your rational limits.

It’s always better, especially if it costs you nothing, to have a Realtor handle the short sale for you.

We have a professional negotiation team handle all our short sales and we close a very high percentage of them as a result.  We keep you updated weekly so that you know every step of the way where we are in the process.

Looking to sell short?  If you’d like more information on how we handle short sales, please fill out the form below for additional information and we’ll get back to you promptly.

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Tags: Rocklin, Roseville, sacramento, short sale

The Sacramento Regional Real Estate Market Is Shifting!

Homes for Sale Continues Increase

The total number of homes for sale in the Sacramento region has been steadily increasing all year.  Now that the federal first time home buyer tax credit is gone and the California tax credit is almost gone, buying has slowed.

Where does that leave our market?

As the inventory continues to increase, there will be downward pressure on values.  I’m seeing that in the offers I’m submitting.

I have a client who submitted offers on 7 bank owned homes in Sacramento.  Each offer was roughly 8% to 12% below the listed price but in line with the average market value.

In the past, none of the sellers would have been responded to any of these offers.  We got responses from 6 of the 7.  If they had higher offers, would they be responding to a low offer?  No they wouldn’t.

The real estate market is shifting.  The lower end investment grade homes are building up.  We could see another dip in our housing market before the end of the year.

Frankly, I’m happy to see it slow down and become a bit more balanced.  Buyers will have a greater selection of homes to choose from and prices will hold or decline slightly if everything stays similar.

Homes For Sale By Status

These percentages haven’t changed much over the last couple of months but the numbers have  increased.

Bank owned homes, or foreclosures, are just 18% of the available homes for sale.

Foreclosures are being cancelled in record numbers in favor of short sales.

Short sales occupy 29% of the market and the remaining 54% are regular real estate listings.

The number of regular real estate listings out there seems high considering there isn’t much equity left in the marketplace.  That said, it’s good to see.

Are you considering selling your home?  If you’d like information about selling your home, please fill out the form below and we’ll get back to you promptly.

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Tags: Homes For Sale, Rocklin, Roseville, short sale