Looking at the “Matrix of Numbers” is very important when your trying to solve any problem, so lets address two numbers. At the time this is being written (Dec 19, 2000) there are 19,495 properties in San Diego County that are in the formal process of foreclosure. (this number can be verified at www.ForeClosureRadar.c0m) This number is twice what is available in the Multiple Listing Service. The main stream media has labeled this as the shadow inventory. In this broker’s opinion the shadow inventory being twice as large as the MLS, is like a rouge elephant who is walking towards the housing market.
Foreclosure is a rough process that no one enjoys , the banks hate it because they end up with destroyed properties, the Sheriff hates it when he arrives to remove the people, the people hate it because losing ones home is very emotional. The Local Government of course would have difficult times dealing with homeless people. The Foreclosure Process is truly the Bermuda Triangle of home ownership and the responsibilities that come along with it for everyone involved.
So now our economy has established the problem lets evaluate the solution that the Government and banks have presented. In early 2009 the Treasury introduced a Program called the Foreclosure Alternate Program. This established that it would be better for the Banks to leave people in their homes while a “Short Sale” could be arranged for. Implementation of the program has been slow but as unemployment has risen and property values have fallen making that shadow even larger. I will compare this to being bounced around in the Bermuda Triangle but the exit is about to arrive. The Treasury has set a date (Apri 2010) and guidelines for the Banks to follow established Short Sale Protocols.
The April 2010 date seems to coincide with the the actions of the major banks and Fannie Mae who have suspended foreclosures during the holiday season. Of course this reprieve for family’s over the holidays will come an go as the clock ticks.
I can only speculate but I believe that shortly after the holidays the Government will be discussing the Foreclosure Alternative Program in the Media with a much greater frequency. Trade organizations like the California Association of Realtors are now sharing what they know with their members about the program. They have posted the broad programs as they have been presented to them on the internet.
This article was written by George Kenner, Broker Associate at Keller Williams Realty in La Mesa. He like all the other Realtors at Short Sale Nurse specialize in this market area. Their experience and professional contacts can aid anyone though what feels like the Bermuda Triangle, call them today for a free consultation.
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